administrative regulations · 2020. 11. 17. · chapter 1, page 1 revised & adopted july 2017...

ADMINISTRATIVE REGULATIONS

Table of Contents – Page 1 Revised & Adopted July 11, 2017

Town of Prosper Administrative Regulations

TABLE OF CONTENTS

Chapter 1: Introduction and General Provisions Distribution and Access ................................................................................................................................................... 1.01 Amendments and Updates .............................................................................................................................................. 1.02

Chapter 2: Employment Job Posting ............................................................................................................................................................................. 2.01 Recruitment and Selection .............................................................................................................................................. 2.02 Residency ............................................................................................................................................................................... 2.03 Background Checks ............................................................................................................................................................ 2.04 Nepotism ................................................................................................................................................................................ 2.05 Medical Examinations/Fitness for Duty .................................................................................................................... 2.06 Outside Employment ......................................................................................................................................................... 2.06

Chapter 3: Employee Development, Personnel Actions, and Records New Hire Orientation ........................................................................................................................................................ 3.01 Probationary Period .......................................................................................................................................................... 3.02 Employee Professional Development Assessment System ............................................................................... 3.03 Pay Classifications and Job Descriptions .................................................................................................................. 3.04 Employee Development and Training ........................................................................................................................ 3.05 Tuition Reimbursement ................................................................................................................................................... 3.06 Transfers ................................................................................................................................................................................ 3.07 Employee Record ................................................................................................................................................................ 3.08 Separation of Employment ............................................................................................................................................. 3.09

Chapter 4: Leaves of Absence Vacation .................................................................................................................................................................................. 4.01 Family and Medical Leave ............................................................................................................................................... 4.02

Chapter 5: Compensation Procedures for Receiving Pay ........................................................................................................................................ 5.01 Payroll Deductions ............................................................................................................................................................. 5.02 Primary and Secondary Positions ................................................................................................................................ 5.03 Continuous Process Improvement Incentive Pay ................................................................................................. 5.04 Employee Recognition Program................................................................................................................................... 5.05


Chapter 6: Work Environment Drug and Alcohol Use ........................................................................................................................................................ 6.01 Employee Safety and Accident/Incident Reporting ............................................................................................. 6.02

Chapter 7: Miscellaneous Travel Expenses................................................................................................................................................................... 7.01 Reimbursement for Professional Development Activities ................................................................................ 7.02 Solicitation ............................................................................................................................................................................. 7.03 Gifts ........................................................................................................................................................................................... 7.04 Conflict of Interest .............................................................................................................................................................. 7.05 Inclusion and Community Links Webpage ............................................................................................................... 7.06 Employee Use of Social Media Platforms.................................................................................................................. 7.07

Chapter 8: Wireless Equipment and Services Use General Provisions ............................................................................................................................................................. 8.01 Cellular Phone Allowance Program ............................................................................................................................ 8.02 Town-Owned Pooled Minute Cellular Phone Program ....................................................................................... 8.03 Other Wireless Equipment and Services ................................................................................................................... 8.04

Chapter 9: Grant Management Roles and Responsibilities .............................................................................................................................................. 9.01 Procedures ............................................................................................................................................................................. 9.02

Chapter 10: Cash Handling Purpose ................................................................................................................................................................ ................. 10.01 Liability for Loss ................................................................................................................................................................ 10.02 Regulation, Establishing, Terminating, and Securing Cash Funds................................................................ 10.03 Regulation of Deposits..... .............................................................................................................................................. 10.04

Chapter 11: Purchasing Organizational Responsibilities .................................................................................................................................. 11.01 Ethics ...................................................................................................................................................................................... 11.02 Requisition Requirements ............................................................................................................................................ 11.03 Purchasing Thresholds ................................................................................................................................................... 11.04


Methods of Procurement ............................................................................................................................................... 11.05 Procurement Card Program ......................................................................................................................................... 11.06 Receipt of Goods/Services ............................................................................................................................................ 11.07 Disposal of Salvage/Surplus Property ..................................................................................................................... 11.08

Purchasing Manual ....................................................................................................................................................... Ex. A Purchase Requisition Instructions ....................................................................................................................Ex. B

Chapter 12: Vehicle Equipment/Replacement Fund (VERF) Program

Organizational Responsibilities ..................................................................................................................................12.02 Replacement Request Process ..................................................................................................................................... .12.03 Replacement Criteria........................................................................................................................................................12.04 Replacement Funding ...................................................................................................................................................... 12.05

Replacement Criteria ................................................................................................................................................... Ex. A

Chapter 13: Fund Balance Policy Purpose and Overview ................................................................................................................................................... 13.01 Definitions and Categories ............................................................................................................................................ 13.01

Chapter 14: Municipal Chamber Room Reservations General Provisions ........................................................................................................................................................... 14.01

Chapter 15: Debt Management Policy Purpose and Overview ................................................................................................................................................... 15.01 Scope ...................................................................................................................................................................................... 15.02 Objectives ............................................................................................................................................................................. 15.03 Implementation ................................................................................................................................................................ . 15.04 Structure of Debt ............................................................................................................................................................... 15.05 Financing Alternatives .................................................................................................................................................... 15.06 Methods of Sale .................................................................................................................................................................. 15.07 Refunding of Debt ............................................................................................................................................................. 15.08 Debt Limits .......................................................................................................................................................................... 15.09 Maturity Levels ................................................................................................................................................................ . 15.10 Management of Debt Service Fund ............................................................................................................................ 15.11 Ratings ................................................................................................................................................................ ................... 15.12 Continuing Disclosure ..................................................................................................................................................... 15.13 Selection of Financial Advisor ..................................................................................................................................... 15.14 Selection of Bond Counsel ............................................................................................................................................. 15.15

Policy ...................................................................................................................................................................................... 12.01

Table of Contents – Page 4

Chapter 16: Debt Post Issuance Policy Purpose and Overview ............................................................................................................................ 16.01 General Procedures ................................................................................................................................ 16.02 Designation of Responsible Person ......................................................................................................... 16.03 External Advisor/Documentation ........................................................................................................... 16.04 Arbitrage Rebate and Yield ..................................................................................................................... 16.05 Use of Bond Proceeds and Bond-Financed or Refinanced Assets .......................................................... 16.06 Record Keeping Requirement ................................................................................................................. 16.07

Chapter 17: Financial Management Policy Purpose and Overview ............................................................................................................................ 17.01 Scope ....................................................................................................................................................... 17.02 Accounting, Auditing, and Financial Reporting ....................................................................................... 17.03 Internal Controls ..................................................................................................................................... 17.04 Operating Budget .................................................................................................................................... 17.05 Capital Improvement Program ............................................................................................................... 17.06 Revenue Management ............................................................................................................................ 17.07 Expenditure Control ................................................................................................................................ 17.08 Asset Management ................................................................................................................................. 17.09 Financial Condition and Reserves ........................................................................................................... 17.10 Debt Management .................................................................................................................................. 17.11 Staffing and Training ............................................................................................................................... 17.12 Grant Management ................................................................................................................................. 17.13

Revised & Adopted July 11, 2017

Chapter 18: Public and Media Relations Policy Social Media .......................................................................................................................................... 18.01

Chapter 19: Clean Fleet and Vehicle Idle Reduction Program Clean Fleet Policy................................................................................................................................... 19.01 Vehicle Idle Reduction........................................................................................................................... 19.02

Media Relations..................................................................................................................................... 18.02 Photography and Video Recording........................................................................................................ 18.03

Chapter 20: Records Management

Purpose and Overview ................................................................................................ 20.01

Authority and Governance .......................................................................................... 20.02

Roles and Responsibilities .....................................•..................................................... 20.03

Record Retention Schedules................................................................................................... 20.04

Boxing Instructions ................ _. ............ , ............ ........................................... , ......... .

Storage Standards .......................... : ....................................................................... .

20.05

20.06

Records Disposition and Destruction ............................................................ ............ 20.07

Electronic Storage................................................................................................... 20.08

Records Retrieval..................................................................... ............................... 20.09

Public Information Requests................................................................................ 20.10

Litigation Holds........................................................................................... ........... 20.11

Disaster Prevention and Recovery ............................................................ ................. 20.12

Email Retention.......................................................................................... .............. 20.13

Chapter 1, Page 1 Revised & Adopted July 2017

TOWN OF PROSPER ADMINISTRATIVE REGULATIONS

CHAPTER 1: INTRODUCTION AND GENERAL PROVISIONS

SECTION 1.01: DISTRIBUTION AND ACCESS

A. Distribution of the Manual

1. Copies of the Town of Prosper Policies and Regulations Manual will be distributed to eachdepartment and division (if not located at the department address).

2. A copy of the Town of Prosper Policies and Regulations Manual shall be posted electronically tothe shared drive on the server. Employees may access the manual and/or print copies, asneeded.

3. Employees may contact the Human Resources Department and request a copy of the manual beemailed to them.

4. All new or revised policies, procedures, and regulations will be distributed from the HumanResources Department and be effective as of the last revision date.

B. Access to the Manual

Department Directors are responsible for making the Town of Prosper Policies and Regulationsaccessible to all employees in their department and shall keep the Policies and Regulations Manualin a centralized location.

SECTION 1.02: AMENDMENTS AND UPDATES

Amendments and updates to the policies, procedures, and regulations contained in the Administrative Regulation chapters of the Policies and Regulations Manual must be approved by the Town Manager and will be maintained by the Human Resources Department.

The Town of Prosper Introduction and General Provisions Policy was revised and adopted on the 11th day of July, 2017

___________ Harlan Jefferson, Town Manager



CHAPTER 2: EMPLOYMENT

SECTION 2.01: JOB POSTING

The Human Resources Department will be responsible for posting all job announcements for vacant positions. The following procedure was established to ensure that announcements of vacant positions are posted on a timely basis in specified locations.

A. Personnel Requisition

1. All requests for job posting and advertising shall be submitted to the Human ResourcesDepartment on a Personnel Requisition Form provided by the Human Resources Department.

2. In the case where a department wishes to advertise a job announcement in a newspaperpublication, the department must submit the requisition form to the Human ResourcesDepartment at least two business days before the desired publication date to allow adequatetime for the advertisement to be submitted to the publication. Submittal lead time may vary,depending upon the publication to be used.

3. Job announcements will be prepared by the Human Resources Department and distributed toall departments and divisions to be posted in an area available to all employees.

B. In-House Posting

1. In-house postings are job announcements for which only current Town of Prosper employeesmay apply.

2. The minimum posting time for all in-house postings will be three (3) working days. If there areno qualified applicants from in-house posting, the department may choose to open the positionto the public.

C. General Posting

1. General postings are job announcements for which the general public and current Town ofProsper employees may apply.

2. The minimum posting time for general postings will be five (5) working days.

NOTE: A vacant position is not required to be posted or advertised in-house or open to the general public if the department director wishes to move, transfer, or promote a qualified employee from the same department into the vacant position in accordance with Town policies and procedures.


SECTION 2.02: RECRUITMENT AND SELECTION

A. Human Resources Procedures

1. The Human Resources Department will be responsible for receiving all applications for vacantpositions. Applications will not be accepted for positions other than those posted by jobannouncement, with the exception of applications for firefighters, police officers, and policecommunications operators.

2. The Human Resources Department will review applications and forward all qualifiedapplications to the hiring supervisor.

3. The Human Resources Department will be responsible for notifying the interviewed applicantsthat were not selected for the position.

B. Department Procedures

1. Supervisors will review the referred applications, interview the applicants deemed mostqualified, and make the final decision for employment based on job-related requirements,qualifications, and past employment verification.

2. Upon selection of a final candidate, the supervisor will complete and forward an applicantselection memo to the Human Resources Department, to forward to the Police Departmentinstructing the Police Department to conduct a background check. Results of the backgroundcheck will be returned to the Human Resources Department.

3. The supervisor or hiring authority will extend the contingent offer of employment to thesuccessful candidate and agree on a starting date. All offers are contingent upon results of apre-employment examination and drug and alcohol screening. Upon receipt of an EmployeeAuthorization for Release of Health Information Form, the Human Resources Department will,where appropriate, make the appropriate arrangements for a pre-employment physical, andnotify the department upon receipt of the results.

4. When the supervisor or hiring authority has made the final selection, he/she will document theselection/rejection reason for all referred applicants.

5. Once an applicant has been hired, the hiring authority will promptly return all applications anddocumentation to the Human Resources Department.

SECTION 2.03: RESIDENCY

Residency requirements for employees of the Town of Prosper shall be based solely on the requirements of the position and state law.

Immediate supervisors, with the specific approval of their department directors, may establish reasonable response time requirements for certain positions which may be subject to emergency recall and/or periodic service on a stand-by status. The ability to meet established response time requirements for some positions may be considered a condition of employment. This information is to


be outlined in the department’s Standard Operating Procedures with a copy submitted to the Human Resources Department.

A definition of and guidelines for establishing reasonable response time will be explained by the employee's supervisor at the time of employment and at any time when job requirements or response time guidelines change.

SECTION 2.04: BACKGROUND CHECKS

The Town of Prosper performs background checks on applicants and employees to the extent necessary to determine their eligibility for employment or ongoing employment, as the case may be. Background checks may include, but are not limited to, driver’s license, outstanding warrants, criminal history, and credit reports. The Town may also conduct periodic background checks on existing employees. Applicants and employees are required to give the Town whatever authorization is necessary to perform such checks.

SECTION 2.05: NEPOTISM

A. Applicants

An applicant shall be requested to list and shall list all relatives employed by the Town or servingon a board or commission on his or her application for employment. For the purposes of thispolicy, the following shall constitute familial relationships:

First Degree: Spouse Mother Father Sister Brother Son Daughter

(or) in-law; (or) step (or) foster

Second Degree: Uncle Aunt Nephew Niece Grandfather Grandmother Granddaughter Grandson 1st Cousin

(or) in-law

Other: Former spouses Significant Others Engaged couples

1. An applicant related, to the Town Manager shall not be employed by the Town.


2. An applicant related to any member of the Town Council shall not be employed by the Town.

3. Under no circumstances will an applicant be employed in a department in which he or she maydirectly or indirectly supervise or be supervised by a member of his/her family

4. In a department comprised of more than one division or shift, an applicant related, as defined inSection 1 of this policy, to a Town employee employed in that division or shift will not beeligible for employment within the same division or shift. An applicant for a job in an undivideddepartment who is related, to an employee of that department will not be eligible foremployment in that department.

B. Other Restrictions

The following restrictions apply to the employment of any relative, including those defined asfamily members in the chart reflected in Section 2.05 A. above

1. No employee in the relationship will supervise, review, or process the work of the other;

2. No current employee may be appointed or promoted to any supervisor’s span of responsibilitythat is related to that supervisor.

3. The employees’ relationship must not create a conflict between employees’/Town interests;and

4. There must be no interdependence or relationship between the jobs of the individualsconcerned which could be potentially detrimental to the interests of the Town.

C. Promotion

In the event of a proposed promotion giving rise to a relationship prohibited by this policy, anyemployed family member of a person considered for promotion to any of the positions identifiedabove must agree to immediately tender his/her written, conditional resignation before thecandidate will be formally considered for the proposed promotion. If the candidate is selected forand chooses to accept the promotion, the conditional resignation becomes final. Normally, oncefinal, any such resignation will not become effective until ninety (90) days after the promotiontakes effect.

D. Reorganization

In the event of a reorganization, or any other situation (other than a promotion) giving rise to arelationship prohibited by this policy, the lower ranking employee will be required to immediatelyresign his/her employment. If both employees are of equal rank, one of them will be required toimmediately resign his/her employment. Normally, any such resignation will not be effective untilninety (90) days after the reorganization, etc., occurs.

E. Engagement or Marriage of Current Employees

In the event of an engagement or marriage between two Town employees, one or both of theaffected employees must immediately seek a transfer to another available position within the Town


for which he or she is qualified and that meets the requirements of this policy. If a suitable transfer cannot be made within ninety (90) days of engagement or marriage, one or both of the affected employees will be required to resign from employment.

F. Boards and Commissions

If an employee is already employed with the Town, then the employee is not required to transfer orresign upon the appointment of a relative to a board or commission. However, an applicant who isa relative of an existing board member or member of a commission is not eligible for employmentin the division which serves as the liaison to the board or commission.

G. Temporary and Seasonal Employees

Temporary and seasonal employees of the Town shall be partially exempt from this policy, in thattwo or more members of the same family who are related may be employed within the sameoperational division as long as the following apply:

1. No more than one of the related employees may be a regular (non-temporary and non-seasonal) employee of the operational division;

2. The related employees may not be in a direct reporting relationship with each other, orresponsible in any manner for the scheduling, discipline, or work assignments for each other;and

3. The temporary or seasonal employee(s) may not be employed by the operational division for aperiod lasting longer than one hundred twenty (120) consecutive calendar days within atwelve-month period.

H. Volunteers and Reserve Officers

In a department comprised of more than one division or shift, an applicant related, as defined in thechart in Section 2.05 A. above, to a Town employee employed in that division or shift will not beeligible for employment within the same division or shift. An applicant for a job in an undivideddepartment who is related, as defined in this policy, to an employee of that department will not beeligible for employment in that department.

SECTION 2.06: MEDICAL EXAMINATIONS/FITNESS FOR DUTY

A. Required Medical Examinations

1. The Human Resources Department together with department directors will determine whichpositions will require a post-offer pre-employment medical and/or psychological examination.Prospective employees for these positions will be required to pass a medical and/orpsychological examination administered by a physician designated by the Town and theprospective employee will not be hired unless the examining physician certifies that the personmeets the minimum standards of physical and/or psychological fitness required for the positionand is able to perform the essential functions of the position with or without reasonableaccommodation.


2. Employees may be required to have a medical and/or psychological examination for in-houseadvancement, transfer, or other personnel action where the supervisor deems it necessary dueto different physical and/or psychological requirements or duties of the new position.

3. The Town Manager or an employee’s department director (with the prior approval of the TownManager) may require a current employee to undergo a medical and/or psychologicalexamination to determine fitness for continued employment; as may be necessary in order forthe Town to provide a reasonable accommodation; following an injury or accident; wheneverthe employee’s supervisor determines that a potential health problem may prevent anemployee from performing his/her job duties; and, as otherwise permitted in accordance withthe Americans with Disabilities Act.

a. Time away from work under this policy will normally be coded as paid administrative leave,but may be retroactively changed to sick leave, family medical leave, and/or other leave ascircumstances warrant.

b. Before returning to work following a medical and/or psychological examination, theemployee must coordinate his/her return through the Town Manager.

All medical exams must be coordinated by and through the Human Resources Department.

SECTION 2.07: OUTSIDE EMPLOYMENT

Employees must receive prior written approval from their department director and the Town Manager before engaging in other employment.

As the primary employer, the employee must recognize the Town’s need for flexibility and changing schedules based upon the demand for services or departmental needs.

An employee will not be covered by the Town’s workers’ compensation insurance while working for another employer or while self-employed unless the employee is required to perform official Town employment activities while engaged in such outside or self-employment.

Approval for outside or self-employment as set out in this policy does not authorize an employee on family medical leave, sick leave, disability leave, worker’s compensation leave, or an unpaid leave of absence to engage in any outside or self-employment. Under no circumstances may an employee on family medical leave, sick leave, disability leave, worker’s compensation leave, or unpaid leave of absence engage in outside or self-employment, unless expressly authorized in writing by the department director and the Town Manager.

For purposes of this policy, outside or self-employment includes a job, activity, or enterprise (including self-employment) which constitutes a form of employment or business outside the responsibilities of employment with the Town. This policy is not intended to cover volunteer work with a non-profit organization, such as United Way, Girl Scouts, American Heart Association, faith-based activities or similar activities where compensation is neither expected nor paid in the ordinary course of operations.


The Town of Prosper Employment Policy was revised and adopted on the 11th day of July, 2017.


Chapter 3, Page 1 Revised & Adopted June 2019


CHAPTER 3: EMPLOYEE DEVELOPMENT, PERSONNEL ACTIONS, AND RECORDS

SECTION 3.01: NEW HIRE ORIENTATION

A. Department Orientation

On the first day of employment, the new employee and his or her supervisor will review, completeand sign the New Employee Orientation Checklist form provided by the Human ResourcesDepartment. The department will forward this form, along with all other required enrollment andnew hire documents from the Human Resources New Hire Packet to the Human ResourcesDepartment.

B. Human Resources Orientation

The new employee will attend and participate in the next scheduled New Hire Orientation sessionconducted by the Human Resources Department to learn more about the Town, including employeerelation services, benefits, policies, and procedures. New employees will be given an opportunity toask questions and discuss Town employment and services. All new full-time and part-timeemployees are required to participate in a new hire orientation within thirty (30) days ofemployment.

SECTION 3.02: PROBATIONARY PERIOD

Each probationary employee is responsible for knowing, understanding, and meeting the expectations and standards for his/her position. In addition, each employee is also responsible for performing his/her job in a safe, productive, and effective manner within the instructions and established standards for the position. Furthermore, employees are expected to maintain acceptable standards of conduct in their employment. During the probationary period, it is the responsibility of the employee to correct any deficiencies or inadequacies in job performance, attitude, or conduct.

A. Probationary Performance Assessments

All probationary employees shall be constantly evaluated and will receive performance assessmentsin accordance with the Employee Professional Development Assessment System Policy. Thesereviews are designed to evaluate each employee’s performance and communicate that performanceto the employee. Probationary employees are not eligible for merit increases during or uponcompletion of an initial probationary period.

B. Extensions to Probationary Period

The performance probationary period may be extended under the following circumstances:


At the end of the six-month probationary period, performance probation may be extended for up to an additional three months when a probationary employee’s performance has been marginal due to extenuating circumstances, additional training is warranted, or an employee’s absence from work for an extended period of time did not permit an opportunity for adequate assessment of performance. The decision to extend or not extend an employee’s probationary period may not be appealed. If an extension is granted, the employee will be advised in writing and given the date on which the extended probation period will be completed. Such extension will be at the sole discretion of the department director or the Town Manager.

A probationary period may be extended for time spent on an approved Leave of Absence including leaves of absences due to injury or illness or approved Military Leave. The approved extension will normally equal the length of time away from work. Accordingly, such full day absence incurred by an employee during the probationary period will normally extend the six-month probationary period by an additional day.

SECTION 3.03 EMPLOYEE PROFESSIONAL DEVELOPMENT ASSESSMENT SYSTEM

The Town uses a thorough performance assessment system for assisting supervisors in communicating job expectations, measuring the employee’s level of past performance, recognizing employee achievements and exemplary performance, and strengthening the supervisor-employee relationship. The performance assessment system provides necessary information for management decisions including career development and training, assignments, advancements, transfers, disciplinary actions, retention, compensation, etc. The purpose of the performance assessment system as outlined herein is to achieve optimum employee performance resulting in outstanding citizen service.

A. Schedule

Regular full-time and regular part-time employees are eligible for a performance assessment upon completion of their probationary period as follows:

1. Employees hired prior to April 1, 2017, will be eligible for an annual performance assessment in January of each calendar year and a merit increase, as budget allows, effective the first full pay period in January.

2. Employees hired on or after April 1, 2017, will be eligible for an annual performance assessment on their anniversary date of each calendar year and a merit increase, as budget allows, effective the first full pay period following their anniversary date.

B. Supervisory Responsibilities

All performance assessment information must be written where required, on forms approved by the Town Manager and provided by the Human Resources Department for retention in the employee’s official personnel file. An assessment is considered complete at the time the employee signs and dates the assessment document or when the supervisor and/or department director has a witness acknowledge the employee’s refusal to sign the assessment document.

Supervisors will strive to clearly communicate all elements of job performance, key result areas, performance standards, measures, goals, strengths, and areas of development needed on the employee assessment form. Each employee will sign and date his/her employee assessment when it is reviewed, and the supervisor will forward the original to the Human Resources Department for filing in the employee’s official personnel file.


Department directors are expected to ensure compliance with this policy and ensure that evaluating supervisors and managers under their direction are adequately trained in the performance assessment process. Department directors and/or mid-level managers are encouraged to review all performance assessments for validity prior to the department supervisor conducting the performance assessment with the affected employee, in order to correct any obvious errors or rating bias.

C. Employee Responsibilities

Employees are expected to be knowledgeable of their essential job functions and key result areas and maintain established performance standards and requirements as outlined. Employees areencouraged to address issues and concerns regarding their annual performance assessment withtheir evaluating supervisor. If the employee is not able to resolve his/her issues and concerns withthe evaluating supervisor, the employee may address them with the department director. If thedepartment director is the evaluating supervisor, the employee may go to the Human ResourcesDepartment or Town Manager to address his/her concerns.

SECTION 3.04: PAY CLASSIFICATIONS AND JOB DESCRIPTIONS

A. Pay Classifications

1. Each position that is not a contract position or covered under an employment agreement shall beassigned to a pay classification. Pay classifications shall specify an entry and maximum level, andan hourly and bi-weekly wage or salary, within each pay range.

2. Employees may be hired for positions at a higher pay than entry-level pay, based on qualifications and job-related experience, at the recommendation of the department director and the discretion of the Town Manager.

3. The Town Council as part of its annual budget process will consider the allocation of funds forpay classification adjustments. Pay classifications may be amended, as circumstances require,through submission of suggested changes to the Human Resources Director and approval by theTown Manager.

B. Job Descriptions

1. Each position shall have a job description. All job descriptions will list the following:

a. Job Title, Department/Division, Pay Class/FLSA Designation, and Salary Range, as providedfrom the Pay Classification Plan

b. Definition of Job

c. Supervision Received and Exercised

d. Examples of Duties including:

1) Essential Functions

2) Additional Duties


e. Qualifications including:1) Knowledge2) Ability3) Education and Training Guidelines

f. Physical Demandsg. Work Environment

2. Requests for new positions, reclassification, or changes to existing job descriptions will be madeto the Human Resources Department. All suggested job descriptions will be reviewed, and uponapproval, will be effective the first day of the fiscal year unless otherwise authorized by the TownManager.

SECTION 3.05: EMPLOYEE DEVELOPMENT AND TRAINING A. Human Resources Department

As resources allow, the Human Resources Department will cooperate with department directors andDivision Supervisors in developing training programs. Records of employee attendance,participation, and training completion at Town-sponsored programs will be maintained in theHuman Resources Department. Departments are to submit records of employee training for othertypes of training programs the employee has completed to the Human Resources Department. Thisinformation can then be included in the employee’s official file.

B. Department Directors/Supervisors

1. It is the responsibility of the employee’s immediate supervisor to ensure the employee receivesdepartment orientation and job training.

2. It is the responsibility of Supervisors to respond to employee inquiries regarding Town anddepartment policies, procedures and guidelines.

3. Department directors’/supervisors’ efforts to facilitate leadership development in theirsubordinates should be endorsed by the Human Resources Department. In addition, directorsand supervisors are encouraged to indicate to the Human Resources Department the trainingneeds of their departments or divisions.

4. Supervisors are responsible for the enrollment, attendance and documentation of theirsubordinates in training programs.

C. Notification and Attendance

1. Employee participation in training programs, sessions and/or seminars, must be approved byhis/her supervisor. Notification of training sessions should be given far enough in advance toallow adequate time for adjustment of the employees’ scheduled job duties.

2. When all eligible employees in one department or division are not able to attend training, everyeffort should be made to provide sessions on a rotating system to facilitate participation.

SECTION 3.06: TUITION REIMBURSEMENT

A. Terms of Tuition Reimbursement

It is the policy of the Town to provide quality services for its citizens by encouraging upward mobility,

employee development, and excellence of performance by sharing the expense of approved courses and

educational programs. Tuition reimbursement assist employees in broadening their knowledge of their

current position or preparing them for possible assumption of new job responsibilities within the Town

To be considered for participation in the tuition reimbursement program, an individual must be a regular

full-time employee and have successfully completed at least six (6) months of service with the Town

prior to application approval. Employees must be in good standing with the Town prior to enrolling in

a course. Employees who have a written reprimand or greater disciplinary action are not eligible to

apply for one year following the receipt of the most recent disciplinary action.

1. Courses offered by accredited colleges, universities, or trade schools are eligible for tuitionreimbursement if they are:

a. Required by a degree plan which is related to a Town career field;

b. Required by a trade school course of study which is related to a Town career field; or

c. Related to a Town career field as determined by the Town Manager.

2. In all cases, the Town has the sole discretion to approve or disapprove an employee's request fortuition reimbursement and to make the determination as to whether a school meets the Town'seducational accreditation standards.

d. Accredited institutions are those having a curriculum of study approved by the SouthernAssociation of Colleges and Schools, the National Association ofTrade and Technical Schools,or Career College of America.

3. Reimbursement is limited to no more than twenty-four (24) credit hours for the designatedfiscal Year (October 1st- September 30th).

4. Reimbursement is limited to a maximum of $7,500 per fiscal year for each approved participant

R e1. m b ursement w1 'I) b e pa1 accor mg to t h e � o 11 owing pay sc h e d u I e:Grade Certificate/ Associate's/Bachelor's Degrees Graduate Degrees

A 100% 100% 8 75% 75% C 50% 0% D 0% 0% F 0% 0%

Pass/Fail 50% - Pass N/A

Reimbursement will be paid for courses leading to an Associate's degree, Bachelor's degree, Graduate degree or vocational/trade program certificate.

Chapter 3, Page 5Revised & Adopted June 2019

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5. Mandatory fees may be reimbursed as part of the tuition rate charges.

6. The Town will reimburse up to a maximum of $200.00 for books per semester(Fall/Spring/Summer). Receipts must be included with the Check Request. Supplies or otherexpenses in connection with courses to be taken are not eligible for reimbursement. FireDepartment employees working on a Fire Science Degree when the state reimburses tuition aree Ii gi b I e for book reI1'll.lr.HTfr

7. An employee must schedule classes so that the employee's attendance and course work do notadversely interfere with his/her normal work schedule or work performance for the Town.

8. Policy Exclusions

1. Seminars, conferences, and courses unrelated to a Town career field are ineligible for tuitionreimbursement. Approval for reimbursement for seminars and conferences is subject todepartmental training budgets. Non-credit continuing education courses containing the same orsimilar information as received in previous courses (repeat courses) as well as credit obtainedunder the College Level Examination Program (CLEP) are not eligible for tuition reimbursement.

2. The Town will not pay tuition reimbursement for courses for which tuition reimbursement hasalready been received by the employee. Tuition reimbursement will be paid only once for eachapproved course.

3. The Town will not pay the cost of tuition which has been or shall be paid from other sources suchas scholarships, grants, Veterans' benefits, or other subsidies. In the event of partial scholarshipor grant, reimbursement will be calculated based on the actual expense to the employee. In nocase can an employee be reimbursed by the Town and an external resource for the samecourse(s) on tuition reimbursement benefits.

4. Tuition reimbursement will not be granted for audited courses.

9. Application and Reimbursement Process

1. Prior to registering for classes, employees must obtain and submit an Educational Request andTuition Reimbursement Agreement Form along with their degree plan to the departmentdirector. For budgetary purposes, employees are to submit an Educational Request and Tuition Reimbursement Agreement Form for classes to be reimbursed in the Town's next fiscal year byApril 30th of each year. Because of the lead time required to gain budget approval for eachemployee request, the employee may not have all the information required to fully complete theform. For this reason, a provisional approval will be given at the department director'sdiscretion. After receiving provisional approval, the employee must submit a finalized formincluding all confirmed course information by August 31st. At that time, the departmentdirector will, as appropriate, either give his/her final approval or decline to approve the request.

2. Participants will pay all educational costs according to the parameters of their educationalinstitution. Within 21 days after the employee completes a course, the employee must submitcopies of the following to the department director for reimbursement approval:


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a. An itemized statement of tuition and fees;

b. Proof of payment; and

c. An official grade report or transcript.

3. Participants will be reimbursed up to a maximum of $7,500 per fiscal year and according to thepay schedule included in the administrative regulations. Reimbursement requests submittedafter the deadline will be denied unless prior written permission is granted by the departmentdirector.

4. Participants will only be reimbursed for the courses as specified in the degree plan andreceiving final approval on the Educational Request and Tuition Reimbursement Agreement.

D. Employees on Leave

Special authorization must be obtained from the department director and the Human Resources

Department in order for an employee to continue classes while he/she is away from work while on

sick leave, worker's comp leave, FMLA leave, etc.

E. Termination

If an employee resigns or is terminated for any reason prior to course completion, the Town shall notbe obligated to reimburse any part of the expense. An employee who resigns or is terminated less

than two years after completion of a reimbursed course must reimburse the Town for all amountspaid to the employee under this policy within thirty days of his/her separation date. Employees

terminated due to a reduction in force shall not be required to reimburse the monies.

F. Annual Tuition Reimbursement Budget

The Town of Prosper reserves the right to implement and limit the tuition reimbursement programto an annual budgetary appropriation.

Chapter 3, Page 7Revised & Adopted June 2019


SECTION 3.07: TRANSFERS

A. Forms of Transfers

1. Lateral Transfer

When an employee transfers to another position in the same pay classification, this is considereda lateral transfer. In most cases of lateral transfers, the employee's rate of pay will remain thesame. However, under certain circumstances a supervisor may make recommendations to adjustthe employee's rate of pay based on qualifications for the job. These considerations includeexperience, education, current market conditions, salary of the candidate, difficulty in recruitingqualified candidates, necessity of position to service delivery, incentive, or to match currentsalary of employee(s) in same or similar positions within the department/division.

2. Transfer to a Lower Position (Demotion)

a. Voluntary Demotion

1) If an employee elects to accept a position in a lower classification, this is considered avoluntary demotion.

2) A voluntary demotion may be requested by an employee. A request for voluntarydemotion must be made by the employee in writing, approved by the department directorand the Town Manager. The request should include the date, reasons for the request,signature of the employee, signatures of the department director and Town Manager. Avoluntary demotion must be in the best interest of the Town and the specificdepartment(s) involved before approval will be granted.

3) The rate of pay for voluntary demotions will be determined by the department directorand the Town Manager, consistent with the pay range for the lower classification.Demoted employees are eligible for performance increases at the time of review in thenew position. A reduction in pay may be considered in some cases.

4) A voluntary demotion will not require the employee to serve a six-month probationaryperiod.

b. Involuntary Demotion

1) An involuntary transfer may be deemed necessary by a department head or supervisor whenan employee fails to satisfy the requirements and performance standards establishedfor a position but is able to function productively in another capacity. A demotion is notgenerally used as a disciplinary measure, but rather as a technique to place employeesunable to perform duties of the position in one better suited to their abilities.

2) A demotion should not be considered unless the employee has been informed of andunderstands those standards established for the position and has been counseled and givensufficient time to correct any existing deficiencies. A demotion will beaccomplished after careful and thorough review of an employee’s qualifications, workhistory, and documented performance appraisals.

3) In the case of an involuntary demotion, the employee will serve a six-month probationary periodfor the new position.

c. Transfer to a Higher Position (promotion)3. In-House Advancement [See In-House Advancement Policy: Personnel Policies, Ch 3, Sec 3.04


SECTION 3.08: EMPLOYEE RECORD

A. Personal Information

1. The Town shall request, use and retain only personal information concerning employees that isrequired for business or legal reasons.

2. All information about employees in either personnel or supervisory files will be kept confidentialto the extent possible and will be disclosed within the Town only for legitimate businessreasons, including to supervisory personnel who are considering the employee for promotion,transfer, demotion, termination, or other personnel action.

B. Confidentiality of Medical Information

1. Federal law requires that the Town maintain all employee medical information in separate,confidential files. Therefore, in addition to personnel files, the Town maintains a separatemedical file for each employee. The Human Resources Department maintains these confidentialmedical files.

2. Examples of information that may be provided to the Town by an employee’s health careprovider, and maintained in the confidential medical file, include:

a. a note to justify an absence,b. a note to request a leave,c. a note to verify the employee’s ability to return to work,d. medical records to support a claim for sick pay,e. insurance records; andf. accident/incident reporting/workers’ compensation

records.

3. It is important that the employee understand that the records are confidential but that theconfidentiality may be waived when the employee provides medical information to his/hersupervisor, co-workers, or anyone other than the Town Manager. When an employee providesinformation to his/her supervisor, the supervisor is expected to share the information only on an“as needed” basis to other members of management.

4. In addition to protecting their own confidential medical information, employees must alsorespect the privacy and confidentiality of their co-workers’ medical information. Employees areexpected to use discretion and judgment when dealing with such information and are to refrainfrom passing along information, gossip, rumors or anything else that may constitute an invasionof a co-worker’s privacy or breach of confidence.

C. Employee Inspection

1. Routine statistical data corrections will be made as requested. Disciplinary action disagreementsshould be noted at the time the action is taken and the established appeals procedure followed.Performance evaluation disagreements should be noted at the time of the performance review. Writtendocumentation submitted as a part of an appeals procedure shall be reviewed by the Town Manager andmay become a portion of the employee's file.


SECTION 3.09: SEPARATION OF EMPLOYMENT

A. The Town designates all employee separations as one of the following types:

D. Updating Personnel Records.

1. In order to keep personnel records current, employees are required to notify their department orthe Human Resources Department of a status change (changes in name, address, telephonenumber, marital status, etc.) within seventy-two (72) hours of any such change.

2. Employees should contact the Human Resources Department for changes in beneficiarydesignations, IRS W-4 Forms, health insurance coverage changes (changes must be made duringopen enrollment period or within thirty (30) days of a qualifying event).

E. Retention of Personnel Records.

The Town has adopted the Records Retention Schedule promulgated by the Texas State Library andArchives Commission as its minimum retention schedule. It is the Town's policy, however, tomaintain an employee's personnel records throughout his/her employment with the Town andthereafter as deemed administratively valuable in order to protect the Town's interests and asrequired by applicable state and federal law. No employee records may be destroyed without theprior authorization of the Town Manager.

1. Resignation

An employee who intends to resign is requested to notify his/her supervisor and/or the Town Managerin writing at least two weeks prior to the last day of work. Employees who fail to give a two-weeknotice are typically not eligible for rehire. The supervisor is responsible for immediately notifying theTown Manager.

a. In certain situations, the Town Manager may allow an employee to resign in lieu of termination.See Section 3.a. below for further details.

2. Retirement

An employee who intends to retire must notify his/her department director, supervisor, and/or theTown Manager, in writing, 30 days prior to the date of retirement. This 30-day requirement isnecessary to ensure that the required paperwork is timely submitted to Texas Municipal RetirementSystem (TMRS).

3. Dismissal/Termination

a. The Town may terminate an employee’s employment as a result of unsatisfactory performance orconduct and/or violation of Town policies or procedures, including a new hire who fails probation.Town employees who are terminated, or who are allowed to resign in lieu of termination, due tounsatisfactory performance or conduct and/or violation of Town policies and procedures, are noteligible for rehire. For the purpose of designating the reasons for the separation, resignation in lieuof termination will be considered an involuntary termination.


b. Dismissal may also occur for the following:

1) Job Abandonment. If an employee quits without notice, leaves an assigned job without supervisorapproval, fails to properly notify the Town of his/her absence from work, is absent withoutauthorization and/or notification for a period of one working day or shift, the Town will normallyconsider the employee to have abandoned his/her employment, and he/she will be terminated.

2) Long-Term Absence. Any employee who is absent from work for more than 180 calendar days, forwhatever reason, may be terminated, except as provided below. Brief appearances at work duringan overall absence of 180 days will not prevent the Town from terminating an employee ifdetermined to be in the Town’s best interest. Likewise, any employee who reports to work (e.g., in alight-duty capacity) but is unable to perform the duties of his or her actual position after a period of180 days will be terminated. The Town may elect to end the employee’s employment before theexpiration of 180 days. An employee who has a paid leave balance of accrued vacation and/orcompensatory time remaining at the end of 180 days may, at the Town’s option, extend his/herleave using any available paid leave balance, or be terminated and paid for accrued leave balances.

This policy will be administered consistently with the Town’s obligations under the Americans withDisabilities Act.

4. Reduction-in-Force/Reorganization

An employee may be separated from Town service when it is deemed necessary by reason ofshortage of funds or work, the abolition of the position, or other material change in the duties ofthe organization, or for other reasons which are outside the employee’s control and which do notreflect discredit upon the service of the employee.

5. Death

If a Town employee dies, his/her designated beneficiary or estate will be paid all earned pay and payable benefits.

B. Out-processing

1. A Personnel Action Form and an Out-Processing Checklist form must be completed by theemployee’s supervisor and forwarded to the Human Resources Department before the finalpaycheck can be processed.

2. Replacement costs of unreturned employee issued items or other monetary obligations to theTown will be assessed upon termination.

C. Exit Interview

The purpose of the exit interview is to finalize all compensation due, return Town equipment, provideexplanation of any continuing benefits, review employment history, discuss the reason(s) for theseparation, and solicit constructive feedback to improve the Town. Exit interviews are conductedprivately by the Human Resources Department. Information discussed during the exit interview maybe shared with the Town Manager and acted upon as deemed appropriate by the Town. Thedepartment director is responsible for promptly notifying the Town Manager of all separations,arranging for the exit interview and providing documentation of receipt of all department and/orTown property from the exiting employee.



CHAPTER 4: LEAVES OF ABSENCE

SECTION 4.01: VACATION

A. Use and Scheduling of Vacation Leave

1. Vacation leave may be used for time away from the work environment to pursue activities thatwill promote the well-being of the individual. Vacation leave may also be used for purposes ofattending to personal business, extension of sick leave when sick leave benefit hours have beenexhausted, inability to get to work because of inclement weather, or for other purposes, andmay be taken in quarter-hour increments.

2. The designated supervisor must approve all vacation time, giving due consideration to theneeds of the service and the ability of the remaining staff to perform the work of thedepartment or division. Employees must schedule their annual vacation leave in accordancewith the department’s guidelines governing vacation leave scheduling and utilizing the Requestfor Authorized Leave form. Whenever possible, vacation/leave time will be scheduled at theconvenience of the employees. However, department directors or supervisors must be certainthat vacations/personal leaves do not interfere with the normal functions and activities ofdepartment operations. Whenever possible, employees are encouraged to submit theirpreferred vacation leave schedule to the appropriate supervisor as far in advance as possible toprevent any scheduling problems that may develop. If taking more than one (1) day ofapproved time, an employee must make the request at least three (3) working days in advance.The circumstances of individual departments or divisions may require that more advancenotice be necessary in order to arrange such leave.

3. To ensure proper payment of vacation/leave pay, employees must make sure they have anapproved Request for Leave form on file before leaving for vacation leave, and makearrangements for their time record to be approved by their supervisor.

4. Paid vacation leave is not considered hours worked for the purposes of performing overtimecalculations.

5. Only scheduled working days taken off shall be counted as vacation days.

B. Vacation Cash-In

1. “Vacation Cash-In Request” forms are due to the Payroll Department by May 31st, to be paid outno later than June 30th; or by October 31st, and will be paid out no later than November 30th.

2. Cashed-in vacation hours are non-reversible and will be paid as a lump sum.


SECTION 4.02: FAMILY AND MEDICAL LEAVE

A. Town’s Responsibilities.

1. Human Resources Department. The Human Resources Department is responsible for theverification, approval and notification of FMLA leave. The Human Resources Department mayplace an employee on FMLA leave if it determines that a qualifying event has occurred.

a. Eligibility Notice. The Human Resources Department will notify an employee of his/hereligibility to take FMLA within five (5) business days (absent extenuating circumstances) ofits receipt of the employee’s request for FMLA leave (or from when the Town otherwisedetermines that an employee’s absence may be FMLA-qualifying). Employee eligibility isdetermined (and notice will be provided) at the commencement of the first instance of leavefor each FMLA-qualifying reason in the applicable rolling twelve (12) month period.Notification may be oral or in writing. If an employee’s eligibility status changes, the HumanResources Department will so notify the employee within five (5) business days, absentextenuating circumstances.

b. Rights and Responsibilities Notice. The Human Resources Department will provideemployees with an Eligibility Notice detailing the Town’s specific expectations, theemployee’s obligations, and consequences to the employee of not meeting his/herobligations. The required certification form will accompany this notice. If any of the specificinformation in the Rights & Responsibilities Notice changes, the Human ResourcesDepartment will notify the employee within five (5) (5) business days of its receipt of theemployee’s first notice of need for leave subsequent to any change.

c. Designation Notice. When the Human Resources Department has enough information todetermine if an absence is FMLA-qualifying (e.g., after receiving the employee’s fullycompleted Certification), the Human Resources Department will notify the employee inwriting as to whether the leave will or will not be designated as FMLA.

This Designation Notice will be given to the employee within five (5) business days, absentextenuating circumstances. If the information in the Designation Notice changes, theHuman Resources Department will notify the employee within five (5) business days of theTown’s receipt of the employee’s first notice of need for leave subsequent to any change.

d. Certification Forms and Other Required Documentation. The Human Resources Departmentis responsible for determining the completeness and authenticity of certification forms,fitness-for-duty/return to work certifications, and for review and coordination of all otherFMLA documentation required by this policy.

2. Supervisors and Department Directors. So that the Human Resources Department can meet thenotice deadlines required by the FMLA, supervisors must immediately notify both theirdepartment director and the Human Resources Department if they have reason to believe anemployee’s absence is due to an FMLA-covered reason. Supervisors must make this report evenif the employee is using paid time off to cover the absence, e.g., sick leave, comp time, vacation,holiday, workers’ comp, short- or long-term disability, or a trade with another employee.


Supervisors and department directors must report to Human Resources any time an employee misses work for more than three (3) consecutive days because of his/her own illness or injury or that of a spouse, child, or parent. Supervisors, it is important to remember that under the FMLA, an employee requesting paid or unpaid leave for an absence covered by the FMLA is not required to expressly reference the FMLA. If the employee states a reason that qualifies for FMLA leave, the employee will likely have met the FMLA’s notice requirements. When an employee submits a leave/absence form indicating an FMLA absence, the form must be sent to the Human Resources Department immediately.

B. Medical Certifications and Other Required Documentation. In all instances in which the Townrequests a certification from an employee, it is the employee’s responsibility to provide the HumanResources Department with a complete and sufficient certification; failure to do so may result in thedenial or delay of FMLA leave.

1. Certification. An employee must provide the Human Resources Department with a completeand sufficient medical certification supporting the need for FMLA leave due to a serious healthcondition affecting the employee, his/her spouse, child or parent, or due to the serious injury orillness of a covered service member. The required medical certification forms are available fromthe Human Resources Department. The certification must set forth the beginning and expectedending dates of the leave. In the case of intermittent leave, the certification must also providethe dates and duration of the treatments necessitating the intermittent leave. The employee isresponsible for any expenses associated with providing the Town with a required certification.The employee must turn in the required certification to the Human Resources Departmentwithin fifteen (15) days after it is requested, unless not practicable under the circumstances.

2. Second and Third Opinions. In some cases, the Town may require a second or third medicalopinion (at the Town’s expense). The Town will not require second or third opinions in thecase of leave to care for a covered service member.

3. Recertification. Employees may be asked to periodically recertify the need for FMLA. TheTown will not require recertification in the case of leave to care for a covered service member.The recertification must be provided within fifteen (15) days or as soon as practicable underthe particular facts and circumstances. The employee is responsible for any expensesassociated with providing the Town with any required recertification.

a. Thirty-day rule. The Town will request recertification no more than every thirty (30) daysand only in connection with an absence by the employee unless paragraphs b. or c. belowapplies.

b. More than thirty (30) days. If the certification indicates that the minimum duration of thecondition is more than thirty (30) days, the Town will wait until that minimum durationexpires before requiring a recertification, unless paragraph C. below applies. If theminimum duration of a serious health condition is intermittent and extends beyond six (6)months, the Town may request a recertification every six (6) months in connection with anemployee’s absence; or, if the Town receives information that casts doubt upon theemployee’s stated reason for the absence or the continuing validity of the certification.

c. Less than thirty days. The Town may request recertification in less than thirty (30) days if,the employee requests an extension of leave, circumstances described by the previouscertification have changed significantly (e.g., the duration or frequency of the absence, thenature or severity of the illness, complications, a pattern of unscheduled absences), or the


Town receives information that casts doubt upon the employee’s stated reason for the absence or the continuing validity of the certification.

d. Annual Medical Certifications. If a serious health condition is intermittent and lasts beyonda single leave year, the Town may require the employee to provide a new medicalcertification in each subsequent leave year; or, if the Town receives information that castsdoubt upon the employee’s stated reason for the absence or the continuing validity of thecertification.

C. Mandatory Reporting of Improper Handling of FMLA. Employees must immediately report, inwriting, to their department director or the Human Resources Department, the following so that theTown can investigate and respond appropriately:

1. Any interference with, restraint or denial of the employee’s right to take FMLA or any rightsprotected by the FMLA or this policy.

2. Any discrimination or perceived acts of discrimination against the employee for any rightprotected by the FMLA or this policy.

3. Any refusal by a supervisor to authorize FMLA leave or attempt to discourage an employeefrom taking FMLA leave.

4. Any attempt to avoid the Town’s FMLA responsibilities.

5. Discrimination or retaliation against an employee for exercising or attempting to exercise FMLArights.

6. Discrimination or retaliation against an employee for opposing or complaining about anyunlawful practice under the FMLA or this policy.

The Town of Prosper Leaves of Absence Policy was revised and adopted on the 11th day of July, 2017.




CHAPTER 5: COMPENSATION

SECTION 5.01: PROCEDURES FOR RECEIVING PAY

Employees are to be paid for hours worked or for use of authorized paid leave every other Friday. Pay periods are bi-weekly, and begin every other Saturday and end on the second following Friday at 12 midnight. Exceptions are certain shift personnel who work past the alternate Friday at 12 midnight. The full shift will be reflected on Friday.

For regular full-time employees, a 40-hour work week equates to 2080 hours worked annually. For a shift Fire Department employee, the 24-hours on/48-hours off schedule equates to 2912 hours worked annually. Any pay rates that are quoted as “annual” pay will be broken down to an hourly rate based on the employee’s regularly scheduled annual hours for non-exempt employees, and a biweekly rate for exempt employees.

A. Regular Payment Procedures

1. All paychecks received on a regular basis will be issued to employees by designated persons(i.e., supervisors) within each Town division.

2. No paychecks will be issued early.

3. Paychecks will be released to the employee only. In cases where circumstances prohibit anemployee from picking up his/her check (e.g., illness), the employee must notify his/hersupervisor or submit a written release authorizing another person to pick up his/her check.

4. It is the responsibility of the employee to submit time record as required by their department,in order for the department to enter hours worked into the payroll system. Employees who failto submit a time record or who submit a time record that is not approved will be required topick up their paycheck from the Human Resources Department. The check will not be releaseduntil the supervisor’s approval is obtained.

5. It is the responsibility of the supervisor or Department Director to confirm the hours workedand approve the use of employee accruals or other leave types indicated on time records.Supervisors or Department Directors must approve all leave request forms and time records fornon-exempt staff as approval for payment by Payroll. Supervisors should verify that anemployee has available balances for each type of accrual requested prior to approving the leaveand verifying time records.


B. Final Paycheck Procedures

Final paychecks for separated employees will be direct deposited or can be picked up in the HumanResources Department, unless the employee has completed a written release designating where thefinal paycheck should be sent or authorizing another person to pick up the check.

C. Payroll Changes

All employee status record changes must be submitted to the Human Resources Department by 4p.m. on the last day of the pay period to be reflected on the next paycheck.

D. Handling Paycheck Exceptions

1. Incorrect Paycheck

a. Employees are responsible for notifying their supervisor or the Human ResourcesDepartment upon receipt of an incorrect paycheck. Failure of an employee to call theincorrect paycheck to the attention of the supervisor, and failure to return the incorrectcheck the same day, will delay the correction process.

b. The Town Manager or Designee will implement procedures to issue a corrected paycheckupon notification if the error affected base pay. Other errors will be corrected on the nextpaycheck.

2. Lost or Stolen Paycheck

a. Employees are responsible for notifying their supervisor or payroll clerk of a lost or stolenpaycheck within 24 hours. A written request to reissue an employee's paycheck that is lostor stolen must be submitted to the Town Manager or Designee.

b. A paycheck cannot be reissued until the Town Manager or Designee receives confirmationfrom the bank that the lost or stolen paycheck has not cleared the bank and the stoppayment order is in effect. This may cause a delay in reissuing the check because thisprocess may take up to three working days.

E. Payment for Temporary, Contract, and Seasonal Employees

1. Temporary employees who are acquired through a temporary employment agency are notplaced on the Town payroll; the employment agency invoices the Town and then pays theemployee. Funds for payments to the agency are budgeted in Account Number 5480 -Contractual Services.

2. Temporary or Contract employees who are hired by the Town for a temporary or contractposition may be placed on the Town payroll and paid through salary accounts in the samemanner as regular employees.


SECTION 5.02: PAYROLL DEDUCTIONS

The Town of Prosper’s policy on payroll deductions is to limit deductions to taxes, insurances, retirement, or specific approved voluntary deductions.

A. Authorized Deductions

1. Mandatory deductions:

a. Social Security contributions;

b. Medicare contributions;

c. Contributions to the Texas Municipal Retirement System (for eligible employees);

d. Income withholding taxes;

e. Court-ordered child support or other legal garnishments.

2. Optional Payroll Deductions with Individual Authorization for all Regular Employees:

a. Town-authorized medical insurance premiums;

b. Town-authorized “other insurance” premiums;

c. Credit union share or loan payment amounts;

d. United Way contributions;

e. Tuition Reimbursement repayments;

f. Town-authorized deferred compensation plan contributions;

g. Town-authorized association dues.

3. No other payroll deduction privileges are authorized at this time and no future payrolldeduction privilege will be granted without the approval of the Town Manager, except asotherwise provided by law.

B. Cancellation of Deductions

If an employee desires to cancel deductions from payroll, or change the number of dependents forany purpose, the Human Resources Department must be contacted, in writing, to properly executethis transaction.


SECTION 5.03: PRIMARY AND SECONDARY POSITIONS

The Town of Prosper allows an employee to have two part-time positions within the Town of Prosper as long as the scheduled hours of work are not in conflict. The status of an employee with two part-time positions will remain part-time.

A. Primary Employer

The position the part-time employee is hired in first is considered the primary position (in theprimary department). Regular part-time employees may apply for a second part-time positionwithin the Town only with a recommendation of the primary department director. The payroll clerkfor the primary department will be responsible for payroll functions for the employee and theallocation and transfer of payroll expenses between departments when necessary.

B. Secondary Employer

The secondary department must coordinate rate of pay, hours of work, and any other relevantinformation with the primary department.

C. Overtime

Overtime worked will be paid when the combined hours worked exceed forty (40) hours per week.The primary and secondary department will pay for actual hours worked and the department(s)causing the total hours to go over forty (40) hours per week will pay overtime. The decision as towhich department will be charged for overtime worked will be decided as follows:

If one department required the overtime, causing the total hours to go over forty (40) hours perweek, then that department pays.

If both departments required equal amount of overtime causing the total hours to go over forty(40) hours per week, then the overtime expense will be divided evenly.

If one department required less than its budgeted hours (usually 20) and the other departmentrequired more than its budgeted hours plus overtime, then the department requiring the extrahours pays for actual plus overtime for total hours over forty (40).

D. Benefits

Regular part-time employees who regularly work at least 1,000 hours in a year will receive benefitssuch as benefit hour accruals and/or participation in TMRS. For other policies and procedurespertaining to benefits for part-time employees, refer to Employment Status (Reference: PersonnelPolicy, Chapter 3, Section 3.02 Paragraph 3.).



CHAPTER 6: WORK ENVIRONMENT

SECTION 6.01: DRUG AND ALCOHOL USE

A. Testing Procedures

1. All testing must normally be authorized in advance by both the employee’s DepartmentDirector and the Town Manager. If the Department Director is unavailable within a reasonableperiod of time, the Town Manager may, in his or her sole discretion, authorize the testing of anemployee. If the Town Manager is unavailable within a reasonable period of time, theDepartment Director may, in his or her sole discretion, authorize the testing of an employee.Reasonable suspicion testing may not be authorized without the supervisor’s documentation ofthe articulable factors which led him or her to suspect that the employee is under the influenceof illegal or unauthorized drugs or alcohol. Testing should be arranged as soon as possible afterthe supervisor’s articulable observations.

2. If an employee’s conduct resulted in a work place accident, injury or “near miss,” or reasonablesuspicion exists to believe that the employee has violated the Town’s Drug and Alcohol Usepolicy, the employee will be provided with transportation to the testing facility. A supervisor orother designated representative may be required to stay with the employee during the testingprocess. The Town may, in its discretion, reassign the employee or put him or her onadministrative leave until the test results are received. The Town will make arrangements tohave the employee transported home after the testing.

3. All substance abuse testing will be performed by an approved laboratory or healthcare providerchosen by the Town. All positive test results will be subject to confirmation testing.

4. Test results will be maintained in a confidential file separate and apart from the employee’spersonnel file. Any medical-related information will be confidential and accessible only by theTown Manager, supervisors, and managers on a need to know basis, including those who have aneed to know about necessary restrictions of the work or duties of an employee and anynecessary accommodation; first aid and safety personnel when appropriate; governmentofficials; insurance companies as may be necessary to provide health or life insurance toemployees; by court order or as otherwise legally mandated; and, as necessary to protect theinterests of the Town.

B. Alcohol Testing Procedures

A trained breath alcohol technician will conduct alcohol tests. If the alcohol testing is positive forany alcohol, a second confirmation test will be conducted in accordance with DOT regulations, theresults of which will determine any actions taken. The second, confirmation test results determineif the employee is in violation of this policy. Testing procedures that ensure accuracy, reliability,and confidentiality of test results will be followed pursuant to DOT regulations.


C. Additional Information About Drug Testing

1. Drug Testing Procedures

Drug testing is conducted by analyzing a driver’s urine specimen at a lab certified by the U.S.Department of Health and Human Services. The driver provides a specimen in a location thataffords privacy and the “collector” seals and labels the specimen, completes a chain of custodydocument, and prepares the specimen and accompanying paperwork for shipment to a drug-testing lab. “Split” urine specimens provide drivers with an opportunity for a second test, ifneeded. If the driver challenges the validity of the test, then he/she has seventy-two (72) hoursto request that the split specimen be sent for testing to another certified lab approved by theTown Manager. The second test will be at the driver’s own expense.

2. Drugs Tested For

DOT requires testing for the following drugs: Marijuana (THC) Cocaine Amphetamines Opiates Phencyclidine (PCP)

A screening test is performed first. If it is positive for one or more of these drugs, then a confirmation test is performed. Whenever the terms “drug,” “drugs,” or “controlled substances” are used in this policy, they refer to the substances listed above. The Town will not test for any other substances under this policy. The Town may, however, test for other controlled substances pursuant to its general Drug and Alcohol Use Policy.

3. Review of Drug Test Results

All drug test results are reviewed and interpreted by a physician medical review officer (MRO)before they are reported to the Town. If the lab reports a positive result to the MRO, the MROwill contact the driver (either in person or by phone) and will conduct an interview todetermine if there is an alternative medical explanation for the drug(s) found in the driver’surine specimen. If the driver provides appropriate documentation and the MRO determinesthat it is a legitimate medical use of the prohibited drug(s), the drug test result is reported as anegative to the Town.

D. Record Retention

The Town will maintain and retain records under this policy as mandated by DOT regulations. See49 C.F.R. §382.401, Retention of Records.


E. Notification to Applicants/Employees of Positive Test Results

The Town will notify applicants of the results of a pre-employment drug test if the applicantrequests such results within sixty (60) calendar days of being notified of the disposition of theemployment application. The Town will notify an employee of the results of random, reasonablesuspicion and post-accident drug tests if the test results are verified positive, and also whichcontrolled substance(s) verified positive. The Town will also make reasonable efforts to contactand request each driver who tested positive to contact and discuss the results of their drug testwith a MRO who has been unable to contact the driver. The Town will immediately notify the MROthat the driver has been notified to contact the MRO within seventy-two (72) hours.

F. Transportation to Testing Site

With the exception of pre-employment testing, employees will be driven to the testing facility by asupervisor. The supervisor will remain with the employee during the testing process. The Townwill make arrangements to have the employee transported back to the Town or home, asappropriate, after the testing is complete.

G. Questions

Anyone with questions regarding this policy should contact the Human Resources Director.

SECTION 6.03: EMPLOYEE SAFETY AND ACCIDENT/INCIDENT REPORTING

A. Safety Program

1. The Town of Prosper is interested in the safety and wellbeing of its employees. Accordingly, theTown has adopted a Safety Program. Each and every employee is required to obey safety rulesestablished in the Safety Program and to exercise caution in all work activities. From time totime employees will be updated and reviewed on safety procedures in an effort to increaseemployee awareness of the importance of safety on the job. Employees can do much to preventaccidents and injuries by obeying the safety rules of the job, by remaining alert, and byTHINKING SAFETY at all times.

2. Employees who see something that they believe is an unsafe act or an unsafe condition mustimmediately report it to their supervisor or to management at once.

B. Accident Reporting

1. All accidents and injuries, however slight or seemingly inconsequential, must immediately bereported to the appropriate supervisor or the Department of Human Resources. Failure toreport any accident or injury within twenty-four (24) hours of its occurrence may lead todisciplinary action, up to and including termination of employment. Such reports are necessaryso that the Town can remain in compliance with applicable laws and begin workers’compensation benefit procedures where appropriate.

2. Employees who violate safety standards, who cause or exacerbate hazardous or dangeroussituations, who fail to report or, where appropriate, correct such situations, will likely besubject to immediate disciplinary action, up to and including termination of employment.


C. Accidents Involving Town Equipment and Vehicles

1. Any employee involved in an accident while operating Town equipment or vehicles shall reportthe accident immediately to his/her supervisor and to the proper law enforcement agency. Theemployee must immediately complete an accident report, no matter how minor the damage isto the vehicle, and submit it to his/her supervisor and to the Town Manager.

2. Drivers must obey all traffic rules and regulations prescribed by law and use every reasonablesafety measure to prevent accidents. No one under the age of eighteen (18) may operate aTown vehicle. Wearing of seat belts is mandatory.

3. Any traffic fines imposed upon a Town employee while operating a Town vehicle will be thepersonal responsibility of the employee and not the Town. Any employee involved in any typeof accident involving Town equipment may be disciplined if, upon investigation, it isdetermined that the employee was negligent or through carelessness or recklessnesscontributed to the cause of the accident.

The Town of Prosper Work Environment Policy was revised and adopted on the 11th day of July, 2017.

_______________ Harlan Jefferson, Town Manager

CHAPTER 8:

TOWN OF PROSPER

ADMINISTRATIVE POLICY MANUAL

WIRELESS EQUIPMENT AND SERVICES USE

The Town of Prosper provides wireless equipment and services for employees who are frequently away from their offices, and have a need to remain in communication with the office and others to

effectively conduct Town business. The purpose of this policy is to provide for the effective use of

wireless equipment and services, and better control the costs to the Town. This policy and the programs outlined herein may change at any time. Nothing in this policy should be construed as a

contract with an employee.

The policy applies to all employees that are eligible to receive a cellular phone allowance; or issued

a Town-owned pooled-minute cellular phone, a wireless air card, or other wireless equipment or services. Exceptions to this policy shall be allowed with written approval from the Town Manager.

SECTION 8.01: GENERAL PROVISIONS

A. Guidelines

The following guidelines will be used by Department Heads when considering recommendations

for wireless equipment and services for employees:

1. The degree to which the employee needs immediate communication capability;

2. The personal safety of the employee;

3. Anticipated utilization of the wireless equipment and services (i.e., on-call and weekendpersonnel, or those employees that are frequently away from their offices during normalbusiness hours); and

4. The availability, cost, and effectiveness of alternative communication devices (i.e., hand-held

radios, etc.).

SECTION 8.02: CELLULAR PHONE ALLOWANCE PROGRAM

Cellular phone allowances provide reimbursement to employees for costs incurred as a result of conducting Town business on a personal cellular phone. The allowance is not intended to reimburse

the entire cost of the cellular phone service, as the phone may also be used for personal calls. Allowances will appear on the employee's paycheck once a month. The allowance will be a non

taxable employee fringe benefit. It shall be a condition of employment for any employee who

receives an allowance to utilize a cellular phone while working, or whenever on-call.

Chapter 8, Page 1

Revised & Adopted September 2018

A. Employee Responsibilities

1. The employee must maintain regular cellular phone service, preferably with a local prefix,currently 214, 972, or 469; and

2. The employee must provide the Department Head, immediate supervisor, Director ofInformation Technology, and other pertinent staff with the cellular phone number.

B. Department Head Responsibilities

1. The Department Head will notify the Human Resources Department to terminate allowanceif the needs of the department no longer require the employee to maintain a cellular phone,if the employee separates from service, or if the cellular phone number is not in service.

2. The Department Head will ensure that sufficient funding is available in the departmentbudget for cellular phone allowances, equipment reimbursements, and any allowanceincreases that are authorized, for current and future fiscal years.

C. Authorization and Payment

1. Authorization and Payment for New Cellular Phone Allowances

a. No cellular phone allowance will be authorized until a Cellular Phone Allowance RequestForm has been completed, approved by the appropriate Department Head and submittedto the Human Resources Department for processing.

b. A completed Personnel Action Form (PAF) shall be attached to the request form, and willbe routed through the Human Resources Department and the Town Manager forapproval.

c. The allowance will be paid to the employee through their paycheck, as long as therequirements of the program are met.

d. The effective date of the allowance will be subject to the payroll cycle established by theFinance Department.

2. Cellular Phone Allowance Levels

If an employee is deemed eligible for an allowance, the Department Head shall designate anallowance level. Cellular phone allowances will be comparable to the amount paid for Townowned pooled minute cellular phone services, and are subject to be changed at any time. Thecurrent cell phone allowance rates are as follows:

a. $40.00 per month (no data plan)b. $60.00 per month (low usage+ data)c. $85.00 per month (high usage+ data)

Chapter 8, Page 2


d. $125.00 per month (unlimited for Chiefs and Information Technology only)

3. Allowance Level Increases

a. The Department Head must approve an allowance increase for a specific employee.

b. An increase in allowance will not be approved if the increase in usage is a result ofpersonal use of the cellular phone.

c. The following documentation must be submitted for consideration of an allowanceincrease:

1) A Cellular Phone Allowance Request Form must be completed and approved by the

appropriate Department Head, and submitted to the Human Resources Department

for processing.

2) A completed PAF shall be attached to the request form, and will be routed through

the Human Resources Department and the Town Manager for approval.

3) A minimum of two consecutive phone bills for the employee must be attached tothe Cellular Phone Allowance Request Form. The phone bills must reflect the cellphone number, dates of service, and call details.

D. Reimbursement of Additional Expenses

There may be isolated instances when the employee will incur significant expenses, such as longdistance or roaming charges, related to Town business, above the allowance amount. In theseinstances, the Department Head will determine if the expenses being requested forreimbursement are justified.

E. Payments

Under the cell phone allowance program, the employees will be responsible for all paymentsassociated with their personal cellular phone accounts. The Town will not be responsible foradditional fees incurred by the employee, such as late payment fees, reconnect fees, or otherpenalties.

F. Maintenance, Repair, and Lost Cellular Phones

The Town will not be responsible for maintenance and repair of cellular phones under thisprogram. The employee will be responsible for ensuring that the cellular phone is in goodworking condition. Employees are encouraged to purchase hands-free accessory kits andinsurance for the cellular phone, if it is available.

SECTION 8.03:

Chapter 8, Page 3

TOWN-OWNED POOLED MINUTE CELLULAR PHONE PROGRAM


Traditional cellular phone plans provide a specified number of minutes per line. Once the user depletes the minutes allotted, additional minutes incur a per-minute overage fee. Under the pooled

minute cellular phone plan, each user will still be provided a specified number of minutes per month. However, these minutes are combined and shared among all users in the pool. All cellular phones under this program will draw from the common pool of minutes, which maximizes cost savings, reduces overage charges, and provides flexibility for fluctuations in individual usage from month-to

month. The following example illustrates how the pooled minutes plan works:

1 User Minutes in Plan Minutes Used

1 500 300

2 700 850

3 300 450

4 150 so

Total 1650 1650

Pooling all of the minutes reduces the chance of incurring per minute overage charges for users that

exceed their allotted minutes, by taking advantage of those that use fewer minutes than allotted. This approach reduces costs by reducing the probability of incurring per minute overage charges on

individual accounts, and also allows users to subscribe to a lower priced plan with fewer minutes. There are two types of phones that can be authorized under the pooled minute program; those

assigned to individual users, and those shared by multiple users.

Cellular phones authorized under the Town-owned Pooled Minute program are for official Town

business and not for personal use. However, there may be instances when incidental personal calls, such as notifying a spouse of overtime work, sick children, or other family emergencies are

necessary. Such calls can be made in moderation. The Town will purchase cellular phones and phone plans authorized under the pooled minute program, unless otherwise provided in this policy. In order to obtain the most cost effective rate plans under this program, Department Heads will coordinate through the Information Technology Department.

No more than two preferred vendors will be identified for use under this program. The exception to this provision is for phones used by the Fire Department that require specific technology for the

transmission of EMS data.

All Town-owned pooled minute cellular phones assigned to a department will be listed under a single account. In no instance will an account for an individual employee be authorized under this program.


1. The employee will use the cellular phone in a manner consistent with this policy.

2. The employee that is assigned a cellular phone must carry the phone when it is necessary toconduct Town business, including times when the employee is on-call.

3. The employee will notify the department's single point of contact (SPOC) of damage, theft, orloss of the cellular phone assigned to him/her.

Chapter 8, Page 4


4. The employee agrees that upon separation from the Town, the cellular phone and all

accessories will be surrendered to the Human Resources Department, prior to the separationdate.


1. The Department Head will determine the appropriate number of phones to be included in the

departmental account.

2. The Department Head will designate a SPOC for each of their respectivedepartments/divisions. The SPOC will be responsible for maintaining the departmental

account, and communicating issues to the Information Technology Department.

3. The Department Head may review and monitor their subordinates' cellular phone usage andtake action, when necessary. The Finance Department can provide itemized bills upon

request.

4.

5. The Department Head will ensure that sufficient funding is available in the department

budget for cellular phone rate plans, equipment purchases, and any associated costs that areauthorized, for current and future fiscal years.

C. Authorization

1. The purchase of new cellular phones, accessories, and cellular phone plans under this

program will be coordinated through the Information Technology Department.

2. No cellular phones, accessories, or rate plans will be ordered until a Wireless Equipment andServices Request Form has been completed, approved by the appropriate Department Head,the Town Manager (if applicable), and submitted to the Information Technology Department

for processing.

3. Upon receipt of equipment, the Information Technology Department will issue the equipmentdirectly to the employee. The employee will be required to sign an acknowledgment ofreceipt at that time.

D. Maintenance, Repair, and Replacement of Cellular Phones and Equipment

Any maintenance, repair, or replacement required on Town-owned pooled minute cellularphones will be coordinated through the SPOC. In the event that replacement equipment is

required, the SPOC will coordinate with the Information Technology Department.

E. Transfer of Equipment

1. Transfer of equipment within a department/division is allowed.

Chapter 8, Page 5


2. For inventory and control purposes, equipment will be turned-in to the InformationTechnology Department.

3. A Wireless Equipment and Services Request Form will be completed, approved by the

appropriate Department Head, and submitted to the Information Technology Department for

processing.

4. Upon authorization and receipt of equipment, the Information Technology Department will

re-issue the equipment directly to the intended employee. The employee will be required tosign an acknowledgment of receipt at that time.

F. Payment

1. The Town of Prosper will be designated as the "Bill To" address for all accounts authorized

under this program, except for phones that require confidentiality.

2. Prior to remitting payment of any cellular phone bill, the Information Technology

Department will review the call detail. Any issues will be reported to the Department Head

for review, and to take any appropriate action.

G. Security of the Cellular Phone

1. Individually Assigned Phones

a. The employee will be responsible for the security and safeguarding of the cellular phone.

b. The employee will report the loss or theft of the cellular phone to the SPOC immediately.

The SPOC will coordinate replacing lost/stolen equipment with the InformationTechnology Department.

2. Shared Phones

a. Although many employees may have use of a single shared phone, those employees are

responsible for keeping the phone safe and secure.

b. The employee will report the loss or theft of the cellular phone to the SPOC immediately.

The SPOC will coordinate replacing lost/stolen equipment with the InformationTechnology Department.

SECTION 8.04: OTHER WIRELESS EQUIPMENT AND SERVICES

In order to obtain the most cost effective equipment and rate plans for other wireless equipment and

services (e.g. air cards, iPad connectivity, etc.), Department Heads will coordinate through the

Information Technology Department.


Chapter 8, Page 6


1. The employee will use the other wireless equipment and/or services in a manner consistent

with this policy.

2. The employee that is assigned other wireless equipment and/or services must carry theequipment when it is necessary for the proper conduct of Town business, including times

when the employee is on-call.

3. The employee will notify the department's SPOC of damage, theft, or loss of the other wirelessequipment assigned to him/her.

4. The employee agrees that upon separation from the Town, the other wireless equipment will

be surrendered to the Human Resources Department, prior to the separation date.


1. The Department Head will determine the appropriate wireless equipment and/or services to

include in the departmental account.

2. The Department Head will designate a SPOC for each of their respectivedepartments/divisions for other wireless equipment and services, if different from SPOC forcellular phone service. The SPOC will be responsible for maintaining the departmentalaccount, and communicating issues to the Information Technology Department.

3. The Department Head may review and monitor their subordinates' wireless equipment and

services usage and take action, when necessary.

4. The Department Head will ensure that sufficient funding is available in the department

budget for other wireless equipment and services that are authorized, for current and future

fiscal years.

C. Authorization

1. The purchase of other wireless equipment and services will be coordinated through theInformation Technology Department.

2. No equipment or services will be ordered until a Wireless Equipment and Services Request

Form has been completed, approved by the appropriate Department Head, and submitted tothe Information Technology Department for processing.

3. Upon receipt of equipment, the Information Technology Department will issue the equipment

directly to the employee. The employee will be required to sign an acknowledgment of

receipt at that time.

Chapter 8, Page 7


D. Maintenance, Repair, and Replacement of Other Wireless Equipment

Any maintenance, repair, or replacement required on Town-owned wireless equipment will becoordinated through the SPOC. In the event that replacement equipment is required, the SPOCwill coordinate with the Information Technology Department.

E. Transfer of Equipment

1. Transfer of equipment and/or service within a department/division is allowed.

2. For inventory and control purposes, equipment will be turned-in to the InformationTechnology Department.

3. A Wireless Equipment and Services Request Form will be completed, approved by theappropriate Department Head, and submitted to the Information Technology Department forprocessing.

4. Upon authorization and receipt of equipment, the Information Technology Department willre-issue the equipment directly to the intended employee. The employee will be required tosign an acknowledgment of receipt at that time.

F. Payment

1. The Town of Prosper will be designated as the "Bill To" address for all accounts authorizedunder this section, except for wireless equipment or services that require confidentiality.

2. Prior to remitting payment of any wireless equipment and services, the InformationTechnology Department will review the invoice detail to determine if there is anyunauthorized use of wireless equipment or services. Any issues will be reported to theDepartment Head for review, and to take any necessary action.

G. Security of the Equipment

1. The employee will be responsible for the security and safeguarding of the wirelessequipment.

2. Although many employees may have use of a single shared piece of equipment, thoseemployees are responsible for keeping the equipment safe and secure.

3. The employee will report the damage, loss or theft of the wireless equipment to the SPOCimmediately. The SPOC will coordinate replacing damaged, lost, or stolen equipment withthe Information Technology Department.

The Town of Prosper Wireless Equipment and Services Use Policy was revised and adopted on the -21.A....ttlay of September, 2018.

Chapter 8, Page 8


Chapter 8, Page 9


Chapter 10, Page 1 Revised & Adopted September 2018


CHAPTER 10: CASH HANDLING

SECTION 10.01: PURPOSE

The purpose of this policy is to set forth minimum standards to ensure clear and consistent practices within the Town for handling of cash, credit card transactions, and checks. Overall compliance with this policy will allow the Town to prevent or detect losses related to cash handling, and to assign responsibility to an individual in a timely manner in order to minimize losses.

This policy and the procedures outlined herein will ensure adequate internal controls to account for the handling of Town cash and to maintain public trust. The term “Town Cash” applies to currency, coins, checks, charge payments, other electronic payment media, and other negotiable instruments payable in money to the Town. The procedures to enforce the Cash Handling Policy and Procedures are to include but are not limited to those outlined below:

• A random drawer audit conducted under the direction of the Finance Department.• Any deficiencies in regard to the set procedures will be reported to the Accounting Manager in the

form of a memorandum outlining the deficiencies.• The Accounting Manager will notify the Department/Division Head involved and explain these

deficiencies, and the Department/Division Head will be responsible for taking appropriate action tocorrect deficiencies.

• If in a subsequent audit these deficiencies still exist, the Accounting Manager will advise the FinanceDirector that the deficiencies still exist.

• The Accounting Manager and the Finance Director will notify the Department/Division Headinvolved, and the Town Manager of the existing situation.

• The Town Manager will review the existing situation, and may take appropriate action to resolvedeficiencies and ensure that the procedures as outlined are administered properly.

Any exceptions to this policy shall only be allowed with written approval from the Town Manager.

A. Delegation of Authority

The Finance Director is authorized to promulgate rules for establishing procedures for thereceipt, handling and deposit by Town employees of Town cash into the Town treasury for: themethod of documentation on all such transactions; regular reporting to the Accounting Manager; inspection of departmental cash records, including overages or shortages; and inspection ofdepartmental practices and procedures in handling Town cash. The Finance Director, or anauthorized designee, may enforce these rules through on-site inspections.

The Town of Prosper is required by law to receive, retain, and disburse all Town revenue andkeep detailed records of these transactions. The Finance Department is charged with the


responsibility to safeguard all Town funds. The Finance Department will be conducting periodic, unannounced cash drawer audits.

The responsibility and accountability of the daily collection of funds is delegated to the custodian, and the custodian's supervisor. The Department Director is accountable for funds handled under his/her authority.

B. Roles and Responsibilities

There should be a clear segregation of duties. No single person should handle a transaction frombeginning to end.

C. Town Personnel

Any Town employee who is involved with any aspect of cash handling in the normal scope andcourse of duties is responsible for the following:

1. ensuring the delivery of the daily cash deposit to the Utility Billing department;

2. complying with rules promulgated by the Finance Department for handling and processingTown cash;

3. notifying the employee's supervisor or department/division head of any loss or theft of Town money immediately upon discovery, with written notice given no later than twenty-four (24)hours after discovery; and

4. being subject to disciplinary action, up to and including termination, for failure to complywith this policy and procedures, and internal procedures established by departments.

D. Finance Department

The Finance Department is responsible for the following:

1. overseeing the design and implementation of cash handling controls to safeguard Townassets;

2. providing training on this policy and procedures;

3. monitoring compliance with this policy and procedures through internal/external audits andinvestigations;

4. ensuring compliance with other related policies (such as the Red Flag Policy); and

5. assisting departments in writing cash handling procedures and other internal controls overcash handling, including PCI compliance.


E. Department/Division Heads

Department/Division Heads who anticipate receiving Town cash on a regular basis in the courseof its activities shall be responsible for the following:

1. safeguarding Town assets;

2. adhering to this policy and procedures;

3. assigning an employee as custodian receiving Town money;

4. collaborating with the Finance Department to develop and implement a system ofdepartmental procedures, documentation, and reporting on receipts handling and deposit ofTown money, in accordance with this policy and procedures;

5. consulting with the Finance Department regarding new cash handling processes beforeimplementation (e.g., credit cards, e-commerce, etc.);

6. evaluating reported instances of non-compliance with this policy and procedures, or withdepartmental cash handling procedures, and investigating to determine if instances can beresolved internally, and ensuring all instances are reported to the Finance Department;

7. notifying the Police Department and Finance Department of any loss or theft of Town cashimmediately upon discovery, with written notice given no later than twenty-four hours afterdiscovery; and

8. allowing the Finance Director, or an authorized designee, to conduct on-site inspections andobserve the processing of Town cash, and to make inspections of departmental collectionrecords.

F. Cash Handlers

All cash handlers shall comply with this policy and procedures, and with internal proceduresestablished in conformity with this policy and procedures by their respective departments, andshall be responsible for the following:

1. safeguarding Town assets;

2. adhering to this policy and procedures, and department cash handling procedures;

3. reporting instances of non-compliance with this policy and procedures, or departmental cash handling procedures, to departmental management;

4. reporting instances of non-compliance with this policy and procedures, or departmental cash handling procedures, to the Finance Department, if no action is taken or non-complianceexists after reporting to departmental management; and


5. reporting any other misuse of Town assets or dishonest acts by another Town employee todepartmental management and the Finance Department.

SECTION 10.02 LIABILITY FOR LOSS

The department/division heads have the primary responsibility for the care and liability for loss of Town cash in its custody, until deposited with the Finance Department, or their designation location.

Compliance with this policy and procedures, and internal procedures approved by the Executive Staff, establishes a presumption that a Town department/division exercised due diligence in its custody and care of Town cash.

SECTION 10.03 REGULATION, ESTABLISHING, TERMINATING, AND SECURING CASH FUNDS

A. Cash DrawersCash drawers, are to be maintained for the purpose of daily cash transactions with customers.Cash drawers are not to be commingled with other cash funds. Cash drawers are to be maintained only for this purpose, and no department/division shall possess a cash drawer withoutestablishing such a drawer as outlined herein.

1. Maintenance of a Cash Drawer

a. Each cash drawer must have one custodian responsible for the cash drawer at any one giventime. In the absence of the custodian, the Department/Division Head or supervisor shouldmake all disbursements from the cash drawer.

b. Each cash drawer should be established for a set amount as requested on the check request,and this same amount should be maintained at all times.

c. Cash drawers are not to be used as petty cash. They are to be used only for receivingpayments and making change when transacting business with customers. Cash receipts arenot to build-up in a cash drawer. These receipts are to be removed and deposited as outlinedin the deposit and verification of receipts (Section 10.05 Regulation of Deposits).

d. Receipts for all cash should be utilized so that an audit may be done at any time, and theamount of the cash drawer can be verified.

e. In the areas where more than one cash drawer is used, each custodian should work out ofhis/her own cash drawer only. Employees are not to work out of another employee’s cashdrawer.

f. Only the custodian responsible for the cash drawer and the Department/Division Head orsupervisor should maintain keys and have access to the cash drawer.


B. Establishment/Increase of Cash Drawers

All requests for the establishment of cash drawers, (i.e., cash box and petty cash) must be madeto the Accounting Manager. The Accounting Manager will maintain a complete listing of all cashdrawers. The department/division location, custodian and the amount of the cash drawer are tobe maintained on this written listing.

1. A check request should be submitted to the Accounting Manager for the amount of the fundsrequested.

2. A written memorandum to the Accounting Manager from the Department/Division Headrequesting the establishment of a cash drawer shall be forwarded with the check request forconsideration. The memorandum should explain the need for the establishment or increaseof the drawer, and identify the designated custodian. A copy of the memorandum should besubmitted with the original and the check request.

3. The copy of the memorandum attached to the check request will be filed with the check copyin the Finance Department.

4. No cash drawers are to be established out of cash receipts by any department/division.

5. Upon establishment of a cash drawer, a custodian should be appointed by theDepartment/Division Head. Cash drawers must have one custodian responsible for thedisbursement of cash.

6. In the absence of the custodian, the supervisor should make all disbursements for the cashdrawer.

7. Should it become necessary to change custodians, the supervisor should notify theAccounting Manager, and request an audit of the cash drawer to be performed prior totransferring the cash drawer to a new custodian.

8. Upon receipt of the money, the new custodian will sign the departmental custodian listmaintained by the Accounting Manager.

C. Termination of Cash Drawers

1. The Department/Division Head should notify the Accounting Manager that the cash draweris to be closed, and request that an audit be performed before closing the cash drawer. TheDepartment/Division Head should furnish the Accounting Manager with a memorandumoutlining the reasons for closing the cash drawer.

2. The Accounting Manager will perform an audit of the cash drawer, and provide theDepartment/Division Head with a copy of the final cash audit count sheet. Any shortages orvariances are to be investigated and resolved by the Department/Division Head and theAccounting Manager. If the shortages or variances cannot be resolved, theDepartment/Division Head is to provide a written explanation to the effect that a shortage or


variance occurred, which could not be resolved. This response should be addressed to the Accounting Manager. A copy of the written explanation should be forwarded to the Finance Director and Town Manager. If the Division Head authored the memo, the Department Head should also receive a copy of the written explanation.

3. Upon completion of the cash audit, the cash custodian should deposit any cash on hand withthe Finance Department.

4. The Accounting Manager will provide the Finance Department with a copy of the final auditpaperwork, which details the ledger accounts to be used for recording the deposit to closethe cash drawer. The original cash will go back to a balance sheet account. A copy of theDepartment/Division Head’s memorandum outlining the reasons for closing the cash funddrawer also be provided to the Finance Department. A copy of the final cash audit paperworkand the Department/Division Head’s memorandum should also be attached to the depositentry as supporting documentation.

D. Security of Cash

1. Cash is to be kept in locked boxes or drawers. The locked box is to be kept in a secure areawhere only the designated custodian, and the Department/Division Head or supervisor havekeys or combination, and access to the cash.

2. Provisions should be made in departments, where more than one cash drawer exists, tosecure all cash which is not being utilized. Only the Department/Division Head or supervisorshould have access to an employee’s cash drawer, in the event of their absence.

3. Only the designated custodian responsible for the cash and the Department/Division Headshould maintain keys or combination, and have access to the cash.

4. Tamperproof bank bags must be sealed and kept secure when transporting Town funds fordeposit to the Utility Billing Department. Bags are to be opened only by the bankinginstitution when delivered for processing.

5. All cash drawers must be reviewed randomly by the supervisor or designated personnel.

SECTION 10.04 REGULATION OF DEPOSITS

Deposits delivered to the Utility Billing Department shall be made according to the procedure as outlined below. Town agencies or departments/divisions shall deliver their deposits daily to the Utility Billing Department before 9:30 a.m. All deposits must be logged on the tracking sheet by the person delivering the deposit, while the Utility Billing Department employee witnesses the logging of the deposit.

A. Preparation of Receipts

1. System generated receipts are preferred.


2. Receipts should be pre-numbered and have duplicate copies.3. A receipt should be written for all payments received.

4. Receipts for cash received in the mail/night drop box should be verified by two persons in thedepartment/division before being processed.

5. All receipts should be used in numerical order, and need to be accounted for, including any voided receipts.

6. The duplicate receipt copy should be maintained in the department with the correspondingdeposit report. Voided receipts should be attached as well.

7. Account numbers should be listed on each receipt or a summary sheet turned in at the same timeas the deposits.

8. The back of each check will be stamped with the official endorsement stamp provided by theTown financial institution reading “For Deposit Only – Town of Prosper”.

9. A deposit slip should be prepared by each department/division for daily receipts. Indepartments/divisions where there are multiple cash drawers, the receipts for the day should be“batched” into one deposit for the entire department. It shall be the responsibility of thedepartment/division to implement procedures for this daily process.

B. Deposit and Verification of Receipts

1. Each department/division will be responsible for verifying their own deposit before deliveringthe deposit to the Utility Billing Department. An employee shall not verify their own deposit. Oncea deposit is verified as correct it should be initialed by the individual verifying the deposit.

2. Deposits will be delivered to the Utility Billing Department.

C. Maintenance of Bank Bags

1. Bank bags with deposits shall be kept locked at all times when not preparing or verifyingdeposits. The bank bags will be maintained by the designated persons for each depositingdepartment/division and the Finance Department.

2. The Utility Billing Department is responsible for requesting a law enforcement/Courier escort ofthe deposits to the bank on a daily basis.

D. Losses/Shortages/Overages

The Finance Department makes a clear distinction between a “Loss” and “Shortage” of Town money.This is determined by the cash handler’s ability to obtain physical custody of the money, and howthat person safeguards the money.


1. A shortage is an unintentional collection error, such as a change making error. An overage occurswhen a cash handler has collected too much money and cannot immediately return the excess toa specific customer.

2. A loss of Town money is when a cash handler has obtained physical custody of money, and thendue to reasons like negligence, an act of God, or an unlawful action, cannot deposit that moneyinto the Town treasury.

3. Cash custodians must report all losses to their supervisor and department/division headimmediately. A detailed statement as to the circumstances of the loss must be submitted withintwenty-four hours of discovery.

4. Department/division heads or supervisors must report all losses to the Police Department, andto the Finance Director, immediately upon discovery, with written notice submitted withintwenty-four hours of discovery.

The Town of Prosper Cash Handling Policy was revised and adopted September 2018.

Harlan Jefferson, Town Manager

Chapter 11, Page 1 Approved September 27, 2013

Revised & Adopted July 2019


CHAPTER 11: PURCHASING The Purchasing Division will serve as the central procurement office of the Town, and will have the right to determine which method of procurement provides the best value for the Town, adopt operational procedures consistent with sound business practices and state law, governing the procurement and management of all materials, services, and construction to be procured by this Town, and to manage disposal of materials no longer needed by the Town. The purpose of the Purchasing Policy is to provide the Town with the requisite parameters for purchasing goods and services under applicable state statutes. More specifically, the purposes are:

• to simplify and clarify the laws governing purchasing by the Town

• to permit the continued development of purchasing policies and practices

• to provide consistency in the purchasing practices of the Town with regard to pertinent purchasing laws

• to increase public confidence in public purchasing

• to ensure the fair and equitable treatment of all persons who participate in the

purchasing process

• to provide increased economy and efficiency in purchasing activities by avoiding unnecessary, unwarranted, and duplicative purchases

• to foster free and open competition

• to provide safeguards for the maintenance of a purchasing system of quality and

integrity

• to ensure that full accounting is available and given for all purchases. SECTION 11.01: ORGANIZATIONAL RESPONSIBILITIES

A. Town Council

The Town Council shall be responsible for:

1. considering all purchases exceeding $50,000, or the amount set for competitive bidding pursuant to current state law;



2. considering all written contracts and agreements exceeding $25,000;

3. considering all change orders exceeding $25,000, provided the change order does not

increase the original contract price by more than twenty-five percent (25%), or decrease the original contract price by more than 25% without the consent of the contractor;

4. adopting rules for electronic receipt of bids or proposals (Resolution No. 13-52); and

5. approving the alternative bidding method to be used for construction projects, as

described by Chapter 2269, Government Code, after determining it to be a better value than competitive bidding.

B. Town Manager

The Town Manager shall be responsible for:

1. approving and executing change orders up to $25,000, provided the change order does not increase the original contract price by more than 25%, or decrease the original contract price by more than 25% without the consent of the contractor (Ordinance No. 13-53);

2. approving and executing all contracts and agreements up to $25,000 (Ordinance No. 13-53);

3. approving and executing interlocal agreements entered into pursuant to Chapter 791 of the Texas Government Code, up to $25,000, including purchasing agreements and agreements with other governmental entities relative to authorized governmental functions and services, as defined in Section 791.003(3) of the Texas Government Code (Ordinance No. 13-53); and

4. approving requisitions over $10,000.

C. Town Department Heads

Town Department Heads, or an authorized designee, shall have authority to approve requisitions up to $10,000, and be responsible for:

1. complying with existing purchasing policies and procedures;

2. reviewing and approving proposed purchasing actions to avoid unnecessary or duplicative

purchases;

3. ensuring that the item to be purchased has monies available in the budget;

4. determining whether a contract exists for the item to be purchased;

5. verifying that the items received are sufficient and in good condition, and authorizing payment of the invoice; and



6. ensuring that all paperwork is forwarded to the purchasing and finance offices for recordation and payment.

D. Purchasing Agent

The Purchasing Agent shall be responsible for:

1. developing and administering the Town’s purchasing policy and procedures;

2. managing the Town’s purchasing program to include compliance with all statutory and internal policies;

3. developing and maintaining a purchasing procedures manual;

4. determining the best method of procurement (excluding alternative construction methods) (Resolution No. 13-51);

5. processing purchase requests;

6. executing and issuing purchase orders;

7. identifying, soliciting, and evaluating competitive offerings to select vendors or contractors;

8. monitoring the terms and conditions of purchases;

9. ensuring complete and accurate documentation of all purchases;

10. administering contracts and agreements for goods and services;

11. administering the requisition/purchase order/p-card modules of the financial system;

12. administering the electronic procurement (e-procurement) system;

13. administering the Town’s procurement card program;

14. performing vehicle fleet and equipment administration;

15. managing fleet fuel accounts, First Responder toll tag accounts, and other related fleet

accounts as assigned;

16. administering the Town’s fleet/mobile equipment tracking software program;

17. disposing of surplus and obsolete property; and

18. maintaining all purchasing files and records.



SECTION 11.02: ETHICS

A. Standard of Conduct

Each officer, employee, or agent acting under the authority of this Section shall at all times adhere to and comply with the Town’s Code of Ethics, set forth in Article 1.10 of Chapter 1 of the Town’s Code of Ordinances, and Chapter 171 of the Texas Local Government Code.

No officer, employee, or agent of the Town shall participate in the negotiation, selection, discussion, award or administration of a contract or procurement supported by public funds if: 1) that individual has a substantial interest in a person or entity, as defined by Chapter 1, Article 1.10 of the Town’s Code of Ordinances and/or Chapter 171 of the Texas Local Government Code, that is the subject of the contract or procurement; or 2) a conflict of interest exists. An officer, employee or agent of the Town shall at all times avoid the appearance of impropriety. A conflict arises when a Town employee, officer or agent, or any relative thereof, a partner or a person or an organization that employs or may employ in the near future any of these individuals, has a financial or other interest in any entity that may be considered for the award.

B. Course of Conduct in the Event of a Conflict or Substantial Interest

In the event of a conflict of interest or substantial interest, as set forth in subpart A, the affected officer, employee or agent must adhere to the following procedures: 1. sign a declaration of possible conflict of interest or affidavit of a substantial interest; and

2. if applicable, abstain from any participation in any procurement action:

a. where the officer, employee or agent directly represents an organization or may receive

an economic benefit;

b. where the officer, employee or agent is in direct competition with a proposal or bid which would provide a direct financial benefit; or

c. as required by Chapter 171 of the Texas Local Government Code and the Town’s Code of

Ethics.

3. abstain from participating in the procurement process, which includes, but is not limited to, discussions, lobbying, rating, scoring, recommending, explaining or assisting in the design or approval of the procurement process or the award of the contract:

a. on contracts with the organization he/she represents or from which he/she receives an

economic benefit;

b. on contracts with organizations in which a relative might realize an economic benefit; or



c. as required by Chapter 171 of the Texas Local Government Code and the Town’s Code of Ethics.

C. Violations and Remedies

Violations of policy may constitute misconduct, subjecting the violator to any and all penalties prescribed by state law, the Town’s Code of Ethics, and/or the Town’s Charter.

Penalties, sanctions or other disciplinary actions, to the extent permitted by state or local law, rules or regulations, shall be imposed for violations of the code of conduct/conflict of interest standards, by Town officer, employees or agents or by persons, contractors or their agents, when the procurement involves state or federal programs and/or funds.

Appropriate sanctions, penalties or disciplinary actions shall be applied for violations. Violations of state or federal law shall be referred to the proper authority having jurisdiction over same.

SECTION 11.03: REQUISITION REQUIREMENTS

Requisitions are required for all procurements in excess of $3,000, unless otherwise exempt as indicated in the Exemptions section below. Requisitions may be submitted for purchases less than $3,000, but are not required. Requisitions shall be electronically submitted in the financial system, with all supporting documentation attached.

A. Exemptions

1. Items that are exempt from the requisition requirement and can be paid with a procurement

card, by completing a check request, or approved for payment in the manner prescribed by the Finance Department are:

• catered event fees • election fees

• insurance premiums

• membership or professional association dues and fees

• periodicals

• postage

• registration fees

• regulatory fees

• subscriptions



• travel expenses

• tuition

• utilities

• other fees as approved by the Purchasing Agent.

2. Items that are exempt from the requisition requirement and will have a purchase order

issued directly to the vendor by the Purchase Office are: • one-time purchases pre-approved by the Town Council (Agenda Items) • one-time purchases pre-approved by the Town Manager (Manager’s Memorandums).

Any recurring costs associated with a one-time purchase will comply with the requisition requirement on all future year expenditures.

B. Emergency Requisition

1. Conditions

In order to qualify as an emergency purchase, one of the following conditions must exist, as identified in Section 252.022 of the Texas Local Government Code, as amended:

a. a purchase necessary because of a public calamity that requires the purchase of goods or

services to relieve the necessity of the municipality's residents, or to preserve the property of the municipality;

b. a purchase necessary to preserve or protect the public health or safety of the municipality's residents; or

c. a purchase necessary because of unforeseen damage to public machinery, equipment, or

other property.

2. Process

If a condition qualifies as an emergency purchase, the emergency requisition process shall be followed, as outlined in the Purchasing Procedures Manual that has been provided to each department/division.

C. Requisition Processing

Upon receipt of a requisition, the Purchasing Office shall process the requisition and procure goods and services utilizing the best method of procurement, to include the following:



• check the requisition for completeness;

• comply with State of Texas Historically Underutilized Business (HUB) law, as identified in Section 252.0215 of the Texas Local Government Code, as amended, and with internal policies and procedures;

• verify contract provisions, if purchasing goods or services from an existing contract;

• verify signature authorization;

• verify that sufficient funds are available to purchase goods or services; and

• prepare and issue a purchase order.

SECTION 11.04: PURCHASING THRESHOLDS

A. Purchases $3,000 and under

1. Competitive quotes are not required for purchases $3,000 or under, but may be obtained for

any purchase. Procurement cards should be utilized for these purchases when possible.

B. Purchases Over $3,000 and up to $50,000 1. Competitive written quotes will be solicited by the department, from an adequate number of

vendors to ensure competition, including at least two Historically Underutilized Businesses (HUBs), if available, as required in Section 252.0215 of the Texas Local Government Code, as amended. HUBs should be contacted on a rotating basis, based on information provided by the comptroller. If the list fails to identify a HUB in the county, the Town is exempt from this requirement. All purchases within this dollar threshold will be processed through the Purchasing Office, except for exempt purchases defined above.

C. Purchases Over $50,000

1. Unless otherwise specified by law, all purchases in excess of $50,000 shall be awarded by

competitive sealed bidding, competitive sealed proposals, reverse auction procedures, or in compliance with an alternative construction method described by Chapter 2269, Government Code, all pursuant to current state law. All competitive processes will be managed by the Purchasing Office, in coordination with the associated Town department(s).

2. Change Orders shall not exceed 25% of the original contract amount, or decrease the original

contract price by more than 25% without the consent of the contractor, except for exempt purchases as defined above.

The Town may not split purchases to circumvent the competitive requirements or the $50,000 limit. Split purchases are defined as follows:



1. Component Purchases: Purchases of the component parts of an item that in normal purchasing practices would be purchased in one purchase.

2. Separate Purchases: Purchases made separately of items that in normal purchasing practices would be purchased in one purchase.

3. Sequential Purchases: Purchases made over a period, of items that in normal purchasing practices would be purchased in one purchase

SECTION 11.05: METHODS OF PROCUREMENT

A. Methods of Procurement

The Purchasing Agent will determine the best methods of procurement (excluding alternative construction methods), based on the purchasing threshold as identified above, and the nature of goods or services required. The methods of procurement utilized by the Town include, but are not limited to, the following:

• Competitive Sealed Bids (CSB)

• Competitive Sealed Proposals (CSP)

• Request for Proposals (RFP)

• Request for Statements of Qualifications (SOQ)

• Request for Quotes (RFQ)

B. Exemptions

Exemptions from the methods of procurement listed above, as identified in Section 252.022 of the Texas Local Government Code as amended, include, but are not limited to, the types of purchases listed below.

1. Emergency Purchases: An emergency purchase that qualifies under one of the conditions

defined above.

2. Personal Services: Services involving the personal, intellectual or manual labor of an individual; a service performed personally by a particular individual for the benefit of another.

3. Professional Services: Services performed within the scope of practice (or provided in

connection with the employment of a licensed person in the areas of practice) of accounting, architecture, landscape architecture, land surveying, medicine, optometry, professional engineering, real estate appraising or professional nursing. Methods for procuring these services are set forth in the Texas Government Code, Chapter 2254.



4. Planning Services: Services primarily intended to guide governmental policy to ensure the orderly and coordinated development of land uses.

5. Consulting Services: Service of studying or advising the Town under a non-employee/

employer type contract.

6. Sole Source Purchases: The item is available from only a single source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts, or rare books; electricity, gas, water and other utility services; captive replacement parts or components for equipment.

7. Cooperative Purchases: Supplies, equipment or services purchased through an approved

cooperative purchasing program which meets all applicable laws and regulations.

8. Personal Property: Property sold (a) at an auction by a state licensed auctioneer; (b) at a going out of business sale held in compliance with Subchapter F, Chapter 17, Business & Commerce Code; (c) by a political subdivision of this state, a state agency of this state, or an entity of the federal government; or (d) under an interlocal contract for cooperative purchasing administered by a regional planning commission established under Chapter 391, Local Government Code.

9. Retail Sale: Goods purchased for subsequent retail sale by the Town.

10. Advertising: Advertisements, other than legal notices.

C. Professional Services

Although Professional Services are exempt from competitive bid laws, the Town will utilize the SOQ process for the selection of firms as follows:

1. Architectural, Engineering, or Land Surveying Services: The Town will utilize the SOQ

process for the selection of the most highly qualified firms providing Architectural, Engineering, or Land Surveying services, for any dollar amount.

2. All Other Professional Services: The Town will utilize the SOQ process for the selection of

firms, on the basis of demonstrated competence and qualifications to perform the services; and for a fair and reasonable price, for professional services other than those identified above, if the expenditure for services is anticipated to be in excess of $25,000.

SECTION 11.06: PROCUREMENT CARD PROGRAM

The procurement card (p-card) program is a payment mechanism designed to reduce the administrative costs associated with processing small purchases under $3,000. The p-card program is not intended to avoid or bypass appropriate purchasing or payment procedures. The intent of the p-card program is to complement the existing purchasing processes available.



A. Obtaining Procurement Cards The Procurement Card Application Form is available from the Purchasing Office. Upon Department Head signature of approval, the completed application form should be submitted to the Program Administrator (Purchasing Agent or designee). P-cards will not be issued to cardholders until each cardholder: 1. has received the appropriate level of training from the Program Administrator;

2. has received program hand-outs; and

3. has signed the Cardholder Agreement confirming receipt of p-card, understanding of

agreement, and acknowledgment that improper use of the p-card may result in disciplinary action, up to and including termination of employment.

B. Cardholder Limits and Commodity Restrictions

Monthly dollar limits and commodity restrictions will be assigned to all Town p-cards. The monthly billing cycle runs from the 6th of the month, to the 5th of the following month. If the 5th falls on a holiday or weekend, the billing cycle will be extended until midnight on the first business day following the 5th. Some restrictions will apply to the entire program, such as cash advances, alcohol, cigar/tobacco products, and casinos/gambling facilities, while others are determined based upon the cardholder’s job position and responsibilities. If a purchase is declined due to Merchant Category Code (MCC) exclusion, and you have reason to believe that the MCC is valid, contact the Program Administrator to discuss. The Program Administrator will assign one of the authorization levels listed below to each p-card. Variations must be approved in advance by the Town Manager. This is not meant to be an all-inclusive list, and the Town reserves the right to impose other limitations and restrictions. 1. Executive: $5,000

2. Supervisory or Administrative Support: $3,000

3. General: $1,000 (additional exclusions may apply, including any travel related expenses)

C. Duties and Responsibilities

1. Program Administrator The Purchasing Agent will serve as the Program Administrator for the Town's p-card program. The responsibilities of the Program Administrator include: a. serving as the official Town liaison with the credit card processing company;

b. determining appropriate MCC exclusions to minimize risk to the Town;



c. maintaining online p-card system, to include cardholder database, department

assignments, hierarchy levels, and accounting codes;

d. processing p-card applications;

e. issuing p-cards and related program information;

f. maintaining inventory of p-cards and authorization level assignments;

g. providing training to all cardholders;

h. securing revoked/cancelled p-cards;

i. handling disputed charges/discrepancies not successfully resolved between cardholder and merchant;

j. assisting departments with merchant declines and emergency transactions;

k. handling re-issuance of expired cards;

l. handling replacement of p-cards after notification of lost/stolen/fraudulent activity; and

m. handling any and all issues related to the p-card program not specifically mentioned.

2. Cardholder Responsibilities

P-cards will be assigned to individual cardholders, and should not be shared. Although the cardholder’s name is printed on the card, the card is issued to the Town of Prosper and will have no impact on the cardholder’s personal credit. However, Town funds are committed each time the p-card is used, and each individual cardholder is responsible for all charges made to their p-card. Therefore, by participating in the p-card program, all cardholders are responsible for the following:

a. not allowing other individuals to use their p-card;

b. determining if the transaction is an acceptable use of the p-card, and if the total

expenditure, including delivery or freight charges, is within the cardholder’s spending limit;

c. ensuring p-card is utilized for legitimate Town business only;

d. ensuring transactions are not split to avoid the $3,000 threshold that requires a

requisition to be submitted to the Purchasing Office;

e. ensuring that the Town is not charged sales tax - inform the merchant of tax exempt status prior to placing the order;



f. obtaining an itemized invoice or receipt for every p-card transaction - the credit card

charge slip is not considered adequate documentation;

g. for business meals, include the purpose of the business meal, and the names of those in attendance on the receipt;

h. completing transaction review and coding transactions in the financial system after the

end of each billing cycle;

i. submitting Expense Report, with detailed receipts attached, to the assigned supervisor for review, reconciliation, approval, and submission to the Purchasing Office by the 15th of each month;

j. maintaining p-card in a safe and secure location at all times;

k. attempting to resolve disputes or billing errors directly with the merchant;

l. notifying the Program Administrator of any disputes that cannot be resolved with the

merchant, and following the credit card company’s dispute process;

m. immediately informing the bank, at the phone number indicated on the p-card, your Department Head, and the Program Administrator of lost or stolen p-cards, or of fraudulent charges; and

n. surrendering p-card to the Program Administrator upon separation from the Town, or on

demand at any time.

D. Missing Receipts

It is the responsibility of the cardholder to obtain an itemized receipt/invoice for each transaction. If a receipt/invoice is missing, the cardholder will make every effort to obtain a duplicate receipt/invoice from the merchant. However, if obtaining a duplicate receipt is not possible, a Missing Receipt Form will be completed, approved by the supervisor, and attached to the Expense Report,. Contact the Program Administrator to obtain the form. Habitual use of the Missing Receipt Form may be grounds to revoke p-card privileges.

E. Returns, Credits, and Disputed Charges

Should a problem arise with a purchased item, or with billing, every attempt should be made by the cardholder to resolve the issue directly with the merchant. Review of future statements is vital to ensure that the account is properly credited for returns, credits, and disputed charges. It is the cardholder's responsibility to ensure credits are processed in a timely manner. If you are unable to resolve the issue directly with the merchant, please notify the Program Administrator, and follow the credit card processing company's dispute resolution process. The Program Administrator is available to assist with this process.



During the investigation, a credit will be issued to the cardholder's account for the amount in question. Upon completion of the investigation, the cardholder will be notified of resolution. If the dispute is not settled in the cardholder's favor, the account will be charged for the disputed transaction amount.

Failure to take immediate and appropriate action could result in a loss to your department's budget, and your p-card privileges may be revoked.

F. Lost, Stolen, or Misplaced Cards

If your p-card is lost or stolen, immediately contact the credit card processing company at the number below. Representatives are available 24 hours a day, 7 days a week. Also contact the Program Administrator and your Department Head during normal business hours. Prompt action can reduce the Town's liability for fraudulent activity. The credit card processing company will be responsible for all transactions made after the card has been reported lost/stolen. The Town is liable for all charges prior to that time.

Lost or Stolen Card: (800) 316-6056 When reporting a lost or stolen card, the cardholder should tell the representative the call is regarding a company procurement card.

G. Violations and Remedies

Violations to the p-card program may result in disciplinary action, up to and including termination of employment. At a minimum, violations to the p-card program will result in the following remedies:

1. First Offense: Written warning of infraction.

2. Second Offense: P-card privileges suspended for thirty (30) days, and cardholder will

surrender p-card to the Program Administrator for the duration of suspension period.

3. Third Offense: P-card privileges suspended permanently. Cardholder will surrender p-card to the Program Administrator.

SECTION 11.07: RECEIPT OF GOODS/SERVICES

A. Inspection

Upon receipt of goods or services, it is the department’s responsibility to ensure that the order is complete as to quality and quantity, and to report any discrepancies to the Purchasing Office or directly to the vendor. If the shipment is complete and undamaged, the packing slip or delivery ticket should be signed and retained until the invoice for payment is received.



Should the department receive only a partial shipment, or return part of a shipment due to damage or delivery of the wrong items, this must be noted on the packing slip or delivery ticket, and noted on the invoice in order to prevent improper payment.

B. Damages/Defects

Goods and services should be checked at the time of receipt to detect any damages or defects. This inspection should also include assuring that the material is in compliance with the specifications. When it is apparent that the extent of the damage causes the goods to be of little worth, they should not be accepted.

1. Visible Damage: One of the major reasons for inspection at the time of receipt is to detect any

visible damage. It is important that all damage be completely described on the receiving paperwork.

2. Concealed Damage: Any evidence of concealed damage should be documented to support the

filing of damage claims against the carrier. The carrier should be notified immediately, and a joint inspection should be scheduled with the carrier’s representative.

3. Claims: If the shipment is “F.O.B. destination” the vendor is responsible for assisting with the

settlement of the claim and for full replacement of the damaged items. Payment should be withheld until the claims are settled.

SECTION 11.08: DISPOSAL OF SALVAGE/SURPLUS PROPERTY

The Purchasing Agent or designee shall be responsible for the disposal of salvage/surplus personal property. Personal property that has been deemed salvage or surplus may be disposed of by one the following methods, as deemed appropriate by the Purchasing Agent: • sold at a public auction

• sold by soliciting competitive bids

• sold or donated to a political subdivision of this state, a state agency of this state, or an entity of

the federal government • sold or donated in accordance with any other approved personnel policy • traded-in on new property of the same type • destroyed or donated to a civic or charitable organization, if such property has a value of less

than $500

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Exhibit A Town of Prosper

Purchasing Procedures Manual

(Revised 7/8/2019)

An Employee Guide to Understanding Town of Prosper Purchasing

2

Table of Contents Purchasing Procedures Manual

INTRODUCTION ....................................................................................................................... 4

PURPOSE ................................................................................................................................... 4 SCOPE ....................................................................................................................................... 4 RESPONSIBILITY ........................................................................................................................... 4

SECTION 1 PURCHASING THRESHOLDS ..................................................................................... 5

A. EXCEPTIONS ......................................................................................................................... 5 B. PURCHASES $3,000 AND UNDER ............................................................................................. 6 C. PURCHASES OVER $3,000 AND UP TO $50,000 .......................................................................... 6 D. PURCHASES OVER $50,000 .................................................................................................... 7

SECTION 2 METHODS OF PROCUREMENT ................................................................................ 7

A. COMPETITIVE SEALED BID (CSB) OR REQUEST FOR BID (RFB), NON‐CONSTRUCTION .......................... 7 B. COMPETITIVE SEALED BID (CSB) OR REQUEST FOR BID (RFB), CONSTRUCTION .................................. 7 C. COMPETITIVE SEALED PROPOSAL (CSP) OR REQUEST FOR PROPOSAL (RFP), NON‐CONSTRUCTION ........ 8 D. ALTERNATIVE CONSTRUCTION METHODS (TEXAS GOVERNMENT CODE, CHAPTER 2269) ...................... 8 E. STATEMENT OF QUALIFICATIONS (SOQ)..................................................................................... 8 F. REQUEST FOR QUOTES (RFQ) .................................................................................................. 9 G. COOPERATIVE PURCHASES ...................................................................................................... 9

SECTION 3 EVALUATION PROCESS ......................................................................................... 10

A. LOW BID ........................................................................................................................... 10 B. BEST VALUE ....................................................................................................................... 11

SECTION 4 AWARD PROCESS ................................................................................................. 12

A. ONE TIME PURCHASES ......................................................................................................... 12 B. ANNUAL CONTRACTS ........................................................................................................... 12

SECTION 5 PURCHASE REQUISITIONS ..................................................................................... 13

A. EXEMPTIONS ...................................................................................................................... 13 B. PREPARING PURCHASE REQUISITIONS ...................................................................................... 14 C. REQUISITION PROCESSING ..................................................................................................... 16

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SECTION 6 RECEIPT OF GOODS AND SERVICES ....................................................................... 17

A. INSPECTION ....................................................................................................................... 17 B. DAMAGES/DEFECTS ............................................................................................................ 17 C. INVOICES ........................................................................................................................... 18

SECTION 7 CONTRACT ADMINISTRATION ............................................................................... 18

A. NEW CONTRACTS ................................................................................................................ 18 B. CONTRACT RENEWALS ......................................................................................................... 19 C. CONTRACT AMENDMENTS AND CHANGE ORDERS ....................................................................... 19 D. CONTRACT CANCELLATION/TERMINATION ............................................................................... 20 E. PERFORMANCE ISSUES .......................................................................................................... 21

SECTION 8 VEHICLE AND EQUIPMENT REPLACEMENT FUND (VERF) PURCHASES .................... 21

A. PURCHASING REQUIREMENTS ................................................................................................ 21 B. WINDOW TINT STANDARDS .................................................................................................. 22

SECTION 9 GLOSSARY OF TERMS ............................................................................................ 22

4

Town of Prosper Purchasing Procedures Manual

Introduction

Purpose To establish uniform procedures for the effective purchase of

goods and services for the Town of Prosper, that are consistent with all applicable laws and Town policy, as set forth in the Town of Prosper Administrative Regulations, Chapter 11 Purchasing Policy and Procedures.

Scope These procedures apply to all material and service purchases

and related activities. Responsibility Town Department Heads are responsible for complying with

the existing purchasing policies and procedures, and for ensuring adherence to the same by their staff. Additionally, it is the individual responsibility of each employee involved in the purchasing process to understand the policy upon which these procedures are based and the meaning and intent of the procedures themselves.

If there are any questions or concerns relative to either the policy or procedures, or the ability of the employee to respond effectively to the requirements of the procedures, then it is the responsibility of both the Department Head and employee to bring such matters to the attention of the Purchasing Agent immediately.

The fundamental purpose of these procedures is not to restrict the effectiveness of the individuals involved in the purchase of goods and services, but to provide a foundation for effective, consistent, and complete consideration of all aspects of the task, with the expected result being a positive, professional relationship between the employees of the Town and the suppliers who serve the Town.

5

Section 1 Purchasing Thresholds A. Exceptions This section applies to the purchase of all goods and services, except as follows:

1. Emergency Purchases: An emergency purchase that qualifies under one of the following conditions:

2. a. purchase necessary because of a public calamity that

requires the purchase of goods or services to relieve the necessity of the municipality's residents, or to preserve the property of the municipality;

b. a purchase necessary to preserve or protect the public health or safety of the municipality's residents; or

c. a purchase necessary because of unforeseen damage to public machinery, equipment, or other property.

3. Personal Services: Services involving the personal, intellectual or manual labor of an individual; a service performed personally by a particular individual for the benefit of another.

4. Professional Services: Services performed within the scope of practice (or provided in connection with the employment of a licensed person in the areas of practice) of accounting, architecture, landscape architecture, land surveying, medicine, optometry, professional engineering, real estate appraising or professional nursing. Methods for procuring these services are set forth in the Texas Government Code, Chapter 2254

5. Planning Services: Services primarily intended to guide governmental policy to ensure the orderly and coordinated development of municipal land areas.

6. Consulting Services: Service of studying or advising the Town under a non-employee/employer type contract.

7. Sole Source Purchases: The item is available from only a single source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts, or rare books; electricity, gas, water and other utility services; captive replacement parts or components for equipment.

8. Cooperative Purchases: Supplies, equipment or services purchased through an approved cooperative purchasing program which meets all applicable laws and regulations.

9. Personal Property: Property sold a) at an auction by a state licensed auctioneer; b) at a going out of business sale held in compliance with Subchapter F, Chapter 17, Business & Commerce Code; c) by a political subdivision of this state, a state agency of this state, or an entity of the federal government; or d) under an interlocal contract for

6

cooperative purchasing administered by a regional planning commission established under Chapter 391, Local Government Code.

10. Retail Sale: Goods purchased for subsequent retail sale by the Town.

11. Advertising: Advertisements, other than legal notices. B. Purchases $3,000 and Under

Departments can purchase goods and services that fall within this dollar threshold based on a single quote. Competitive quotes are not required, but they may be obtained for any purchase. Departments are encouraged to utilize p-cards for these purchases whenever possible.

C. Purchases Over $3,000 and Up to $50,000

Departments can purchase goods and services that fall within this dollar threshold by one of the methods listed below. Competitive written quotes should be solicited from at least three (3) vendors to ensure adequate competition, including at least two Historically Underutilized Businesses (HUBs), if available. HUBs should be contacted on a rotating basis, based on information provided by the State Comptroller. If the list fails to identify a HUB in the county, the Town is exempt from this requirement. All purchases within this dollar threshold will be processed through the Purchasing Office, unless otherwise exempted as listed in Section 5 of this manual.

1. Department Obtains Quotes or Proposals: The department can

obtain quotes or proposals, but must comply with the State of Texas HUB law. Please contact the Purchasing Office to obtain a list of HUB vendors prior to obtaining quotes, in order to expedite the process.

2. Purchasing Obtains Quotes or Proposals: The Purchasing Office can obtain quotes or proposals on behalf of the department. Quotes can be obtained manually, or through the Town’s e-procurement system. The Purchasing Office will work with the department to develop a specification, and will obtain quotes using the pre-determined method. All quotes received will be forwarded to the department for evaluation and selection of a vendor.

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D. Purchases Over $50,000

Unless otherwise specified by law, all purchases in excess of $50,000 shall be awarded by competitive sealed bidding, competitive sealed proposals, reverse auction procedures, or in compliance with an alternative construction method described by Chapter 2269, Government Code, all pursuant to current state law. All competitive processes will be managed by the Purchasing Office, in coordination with the associated Town department(s). The Town may not split purchases to circumvent the competitive bid limit. Split purchases are defined as follows:

1. Component Purchases: Purchases of the component parts of an

item that in normal purchasing practices would be purchased in one purchase.

2. Separate Purchases: Purchases made separately of items that in normal purchasing practices would be purchased in one purchase.

3. Sequential Purchases: Purchases made over a period, of items that in normal purchasing practices would be purchased in one purchase.

Section 2 Methods of Procurement The Purchasing Agent will determine the best method of procurement to purchase goods and services, and will discuss options with the department to select the appropriate method. The methods of procurement utilized by the Town are as follows: A. Competitive Sealed Bid (CSB) or Request for Bid (RFB), Non-

Construction

Bids are utilized to purchase goods and services over $50,000, and are subject to the competitive bid laws of the State of Texas. Bids at this dollar threshold are processed by the Purchasing Office. Bids are utilized for one-time purchases, or for the establishment of an annual contract if there is a continuous need to purchase same goods or services totaling in excess of $50,000 annually. Award is made to the lowest responsive and responsible bidder, or to the bidder providing the best value, as pre-determined by the Town. Negotiations are not permitted. If a written contract is required, conditions of Section 7 below will apply. Please allow 6-8 weeks at a minimum to complete the process.

B. Competitive Sealed Bid (CSB) or Request for Bid (RFB),

Construction

Bids are utilized to purchase one-time construction services over $50,000, and are subject to the competitive bid laws of the State of Texas. Bids at

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this dollar threshold are processed by the Purchasing Office. Award is made to the lowest responsive and responsible bidder (Please refer to Section D if award determination will be based on other factors besides price). Negotiations are not permitted. If a written contract is required, conditions of Section 7 below will apply. Please allow 6-8 weeks at a minimum to complete the process.

C. Competitive Sealed Proposal (CSP) or Request for Proposal

(RFP), Non-Construction

The proposal process is utilized to purchase goods and services at all purchasing thresholds, taking into consideration other factors besides price. A pre-determined set of evaluation criteria is established, and all proposals are evaluated against the criteria and scored accordingly. The proposal process is utilized for one-time purchases, or for the establishment of an annual contract. Negotiations are permitted in order to obtain the best value for the Town. If a written contract is required, conditions of Section 7 below will apply. Please allow 8-12 weeks at a minimum to complete this process.

D. Alternative Construction Methods (Texas Government Code,

Chapter 2269) Alternative construction methods (Competitive Sealed Proposal, Construction Manager-At-Risk, etc.) allow the Town to purchase one-time construction services over $50,000, taking into consideration other factors besides price, and are subject to the competitive bid laws of the State of Texas. A pre-determined set of evaluation criteria is established, and all proposals are evaluated against the criteria and scored accordingly. Negotiations are permitted in order to obtain the best value for the Town. Town Council must approve alternative construction methods. If a written contract is required, conditions of Section 7 below will apply. Please allow 8-12 weeks at a minimum to complete this process.

E. Statement of Qualifications (SOQ)

The SOQ process is utilized to procure professional services, as defined in Texas Government Code, Chapter 2254.

1. Architectural, Engineering, or Land Surveying Services: The SOQ

process is utilized to select the most highly qualified firm to perform a scope of professional engineering, architecture, or land surveying services, at any dollar amount.

2. All Other Professional Services: The SOQ process is utilized to select a firm on the basis of demonstrated competence and qualifications to perform the services, and for a fair and reasonable

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price, for professional services other than those identified above, if the expenditure is anticipated to be in excess of $25,000.

A pre-determined set of evaluation criteria is established, and all qualifications are evaluated against the criteria and scored accordingly. Price cannot be disclosed or considered during the scoring process. Negotiations are permitted with the most highly qualified firm only. Negotiations will continue until terms, conditions, and a fair and reasonable price are agreed upon. If negotiations with the most highly qualified firm are not successful, negotiations will cease with the current firm and begin with the next most highly qualified firm. Once negotiations have ceased with a firm, re-opening negotiations with that firm is not allowed. If a written contract is required, conditions of Section 7 below will apply. Please allow 6-8 weeks at a minimum to complete this process.

F. Request for Quotes (RFQ)

Quotes are utilized to purchase goods and services up to $50,000. Purchases over $3,000 and up to $50,000 are subject to the Historically Underutilized Businesses (HUB) law of the State of Texas. Quotes can be obtained by the department or the Purchasing Office, for one-time purchases or for the establishment of an annual contract. Award is made to the vendor providing the lowest bid or the best value, as pre-determined by the Town. Negotiations are not permitted. If a written contract is required, conditions of Section 7 below will apply. Please allow 2-4 weeks at a minimum to complete this process.

G. Cooperative Purchases

The Town has entered into various interlocal agreements, which authorize the Town to utilize contracts with certain governmental entities, and certain cooperative programs for the purchase of goods and services at any dollar threshold. Purchasing through cooperative contracts satisfies all competitive bid requirements, which means additional quotes are not required. However, if a department utilizes a cooperative contract, the contract terms and conditions of that contract must be adhered to. A list of interlocal agreements with other entities is on file in the Purchasing Office. The cooperative programs that are available to the Town include, but are not limited, to the following: 1. BuyBoard

www.buyboard.com User Name: TOP Password: prosper 2. Department of Information Resources (DIR) https://dir.texas.gov

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3. Houston-Galveston Area Council (HGAC) www.hgacbuy.com Password: 00-1158

4. Texas Multiple Award Schedule (TXMAS) http://www.txsmartbuy.com/contracts?filterBy=TXMAS

5. OMNIA Partners www.omniapartners.com

6. State of Texas Term Contracts www.txsmartbuy.com

7. North Texas Share (NCTCOG) https://www.northtexasshare.org/SHARE_partners/available-contracts/

8. Sourcewell https://www.sourcewell-mn.gov 9. Choice Partners

https://www.choicepartners.org/member-login User Name: jcook Password: Prosper1!

If utilizing a contract through an interlocal agreement or a cooperative program, please obtain an itemized quote from the supplier. The quote should reflect the cooperative program or identify the contracted agency (e.g. BuyBoard, City of Frisco, etc.), the contract number, and contract pricing. If the contract pricing is based on a guaranteed percentage discount, the quote should reflect the list price and discounted price. The Purchasing Office will verify contract validity and contract pricing.

Section 3 Evaluation Process The evaluation process is facilitated by the Purchasing Office, but is the ultimate responsibility of the department. Award will be based on either low bid, or best value bid/proposal, as pre-determined and stipulated in the bid/proposal document. Other than tabulations/summaries released for public disclosure by the Purchasing Office, all contents of bids/proposals, and all activities that take place during the evaluation and negotiation processes, shall remain confidential until awarded. A. Low Bid

1. The department will evaluate all bids submitted to determine the following:

a. the bids meet the published specifications; and b. the vendor did not note any exceptions to the terms and

conditions of the bid. 2. The department will verify that sufficient funding is available for the

purchase.

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3. Upon completion of the evaluation process, the department will submit a written recommendation of award to the Purchasing Office, that should include the following: a. official name of the recommended vendor; b. line items being awarded (if the bid lists more than one line

item); c. total amount of award; d. account number funding the purchase; and e. justification for deeming any vendor non-responsible or non-

responsive, if applicable.

B. Best Value

1. The Project Manager will assemble an evaluation committee, which should be comprised of at least three staff members. The names of the evaluation committee members will be provided to the Purchasing Office.

2. The Project Manager will coordinate a kick-off meeting with the evaluation committee and the Purchasing Office. Additional meetings may be required to complete a thorough evaluation of all bids/proposals submitted. The Purchasing Office shall be included in all evaluation committee meetings, as a facilitator only.

3. The evaluation committee will evaluate all bids/proposals submitted to determine the following: a. the bids/proposals meet the minimum requirements as

published in the bid/proposal document; b. the vendor did not note any exceptions to the terms and

conditions of the bid/proposal; and c. point values for each evaluation criteria published in the

bid/proposal document. 4. The evaluation committee will complete the evaluation forms and

submit to the Purchasing Office. Evaluation forms can be completed by each individual evaluation committee member, or collectively by the evaluation committee.

5. The Purchasing Office will combine all points assigned, apply weightings, and complete the evaluation matrix, which will be distributed to all members of the evaluation committee for review.

6. During the evaluation process, interviews and/or demonstrations are often requested in order to gain a better understanding of the submissions. Interviews/demonstrations can take place before Step 4, or after Step 5 above. All interviews/demonstrations will be coordinated by the Purchasing Office, as instructed by the evaluation committee.

7. Negotiations will take place with the top scoring vendor. The Purchasing Office can handle negotiations, or assist the Project Manager with negotiations.

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8. Upon successful negotiation, the Project Manager will submit a written recommendation of award to the Purchasing Office, that should include the following: a. official name of the recommended vendor; b. line items being awarded (if the bid/proposal lists more than

one line item); c. total amount of award; d. account number funding the purchase; and e. justification for deeming any vendor non-responsible or non-

responsive, if applicable. Section 4 Award Process The award process takes place after the department submits a written recommendation of award to the Purchasing Office. The appropriate award process is determined by the total amount of the expenditure and other factors. A. One Time Purchases

1. The Purchasing Office will review the recommendation of award submitted by the department to verify accuracy and completeness of the required processes, and vet the recommended vendor.

2. If a written contract is required, conditions of Section 7 below will apply for all purchases, regardless of the amount of the expenditure.

3. Written contracts over $25,000, and all purchases of goods and services in excess of $50,000 require Council approval. The department will prepare the Agenda Item, and route through the Purchasing Office for review. If these conditions do not apply, skip to Step 4.

4. If the purchase is in excess of $3,000, the department will enter a requisition into the financial system, in accordance with Section 5 below.

5. The Purchasing Office will issue the purchase order to the vendor.

B. Annual Contracts

1. The Purchasing Office will review the recommendation of award submitted by the department to verify accuracy and completeness of the required processes, and vet the recommended vendor.

2. If a written contract is required, conditions of Section 7 below will apply for all purchases, regardless of the amount of the expenditure. 3. Written contracts with an estimated annual expenditure over

$25,000, and all purchases of goods and services with an estimated annual expenditure in excess of $50,000 require Council approval. The department will prepare the Agenda Item, and route through the

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Purchasing Office for review. If these conditions do not apply, skip to Step 4.

4. The Purchasing Office will issue an award letter to the vendor, and perform contract administration as outlined in Section 7 below.

5. The department will enter a requisition into the financial system, in accordance with Section 5 below. Requisitions can be entered on an as-needed basis, or to establish a blanket purchase order.

Section 5 Purchase Requisitions In order to ensure proper procurement practices and availability of funds, orders should not be placed for goods or services until a purchase requisition has been approved at all appropriate levels, and a purchase order is issued by the Purchasing Office. Please plan accordingly. A. Exemptions

This section applies to the purchase of all goods and services over $3,000, unless otherwise exempted as follows: 1. Items that are exempt from the requisition requirement and can be

paid with a procurement card, by completing a check request, or approved for payment in the manner prescribed by Accounting Division are:

catered event fees election fees insurance premiums membership or professional association dues and fees periodicals postage registration fees regulatory fees subscriptions travel expenses tuition utilities other fees as approved in writing by the Purchasing Agent

2. Items that are exempt from the requisition requirement and will have

a purchase order issued directly to the vendor by the Purchasing Office are:

One-time purchases pre-approved by the Town Council (Agenda

Items)

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One-time purchases pre-approved by the Town Manager (Manager’s Memorandums)

Any recurring costs associated with a one-time purchase will comply with the requisition requirement for all future year expenditures.

B. Preparing Purchase Requisitions

1. Contracted Goods and Services

If purchasing goods or services at any dollar threshold utilizing an established annual contract, a quote is not required unless the contract is for time and/or materials, a guaranteed percentage discount, or through a cooperative venue. The purchase requisition process is as follows:

a. Enter a purchase requisition in STW (see Exhibit B).

Purchase requisitions should be itemized whenever possible. b. Verify that the items listed on the purchase requisition are

available under the contract, and that the correct contract prices are listed.

c. Annotate the contract number in the Special Information section of the purchase requisition.

d. Include the date of Town Manager/Council approval in the Requisition Comments section of the purchase requisition, if applicable.

e. Attach the following documentation to the requisition: 1) Quote/Proposal (only required for contracts that are for

time and materials, a guaranteed percentage discount, or through a cooperative venue).

f. After the requisition has been approved at all appropriate levels, the Purchasing Office will generate and issue the purchase order to the supplier, and the department will be copied on the email.

2. One-Time Purchase $3,000 and Under

Requisitions are not required for purchases $3,000 and less, but can be processed if a purchase order is required by the supplier, or at the department’s discretion. The process is as follows:

a. Enter a requisition in STW (see Exhibit B). b. Attach the following documentation:

1) Quote or proposal. 2) Contract executed by Town Manager, if applicable.

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3) Insurance certificate, if applicable. Insurance is required if the supplier is performing work on Town property.

c. After the requisition has been approved at all appropriate levels, the Purchasing Office will generate and issue the purchase order to the supplier, and the department will be copied on the email.

3. One-Time Purchase Over $3,000 and Up to $50,000

For one-time purchase of goods and services within this dollar

threshold, the purchase requisition process is as follows: a. Enter a requisition in STW (see Exhibit B). b. Indicate type of purchase in the Special Information section

(e.g. low bid, best value, etc.). c. If a written contract is associated with the purchase, indicate

the date of Town Manager or Council approval in the Requisition Comments section.

d. Attach the following documentation: 1) All quotes/proposals obtained for this purchase

(minimum of three). 2) HUB vendor information provided by the Purchasing

Office, if applicable. Indicate which HUB vendors were contacted.

3) Executed contract, if applicable. 4) Insurance certificate, if applicable. Insurance is

required if the supplier is performing work on Town property.

e. After the requisition has been approved at all appropriate levels, the Purchasing Office will generate and issue the purchase order to the supplier, and the department will be copied on the email.

5. Exempt Purchases

For one-time purchase of goods or services at any dollar threshold that is exempt from competitive bid/quotes, the purchase requisition process is as follows:

a. Enter a requisition in STW (see Exhibit B). b. State the exemption in the Special Information section of the

purchase requisition (e.g. “Sole Source”, “Professional Service”, etc.).

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c. Include the date of Town Manager or Council approval in the Requisition Comments section of the purchase requisition, if applicable.

d. Attach the appropriate documentation as applicable: 1) Quote/Proposal. 2) Sole Source Letter. 3) Executed contract/agreement. 4) Insurance certificate, if applicable. Insurance is

required if the supplier is performing work on Town property.

e. After the requisition has been approved at all appropriate levels, the Purchasing Office will generate and issue the purchase order to the supplier, and the department will be copied on the email.

6. Emergency Purchase Requisition

If the purchase qualifies as an emergency purchase under one of the conditions listed in Chapter 9, Purchasing Policy and Procedures, Section III. B. of the Town of Prosper Personnel Policies and Procedures, the process is as follows:

a. Notify the Purchasing Office of the emergency as soon as

possible. (Note: Inform the Purchasing Office if the vendor requires a purchase order up front. The Purchasing Office will coordinate the process with the department, as it will slightly differ from the steps below.)

b. After work is completed, enter a purchase requisition in STW (see Exhibit B) only if the invoice amount exceeds $3,000.

c. Attach a copy of the invoice to the requisition. d. After the purchase requisition has been approved at all

appropriate levels, the Purchasing Office will generate and issue the purchase order to the department.

e. The department will code and submit invoice for payment after receipt of the purchase order, and reference the purchase order number on the invoice.

C. Requisition Processing

Upon receipt of a requisition, the Purchasing Office shall:

1. Check the requisition for completeness, to include verification that all supporting documentation is attached. If any of the supporting documentation is missing, the Purchasing Office will contact the department for additional information.

2. Verify compliance with HUB law.

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3. Verify pricing for accuracy. 4. Verify contract provisions, if purchasing goods or services from an

existing contract. 5. Verify that sufficient funds are available to purchase goods or

services. 6. Generate and issue purchase order to the supplier.

Section 6 Receipt of Goods and Services A. Inspection

1. Upon receipt of goods or services, it is the department’s responsibility to ensure that the order is complete as to quality and quantity, and to report any discrepancies to the Purchasing Office or directly to the vendor.

2. If the shipment is complete and undamaged, the packing slip or delivery ticket should be signed and retained until the invoice for payment is received.

3. Should the department receive only a partial shipment, or return part of a shipment due to damage or delivery of the wrong items, this must be noted on the packing slip or delivery ticket, and noted on the invoice in order to prevent improper payment..

B. Damages/Defects

Goods and services should be checked at the time of receipt to detect any damages or defects. This inspection should also include assuring that the material is in compliance with the specifications. When it is apparent that the extent of the damage causes the goods to be of little worth, they should not be accepted.

1. Visible Damage: One of the major reasons for inspection at the time

of receipt is to detect any visible damage. It is important that all damage be completely described on the receiving paperwork.

2. Concealed Damage: Any evidence of concealed damage should be documented to support the filing of damage claims against the carrier. The carrier should be notified immediately, and a joint inspection should be scheduled with the carrier’s representative.

3. Claims: If the shipment is “F.O.B. destination”, the vendor is responsible for assisting with the settlement of the claim and for full replacement of the damaged items. Payment should be withheld until the claims are settled.

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C. Invoices Invoices for goods and services will be processed in accordance with the

manner prescribed by the Accounting staff.

1. It is the responsibility of the department to ensure that information contained on the invoice is a correct and accurate reflection of the goods or services received by the Town, prior to submitting the invoice for payment processing.

2. In most cases, invoices should not be submitted for payment processing if the goods and services are outstanding. Some exceptions include, but are not limited to, progress payments, required deposits, or maintenance agreements for a specified term.

3. If applicable, vendors are instructed to reference the purchase order number on their invoice. However, it is the department's responsibility to ensure the purchase order number is clearly referenced on the invoice when submitting for payment processing.

Section 7 Contract Administration For the purpose of this section, the term "Contract" shall represent contracts, agreements, professional services agreements, interlocal agreements, engagement letters, applications, and all other similar documents that include terms and conditions for the purchase of goods and services, and/or requires a signature binding the Town. A. New Contracts

New contracts for goods and services shall be established in accordance with the Town's Purchasing Policy and Procedures. After completion of the procurement process, the contract will be established in accordance with the following: 1. The department will work with the Purchasing Office and Town

Attorney to develop the contract. The contract must be finalized and approved as to form by the Town Attorney, prior to submitting for approval. Please allow sufficient time for contract development and/or review. If available, a standard form previously approved by the Town Attorney may be used in lieu of new contract development. Standard forms are available through the Purchasing Office.

2. The contract should be executed by the vendor prior to submitting for approval, whenever possible. The Purchasing Office is available to assist the department with obtaining the appropriate signatures. A minimum of two originals of the contract should be executed.

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3. The department will submit the contract for approval, which includes preparing a Manager's Memorandum or Agenda Item (Council approval is required on written contracts over $25,000), and will be routed through the Purchasing Office for review. A copy of the Town Attorney's approval must be provided with the contract (unless a pre-approved standard form is utilized).

4. Upon contract approval and execution, the Town Secretary will retain one original for the official record, and provide one original to the Purchasing Office for distribution to the vendor. The Purchasing Office will retain an electronic copy for the purchasing file.

B. Contract Renewals

The Purchasing Office tracks annual contracts with renewal options. Contract files are pulled ninety days prior to the expiration date and processed as follows:

1. The Purchasing Office will verify the department’s intent to renew the

contract. 2. The Purchasing Office will run an expenditure report for the current

contract period to determine if the annual expenditure is in-line with the contract award.

3. The Purchasing Office will work with the department to consider any request for price increase submitted by the vendor.

4. The Purchasing Office will issue the renewal letter to the vendor or assist the department with the appropriate action(s) to process the renewal, if Town Manager or Council approval is required. If the renewal involves a document that requires a signature, the process outlined in Section 7 A above will apply.

5. Upon completion of the renewal process, the Purchasing Office will: a. Update contract database. b. Provide notice of renewal to all parties involved.

If there are no renewal options available, the department will work with the Purchasing Office to rebid the contract, if there is a continuing need for the goods or services.

C. Contract Amendments and Change Orders

Contract amendments and change orders cannot exceed 25% of the original award amount, individually or collectively, if the purchase is subject to the competitive bid laws of the State of Texas. Additionally, change orders for construction contracts cannot be decreased by more than 25% of the original award without the contractor’s consent. Any changes to an executed contract document should be processed as a contract amendment or change order, as appropriate, in accordance with the following:

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1. The department will work with the Purchasing Office and Town

Attorney to develop the amendment/change order. The amendment/change order must be finalized and approved as to form by the Town Attorney, prior to submitting for approval. Please allow sufficient time for document development and/or review. If available, a standard form previously approved by the Town Attorney may be used in lieu of new document development. Standard forms are available through the Purchasing Office.

2. The amendment/change order should be executed by the vendor prior to submitting for approval, whenever possible. The Purchasing Office is available to assist the department with obtaining the appropriate signatures. A minimum of two originals of the amendment/change order should be executed.

3. The department will submit the amendment/change order for approval, which includes preparing a Manager's Memorandum or Agenda Item (Council approval is required on amendments/change orders over $25,000), and will be routed through the Purchasing Office for review. A copy of the Town Attorney's approval must be provided with the amendment/change order (unless a pre-approved standard form is utilized).

4. Upon approval and execution of the amendment/change order, the Town Secretary will retain one original for the official record, and provide one original to the Purchasing Office for distribution to the vendor. The Purchasing Office will retain an electronic copy for the purchasing file.

5. If applicable, the Purchasing Office will revise the purchase order accordingly, and re-issue to the department and the vendor.

D. Contract Cancellation/Termination 1. If it becomes necessary to cancel/terminate a contract, please

notify the Purchasing Office as soon as possible. If a written contract is in place, the Town must comply with the cancellation/termination requirements outlined in the contract document. The terms and conditions are specific to the contract, and vary from one contract to another.

2. If written notice is required, the department will work with the Purchasing Office and the Town Attorney to draft the cancellation/termination letter, and to determine the appropriate signatory authority.

3. The department will submit the cancellation/termination letter for approval, which includes preparing a Manager's Memorandum or Agenda Item, and will be routed through the Purchasing Office for review.

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4. Upon approval and execution of the cancellation/termination letter, the Town Secretary will retain one copy for the official record, and provide the original to the Purchasing Office for distribution to the vendor, in the manner prescribed in the contract. The Purchasing Office will retain an electronic copy for the purchasing file.

E. Performance Issues

Any vendor/contractor performance issues should be documented and reported to the Purchasing Office immediately. It is extremely important to document details of non-compliance and provide documentation for the file. The department has two options to cure as follows:

1. Department to Cure

The department will make initial efforts to cure the issue. If efforts are successful, the department will continue to monitor vendor performance to ensure compliance. If performance is not cured, the Purchasing Office should be notified immediately for further action.

2. Purchasing Office to Cure

The department will provide the Purchasing Office with details of non-compliance. The Purchasing Office will take action in order to cure the issue by issuing a formal cure notice. If non-compliance continues, the Purchasing Office will confer with the Town Attorney in regards to any legal recourse that may be available.

Section 8 Vehicle and Equipment Replacement Fund (VERF) Purchases A. Purchasing Requirements

1. All vehicle and equipment purchases replacing a VERF unit, or new

additions to the fleet that will be placed in the VERF, will be purchased in accordance with Town of Prosper Administrative Regulations, Chapter 12 Vehicle Equipment Replacement Fund Program Policy.

2. Departments will coordinate specification development with the Finance Department and/or the Town’s Fleet Program Manager, accordingly.

3. After an approved unit configuration has been purchased, no

additional modifications will be made to the unit without prior approval from the assigned Department Head, and coordinated through the Town’s Fleet Program Manager if applicable.

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B. Window Tint Standards

1. The Town requires 45% or greater transparency on the front driver’s and passenger’s windows only.

2. For other windows, window tint must be within legal limits. Section 9 Glossary of Terms A. This glossary further defines terms that are contained in the Purchasing Policy and Purchasing Procedures Manual, or are related to. Any process or procedure outlined in this glossary is incorporated as part of the Purchasing Procedures.

1. Addendum: A written change, addition, alteration, correction or revision to a bid or proposal. An addendum may be issued following a pre-bid/pre-proposal conference, or as a result of a specification or work scope change to the solicitation. All addendums to a formal bid/proposal processes will be issued by the Purchasing Office.

2. Agreement: An understanding, usually in writing, between two or

more competent parties, under which one party agree to certain performance as defined in the agreement and the second party agrees to compensation for the performance rendered in accordance with the conditions of the agreements. Agreements and contracts are sometimes used synonymously. Generally agreements are approved by an attorney “as to form” and legal sufficiency prior to execution.

3. Amendment: 1) An agreed addition to, deletion from, correction or

modification of a document or contract; and 2) To revise or change an existing document; a formal revision, improvement or correction.

4. As To Form: Documents and agreements that are approved by an

attorney for legal sufficiency prior to their execution while not commenting on the business merits of their contents.

5. Auction: A public sale in which property or items of merchandise

are sold to the highest bidder. Many governments will auction off government property and may contract with a private auctioneering firm to handle the complete transaction including advertising, the sale and collection of funds.

6. Award: After completion of the evaluation process, award will be

made to the lowest responsible/responsive bidder, unless award is based on best value as indicated in pre-determine evaluation criteria

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published in the bid/proposal document. If the award amount is in excess of $50,000, or if there is an associated formal agreement/contract in excess of $15,000, Council must award the bid/proposal, or reject all submissions. A notice of award is sent to the successful bidder or proposer, and award notification is sent to all unsuccessful bidders or proposers.

7. Best and Final Offer: In a competitive negotiation, the final proposal

submitted after negotiations are completed that contains the proposer’s most favorable terms for price, services and products to be delivered. Sometimes referred to as BAFO and utilized during the Request for Proposal (RFP) or Competitive Sealed Proposal (CSP) method of procurement.

8. Best Value: An assessment of the return which can be achieved

based on the total life cycle cost of the item; may include an analysis of the functionality of the item; can use cost/benefit analysis to define the best combinations of quality, services, time, and cost considerations over the useful life of the acquired item. A procurement method that emphasizes value over price. The best value might not be the lowest cost. Generally achieved through the Best Value Bid, Request for Proposal (RFP), or Competitive Sealed Proposal (CSP) method of procurement.

9. Bid (noun): The response submitted by a bidder to a competitive

sealed bid or request for bid. Sometimes the completed bid document may be referred to as “the bid”. The response to a Request for Proposal (RFP) is called a proposal or offer.

10. Bid (verb): To submit a bid response. By submitting a bid response,

one person (the vendor) gives the Purchasing Office the legal power to create a contract with the responding vendor in accordance with the bid response.

11. Bid/Proposal Evaluation: A comprehensive review of all

bids/proposals received as a result of a competitive process usually for the purpose of comparing strengths and weaknesses of the bids/proposals received based on the requirements and criteria set forth in the request for bids/proposals. In determining whether the bid/proposal is responsive, designated personnel should decide whether the bid/proposal is responsive, check to see whether it is provided on the form furnished, and see that it contains no exceptions to specifications or plans.

12. Bid-Opening: The official process in which sealed bids are publicly

opened, usually in the presence of one or more witnesses, at the

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time and place specified in the invitation for bid. The Purchasing Manager, or an authorized designee, will preside over bid openings for the Town. The envelope will be checked to determine that all required documents are enclosed, and the amount of each bid will read aloud. The pricing is recorded by a Town representative, and bids are made available for public inspection after award. Per LGC 252.041 the due date for the bid cannot be less than fifteen (15) days from the first legal advertisement date.

13. Bid Tabulation: A public document listing all vendors who

responded to a request for bid, with a list of all items contained in the bid, and showing unit prices for each item for each bidder. All unit prices, extensions, and total dollar amounts will be checked and any errors corrected. In the event of a discrepancy, the unit price will prevail.

14. Blanket Purchase Order: A purchase order for the total estimated

amount to purchase contracted goods or services over a specified period of time, usually one year. Quantities are not always specified on the purchase order, but the contract establishes prices, terms, conditions, and the period covered. Goods or services are ordered on an as-needed basis, and

15. Contract: A contract is a legally binding document between the

Town and a vendor, outlining the terms and conditions of the purchase of goods or services offered by the vendor, and accepted by the Town. A contract is enforceable by law.

16. Change Order: A written alteration that is issued to modify or amend

a contract or purchase order. A change order directs the contractor to make changes to the contracted scope of work or specifications. In reference to construction contracts, it relates primarily to changes caused by unanticipated conditions encountered during construction not covered by the drawings, plans or specifications of the project.

17. Clarification: A communication with a bidder/offeror for the sole

purpose of eliminating minor irregularities or apparent clerical mistakes in a bid/proposal; may be initiated by either bidder/offeror or purchaser; does not give bidder/offeror an opportunity to revise or modify its bid/proposal, except to the extent the correction of apparent clerical mistakes results in revision.

18. Cure Notice: A notice that must be issued prior to termination for

default of a supply or service contract. The cure notice will outline the non-conformance, and will typically include an opportunity for the

25

vendor to cure the issue. The notice will also state the consequences for continued non-conformance, and the grounds for termination.

19. Historically Underutilize Business (HUB): A "Historically

Underutilized Business" is an entity with its principal place of business in Texas and is at least 51% owned by an Asian Pacific American, Black American, Hispanic American, Native American and/or American woman who reside in Texas and have a proportionate interest and demonstrate active participation in the control, operations, and management of the entity's affairs. The State Comptroller’s Office handles the HUB certification process, and maintains a HUB vendor database.

20. Negotiations: A procurement method for obtaining goods, services

and construction in which discussion and negotiations may be conducted with responsible offerors who submit responsive proposals.

21. Pre-Bid/Pre-Proposal/Pre-Submission Meeting: A meeting to

discuss with potential respondents, technical, operational and performance specifications, and/or the full extent of financial, security and other contractual obligations related to a solicitation before the closing date. The meeting will provide information to potential respondents to ensure responses are submitted with the best understanding of conditions or circumstances surrounding the project. Meetings are recommended for complex construction projects, or any other projects as deemed appropriate by the department.

22. Legal Notice: A public notice required by law, LGC 252.041, to be

published in the Town’s official newspaper. Legal notice must be advertised once a week for two consecutive weeks, and should identify the type of work involved, where the work is to be accomplished, bid bond requirements, how to obtain bid documents, dates for pre-bid conferences, site visits, and questions deadline, and specify the date, time, and place for receiving bids. The legal notice should also state that the Town has the right to reject any or all bids/proposals, to waive informalities, and to accept the bid/proposal that is deemed to be in the best interest of the Town.

23. Requisition: An internal document that is entered into the financial

system by the department outlining details of goods or services to be ordered, after completing the appropriate purchasing process.

24. Purchase Order: A written document issued to a vendor,

formalizing all the terms and conditions of the purchase of goods or

26

services, such as a description of the items, delivery schedule, and terms of payment. The purchase order serves as a contract between the Town and the vendor, when a formal written contract does not exist, and is enforceable upon the vendor acceptance of the purchase order.


Exhibit B Town of Prosper

Purchase Requisition Instructions

An Instructional Guide to Entering Purchase Requisitions in the Town's Financial System

(Revised 10-3-16)

Instructions for Entering a Purchase Requisition Note: Your screens may appear different from the examples included in this instructional guide, based on your system access. However, you should still be able to locate and access the Requisition Module.

Accessing the System

1. Double-click on the STW icon on your desktop. Ensure that you select 'Stw Login' not'Stw ePortal'

2. Enter User ID and Password. (Note: Contact the Purchasing Office if you do not have aUser ID and Password)

Accessing the Requisition Module

1. Select 'Requisitions'

2. Select 'Department Processing and ‘Requisitions’

Tip: You can customize this section by dragging and dropping an item from the menu on the right side of the screen into the 'Favorites' section on the left side of the screen.

Entering New Requisitions

1. Select 'New' from the menu at the bottom right corner of the screen.

2. Complete the following on the screen (no action required for the fields notspecified below):

a. Department Name: click magnifying glass and select department name, then tab(some fields will automatically populate information after you tab). Thedepartment selected will determine the requisition approval path.

b. Date item needed: leave the default date, or change the date if required.c. Emergency: only change to 'yes' if this is an emergency purchase, as defined in

the Purchasing Policy and Procedures.d. Project Name: enter the project name/description.e. HUB Requirements Met: if the purchase is over $3,000, and it is not being

purchased through a contract, or is not otherwise exempt, compliance with Stateof Texas HUB law is required. Please contact the Purchasing Office for HUBvendors.

f. Method of Procurement: indicate the type of purchase (e.g. bid/contract number,low bid, best value, sole source, etc.).

g. Purchase Pre-Approved: indicate Council approval date, Town Managerapproval, approved FY 2016-17 decision package, etc.

h. Instructions to Purchasing: indicate any additional instructions/remarks for thePurchasing Office.

i. Preferred vendor: click magnifying glass and search/select vendor, then tab (thevendor name will populate after you tab). If the vendor is not in the system,please request a W-9 from the vendor. Upon receipt of the W-9, forward toAccounts Payable and request for vendor to be added to the system.

j. Questions about IT and federal funds toward the bottom of the screen: you mustanswer both questions (yes or no), or you will receive an error message.

k. After you have completed the above sections, select 'OK' from the menu at thebottom right corner of the screen.

a

h

g

f e d

b

i

j

c

j

k

3. Complete the following on the screen (no action required for the fields notspecified below):

a. Product group: select 'Goods' or 'Service'b. Line item description: enter description of good or services being purchased.

Note that any information entered into this section will print on the PO.c. Quantity: enter quantity being purchased.d. Price per unit: enter the unit price for the good or service being purchased.e. UOM: enter the unit of measure (e.g. EA for each, LS for lump sum, MO for

month, etc.).f. Account number(s): enter account number funding the purchase, with no dashes

(e.g. 10532060), and tab (Description and Amount will auto-populate after youtab).

g. After you have entered the information, you have to select 'OK' from the menu onthe bottom right corner of the screen, or the information will not be saved. Onceyou select 'OK', a new screen will appear. Repeat this process until you havefinished entering all line items. Remember to select 'OK' after you enter eachline item!

h. When you have finished entering all line items, select the back button (greenarrow) from the menu on the bottom right corner of the screen.

b a

c d e

f

g

h

4. This screen will display all the line items that were entered for this requisition.

a. If you need to add an additional line item(s), select the 'New' button, and repeatthe steps above.

b. If you need to correct a line item, click on the line, and see the 2nd screenshotbelow.1) Select the 'Update' button (U) from the menu on the bottom right corner of

the screen.2) If you correct the unit price, you will have to manually enter the new

extended amount.3) Select 'OK' to save the information.

c. Once all line items are entered, select the back button (green arrow) from themenu on the bottom right corner of the screen.

a

c

b1

b3

b2

5. You are now at the Requisition Mastery Inquiry Screen. You can do 4 things from thispage:

a. To regain access to the line items, select the 'Details' tab.b. You are required to attached supporting documentation for your purchase

request (e.g. executed contract, three quotes, HUB vendor list, etc.). To uploadsupporting documentation, select the icon identified from the menu on thebottom right corner or the page, select 'Upload' and either search for the file(s),or drag and drop them into the designated area. Click the back button (greenarrow) once you have completed selecting all of the appropriate attachments.

c. To delete a requisition, select the red 'X' button from the menu on the bottomright corner of the page, and confirm deletion by selecting 'Yes' when prompted.

d. The requisition will remain in held status until you are ready to release it forapproval. You can leave the system and come back later to make changes whileit is in held status, but once you elect to complete the requisition, you will nolonger be able to make any revisions. If any revisions are required after it iscompleted, please contact the Purchasing Office. To complete the requisitionand begin the electronic approval routing process, select the 'Complete Req' tab.

Congratulations, you have completed your requisition!

b

d

c

a

For Requisition Approvers Only: Approving Requisitions 1. Select 'Requisitions'

2. Select 'Department Processing and Approval Routing Process

Tip: You can customize this section by dragging and dropping an item from the menu on the right side of the screen into the 'Favorites' section on the left side of the screen.

3. This screen will display any requisitions pending your approval. Select the requisition byclicking on it.

4. You are now on the 'Approve Requisition' screen.

a. To review requisition detail, select the 'Req Inquiry' tab at the top of the page. This will take you to the 'Requisition Master Inquiry' screen, where you can review line items by selecting the 'Details' tab, and then clicking on the line item(s) you would like to review, review attachments to the requisition, and any buyer notes or comments.

b. To approve/reject the requisition, make the appropriate choice where indicated on the screen, and select 'OK' from the menu on the bottom right corner of the screen. If rejecting the requisition, you can enter comments in the 'Description' section. Please note that anything entered in the 'Description' section will be included in the system notification email sent to the requisitioner.

CHAPTER 12:

TOWN OF PROSPER


VEHICLE/EQUIPMENT REPLACEMENT FUND PROGRAM

The purpose of the Town's Vehicle/Equipment Replacement Fund (VERF) Program is to establish policy and procedures to ensure that adequate funds will be available to purchase replacement vehicles, equipment, and technology infrastructure, and to fund the VERF related to the purchases, thereby stabilizing the

budgeting for future year replacements. Also, to provide for such replacements and purchases, and administer the disposition of the replaced vehicles, equipment, and technology infrastructure.

SECTION 12.01: POLICY

A. PoJicy Overview

1. All fleet vehicles, equipment, and technology infrastructure will be owned by the VERF, and

assigned to the user departments.

2. All user departments will be charged a monthly replacement fee for each item allocated for theiruse from the VERF. Such fee will provide funds to purchase future replacement vehicles,equipment, and technology infrastructure.

3. All items replaced will be surrendered simultaneously with the acquisition of the replacement. Adetermination will be made prior to the acquisition in regards to the disposition of the item beingreplaced.

4. Proceeds for replaced items sold as surplus property will be credited to the VERF.

5. The VERF is for the purchase and replacement of vehicles, equipment, and technologyinfrastructure only. New items, additions and/or upgrades, may be requested by departmentsduring the budget process. If approved, items will be added to the VERF after acquisition, and the

monthly replacement fee for units will be assessed accordingly.

SECTION 12.02 ORGANIZATIONAL RESPONSIBILITIES

Throughout the process, it is critical that Town staff works together to ensure that requirements are met, and that the Town of Prosper achieves the identified goal that created the need for the supplemental funding.

A. Town Departments

Departments operating vehicles and equipment (including computers) are responsible for:

Chapter 12, Page 1 Approved April 2, 2015

Revised & Adopted February 27, 2020

Revised & Adopted October 7, 2020

1. contributing monthly to the VERF according to this policy;

2. requesting replacement units during the annual budget process; and

3. appointing members to the internal vehicle and equipment review committee.

The internal review committee for vehicles and equipment is comprised of the Purchasing Manager,the Finance Director, and one representative from each user department. The user departmentrepresentatives are appointed by their respective department heads. Committee duties include:

a. reviewing the Vehicle and Equipment Procurement Request Forms submitted annually for bothscheduled and unscheduled replacements, identifying the items warranting replacement per thispolicy, and prioritizing these items for budgetary consideration;

b. making recommendations regarding departmental requests to purchase used vehicles or

equipment from the VERF; and

c. recommending revisions to the replacement criteria.

B. Town Council Subcommittees

The Town Council Subcommittees are responsible for reviewing staff recommendations on behalf of theTown Council. The purpose and scope of each subcommittee is defined below.

1. Council Technology /VERF Subcommittee

The Council Technology /VERF Subcommittee for technology infrastructure is comprised ofCouncilmembers appointed by Town Council, and staff support to include the Town Manager, the

Director of Information Technology, the Finance Director, and the Purchasing Manager.Subcommittee duties include:

a. periodically reviewing the Town's existing technological capabilities, and makingrecommendation for improvements;

b. periodically reviewing and making recommendations on the Town's VERF as it relates to theacquisition, implementation, maintenance and upgrading of the Town's technology, software,and computer equipment; and

c. making recommendations to promote the use of technology to increase efficiency of operationswithin the Town.

2. Council Finance Subcommittee




The Council Finance Subcommittee is comprised of Councilmembers appointed by the Town Council;

and staff support to include the Town Manager and the Finance Director. Subcommittee duties

include:

a. periodically reviewing and making recommendations to the Town's VERF as it relates to theacquisition, replacement and upgrading of the Town's vehicles and equipment.

C. Purchasing Manager

The Purchasing Manager is responsible for maintaining the VERF Policy, maintaining updated

replacement schedules for vehicles and equipment, and for overseeing the activities of the VERFCommittee for vehicles and equipment. The Purchasing Manager also coordinates with user

departments to facilitate individual replacements.

D. Finance Director

The Finance Director is responsible for managing the VERF, setting the annual budget for vehicle,equipment, and technology infrastructure replacements, and reviewing and proposing modifications

and/or replacement lists based on budgetary constraints.

E. Director of Information Technology (IT)

The Director of IT is responsible for maintaining updated replacement schedules for technology

infrastructure, and for overseeing the activities of the VERF Technology Sub-Committee. The Directorof IT also coordinates with user departments to facilitate individual replacements.

F. Town Manager

The Town Manager is responsible for approving the VERF policy and revisions thereto, and for reviewing

and deciding departmental requests to purchase retired items from the VERF.

G. Town Council

The Town Council reviews and approves the list of proposed replacements, and the amount of annual

contributions into the VERF during the budget process each year.

SECTION 12.03: REPLACEMENT REQUEST PROCESS

Departments will complete a Vehicle and Equipment Procurement Request Form to initiate the replacement

process. Requests must be submitted annually during the budget process. If the requested unit is not

scheduled for replacement, the user department will provide additional justification and support for the

request. The VERF Committee will meet to review all requested replacements.

SECTION 12.04:

Chapter 12, Page 3

REPLACEMENT CRITERIA

Approved April 2, 2015



The Vehicle/Equipment Replacement Criteria (Exhibit A) identifies the estimated life expectancy of the

Town's vehicles and equipment. Age and mileage or hours are the primary criteria for replacement. The replacement criteria for technology infrastructure will be set by the Director of IT, in compliance with

direction from the VERF Technology Sub-Committee. The criterion are only intended as a guide for the

replacement decision; items meeting or exceeding the criteria are not automatically approved for

replacement. Meeting the criteria makes a unit eligible for replacement, but still subject to additional scrutiny, considering items such as physical condition, resale value, etc. Also, items that do not meet the

criteria may still be eligible for early replacement for reasons like excessive maintenance costs, or a total loss

declaration by the Town's insurer.

SECTION 12.05: REPLACEMENT FUNDING

The VERF is an internal service fund used to account for the replacement of Town vehicles, equipment, and

technology infrastructure. Contributions are made to the VERF based on a replacement schedule for each item. Departments using vehicle(s ), equipment, or technology infrastructure will contribute funds from their

operational budget into the VERF; these contributions are then used to replace the items, which mitigates the impact on the operating budget. All items in the VERF shall be funded at a ratio of eighty percent (80%). While the individual item funding percentage may vary, the overall goal is eighty percent (80%) funding in total by fund (General, Water/Sewer, and Stormwater Drainage). The amount of the annual contribution for

each item is determined as follows:

CONTRIBUTION = ITEM ACQUISITION PRICE/ EXPECTED USEFUL LIFE

Example: Chevrolet Tahoe purchased for Police Department: $60,000* Expected useful life: 4 years Contribution= ($60,000 x .80/4) = $12,000/year

*Acquisition price is inclusive of all after-market installs required to place the unit into

operations.

The annual contribution amount is divided by twelve (12) for monthly transfers from the department's budget to the VERF via journal entry. Proposed VERF transactions are reviewed and approved as part of the Town's annual operating budget process.

1. Proceeds from sold vehicles will be credited to the VERF, as will income earned from investment ofVERF balances and all claims paid on VERF items.

2. If a department's item reaches its expected useful life but continues in service, the department willnot be required to make additional contributions for that unit.

3. In the event that Town Manager approval is received to purchase a retired or replaced item from theVERF, the purchase price shall be ten percent (10%) of the original cost of the item. This amount isintended to compensate for the loss of sale proceeds that would otherwise be deposited in the VERF.

The retained item will be removed from the VERF, and will not be funded for future replacement.




4. Replacement contributions will be discontinued for units sold or retired before the expiration of theiruseful life.

5. The acquisition price for VERF items will be reviewed on an annual basis during the budget process,and adjusted accordingly to reflect current market prices. This may result in an adjustment to the

annual contributions in order to accommodate future replacement costs.

The Town of Prosper Vehicle Equipment/Replacement Fund (VERF) Program was revised and adopted the

7th day of October, 2020.





VEHICLE/EQUIPMENT TYPE YEARS MILES HOURSAerial bucket trucks 10 100,000 6,000Aerial ladder and snorkel firre trucks 15 N/A N/AAir compressors--trailer-mounted 15 N/A 7,500Ambulances 8 100,000 N/ABackhoes 10 N/A 7,500Backhoes, tractor (trackhoes) 10 N/A 7,000Boats 10 N/A N/AChippers 8 N/A 7,500Concrete saw 7 N/A 5,000Crack sealer 15 N/A 6,000Cranes, ditchers and trenchers 10 N/A 7,000Dozers 10 N/A 7,000Excavators 10 N/A 7,000Fire engines, pumper tanks and quints 15 N/A N/AForklifts 15 N/A N/AGenerators 15 N/A N/AHydrohammers 10 N/A 7,000Infield groomers 5 N/A 4,000Loaders with tires or tracks 10 N/A 10,000Motor graders 15 N/A 7,000Mowers, attachments 12 N/A N/AMowers, riding 6 N/A 4,000Paving equipment (asphalt trucks) 10 100,000 6,000Sand spreader inserts 8 N/A N/ASedans (including Police CID and staff vehicles) 9 125,000 N/ASedans, full-size (pursuit rated) 4 125,000 N/ASedans, mid-size (pursuit rated) 4 100,000 N/AStreet rollers 15 N/A 6,000Stump cuttter 8 N/A 6,000SUV (field) 8 125,000 N/ASUV (staff) 8 125,000 N/ASUV (pursuit rated) 4 125,000 N/ATractors 12 N/A 7,000Trailers (bed, cargo, livestock, etc.) 15 N/A N/ATrucks, dump, 6- and 12-yards 15 50,000 7,000Trucks, flushing 10 100,000 7,000Trucks, pickup--field 1-ton and under 8 125,000 N/ATrucks, pickups--staff 3/4 ton and under 10 125,000 N/ATrucks, utility (camera, crane, dump & flat bed, pipe hunter, tree spade, vacuum) 8 100,000 7,500Turf vehicles 6 N/A 4,500Vans (cargo, passenger, field) 9 125,000 N/A

TOWN OF PROSPER, TEXASVEHICLE/EQUIPMENT REPLACEMENT PROGRAM

REPLACEMENT CRITERIA (EXPECTED LIVES)

EXHIBIT A



CHAPTER 13: FUND BALANCE POLICY

SECTION 13.01: PURPOSE AND OVERVIEW

The purpose of this policy is to establish guidelines for fund balance levels within each of the Town of Prosper’s funds. It is essential that the Town maintain adequate levels of fund balance to mitigate financial risk that can occur from unforeseen revenue fluctuations, unanticipated expenditures, or adverse circumstances. The Town of Prosper avoids appropriating fund balance for recurring expenses. However, in the event that fund balance is used to support recurring expense, the budget will clearly identify the uses of fund balance and provide an explanation of the circumstances requiring the use of fund balance. In addition, the budget will also address the future potential uses of fund balance for operating expenditures and a course of action to replenish fund balances to target levels.

This policy ensures the Town maintains adequate fund balances in various operating funds for capacity to:

1. Provide sufficient cash flow for daily financial needs,

2. Secure and maintain investment grade bond ratings,

3. Offset significant downturns or revenue shortfalls, and

4. Provide funds for unforeseen expenditures related to emergencies.

SECTION 13.02: DEFINITIONS AND CATEGORIES

A. Fund Balance

Defined as the difference between a fund’s assets and liabilities reported in a governmental fund,which is more a measure of liquidity than of net worth. This would be most similar to workingcapital as used in the private sector.

According to the Governmental Accounting Standards Board (GASB) statement number 54, fundbalance must be allocated into one of the following five categories:

1. Nonspendable Fund Balance – includes amounts that either


a. are not in a spendable form, or

b. are legally or contractually required to be maintained intact.

Examples include prepaid items, inventory, redevelopment properties held for resale, or endowments.

2. Restricted Fund Balance – includes amounts for which constraints have been placed on theuse of the resources either

a. externally imposed by creditors (such as through a debt covenant), grantors,contributors, or laws or regulations of other governments,

b. imposed by law through constitutional provisions or enabling legislation, or

c. imposed by Town Charter.

Examples include Contingency Appropriations in the Town Charter, grants, and debt covenants.

3. Committed Fund Balance – includes amounts that can be used only for the specific purposesdetermined by a formal action of the government's highest level of decision-makingauthority. Commitments may be changed or lifted only by the government taking the sameformal action that imposed the constraint originally. Examples include any Council-imposeduse or limitation set by Town Ordinance or Resolution.

4. Assigned Fund Balance – includes amounts intended to be used by the government forspecific purposes. In governmental funds other than the general fund. assigned fund balancerepresents the amount that is not restricted or committed. This indicates that resources inother governmental funds are, at a minimum, intended to be used for the purpose of that fund.

5. Unassigned Fund Balance – is the residual classification of the general fund and includes allamounts not contained in the other classifications. Unassigned amounts are technicallyavailable for any purpose.

Note: The above fund balance categories only apply to governmental funds.

6. Restricted Fund Balance – While the Fund Balance Policy is intended to focus more onunrestricted portions of fund balance. it is important to note a Town Charter provision inSection 7.08 as amended in May 2011 that imposes a legal restriction on a Contingent Reserve of the General Fund. It reads, "Provision shall be made in the annual budget maintaining acontingency reserve fund balance designation in an amount not less than twenty percent(20%) of the total general fund expenditures, to be used in case of unforeseen items ofexpenditure or revenue shortfalls. This shall apply to current operating expenses and shallnot overlap with any other amount of reserves maintained by the Town. Such contingencyreserve appropriation shall be under the control of the Town Manager and distributed by him


or her only in the event of an emergency or after supplemental appropriation by the Town Council. The proceeds of the contingency reserves shall be disbursed only by transfer to departmental appropriation, the spending of which shall be charged to the departments or activities for which the appropriations are made.''

7. Committed Fund Balance – The Town Council is the Town's highest level of decision-makingauthority and the formal action that is required to be taken to establish, modify, or resc.:inda fund balance commitment is an ordinance or resolution adopted by the Town Council. Theformal action must either adopt or rescind the commitment, as applicable, prior to the lastday of the fiscal year for which the commitment is made. The amount subject to the constraint may be determined in the subsequent period.

8. Assigned Fund Balance – The Town Council authorizes the Town Manager or his/herdesignee as the official authorized person to assign fund balance to a specific purposeapproved by this fund balance policy.

9. Order of Expenditure of Fund Balance – While multiple categories of fund balance areavailable for expenditure (for example, a construction project is being funded partly by agrant, funds set aside by the Town Council, and unassigned fund balance), the Town will start with the most restricted category and spend those funds first before moving down to the next category with available funds. Normally this would result in the use of restricted, thencommitted, then assigned, and lastly, unassigned fund balance.

The Town reserves the right to selectively spend unassigned resources first to defer the useof these other classified funds if determined to be in the Town's best interest.

10. Minimum Unassigned Fund Balance – It is the goal of the Town to achieve and maintain anunassigned fund balance in the general fund equal to five percent (5%) of budgetedexpenditures for unanticipated expenditures, unforeseen revenue fluctuations, or otheradverse circumstances. The unassigned fund balance level, however, may be reduced duringunusual financial circumstances. However, if such a situation occurs, the Town willimplement necessary corrective action within a five-year plan to restore the unassigned fundbalance to the equivalent of five percent (5%) of budgeted expenditures. This amount is inaddition to the twenty percent (20%) restricted fund balance amount required by the TownCharter.

11. Non-governmental fund balances – The fund balance categories discussed above do not apply to proprietary funds according to GASB 54. While not required by the GASB, the Townrecognizes the need to apply a minimum balance policy to the proprietary funds maintainedby the Town. Therefore, the Town shall strive to maintain a minimum ending working capital balance (current assets minus current liabilities) of at least twenty-five percent (25%) ofbudgeted non-capital expenditures for each of the proprietary funds. If the working capitallevel should fall below the desired minimum. the Town will implement necessary correctiveaction within a five-year plan to restore the working capital balance to twenty-five percent(25%) of budgeted non-capital expenditures.


The Town of Prosper Fund Balance Policy was revised and adopted on the 11th day of July, 2017.

Harlan Jefferson, Town Manager

CHAPTER 14:

TOWN OF PROSPER


COMMUNITY ROOM RESERVATIONS

The Town of Prosper is committed to providing friendly and beneficial customer service to the residents, various non-profit associations, and civic organizations in Prosper. This policy is intended to provide procedures and guidelines for the reservation and use of the Community Room by members of the public. The Council Chambers and Library Program Room are to be used solely for Town-related meetings, programs, and events, and are not available for reservation by Town residents or organizations.

SECTION 14.01: GENERAL PROVISIONS

A. Policies

1. The Community Room is available for use by Prosper residents and non-profit or civicgroups located in Prosper during normal hours of operation, if the facility is available andnot in use. The Community Room is available free of charge.

2. The Community Room may not be used for commercial soliciting, sales, or fundraisingactivities. Admission fees are not permitted.

3. Children must be supervised at all times by a parent or responsible adult.

4. Smoking, tobacco use, and alcoholic beverages are not permitted in the Community Room.

5. Food and beverages are permitted in the Community Room, however, no cooking of food oropen flames are permitted.

6. Groups must bring any supplies needed for use. The Town is not responsible for providingadditional equipment, supplies, refreshments, or copying services. Balloons are notpermitted.

7. The Community Room may not be reserved for private parties or social gatherings such asshowers, birthday parties, receptions, or for religious services.

8. The Community Room is available for use by groups age 18 years and older.

9. The use of the Community Room does not constitute Town endorsement of the viewpointsexpressed by the participants of the meeting or program. No advertisement orannouncement implying such endorsement shall be permitted.

Chapter 14, Page 1 Revised and Approved September 2018

10. Failure to comply with these Policies and Procedures may result in the suspension ofprivileges. Permission to use the Community Room may be withheld from groups failing tocomply with this policy and from any group that damages the room, carpet, equipment orfurniture, or causes a disturbance.

B. Care and Use of Facility

1. Tables and chairs in the Community Room may be rearranged; however, they must bereturned to the original arrangement at the end of the meeting.

2. Furniture and/or equipment from the Library or the Town Hall lobby may not be broughtinto the Community Room.

3. Set-up and clean-up must be accomplished within the time period for which the room isreserved.

4. Set-up and arrangement of furniture, as well as clearing of the room following a meeting, isthe responsibility of the person/organization making the reservation. No physical changesare allowed except for the rearrangement of furniture. Nothing may be attached to the walls.

5. Equipment, supplies, or personal effects may not be stored or left in the Community Roombefore or after use.

6. A small kitchen area is available for groups reserving the Community Room. All outside itemsmust be removed from the kitchen area following the event, and the area must be kept clean.

7. The dividing wall between the Community Room and Program Room must remain in placeat all times.

8. A video monitor is available to present PowerPoint presentations or to access the InternetOrganizations must provide their own laptop to connect to the Town's video equipment. TheTown is not responsible for the loss and/or damage to personal equipment or materials usedin conjunction with Town equipment.

9. A free Wi-Fi connection is available. Information for connectivity may be obtained duringscheduling.

C. Reservation Procedures

1. Classroom-style seating for 22 is available with tables and chairs. Maximum occupancy is40 with chairs only. A podium is available for use.

Hours Available:Monday: 8:00 a.m. - 5:00 p.m.Tuesday: 8:00 a.m. - 8:00 p.m.


Wednesday: Thursday: Friday: Saturday: Sundays:

8:00 a.m. - 8:00 p.m. 8:00 a.m. - 8:00 p.m. 8:00 a.m. - 5:00 p.m. 9:30 a.m. - 3:00 p.m. 12:00 p.m. - 3:00 p.m.

2. Reservations will be made on a first-come, first-served basis and must be made by a Prosperresident or official representative of a Prosper non-profit or civic organization.

3. Reservations may be made in person, by phone, or via email. A confirmation email will beprovided to the person making the reservation. The following information must beprovided when making a reservation:

• Name of group/organization• Purpose of meeting• Name, address, telephone number, and email address of the group or organization's

contact person or representative• Total number of persons expected to attend• Information on room set-up and use of equipment/technology

4. At least 24 hours' notice is required for booking the Community Room.

5. Reservations may be made up to 90 days in advance of an event.

6. Scheduled events shall not exceed four consecutive hours.

7. Groups and organizations are limited to one reservation within a 30-day period.

8. Use of the Community Room by the public shall be exclusive of Town holidays.

9. The individual making the reservation is expected to be present during the entire event.

10. Individuals and/or groups making reservations will be held liable for any and all damagesthat occur as a result of the use of the facilities. Charges will be levied for any damage basedupon actual repair or replacementcosts.

11. Use of the Community Room after normal Town Hall or Library business hours is limited tothe Town Council, Boards, Commissions, Town staff, or Town-affiliated organizations.

12. Meetings or functions pertaining to Town government operations, events, and programsshall take precedence over other uses. The Town reserves the right to change or cancelreservations for meeting rooms. If changes or cancellations are necessary, the Town willprovide the affected group as much notice as possible so other arrangements may be made.

13. All individuals and organizations reserving the Community Room must agree to abide bythe above regulations by submitting a signed acknowledgment form prior to the time of thereservation.


For questions regarding these Policies and Procedures, or to schedule a reservation, please contact the Town Secretary's Office at 972-569-1026.

The Town of Prosper Community Room Reservations Policy was revised and approved on the 21st

day of September, 2 18.


Chapter 15, Page 1 Adopted July 2017


CHAPTER 15: DEBT MANAGEMENT POLICY SECTION 15.01: PURPOSE AND OVERVIEW The Town of Prosper recognizes that the foundation of any well-managed debt program is a comprehensive debt management and post issuance policy outlining the parameters for issuing new debt and managing the existing debt portfolio; identifying the types and amounts of permissible debt; providing guidance to decision makers regarding the purposes for which debt may be issued; and verifying that the IRS regulations regarding post issuance compliance are met to preserve the tax-exempt status of the Town’s bonds. Adherence to a debt management policy helps ensure that the Town maintains the current or an improved bond rating in order to minimize borrowing costs and preserve access to credit. The Town’s Debt Management Policy (“the Debt Policy”) provides guidance for staff to:

1. Ensure high quality debt management decisions;

2. Ensure support for debt issuances both internally and externally;

3. Impose order and discipline in the debt issuance process;

4. Promote consistency and continuity in the decision making process;

5. Ensure that the debt management decisions are viewed positively by rating agencies, investment community and taxpayers; and

6. Demonstrate a commitment to long-term financial planning objectives.

SECTION 15.02: SCOPE This Policy applies to all debt instruments issued by the Town regardless of the funding source. Funding sources can be derived from, and debt secured by, ad valorem taxes, general Town revenues, enterprise fund revenues or any other identifiable source of revenue that may be identified for appropriate pledging for bonded indebtedness. SECTION 15.03: OBJECTIVES The primary objective of this Policy is to ensure that the Town establishes and maintains a solid position with respect to its debt service and bond proceed funds and that proceeds from long-term


debt will not be used for current operations but rather for capital improvements, and related expenses, and other long-term assets in accordance with state law and Town ordinances. The Town will seek all possible federal and state reimbursement for mandated projects and/or programs. The Town will pursue a balanced relationship between issuing debt and pay-as-you-go financing as dictated by prevailing economic factors and as directed by the Town Council. Other objectives include:

1. Bonds shall be paid back within a period not to exceed, and preferably sooner than, the expected useful life of the capital project;

2. Decisions shall be made based on a number of factors and will be evaluated against long-

term goals rather than a short-term fix; and

3. Debt service and bond proceed funds shall be managed and invested in accordance with all federal, state and local laws and in conjunction with the Tax Compliance Certificate of each bond issue to assure availability to cover project costs and debt service payments when due.

SECTION 15.04: IMPLEMENTATION

The Policy requires:

1. Payment of principal and interest on all outstanding debt in full and timely manner;

2. Incurrence of debt for those purposes permissible under State law and the home-rule charter of the Town;

3. Development, approval and financing of capital improvements in accordance with Town Code

and the capital improvement budgeting process;

4. Structuring of principal and interest retirement schedules to: 1) achieve a low borrowing cost for the Town, 2) accommodate the debt service payments of existing debt, and 3) respond to perceptions of market demand. Shorter maturities shall always be encouraged to demonstrate to rating agencies that debt is being retired at a sufficiently rapid pace;

5. Selection of a method of sale that shall maximize the financial benefit to the Town;

6. Effective communication with bond rating agencies to ensure complete and clear

understanding of the credit worthiness of the Town; and

7. Full, complete, and accurate disclosure of financial conditions and operating results in every financial report, bond prospectus and Annual Information Statement ("AIS"). All reports shall conform to guidelines issued by the Government Finance Officers Association ("GFOA"), Securities and Exchange Commission ("SEC"), and the Internal Revenue Service (IRS) to meet the disclosure needs of rating agencies, underwriters, investors, and taxpayers.


SECTION 15.05: STRUCTURE OF DEBT

Debt service shall be structured to the greatest extent possible to: 1. Target projected cash flows and pledged revenues; 2. Minimize the impact on future tax levies; 3. Target a consistent and as rapid as feasible payment of principal; 4. Maintain a level overall annual debt service payment structure; and

5. Target the equal or the lesser of the useful life of the asset being financed, or the maximum

legal maturity for the obligations issued to finance the acquisition and construction of the asset.

A. Fixed Interest versus Variable Interest

The Town generally issues fixed rate bonds primarily to protect the Town against interest rate risk. The Town has the option to issue variable rate bonds if market conditions warrant and Council approves it.

B. Other Considerations

Bonds are generally issued such that: 1. The average life is 20 years or less for general obligation bonds and revenue bonds, the Town

may choose a longer term for revenue bonds for projects whose lives are greater than 20 years.

2. Debt service interest is paid in the first fiscal year after a bond sale, and principal is targeted to commence no later than the second fiscal year after the debt is issued. However, the Town may defer principal for a longer period of time in order to maintain a specific I&S tax rate or a certain level of debt service.

3. Call provisions for bond issues shall be made as short as possible consistent with the lowest

interest cost to the Town. The targeted maximum length to call is 10 years. However, the Town may opt for a call date longer than 10 years in order to achieve the necessary goals of the particular issue.

SECTION 15.06: FINANCING ALTERNATIVES

The Town shall develop a level of cash and debt funded capital improvement projects that provide the citizens with the desired amount of Town services at the lowest cost. Town staff shall assess all financial alternatives for funding capital improvements prior to issuing debt.


Long-term general obligation debt, including certificates of obligation, or revenue bonds shall be issued to finance significant and desirable capital improvements. Proceeds of general obligation debt will be used only for the purposes approved by voters in bond elections or set forth in the notices of intent for certificates of obligation or to refund previously issued general obligation bonds, certificates of obligation or revenue bonds. All bonds shall be sold in accordance with applicable law. A. Pay-As-You-Go Financing

Pay-as-you-go financing should be considered before issuing any debt. Pay-as-you go financing may include: intergovernmental grants from federal, state and other sources, current revenues or fund balances, private sector contributions, and public/private partnerships. Once the Town has determined that pay-as-you-go is not a feasible or sufficient financing option, the Town may use bonds, loans, or other debt financing sources as deemed appropriate by Town staff and approved by Council.

B. General Obligation Bonds

General obligation bonds may be used if the following criteria are met: 1. The size of the issuance is $1 million or above;

2. The GO bond funds are used for new and expanded facilities, major repair or renovations to

existing facilities, or quality-of-life projects;

3. The useful life of the capital asset acquired/constructed/improved will be ten (10) years or more, or the funds will extend the useful life of an asset for more than ten (10) years; and

4. Voter authorization is given through approval in a bond election in accordance with State law.

GO bonds may be used to fund quality-of-life projects that include, but are not limited to, the Town’s parks, libraries, non-public safety facilities, internet and entertainment, sports and amusement-type facilities.

C. Certificates of Obligation

COs will be issued for the following projects/acquisitions:

1. Finance permanent improvements and land acquisition;

2. Acquire equipment/vehicles;

3. Leverage grant funding;

4. Renovate, acquire, construct facilities and facility improvements;

5. Construct street improvements;

6. Provide funding for master plans/studies;


7. Infrastructure projects (street and draining work)

8. Emergency Town facilities rehabilitation (storm water draining, etc.)

9. Major core service facilities (police, fire, streets, etc.)

Notwithstanding the policy set forth herein, certificates of obligation or other long-term debt may be considered if the following criteria are met: 1. The need for the project is urgent and immediate;

2. The project(s) is necessary to prevent an economic loss to the Town;

3. Source of revenue is specific and can be expected to cover the additional debt;

4. The expected debt is the most cost effective financing option available. In addition, the average maturity of non-voter approved debt shall not exceed the average life of the project financed. Capital items shall have a value of at least $5,000 and a life of at least four years.

D. Reimbursement Resolutions

Reimbursement resolutions, if required for funds to be advanced prior to issuance of General Obligation bonds, may be used for projects funded through General and Certificate of Obligation bonds.

E. Certificates of Obligations - Enterprise Fund

Certificates of obligation for an enterprise system will be limited to only those projects, which can demonstrate the capability to support the certificate debt either though its own revenues, or another pledged source other than ad valorem taxes and meet the same criteria as outlined above.

F. Revenue Bonds

Revenue bonds will be issued for projects that generate revenues that are sufficient to repay the debt. Except where otherwise required by state statutes, revenue bonds may be issued without voter approval and only in accordance with the laws of Texas.

G. Other debt obligations

The use of other debt obligations, permitted by law, including but not limited to public property finance act contractual obligations, pension obligation bonds; tax notes and lease purchase obligations will be reviewed on a case-by-case basis. The findings above will be considered for the use of these obligations.


SECTION 15.07: METHODS OF SALE

The Town’s debt obligations may be sold by competitive or negotiated sale methods. The selected method of sale depends upon the option which is expected to result in the lowest cost and most favorable terms to the Town given the financial structure used, market conditions, and prior experience. When considering the method of sale, the Town may consider the following issues:

1. Financial conditions;

2. Market conditions;

3. Transaction-specific conditions;

4. Town-related conditions;

5. Risks associated with each method;

6. Complexity of the Issue – Municipal securities with complex security features require greater marketing and buyer education efforts on the part of the underwriter, to improve the investors’ willingness to purchase;

7. Volatility of Bond Yields – If municipal markets are subject to abrupt changes in interest rates,

there may be a need to have some flexibility in the timing of the sale to take advantage of positive market changes or to delay a sale in the face of negative market changes;

8. Familiarity of Underwriters with the Town’s Credit Quality – If underwriters are familiar with

the Town’s credit quality, a lower True Interest Cost (TIC) may be achieved. Awareness of the credit quality of the Town has a direct impact on the TIC an underwriter will bid on an issue. Therefore, where additional information in the form of presale marketing benefits the interest rate, a negotiated sale may be recommended. The Town strives to maintain an excellent bond rating. As a result, the Municipal Bond Market is generally familiar with the Town’s credit quality; and

9. Size of the Issue – The Town may choose to offer sizable issues as negotiated sales so that

pre-marketing and buyer education efforts may be done to more effectively promote the bond sale.

A. Competitive Sale

In a competitive sale, bonds are awarded in a sealed bid sale to an underwriter or syndicate of underwriters that provides the lowest TIC bid. TIC is defined as the rate, which will discount the aggregate amount of debt service payable over the life of the bond issue to its present value on the date of delivery. It is customary for bids to be submitted electronically through a secure website.


B. Negotiated Sale In a negotiated sale, the Town chooses an underwriter or underwriting syndicate that is interested in reoffering a particular series of bonds to investors. The terms of the sale, including the size of the underwriter’s discount, date of sale, and other factors, are negotiated between the two parties. Although the method of sale is termed negotiated, individual components of the sale may be competitively bid. The components are subject to a market analysis and reviewed prior to recommendation by staff. Negotiated sales are more advantageous when flexibility in the sale date is needed or when less conventional bond structures are being sold. Negotiated sales are also often used when the issue is particularly large or if the sale of the debt issuance would be perceived to be more successful with pre-marketing efforts.

C. Private Placement

A private placement is a negotiated sale of debt securities to a limited number of selected investors including financial institutions, government agencies, or authorities. The Town may engage a placement agent to identify likely investors if deemed necessary. A private placement may be beneficial when the issue size is small, when the security of the bonds is somewhat weaker, or when a governmental lending agency or authority can provide beneficial interest rates or terms compared to financing in the public market.

SECTION 15.08: REFUNDING OF DEBT

All forms of refunding debt shall be approved by Council in accordance with Town ordinances and the Department of Finance and Administration in accordance with state law.

A. Advance Refunding

Advanced refunding and forward delivery refunding transactions for savings may be considered when the net present value savings as a percentage of the par amount of refunded bonds is approximately three percent.

B. Current Refunding

Current refunding transactions issued for savings maybe considered when the net present value savings as a percentage of the par amount of refunded bonds is approximately three percent.

C. Refunding for Debt Restructuring From time to time, the Town may also issue refunding debt for other purposes, rather than net present value savings, such as restructuring debt, changing covenants, or changing the repayment source of the bonds.


SECTION 15.09: DEBT LIMITS

The total principal amount of general obligation bonds together with the principal amount of all other outstanding tax indebtedness of the Town will be targeted to not exceed six percent of the total assessed valuation of the Town's tax rolls. The Town will target an I&S tax rate that makes up 35% or less of the Town’s total tax rate (M&O tax rate plus I&S tax rate). The Enterprise Fund will target the net revenues available for debt service to exceed 125 times the outstanding revenue-backed debt service payments. SECTION 15.10: MATURITY LEVELS

A. Revenue Debt The term of revenue debt shall not exceed the expected useful life of the capital asset being financed and in no case shall it exceed thirty years.

B. General Obligation Debt

The term of general obligation debt shall be targeted not to exceed twenty years.

SECTION 15.11: MANAGEMENT OF DEBT SERVICE FUND

A. Interest Earnings

Interest earnings on bond and loan proceeds shall be used solely to fund direct or related capital expenditures, or to service current and future debt payments.

B. Debt Service Reserves – General Obligation Bonds

Debt service reserves for general obligation bonds shall not be required.

C. Debt Service Reserves – Revenue Bonds

Debt service reserves for revenue bonds shall be maintained at levels required by controlling bond ordinances.

D. IRS Rules and Regulations

The Town shall comply with all IRS rules and regulations including, but not limited to, arbitrage.


SECTION 15.12: RATINGS

Adherence to a debt management policy helps insure that the Town maintains the current or an improved bond rating in order to minimize borrowing costs and preserve access to credit. Toward that end, the Town will take the following steps.

1. Strive to maintain good relationships with bond rating agencies as well as disclose financial

reports and information to these agencies and to the public. 2. Obtain a rating from at least one nationally recognized bond-rating agency on all issues being

sold in the public market. 3. Make timely disclosure of annual financial information or other requested information to the

rating agencies. SECTION 15.13: CONTINUING DISCLOSURE

The Town will take all appropriate steps to comply with federal securities laws, including, but not limited to, Securities and Exchange Commission Rule 15c2-12 (the "Rule"). The Town will make annual and event disclosure filings to the MSRB via EMMA, as required by the Rule and its continuing disclosure undertakings. SECTION 15.14: SELECTION OF FINANCIAL ADVISOR

The Town shall retain an independent financial advisor for advice on the structuring of new debt, financial analysis of various options, including refunding opportunities, the rating review process, the marketing and marketability of Town debt obligations, issuance and post- issuance services, the preparation of offering documents (each, an "Official Statement") and other services, as necessary. The Town will seek the advice of the financial advisor on an ongoing basis. The financial advisor will perform other services as defined by the agreement approved by the Town Council. The financial advisor will not bid on nor underwrite any Town debt issues in accordance with MSRB rules. SECTION 15.15: SELECTION OF BOND COUNSEL

The Town shall retain bond counsel for legal and procedural advice on all debt issues. Bond counsel shall advise the Town Council in all matters pertaining to its bond ordinance(s) and /or resolution(s). No action shall be taken with respect to any obligation until a written instrument (e.g., Certificate for Ordinance or other legal instrument) has been prepared by the bond attorneys certifying the legality of the proposal. The bond attorneys shall prepare all ordinances and other legal instruments required for the execution and sale of any bonds issued which shall then be reviewed by the Town Attorney and the Director of Finance. The Town will also seek the advice of bond counsel on all other types of debt and on any other questions involving state law and federal tax or arbitrage law. Special counsel may be retained to protect the Town's interest in complex negotiations.


The Town of Prosper Debt Management Policy was approved the 11th day of July, 2017.




CHAPTER 16: DEBT POST ISSUANCE POLICY SECTION 16.01: PURPOSE AND OVERVIEW

It is the policy of the Town of Prosper to actively pursue the following Post-Issuance Tax Compliance Procedures (the "Procedures") to ensure that all applicable post-issuance requirements of federal income tax law are met to preserve the tax-exempt status of the Town's bonds. SECTION 16.02: GENERAL PROCEDURES

A. The Tax Compliance Certificate 1. The Tax Compliance Certificate ("Tax Certificate") issued for each bond issue describing

the requirements and provisions of the Code must be followed in order to maintain the tax-exempt status of the interest on such bonds.

2. The Tax Certificate will contain the reasonable expectations of the Town at the time of issuance of the related bonds with respect to the use of the gross proceeds of such bonds and the assets to be financed or refinanced with the proceeds thereof.

B. Procedures

The procedures supplement and support the covenants and representations made by the Town in the Tax Certificate related to specific issues of tax-exempt bonds. In order to comply with the covenants and representations set forth in the bond documents and in the Tax Certificate, the Town will monitor all Town bond issues using the post issuance compliance requirements.

SECTION 16.03: DESIGNATION OF RESPONSIBLE PERSON

The Finance Director shall maintain an inventory of bonds and assets financed which contain the pertinent data to satisfy the Town's monitoring responsibilities. Any transfer, sale or other disposition of bond-financed assets shall be reviewed and approved by the Town Council in accordance with state law and the Town’s ordinances. SECTION 16.04: EXTERNAL ADVISORS/DOCUMENTATION

The Town shall consult with bond counsel and other legal counsel and advisors, as needed, throughout the issuance process to identify requirements and to establish procedures necessary


or appropriate so that the bonds will continue to qualify for tax-exempt status. Those requirements and procedures shall be documented in the Tax Certificate and/or other documents finalized at or before issuance of the bonds. Those requirements and procedures shall include future compliance with applicable arbitrage rebate requirements and all other applicable post-issuance requirements of federal tax law throughout (and in some cases beyond) the term of the bonds.

1. The Town also shall consult with bond counsel and other legal counsel and advisors as needed following issuance of the bonds to ensure that all applicable post-issuance requirements are met. This shall include, without limitation, consultation in connection with future long-term contracts with private parties for the use of bond- financed or refinanced assets.

2. The Town shall engage expert advisors (a "Rebate Service Provider") to assist in the calculation of the arbitrage rebate payable with respect to the investment of the bond proceeds, unless the Tax Certificate documents that arbitrage rebate will not be applicable to an issue of bonds.

3. Unless otherwise provided by the resolution or other authorizing documents relating to

the bonds, unexpended bond proceeds shall be held in a segregated bond account. The investment of bond proceeds shall be managed by the Town. The Town shall prepare regular, periodic statements regarding the investments and transactions involving bond proceeds.

SECTION 16.05: ARBITRAGE REBATE AND YIELD Unless the Tax Certificate documents that arbitrage rebate will not be applicable to an issue of bonds, the Town shall be responsible for:

1. Engaging, by contract, the services of a Rebate Service Provider, procured in accordance

with State law and Town ordinances.

2. Providing to the Rebate Service Provider, as may be requested, additional documents and information pertaining to the expenditure of proceeds from each bond issue being annually reviewed.

3. Monitoring the services of the Rebate Service Provider.

4. Assuring payment of the required rebate amounts, if any, no later than sixty (60) days

after each five (5) year anniversary of the issue date of the bonds, and no later than sixty (60) days after the last bond of each issue is redeemed.

5. During the construction period of each capital project financed in whole or in part by

bonds, monitoring the investment and expenditure of bond proceeds and consulting with the Rebate Service Provider to determine compliance with the applicable exceptions with any arbitrage rebate requirements.

6. Retaining copies of all arbitrage reports and account statements as described below under

"Record Keeping Requirements.”


SECTION 16.06: USE OF BOND PROCEEDS AND BOND-FINANCED OR

REFINANCED ASSETS

The Town, in the Tax Certificate and/or other documents finalized at or before the issuance of the bond, shall be responsible for the following tasks:

1. Monitoring the use of bond proceeds and the use of bond-financed or refinanced assets (e.g., facilities, furnishing or equipment) throughout the term of the bonds to ensure compliance with covenants and restrictions set forth in the Tax Certificate.

2. Maintaining records identifying the capital assets or portion of capital assets that are financed or refinanced with proceeds of the bonds, including a final allocation of bond proceeds, as described below under Record Keeping Requirements.

3. Consulting with bond counsel and other legal counsel and advisors in the review of any contracts or arrangements involving private use of bond-financed or refinanced assets to ensure compliance with all covenants and restrictions s e t forth in the Tax Certificate.

4. Maintaining records for any contracts or arrangements involving the use of bond- financed or refinanced assets, as described below under Record Keeping Requirements.

5. To the extent that the Town discovers that any applicable tax restrictions regarding use of the bond proceeds and bond-financed or refinanced assets may have or may be violated, consulting promptly with bond counsel and other legal advisors to determine a course of action to remediate all non-qualified bonds, if such counsel advises that a remedial action is necessary.

SECTION 16.07: RECORD KEEPING REQUIREMENT The Town shall be responsible for maintaining the following documents for the term of the issuance of bonds (including refunding bonds, if any) plus at least three years.

1. A copy of the bond closing transcript(s) and other relevant documentation delivered to the Town at or in connection with closing of the issuance of bonds, including any elections made by the Town in connection therewith.

2. A copy of all material documents relating to capital expenditures financed or refinanced by bond proceeds, including (without limitation) construction contracts, purchase orders, invoices, requisitions and payment records, draw requests for bond proceeds and evidence as to the amount and date for each draw down of bond proceeds, as well as documents relating to costs paid or reimbursed with bond proceeds and records identifying the asset or portion of assets that are financed or refinanced with bond proceeds, including a final allocation of bond proceeds.

3. A copy of all contracts and arrangements involving the use of bond-financed or refinanced assets.


4. A copy of all records of investments, investment agreements, arbitrage reports and

underlying documents in connection with any investment agreements, and copies of all bidding documents, if any. [Paying agent account statements, bank statements for reserve funds, etc.]

The Town of Prosper Debt Post Issuance Policy was approved the 11th day of July, 2017.


CHAPTER 17:

SECTION 17.01:

TOWN OF PROSPER


FINANCIAL MANAGEMENT POLICY

PURPOSE AND OVERVIEW

This policy is developed to help guide the Finance Department, and staff in financial matters. The overriding goal of the Financial Management Policy is to enable the Town to achieve a long-term stable and positive financial condition while conducting its operations consistent with the council-manager

form of government established in the Town Charter.

The purpose of the Financial Management Policy is to provide guidelines for the financial management staff in planning and directing the Town's day-to-day financial affairs and in developing

recommendations to the Town Manager.

SECTION 17.02: SCOPE

The scope of the Town's Financial Management Policies spans accounting, auditing, financial reporting, internal controls, operating and capital budgeting, revenue management, cash management, expenditure control, and debt management.

SECTION 17.03: ACCOUNTING, AUDITING, AND FINANCIAL REPORTING

A. Accounting

The Town's Accounting Manager is responsible for establishing and maintaining the chart of accounts, and for properly recording financial transactions.

B. Funds

Self-balancing groups of accounts are used to account for the Town's financial transactions inaccordance with generally accepted accounting principles. Each fund is created for a specific

purpose except for the General Fund, which is used to account for all transactions not accountedfor in other funds. In essence, the General Fund is intended for operations of the Town. Funds

are created and fund names are changed by Town Council approval through resolution eitherduring the year or in the Town Council's approval of the annual operating budget ordinances. (See

Fund Balance Policy)

C. External Auditing

At the close of each fiscal year, and at such other times as may be deemed necessary, the Town

Council shall call for an independent audit to be made of all accounts of the Town. The auditorsmust be a certified public accounting firm capable of conducting the Town's audit in accordance

Chapter 17, Page 1 Approved October 18, 2017

Revised & Approved October 7, 2020

with generally accepted auditing standards, generally accepted government auditing standards,

and contractual requirements. No more than five (5) consecutive annual audits shall be completed by the same firm. The certified public accountant selected shall have no personal interest, directly or indirectly, in the financial affairs of the Town or any of its officers. The report

of the audit, with the auditor's recommendations will be made to the Town Council. Upon

completion of the audit, the Independent Auditor's Report and Annual Financial Report shall be

published on the Town's website and copies of the audit placed on file in the office of the person performing the duties of Town Secretary, as public record. (See Town Charter Article VII, Section

7.18 Independent Audit)

D. External Financial Reporting

The Town will prepare and publish a Comprehensive Annual Financial Report (CAFR). The CAFR

will be prepared in accordance with generally accepted accounting principles, and will be

presented annually to the Government Finance Officers Association (GFOA) for evaluation andawarding of the Certification of Achievement for Excellence in Financial Reporting. The CAFR willbe published and presented to Town Council within 180 days after the end of the fiscal year.

E. Internal Financial Reporting

The Finance Department will prepare internal financial reports sufficient for management toplan, monitor, and control the Town's financial affairs.

SECTION 17.04: INTERNAL CONTROLS

A. Written Procedures

The Finance Director is responsible for developing town-wide written guidelines on accounting,cash handling, grant management, and other financial matters.

B. Department Directors Responsibilities

Each department director is responsible to the Town Manager to ensure that good internal

controls are followed throughout his or her department, that all guidelines on accounting and

internal controls are implemented, and that all independent auditor internal controlrecommendations are addressed.

SECTION 17.05: OPERATING BUDGET

A. Preparation

The Town's "Operating Budget" is the Town's annual financial operating plan. It consists ofgovernmental and proprietary funds, including the general obligation and revenue supported

Debt Service Fund, but excluding Capital Projects Funds. The budget is prepared by the Finance

Department with the cooperation of all Town departments, and is submitted to the Town

Manager who makes any necessary changes and transmits the document on or before the

fifteenth (15th) day of August of the fiscal year to Town Council.



The proposed budget and all supporting schedules shall be filed with the person performing the duties of Town Secretary when submitted to the Town Council and shall be open to public inspection by anyone interested. Thereafter, the Town Council should enact the final budget prior to fiscal year end. The operating budget shall be submitted to the GFOA annually for

evaluation and consideration of awarding the Award for Distinguished Budget Presentation.

B. Balanced Budget

The final adoption of the operating budget by the Town Council shall constitute the officialappropriations as proposed by expenditures for the current year and shall constitute the basis

of official levy of the property tax as the amount of tax to be assessed and collected for thecorresponding tax year. Estimated expenditures will not exceed proposed revenue plus theundesignated fund balance from the previous fiscal year. Unused appropriations may betransferred to any item required for the same general purpose.

C. Budgetary Control

The level of budgetary control is the department level budget in the General Fund, Utility Fund,and the fund level in all other funds. Under conditions which may arise and which could notreasonably have been foreseen in the normal process of planning the budget, the Town Councilmay, by the affirmative vote of a majority of the full membership of the Town Council, amend or

change the budget to provide for any additional expense in which the general welfare of thecitizenry is involved. These amendments shall be by ordinance, and shall become an attachmentto the original budget.

D. Contingency Reserve

Provisions shall be made in the annual budget maintaining a contingency reserve fund balancedesignation in an amount not less than twenty percent (20%) of the total general fundexpenditures, to be used in case of unforeseen items of expenditure or revenue shortfalls. (SeeTown Charter Article Vil, Section 7.08). It is also the goal of the Town to achieve and maintain

an unassigned fund balance in the General Fund equal to five percent (5%) of budgetedexpenditures for unanticipated expenditures, unforeseen revenue fluctuations, or other adversecircumstances.

E. Planning

The budget process will be coordinated in concert with the Town Council's major strategicplanning objectives. A one-year budget is adopted each year and a four-year financial plan ispresented to help manage the decisions made for the next fiscal year and the impact it has onfuture fiscal responsibilities.

F. Reporting

G. Periodic financial reports will be prepared to enable the department directors to manage theirbudgets and to enable the Finance Department to monitor and control the budget as authorizedby the Town Council. Summary financial reports will be presented to the Town Council eachmonth. Such reports will include current year revenue and expenditures in comparison to



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budget and prior year actual revenues and expenditures. Performance Measures and Productivity Indicators

Where appropriate, performance measures and productivity indicators will be used as guidelines and reviewed for efficiency and effectiveness. This information will be included in the annual budgeting processes.

SECTION 17 .06:

A. Preparation

CAPITAL IMPROVEMENT PROGRAM

The Town's Capital Improvement Program will include all capital projects. The CapitalImprovement Program will be prepared annually to be a comprehensive five-year (5) capitalprogram as an attachment to the annual budget.

B. Program Planning

The program as submitted shall include:

1. A clear general summary of its contents;

2. A list of all capital improvements which are proposed to be undertaken during the five(5) fiscal years succeeding the budget year, with appropriate supporting information as

to the necessity for such improvements;

3. Cost estimates, method of financing, and recommended time schedules for eachimprovement; and

4. The estimated annual cost of operating and maintaining the facilities to be constructedor acquired.

The above information may be revised and extended each year with regard to capital improvements still pending or in process of construction or acquisition. The Capital Improvement Program will be updated and presented to the Town Council, annually.

C. Alternate Resources

Where applicable, assessments, impact fees, or other user-based fees should be used to fund

capital projects, which have a primary benefit to certain property owners.

D. Debt Financing

Recognizing that debt is usually a more expensive financing method. Alternative financing

sources will be explored before debt is issued. When debt is issued, it will be used to acquiremajor assets with expected lives, which equal or exceed the average life of the debt issued. Theexception to this requirement are the traditional costs of marketing and issuing the debt,



capitalized labor for design and construction of capital projects, and small component parts,

which are attached to major equipment purchases.

E. Reporting

Periodic financial reports will be prepared to enable the department managers to manage their

capital budgets and to enable the Finance Department to monitor the capital budget as

authorized by the Town Council.

SECTION 17.07: REVENUE MANAGEMENT

A. Simplicity

The Town will strive to keep the revenue system simple, which will result in a decrease ofcompliance costs for the taxpayer or service recipient and a corresponding decrease in

avoidance to pay.

B. Administration

The benefits of revenue will exceed the cost of producing the revenue. The cost of collection willbe reviewed annually for cost effectiveness. Where appropriate, the Town will use theadministrative processes of state or federal collection agencies in order to reduce administrative

costs.

C. Dedication of Revenues

Revenues will not be dedicated for specific purposes unless required by law or generallyaccepted accounting practices (GAAP). All non-restricted revenues will be deposited into the

General Fund and appropriated by the budget process.

D. Financial Stability

Current revenues will fund current expenditures and one-time revenues will not be used for

ongoing operations. Non-recurring revenues will be used only for non-recurring expenditures.

Care will be taken not to use these revenues for budget balancing purposes.

E. Property Tax Revenues

Property shall be assessed at 100% of the fair market value as appraised by the Collin andDenton Appraisal Districts. Reappraisal and reassessment shall be done regularly, as required

by state law.

All delinquent taxes will be pursued and turned over to a private attorney. A penalty will beassessed to compensate the attorney as allowed by state law, and in accordance with the

attorney's contract.



F. User-Based Fees

For services associated with a user fee or a fee to offset charge, the direct and indirect costs ofthat service will be imposed. There will be a periodic review of fees and charges to ensure that

fees provide adequate coverage of costs of services. User charges may be classified as "full costrecovery," "partial cost recovery," and "minimal cost recovery," based on Town Council policy.

G. Impact Fees

Impact fees are currently imposed for water, wastewater, and roadway in accordance withapplicable Town ordinances and state law. Impact fees will be re-evaluated at least every five

years, as required by law.

H. Utility Rates

The Town will review utility rates periodically, and if necessary, adopt new rates that will

generate revenues required to fully cover operating expenditures, meet the legal restrictions ofall applicable bond covenants, and provide for an adequate level of working capital needs and

debt service requirements. This policy does not preclude drawing down cash balance to finance

current operations. However, it is best that any extra cash balance be used instead to finance

capital projects.

I. Interest Income

Interest earned from investment of available cash resources, whether pooled or not, will be

distributed to the funds in accordance with the average monthly cash balances.

J. Revenue Monitoring

Revenues actually received will be regularly compared to budgeted revenues and variances willbe investigated. This process will be summarized in the appropriate budget report.

SECTION 17 .08: EXPENDITURE CONTROL

A. Appropriations

The level of budgetary controls is explained in Section 17.05.C. Budgetary Control. When budget

amendments between departments and/or funds are necessary, Town Council must approvethese. Budget appropriation amendments at lower levels of control shall be made in accordance

with the applicable administrative procedures.

B. Purchasing

All purchases shall be in accordance with the Town's Purchasing Policy.



C. Lapse of Appropriations

Every appropriation, except an appropriation for capital expenditures, shall lapse at the close ofthe fiscal year to the extent that it has not been expended or encumbered. An appropriation fora capital expenditure shall continue in force until the purpose for which it was made has beenaccomplished or abandoned. The purchase of any such appropriation shall be deemedabandoned if three (3) years pass without any disbursement form or encumbrance of theappropriation. Any funds not expended, disbursed or encumbered shall be deemed excess funds.

SECTION 17 .09:

A. Investments

ASSET MANAGEMENT

The Town's investment practices will be conducted in accordance with the Town Councilapproved Investment Policy and Strategy.

B. Cash Management

The Town's cash flow will be managed to maximize the cash available to invest.

C. Investment Performance

A quarterly report on investment performance will be provided by the Finance Director forpresentation to the Town Council.

D. Fixed Assets and Inventory

These assets will be reasonably safeguarded and properly accounted for, and prudently insured.

SECTION 17.10: FINANCIAL CONDITION AND RESERVES

A. No Operating Deficits

Current expenditures will be paid with current revenues and prior year surplus. Deferrals,short-term loans, or one-time resources will be avoided as budget balance techniques. Reserves

will be used only for emergencies or non-recurring expenditures.

B. Operating Reserves

In accordance with GASB-54, it is the policy of the Town to classify fund balances as Nonspendable, Restricted, Committed. Assigned. or Unassigned and develop policy for establishmentand activity of each classification. See Fund Balance Policy that defines such categories.



C. Minimum Unassigned Fund Balance

It is the goal of the Town to achieve and maintain an unassigned fund balance in the GeneralFund equal to five percent (5%) of budgeted expenditures for unanticipated expenditures,unforeseen revenue fluctuations, or other adverse circumstances. This amount is in addition to

the twenty percent (20%) restricted fund balance amount required by the Town Charter.

D. Risk Management Program

The Town will aggressively pursue every opportunity to provide for the public's and Townemployees' safety and to manage its risks.

E. Loss Financing

All reasonable options will be investigated to finance losses. Such options may include risktransfer, insurance, and risk retention.

F. Enterprise Fund Self-Sufficiency

The Town's enterprise funds' resources will be sufficient to fund operating and capitalexpenditures. The enterprise funds will pay (where applicable) their fair share of general andadministrative expenses in lieu of property taxes and/ or franchise fees. If an enterprise fund istemporarily unable to pay all expenses, then the Town Council may waive general and

administrative expenses in lieu of property taxes and/or franchise fees until the fund is able topay them.

G. Special Purpose Districts Cash Reserves

The Town has two Special Purpose Districts: Crime Control and Prevention Special PurposeDistrict; and Fire Control, Prevention and Emergency Medical Services Special Purpose District.It is the desire of the Town to maintain a cash reserve balance equal to twenty-five thousand

dollars in each of the Special Purpose Districts beginning in fiscal year 20-21 and future fiscalyears.

SECTION 17.11:

A. General

DEBT MANAGEMENT

The Town's borrowing practices will be conducted in accordance with the Town Councilapproved Debt Management and Debt Post Issuance Policies.

B. Self-Supporting Debt

When appropriate, self-supporting revenues will pay debt services in lieu of tax revenues.



C. Analysis of Financing Alternatives

The Town will explore all financing alternatives in addition to long-term debt including leasing,grants and other aid, developer contributions, impact fees, and use of reserves.

D. Voter Authorization

The Town shall obtain voter authorization before issuing General Obligation Bonds as required

by law. In general, voter authorization is not required for the issuance of Revenue Bonds andCertificates of Obligation.

SECTION 17.12: STAFFING AND TRAINING

A. Adequate Staffing

Staffing levels will be adequate for the fiscal functions of the Town to function effectively.Comparison of workload and staffing levels of comparison cities will be explored before addingstaff.

B. Training

The Town will support the continuing education efforts of all financial staff including theinvestment in time and materials for maintaining a current perspective concerning financialissues. Staff will be held accountable for communicating, teaching, and sharing with other staffmembers all information and training materials acquired from seminars, conferences, andrelated education efforts.

C. Awards, Credentials

The Town will support efforts and involvements which result in meeting standards and receivingexemplary recitations on behalf of any of the Town's fiscal policies, practices, processes,products, and personnel. Staff certifications may include Certified Public Accountant, CertifiedManagement Accountant, Certified Internal Auditor, Certified Payroll Professional, CertifiedGovernment Finance Officer, Professional Public Buyer, Certified Cash Manager, PFIAinvestment training, and others as approved by the Town Manager upon recommendation of theFinance Director.

SECTION 17.13:

A. General

GRANT MANAGEMENT

The Town's grant management practices will be conducted in accordance with the Town'sGrant Management Policy.



•

(This policy was reviewed and approved by the Finance Subcommittee for submission to the Town Manager for approval on September 30, 2020.)

Chapter 17, Page 10

anagement Policy was approved on the 7th of October, 2020.

Approved October 18, 2017


Chapter 18, Page 1 Adopted June 2018


CHAPTER 18: PUBLIC AND MEDIA RELATIONS POLICY SECTION 18.01: SOCIAL MEDIA

A. PURPOSE

The purpose of the Town’s social media policy is to provide guidelines for sharing information with community members about Town issues, programs, and services, through the use of various social media platforms, leading to a more responsive and transparent government, and a high level of public confidence. To address the rapidly changing manner in which residents communicate and obtain information, Town staff will make appropriate use of the various forms of social media available to communicate with residents in ways they find timely and convenient. This policy seeks to delineate rules and regulations for the use of media platforms in such a way as to maintain the platforms’ maximum effectiveness while staying within the bounds of good taste, inoffensiveness, and impartiality, and utilizing sound communication principles. This communication effort will be under the direct supervision of the Public Information Officer (PIO) in collaboration with the Town Manager. The PIO will make use of the appropriate personnel and technological resources required for successful completion of this effort.

B. DEFINITIONS Blog: A contraction of the term “weblog;” a type of website with regular entries displayed in reverse chronological order and featuring commentary on recent events and other materials, such as links, photos and video. Facebook: A social networking site where users can develop a personal profile, add friends, communicate with peers by private messages or public postings, and notify their followers of what they are currently involved in via a status update. Additionally, users may follow entities and organizations in order to receive notifications when new information is available. Flickr: An image and video sharing website where users upload personal photographs which may be shared with the public or restricted to specific individuals as determined by the user. Instagram: A social networking app made for sharing photos and short videos. Similar to Facebook or Twitter, everyone who creates an Instagram account has a profile and a news feed. When a user posts a photo or video on Instagram, it will be displayed on their profile. LinkedIn: A business and employment social networking app for career-oriented professionals and organizations used for marketing and networking with existing and potential business associates, clients, and colleagues. Nextdoor: A private social networking app tied to the user’s home address that allows users to share information with others in the same neighborhood or geographic area. The app allows users to post


neighborhood-specific information such as recommendations for household services, lost pets, items for sale, crime/safety alerts, and neighborhood events. Pinterest: A social network that allows users to visually share and discover new interests by posting (known as 'pinning') and sorting ideas and images with a common theme to their own or others' boards, and browsing what other users have pinned. Snapchat: A mobile app that allows users to capture videos and pictures that self destruct after a few seconds. When a user sends a message, they get to decide whether it will live for between 1 and 10 seconds. Social Media: A set of internet communication platforms or apps enabling users to participate in community experiences online and to connect with people of common interests to learn, play, work, organize, and socialize; networks may be open to the public or restricted to members as determined by the platform and/or user. Twitter: A social media and microblogging service enabling users to send and read short messages of 280 characters or fewer known as "tweets;" such messages are then displayed on the author's profile page and delivered to the author's subscribers who are known as "followers." YouTube: A video-sharing website where users upload and share videos.

C. ESTABLISHMENT OF SOCIAL MEDIA ACCOUNTS

1. The Town of Prosper will maintain only one official page on any social media platform, including, but not limited to, Facebook, Twitter, Instagram, Nextdoor, YouTube, Pinterest and LinkedIn. Any new social media platforms not currently in use will be allowed one official Town of Prosper page or account.

2. The Town also maintains departmental pages and accounts for the Police Department, Fire Department, Parks and Recreation Department, and Library. Pages and accounts already in existence which do not violate this policy and which exist with the approval of department directors will remain in place as long as policies are maintained.

3. Any new departmental pages or accounts for the Town of Prosper shall only be created after receiving approval from the PIO in conjunction with the Town Manager. Requests for new accounts will be evaluated based on the terms of use, cost, and staff time required to implement, monitor, and maintain the site, and other applicable considerations.

D. ROLES AND RESPONSIBILITIES 1. All Town of Prosper existences, activities, responses, posts and appearances on social media sites

or services are considered an extension of the Town’s information and communications networks. All uses of social media must be in complete compliance with this policy.

2. It is the responsibility of the PIO to act as the Town's primary administrator on social media sites.

The PIO in conjunction with departments heads may designate individuals to post, respond and conduct other related activities on the Town’s official and departmental pages and accounts.


3. Staff members who are designated as administrators, editors, or who otherwise have access to post on any Town social media platform shall be responsible for the following: a. Review social media pages and accounts to which they have been designated to ensure they

are in compliance with this policy. Posts from the public that are determined to be in violation of the Town’s Social Media User Guidelines may be hidden from view, but not deleted.

b. Ensure pages and accounts are regularly maintained and kept current by posting content that is relevant, informative, and engaging.

c. Ensure that information on social media sites is accurate, professionally presented,

respectful, and free from spelling and grammatical errors.

4. Any department that has not been granted editing ability may request to post content on an appropriate social media page or account by sending an email to the Town’s Communication Specialist.

5. The PIO will maintain all passwords for social media accounts. Employees who are tasked with social media assignments shall not change or otherwise alter the passwords assigned by the PIO. Passwords will be changed by the PIO, as needed, and if a staff member with access to any social media page or account leaves employment with the Town.

6. Town employees shall adhere to the Town of Prosper Administrative Regulations, regarding personal and Town-related use of social media platforms.

E. CONTENT GUIDELINES 1. Potential uses for social media include, but are not limited to:

a. Sharing published news releases regarding Town news, programs, services, and events.

b. Publicizing Town programs and activities, including Special Events which the Town sponsors,

either financially or through substantial in-kind support;

c. Publicizing new or amended Town services, holiday closings or other critical information normally found on the Town’s website;

d. Issuing emergency alerts, road closures, or weather alerts affecting residents; and

e. Publicizing Town Council meetings, Board and Commission meetings, and other public

meetings held by the Town.

2. General overview of site content by departments include but are not limited to the following: a. Town of Prosper

1) Town Council, Board and Commission, and public meeting reminders 2) Town office closures 3) Utility service information 4) Town-sponsored events


5) Awards and recognition 6) Road closures/traffic notices 7) News releases

b. Fire Department

1) Emergency responses (fire, traffic accident, gas main break, etc.) 2) Safety issues 3) Community outreach & education (programs, tours, events, etc.)

c. Police Department

1) Traffic incidents 2) Crime watch notifications 3) Safety issues 4) Community outreach & education (programs, events, etc.)

d. Parks and Recreation Department

1) Recreation programs 2) Park closures 3) Town events

e. Library

1) Library programs 2) Library hours

Posted information may be shared among the Town pages and accounts and departmental pages and accounts when appropriate, based on the content of the post and the intended audience.

3. Guidelines for creating high-quality content:

a. Ensure content is factually accurate, clear, and concise, without unnecessary verbiage. Posts

should provide value to the reader and the Town by conveying a positive and informative message.

b. A high-quality photo or graphic should accompany a post whenever possible. Content should be free from spelling, grammar, and punctuation errors.

c. Content should be timely, interactive, and engaging, including a diverse range of media (photos, graphics, videos, links) and a variety of original and/or shared content.

d. Content should be posted on appropriate social media platforms based on the intended audience and content of the post. Efforts should be made to post content at the most popular times for each platform to ensure the highest possible follower response and interaction.

e. Omissions or errors in information posted on social media sites must be corrected as soon as possible.


4. Social media posts should provide links to appropriate pages located on the Town’s websitewhenever possible. This will create a deeper relationship between residents and the Town viathe Town website, and allow residents to obtain information, forms, documents, or other onlineservices that make it easier to conduct business with the Town.

5. Use of social media must comply with applicable federal, state, and local ordinances, regulations,and policies, as well as proper business etiquette. This includes adherence to established lawsand policies regarding copyright, records retention, release of public information, the FirstAmendment, privacy laws, and information security policies established by the Town of Prosper.

6. The PIO and designated departmental administrators will determine the appropriateness andsuitability of any social media posts. The Town Manager will be the final determinant of whethera posting is acceptable for any of the pages and accounts used by the Town.

7. The Town of Prosper reserves the right to remove from public view any message, posts,responses, or other submissions that do not conform to the standards set by this policy and theTown of Prosper Social Media User Guidelines (see Appendix A of this policy). When possible, allTown pages and accounts shall include a link to the Town’s Social Media User Guidelines.

F. RESPONDING TO MESSAGES AND COMMENTS

1. The primary administrator for each Town page or account shall monitor and review activity daily for comments and/or messages from the public, and provide an appropriate response consistentwith this policy, preferably within one business day, or sooner if possible.

2. Due to the time-sensitive nature of public safety communication, Police and Fire Departmentpages and accounts will be continually monitored for comments and messages from the publicrelated to crime, safety, and other emergencies. Responses must be cleared through eachdepartment’s appropriate chain of command.

3. Only the primary administrator or other authorized staff member for each Town page or accountshall monitor and respond to messages from the public.

4. Responses to public comments, messages, or questions are intended to provide additionalinformation, answer questions, or correct misinformation. While two-way communication isencouraged, social media platforms are not intended to be used for ongoing conversationsbetween staff members and the public.

5. Responses to comments, questions, and messages should be polite, factual, and concise. Whenappropriate, members of the public should be directed to the appropriate page on the Townwebsite where they can find additional information.

6. After responding to a public comment or message, if an additional response is warranted, Townstaff should attempt to move the conversation to a private platform by providing the name andcontact information of a staff member who can provide more information or assistance.

7. Employees shall use discretion and respect the privacy of members of the public and Town staffwhen handling complaints or sensitive information.


G. RECORDS MANAGEMENT AND ARCHIVING

1. Content posted on any Town page or account, including a list of subscribers, fans, or followers, isconsidered a public record, and is subject to disclosure under the Texas Public Information Act(Chapter 552 of the Texas Government Code). Requests for information related to content onany social media page or account maintained by the Town of Prosper shall be directed to theTown Secretary’s Office.

2. All social media content, comments, and messages will be archived and retained in compliancewith the Town’s approved record retention schedules. Content shall be maintained in anaccessible format so that it can be produced in response to a request.

3. Public comments that are determined to be in violation of this policy may be hidden from publicview, but shall not be deleted.

H. EMERGENCY COMMUNICATION

Content related to public safety emergencies such as traffic issues, crime alerts or other public safety notifications will be under the direction of the Police Department or Fire Department, depending onthe nature of the incident. All posted content shall be approved through the Department’sappropriate chain of command. Information may be shared with the Town page or account ordepartmental pages and accounts as needed, depending on the nature of the emergency.

In the event of a Town-wide emergency or disaster, all communication regarding the emergency isto be centralized and approved by the Emergency Management Coordinator (EMC) in accordancewith the Town’s Emergency Management Plan. The EMC or designee will have access to postemergency communication to the Town’s social media accounts. Emergency information may beshared with departmental pages and accounts to provide greater dissemination of the information,but should not deviate from the approved message.

The Town of Prosper Public and Media Relations Policy was approved on the 1st day of June, 2018.



Appendix A

Social Media User Guidelines

The following is a set of guidelines for those who wish to interact with the Town of Prosper through one of our social media platforms. We welcome your input and comments regarding the Town of Prosper, Texas.

Our social media sites are intended to share information and matters of public interest in the Town of Prosper. We encourage you to comment on posts, but please note that the Town’s social media platforms are not intended to be a public forum. Comments posted on all pages and accounts will be monitored. The Town of Prosper reserves the right to remove from public view any comments that: contain false information, obscene language, or sexual content; threaten or defame any person or organization (including the Town of Prosper); support or oppose political candidates, political organizations, or ballot propositions; promote illegal activity, commercial services, or products; infringe on copyrights or trademarks; or, are not topically related to the particular posting. Any comments deemed to be criminal in nature will be reported to authorities.

An opinion or comment posted on a Town of Prosper social media page or account is considered for discussion only and is not a substitute for a formal statement in a Public Hearing process.

All content, including public comments and private messages, are considered to be a public record. All posts, even those that may be removed by the Town or the user, are subject to disclosure under the Texas Public Information Act (Chapter 552 of the Texas Government Code).

The Town of Prosper asks all of our followers to understand that content posted to our social media platforms by external parties, including comments, photos, links, or other outside materials, do not necessarily represent the ideals of the Town of Prosper or our employees. The Town of Prosper is not responsible for any such external content and does not endorse any opinions expressed by external users on our social media platforms.

The Town of Prosper may occasionally post links to third-party websites. Please note that this does not in any way constitute an endorsement of the website and/or company. The Town of Prosper does not control the content, advertising, or views of any such third-party website. The thoughts and opinions of third-party websites do not represent the opinions of the Town of Prosper.

The Town of Prosper respects the privacy of those who engage with our social media platforms. If you have a complaint about any of the information you see on one of our social media platforms, please contact Robyn Battle, Town Secretary/Public Information Officer at [email protected] or 972-569-1011.

The Town of Prosper reserves the right to refuse to publish or remove from public view any content that is deemed in violation of these guidelines or any applicable federal, state, or local laws or ordinances. By visiting, liking, or interacting with any of our social media platforms, you are agreeing to the above guidelines for use, as well as to any of the terms of use/service outlined by third-party social media application providers. The Town of Prosper reserves the right to block users who violate these guidelines from posting to all Town of Prosper social media platforms.

mailto:[email protected]

Chapter 18, Page 8 Adopted October 2019

TOWN OF PROSPER


SECTION 18.02: MEDIA RELATIONS A. INTRODUCTION

The news media are an important component of Prosper’s ability to communicate with and serve the public, accomplish public policy goals, and provide high quality and responsive municipal services. Inquiries from the news media are a high priority and must be responded to by the appropriate spokesperson as quickly and efficiently as possible. Every effort will be made to meet media deadlines and to ensure that all information released is accurate. To ensure there is the proper level of coordination in Town messages, where Prosper communicates with one voice, a centralized media response system is in place, except in specific cases of emergencies. Reporters who request interviews and seek information directly from any Town department, office, or employee should be referred to the Town Secretary/Public Information Office (TSO/PIO). Coordination with the TSO/PIO ensures that responses to media inquiries are properly vetted, researched, verified and presented in a professional manner. Those responses that require the direct involvement of employees as subject matter experts must also be coordinated with the TSO/PIO.

B. NEWS MEDIA News media has experienced significant changes in recent years, and reporters now represent a wide range of news outlets. Although traditional media such as print and broadcast remain important, new types of media such as independent bloggers, community or citizen journalists, corporate online newsrooms, online news outlets, and social media and neighborhood platforms have also emerged as essential channels for disseminating public information. The Town’s focus remains on responding to established, credible news media outlets, whether traditional print and broadcast or reputable online social media sites.

C. TOWN SECRETARY/PUBLIC INFORMATION OFFICE

The TSO/PIO is responsible for the coordination of Town-wide media relations and for ensuring accuracy, consistency, and quality in the Town’s overall responses to media. The TSO/PIO assists departments as necessary in responding to and aiding news media, and it will refer news media inquiries it receives to departments as appropriate. Significantly, the TSO/PIO is available for advice and consultation with departments on media relations matters. Training in media relations policy, procedures, and techniques is periodically coordinated by the TSO/PIO, providing basic and advanced media relations training on either a periodic or as needed basis.

D. PROACTIVE MEDIA RELATIONS

It is the goal of the Town of Prosper to keep the public informed about achievements and efforts of the Town and staff, seeking opportunities to proactively communicate by notifying local, national, professional, trade media and news media outlets about Town achievements, awards, accomplishments, and innovations. The Town will continue to create opportunities to proactively communicate news and information that is of interest to its various constituencies. These efforts will include developing news releases,


media advisories, essays, white papers, and editorial pieces. While these communication opportunities will be coordinated through the TSO/PIO, departments, employees, and employee groups play a significant role in the process. Ideas, suggestions, and proposals for communication opportunities will often arise at the department level. In addition, the details and subject matter experts will likely be available only through the departments. For this reason, department supervisors should encourage employees to be on the lookout for these ideas, suggestions and proposals that can lead to sharing news and information with residents and other stakeholders.

E. ADDITIONAL DEPARTMENT PARTICIPATION Departments may designate official spokespersons who can speak authoritatively on department-specific topics. The spokespersons must undergo media training before assignment. Follow-up training may be provided to these individuals so they maintain their proficiency at the highest level. Departments with several divisions or sections may designate one person in each of these separate departmental sections to respond to media questions within their specific area. For example, Public Works may designate a spokesperson for Streets, one for Water Conservation and Education, and another for Water Services. These departmental spokespersons would limit their media interaction to reactive or responsive communications, rather than proactive story placement and development. Notwithstanding their position, these department representatives must refer all media queries and interactions to the TSO/PIO for coordination and message development. While every effort will be made to meet reporters’ deadlines, the accuracy and consistency of the responses and message tracks will supersede expediency. When confronted with a media request for comment either in person, by phone, email or text, employees should refrain from making any statement that represents the views, positions or reactions of the Town, unless they have been specifically designated as an official spokesperson for their department. This applies to employees regardless of the circumstances under which the query is made. This applies to any media inquiries made to employees who may be on or off duty. Employees approached by media while on the job, at a jobsite, on or off duty, in a casual setting, after-hours, on weekends, or any other situation should relay to the media that they are not authorized to speak for the Town of Prosper. The employee should politely tell the reporter, or any other media representative, that all media questions are to be referred to the TSO/PIO. When pressed, the employee should ask the reporter to seek information on www.prospertx.gov.

F. MAYOR AND COUNCIL PARTICIPATION Media questions directed to the Mayor, members of the Town Council, volunteers serving on Boards and Commissions, and other Town officials should be handled directly by those individuals, with the appropriate assistance, where required and permissible, from staff personnel. The TSO/PIO will provide media training, advice and counsel to elected and appointed officials as a group or individually on a periodic basis or upon special request. Town staff must legally refrain from intervening in any interaction between the media and elected and appointed officials, or those declared candidate seeking election, on matters related to partisan

http://www.prospertx.gov/


electioneering, campaigning or other non-Town related activities. The same prohibition applies to issues such as bond elections, referendums, budget discussions, or items of a controversial nature.

G. NEWS CONFERENCES News conferences or other efforts to attract media attention regarding a Town-wide or department-specific issue or event will be coordinated through the TSO/PIO. Depending on the issue or event, the Mayor or Town Council member(s) may also be included in the coordination. Requests from the Mayor or Council members for assistance with, or participation in, a news conference or other efforts to attract media attention must be coordinated with the TSO/PIO.

H. FREEDOM OF INFORMATION /PUBLIC INFORMATION REQUESTS The business conducted by the Town of Prosper is generally public and therefore is accessible as public information. Inquiries regarding pending economic development transactions, litigation, matters involving a significant exposure to litigation, and certain personnel-related information are exceptions under state law and Town policy in accordance with the Texas Public Information Act (TPIA). Requests from the media for public records should be handled promptly and consistent with the TPIA and the Town’s Records Management Policy. When there are questions about whether the information requested can be released, departments should consult with the TSO/PIO and, where appropriate, the Town Attorney’s Office.

SECTION 18.03:

TOWN OF PROSPER


PHOTOGRAPHY AND VIDEO RECORDING

By participating in a program or event sponsored by the Town of Prosper ("Town") or utilizing facilities owned or operated by the Town, participants thereby grant the Town permission to take photos or record them and their children. The resulting photos and audio/video recordings may be

used by the Town, without restriction or financial compensation to the participants, in materials

published or distributed by the Town or posted on the Town's website or other social media

platforms, unless the participant notifies the Town Secretary /Public Information Officer (PIO) in

writing.

Photography and audio/video recording is permitted at all public programs or events occurring on

property owned or operated by the Town, unless otherwise restricted. The Town reserves the right to adopt reasonable rules to maintain order, including the right to regulate the location of recording

equipment and the manner in which the recording is conducted. The Town also reserves the right to ask individuals to leave the event or property and/or cease taking photos or recording if the Town

determines the individual is interfering with or otherwise impairing or disrupting the program or

event or use of the property. All professional photographers seeking to take photos or record on

property owned or operated by the Town must request approval in advance from the Town

Secretary /PIO.

The Town of Prosper Photography and Video Recording Policy was adopted on the q day of

December, 2019.

Chapter 18, Page 11 Adopted December 2019

CHAPTER 19:

SECTION 19.01:

A. PURPOSE

TOWN OF PROSPER


Clean Fleet and Vehicle Idle Reduction Program

CLEAN FLEET POLICY

The purpose of this policy is to set goals and provide workable, cost-effective solutions to improveair quality and reduce petroleum consumption in the Town of Prosper and the overall Dallas-FortWorth area, and implement the measures outlined in this policy as practicable.

B. EMMISION REDUCTION ACTIONS

The Town of Prosper will reduce emissions from fleet activities by performing the following actions aspracticable:

1. Implement an idle-reduction policy that applies to all of the entity's vehicles and equipment, except whereexempted as determined by the Town of Prosper; communicate idle-reduction expectations to staff andutilize idle-reduction technology.

2. Maximize use of vehicles and equipment with the lowest emissions wherever possible.

3. Ensure all conversions are EPA and/or California Air Resources Board (CARB) certified; ensure thataft:ermarket technologies are EPA and/ or CARB verified, or are listed as an emerging technology by theEPA or a state environmental agency; and both conversions and aft:ermarket technologies are compatiblewith Texas Low Emission Diesel Program (TxLED) requirements.

4. Make efforts as possible to modify non-essential fleet activities on high ozone days to reduce air qualityimpacts.

5. Use vehicle and equipment disposal strategies with the goal of minimizing negative impacts on air quality.

6. Use vehicle and equipment emissions inspection practices which meet or surpass the standards requiredby statute, including prompt resolution of any illuminated malfunction indicator lamp (MIL).

C. FUEL CONSUMPTION REDUCTION EFFORTS

The Town of Prosper will strive to reduce overall fuel consumption (adjusting for fleet growth),particularly the use of conventional petroleum fuels, by performing the following actions as practicable:

1. Pursue low-emission vehicles and equipment for acquisition, with an emphasis on alternativefuel, advanced technology, and/or SmartwaySM certified vehicles and equipment.

2. Improve overall fleet fuel efficiency.

3. Establish practices to reduce vehicle miles traveled, passenger miles traveled, engine hours,and/or ton miles traveled, as appropriate.

Adopted December 2018

D. PARTNERSHIP AND REPORTING

The Town of Prosper will partner with the North Central Texas Council of Governments (NCTCOG) andDallas-Fort Worth Clean Cities (DFWCC) by performing the following actions as practicable:

1. Maintain membership and active participation in DFWCC and submit timely Clean Fleet Policy

reporting for clean fleet funded vehicles and equipment.

2. Evaluate and consider participation in programs to test/commercialize/demonstrate new

technologies to improve efficiency, reduce emissions, and/or increase fuel efficiency.

3. Pursue activities which support peer fleets' efforts to implement fuel or emissions-reducing

activities by sharing and maximizing resources.

4. Encourage fleet activities which minimize water, solid waste, or other environmental impacts of

fleet activities, as appropriate.

E. TRAINING

The Town of Prosper will strive to ensure that drivers/operators and fleet personnel are familiar

with air quality and petroleum reduction goals by performing the following actions as practicable:

1. Provide training and/or attending training administered by NCTCOG for fleet personnel and other staffinvolved in fleet decisions to review policy elements and provide recommendations for achieving

objectives.

2. Consider other mechanisms to increase understanding and awareness among fleet personnel and others.

SECTION 19.02: VEHICLE IDLE REDUCTION

A. PURPOSE

The purpose of this policy is to establish and define guidelines for the reduction of unnecessary

vehicle and equipment engine idling. This policy is expected to reduce operating costs, fuel

consumption and engine wear due to unnecessary engine idling of vehicles and equipment. The Townof Prosper is committed to improving the health and quality of life of its citizens and the reduction of

pollution generated by town vehicles is a primary component of that commitment.

B. APPLICABILITY

This policy applies to all Town of Prosper employees using town vehicles or motorized equipment to

perform assigned duties.

C. RESTRICTIONS

The restrictions on idling are as follows:

1. No engine idling (other than reasonable engine warm up) is permitted. (Note: Modern enginesonly need 30 seconds to warm up in the winter before being ready to drive.)

2. When a driver exits the vehicle, the engine will be turned off.


3. Vehicles or equipment will not be left unattended while the engine is running.4. Vehicles will not be left running to maintain cabin temperature (air conditioning or heating).

5. Vehicles waiting to be loaded or unloaded will have the engine turned off if the idling time will

exceed five minutes.

D. EXEMPTIONS

The vehicles and operating conditions noted below are exempt from the idling restrictions listed

above:

1. Idling vehicle due to traffic congestion.

2. Idling vehicle or equipment for maintenance/diagnostic purposes.3. Vehicles operated solely to defrost a windshield.

4. Vehicle idling during power take offs, which require engine operation.

5. Passenger vehicles requiring heat or air conditioning necessary for passenger comfort and safety

( e.g., school buses and emergency vehicles).6. Clearly marked police, fire, or emergency vehicle that are required to idle in order to operate

auxiliary equipment considered necessary for work crew and/or public safety. Auxiliary

equipment may include light b?rs, strobe/or directional lighting or on-board refrigeration units.

7. Vehicles or equipment that have an extended manufacturer's recommended warm-up and cool-down time.

8. When the health or safety of employee's or others may be jeopardized.

9. In situations where driver safety may be compromised.

10. In extreme weather situations, where idling prior to departure is necessary for vehicle or

motorized equipment operation.

11. Vehicles or motorized equipment that are required to idle in order to power hydraulic equipment,

compressors, pumps, auxiliary equipment or lights, while engaged in work activities that require

such safety equipment to be operational.

The Town of Prosper Clean Fleet and Vehicle Idle Reduction Policy was approved on the 16 day of

December, 2018.
