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RES 2026-07 Adopting Purchasing Policy and Procedure Manual TOWN OF TROPHY CLUB RESOLUTION NO. 2026-07 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, ADOPTING A PURCHASING POLICY AND PROCEDURE MANUAL, ATTACHED HERETO AND INCORPORATED HEREIN AS EXHIBIT "A"; AUTHORIZING THE TOWN MANAGER TO MAKE MINISTERIAL REVISIONS TO THE PURCHASING POLICY AND PROCEDURE MANUAL; REPEALING PRIOR INCONSISTENT POLICIES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, pursuant to the Town Charter, the Town Council is designated as the approving authority for all municipal policies, including those governing purchasing; and WHEREAS, the Town Council desires to establish sound purchasing policies and procedures for the Town; and WHEREAS, the Purchasing Policy and Procedure Manual (the "Manual") establishes the internal process to be utilized to ensure that proper procurement methods are followed and comply with the Town Charter, state, and federal laws, and good practices for local government; and WHEREAS, these procedures and processes promote efficiency, effectiveness, equity, and fairness in public purchasing; and WHEREAS, upon consideration, the Town Council finds and determines it to be in the best interest of health, safety, and welfare of the Town and its residents to adopt the Manual, which is attached to this Resolution as Exhibit "A". NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, THAT: Section 1. The facts and recitals set forth in the preamble of this Resolution are hereby found to be true and correct. Section 2. The Town Council has reviewed the attached Purchasing Policy and Procedure Manual (the "Manual"), and hereby adopts the Manual and the policies set forth therein as provided in Exhibit "A", which is attached hereto and incorporated herein in its entirety. Section 3. The Town Council hereby authorizes the Town Manager to make ministerial revisions to the Purchasing Policy and Procedures Manual from time to time, subject to written approval by the Town Attorney. RESOLUTION NO. 2026-07 PAGE 2 Section 4. Upon the Effective Date of this Resolution, all purchasing policies, procedures, and manuals previously adopted by the Town that are inconsistent with the Manual adopted as "Exhibit A", are hereby repealed to the extent of any such inconsistency. Section 5. For purposes of Texas Gov't Code Ch. 2269, the Town hereby delegates its authority for an action authorized by Chapter 2269 to the Town Manager, and determines that the construction contract methods authorized by Chapter 2269 provide the best value for the Town, and the Town Manager is authorized to utilize any construction contract method authorized Chapter 2269 prior to advertising. Section 6. This Resolution shall take effect immediately upon its passage and approval. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, on this 13th day of April 2026. TRO,0 c ann Ti ny, Mayor Pr ATTEST: "7 ` Tammy Dixon own Secretary APPROVED TO AS FORM: Dean 1=oggia, To n A . •-y RESOLUTION NO. 2026-07 PAGE 3 EXHIBIT "A" PURCHASING POLICY AND PROCEDURE MANUAL Tr TROPHY CLUB Town of Trophy Club Purchasing Policy & Procedure Manual PURCHASING POLICY Policy Number: TM-302 Implementation Date: April 13, 2026 Last Revised Date: April 13, 2026 (Supersedes all prior versions) Policy Contact: Director of Finance Resolution Number: 2026-07 1. PURPOSE This Purchasing Policy and Procedure Manual (the "Manual") establishes standardized procedures to implement the Town of Trophy Club purchasing policy. This Manual is intended to ensure consistent application of policy, legal compliance with Texas Local Government Code Chapters 252 and 271, Texas Government Code Chapter 2269, the Town Charter, and all other applicable state and federal laws, internal controls, fiscal responsibility, and efficient procurement operations. 2. ROLES AND RESPONSIBILITIES Roles To ensure accountability, segregation of duties, and strong internal controls, the following purchasing process shall be followed: I. Requisition Submission Departments initiate purchases by submitting a requisition or request to Finance with justification, budget verification, and required quotes or documentation. II. Approval Purchasing requests are reviewed and approved, where appropriate, based on delegated authority and applicable thresholds. III. Purchase Execution Upon approval, purchases are executed through an approved purchase order, contract, cooperative agreement, or authorized credit card. IV. Receiving Departments promptly verify that goods and services are received in acceptable condition and in accordance with the purchase order or contract. V. Invoice Submission and Review Vendors submit invoices to Finance, which then forwards a copy to the applicable Department(s). Departments review invoices for accuracy and approve them for payment. VI. Payment Finance processes payment only after receipt confirmation, approvals, and required documentation are complete. Responsibilities Town Council • Approves purchases, contracts, and amendments meeting or exceeding policy thresholds • Adopts purchasing policy and major procurement direction Town Manager • Approves purchases and contracts within delegated authority • Ensures compliance with policy and state law • May delegate purchasing authority in writing Finance Department • Administers the purchasing function • Provides guidance and training to departments • Reviews procurement documentation for compliance • Issues purchase orders and exemption certificates • Maintains procurement records Departments • Identify purchasing needs • Prepare specifications, scopes of work, and justifications • Obtain required quotes and documentation • Verify receipt of goods and services 3. PURCHASING AUTHORITY AND APPROVALS Purchase Amount Approval Authority Under $5,000 Department Director $5,000 — $24,999 Town Manager or Designee $25,000 and above Town Council Departments shall not commit the Town to a purchase or contract without proper approval. 4. PROCUREMENT METHODS 4.1 Purchases Under $3,000 • Competitive quotes are not required, but are encouraged when practical • Departments should seek best value, and may consider the factors enumerated in Texas Local Government Code Section 252.043 including but not limited to, the price, reputation of the bidder and any past relationships between the bidder and Town, quality of bidder's goods or services and the extent to which they meet the Town's needs. • Documentation should support reasonableness of price 4.2 Purchases $3,000 to $99,999 When cooperative purchasing options are not available: • Obtain a minimum of three (3) quotes • At least two quotes must be solicited from VetHUB vendors when available within the county • If VetHUB vendors are unavailable, document attempts at finding and soliciting such vendors. • Acceptable quote formats include email, written, or documented phone quotes 4.3 Purchases $100,000 and Above When cooperative purchasing options are not available: • Utilize Competitive Sealed Bid (IFB) or Competitive Sealed Proposal (RFP), or another method authorized under Texas Local Government Code Ch. 252 or Texas Government Code Ch. 2269 • Finance coordinates solicitation process • Evaluation committees may be appointed as needed • Awards require Town Council approval 5. COOPERATIVE AND INTERLOCAL PURCHASING Departments may utilize cooperative purchasing agreements, interlocal agreements, and state contracts when: • The contract complies with Texas law • The contract provides best value or is awarded to a vendor under a cooperative purchasing agreement as the lowest responsible bidder • Documentation supports use of the cooperative Finance must review and approve use of cooperative contracts. 6. PROFESSIONAL SERVICES PROCEDURES Professional services shall be procured in accordance with Texas Government Code Chapter 2254. Professional services may not be selected on the basis of competitive bids, but shall be made on the basis of demonstrated competence and qualifications to perform the service(s) for a fair and reasonable price. Town staff may, but are not required to, utilize the process identified below to determine competence and qualifications of professional services providers. Process: 1. Department prepares scope of services 2. RFQ or RFP may be issued 3. Firms or providers evaluated based on qualifications 4. Most qualified firm or provider selected 5. Fee negotiated after selection 6. Contract submitted for approval Price shall not be used as a selection criterion prior to ranking firms or providers. 7. SOLE SOURCE PURCHASES Sole source procurement requires: • Completed justification form from department • Sole source letter from vendor • Finance review and approval Sole source justification must demonstrate compliance with Texas Local Government Code § 252.022. 8. EMERGENCY PURCHASES The processes provided above may be bypassed in an emergency, pursuant to Texas Local Government Code § 252.022 when such emergency requires immediate action to: • Protect public health or safety • Address a public calamity • Prevent or repair unforeseen damage to Town property Procedure: • Department documents emergency justification • The Town Manager and Finance are notified as soon as practical • Purchase executed to address emergency • Documentation retained for audit • Town Manager seeks ratification by the Town Council as soon as possible 9. PURCHASE ORDERS AND CONTRACTS • Purchase orders are required for purchases over $3,000 • Contracts must be reviewed prior to execution • Departments may not sign contracts on behalf of the Town unless authorized by the Town Manager Contract Amendments • Amendments up to $25,000 or 25% of the original contract price (whichever is less) may be approved by the Town Manager • Amendments above $25,000 or more than 25% of the original contract price require Town Council approval • If the original contract price exceeds $100,000 and is subject to Texas Local Government Code Chapter 252 or Texas Government Code Chapter 2269, any amendment or combination of amendments shall not exceed 25% of the original contract price 10. RECEIVING AND PAYMENT PROCESSING Departments shall: • Verify goods and services were received • Confirm compliance with specifications • Approve invoices for payment Finance processes payment only after receipt verification. Credit Card (P-Card) Purchases The Town may utilize purchasing cards (P-Cards) or other authorized credit cards to facilitate low-dollar (Under $3,000 unless approved by the Town Manager), routine, or time-sensitive purchases. Credit card use shall: • Comply with all Town purchasing policies, procedures, and P-Card program requirements • Adhere to the same approval thresholds and procurement rules outlined in this Manual • Be supported by itemized receipts and proper documentation Departments and cardholders are responsible for: • Ensuring purchases are for legitimate Town business purposes • Confirming the Town's tax-exempt status is honored • Submitting receipts and documentation to Finance in a timely manner Unauthorized or personal purchases may result in disciplinary action, revocation of card privileges, and reimbursement to the Town. 11. VENDOR SETUP AND REQUIREMENTS Prior to payment, vendors must submit Trophy Club vendor packet, as well as: • W-9 • Certificate of Insurance (if applicable) • Conflict of Interest Disclosure Form Finance verifies vendor compliance before processing payment. 12. PROHIBITED PRACTICES The following are prohibited: • Purchase splitting to avoid thresholds • Unauthorized commitments • Personal purchases using Town funds Violations may result in disciplinary action up to and including termination. 13. SURPLUS PROPERTY PROCEDURES • Departments notify the Community Development Department of surplus or obsolete supplies, materials, equipment, and other personal property items (collectively "Surplus Property") • Surplus Property is evaluated by the Community Development Department to determine the value of the Surplus Property and recommend the reuse, transfer, public auction, resale, or disposal to the Town Manager • Community Development Department provides written evaluation to the Town Manager, or his designee with recommendation for reuse, transfer, public auction, resale, or disposal of the Surplus Property • Town Manager, or his designee, may authorize the reuse, transfer, public auction, resale, or disposal for any Surplus Property determined to have a value of less than $10,000.00 • For any Surplus Property valued at more than $10,000.00, the Town Manager, or his designee, shall seek approval from the Town Council for the reuse, transfer, public auction, resale, or disposal for that Surplus Property, unless the asset is being traded in toward the purchase of a replacement asset. • Records maintained for audit 14. RECORD RETENTION Procurement records shall be retained in accordance with the Town's records retention schedule and state law. 15. TRAINING AND COMPLIANCE The Finance Department shall provide training and guidance to departments as needed. Questions regarding purchasing procedures should be directed to the Finance Director.