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8948 - Service Agreement Executed Docusign City Council Transmittal Coversheet File Name Purchasing Contact City Council Target Date Piggy Back Option Contract Expiration Ordinance Docusign Envelope ID: 6B3D3057-825B-455D-B62A-4BAFCC873D5D FILE Civic Marketplace Service Agreement 8948 Lori Hewell Not Applicable NOVEMBER 18, 2025 CONTINUOUS 25-2038 CITY OF DENTON, ALLIANCE FOR INNOVATION, AND CIVIC MARKETPLACE SERVICE AGREEMENT This Service Agreement (“Agreement”) is entered into by and between the City of Denton, a home-rule municipal corporation of the State of Texas (hereinafter called “City”), the Alliance For Innovation, a nonprofit association and purchasing cooperative for local governments (hereinafter the “ALLIANCE”), and Civic Marketplace, Inc. (hereinafter called the “Marketplace”), a Delaware Corporation and digital procurement platform. WHEREAS, Chapter 791 of the Texas Government Code, the Interlocal Cooperation Act, authorizes local governments to contract, to the greatest possible extent, with one another and agencies of the state; and WHEREAS, the “City” has elected to join the ALLIANCE, a nonprofit association of governments dedicated to fostering innovation and excellence in local governments, and its Purchasing Cooperative as permitted under Texas Local Government Code §271.102, to assist large and small communities with their procurement efforts without needing to execute multiple interlocal agreements with each entity individually; and WHEREAS, the ALLIANCE elected the “Marketplace” to administer and facilitate its Purchasing Cooperative contracts on a digital procurement platform designed to connect local governments with innovative solutions, products, and services for the benefit of the taxpayers through anticipated savings and enhanced efficiencies obtained from volume purchasing and cutting-edge resources; and WHEREAS, the purpose of this “Agreement” is to allow the “City” and the “Marketplace” to participate in a shared purchasing program utilizing the platform and authorizing access to one another’s cooperative contracts in a centralized database with pre-vetted suppliers, and legally compliant solutions that drive community impact. NOW, THEREFORE, in consideration of the foregoing and mutual promises, covenants, and obligations as set forth herein, the “City,” the ALLIANCE, and “Marketplace” agree as follows: ARTICLE I DEFINITIONS 1.Definitions: a.ALLIANCE Associate Membership Agreement: The agreement that enables the “City” or other participating governmental agencies to join the ALLIANCE as Associate Members, granting them access to specified benefits, including strategic foresight reports, innovation coaching, and peer-to-peer collaboration opportunities. b.ALLIANCE Member: A governmental entity or agency that has executed the necessary Agreements to join the ALLIANCE and participate in its programs, Zoho Sign Document ID: 3292E235-J_T1HITVSTUFMFSCCHEG7TJVZNHK6DQNB3UHVTBCJCEDocusign Envelope ID: 6B3D3057-825B-455D-B62A-4BAFCC873D5D CITY OF DENTON, ALLIANCE FOR INNOVATION, AND CIVIC MARKETPLACE SERVICE AGREEMENT CITY_ALLIANCE_MARKETPLACE 2025.09.02 PAGE 2 including procurement initiatives, leadership training, and collaborative efforts to drive innovation in local government. c. Associate Membership in ALLIANCE: A free membership status granted to the “City” or participating governmental agencies upon execution of the ALLIANCE Associate Membership Agreement, providing access to selected benefits such as discounted training programs, leadership development opportunities, and participation in its initiatives. d. ALLIANCE Purchasing Program: A procurement initiative powered by the “Marketplace” that allows ALLIANCE members to purchase goods and services from multiple cooperative and agency piggyback contracts, facilitating better pricing, improved terms, and streamlined purchasing processes. e. “Parties” and “Party” mean all, and each, the “City,” the ALLIANCE, and the “Marketplace.” f. “Platform” means the technology platform provided by the “Marketplace" that facilitates access to procurement contracts solicited and awarded by other governmental entities and ensures compliance with applicable procurement laws. g. “Administrative Fee Revenue” is defined as the payment owed by the Supplier to the “Marketplace” and calculated from the total purchase amount received, excluding any taxes, refunds, and returns. h. “Revenue Share” is defined as distributed earnings received through the “Marketplace” amongst the shareholders and parties. i. “Administrative Support” is defined as entity and supplier account management, regulated compliance strategies, training resources, and necessary needs pertaining to the procurement process. j. "Net Transaction Fees" refer to the total cost incurred after deducting any agreed- upon revenue shares from participating cooperative purchasing partners, as well as any additional revenue-sharing agreements with other partners, affiliates, or entities with whom the “Alliance” has established collaborations. k. “Gross Transaction Fees" are defined as the percentage-based fee, or fixed amount, associated with each completed purchase facilitated through the “Marketplace” platform, regardless of which party receives or facilitates the payment. l. “Transaction Fees” represent the gross revenue generated from the transaction before any revenue splits or deductions are applied. ARTICLE II MEMBER ENTITY RESPONSIBILITIES 2. The “City” agrees to: a. Join the ALLIANCE Purchasing Cooperative to make purchases, at the City’s discretion, according to contracts posted to the platform by passing a resolution, entering into an Intergovernmental Agreement, or executing an agreement to participate as an ALLIANCE Associate Member. i. ALLIANCE Associate Member benefits include: 1. Current year strategic Foresight Trend Reports (at no cost). 2. Access to monthly Innovation Coaching Calls (at no cost). Zoho Sign Document ID: 3292E235-J_T1HITVSTUFMFSCCHEG7TJVZNHK6DQNB3UHVTBCJCEDocusign Envelope ID: 6B3D3057-825B-455D-B62A-4BAFCC873D5D CITY OF DENTON, ALLIANCE FOR INNOVATION, AND CIVIC MARKETPLACE SERVICE AGREEMENT CITY_ALLIANCE_MARKETPLACE 2025.09.02 PAGE 3 3. Participation in Peer-to-Peer Coaching Calls (at no cost). 4. Strategic Foresight Workshops at ALLIANCE membership prices. 5. 20% discount from the lowest published individual or team rate (5 or more) to virtually attend Government Resources - SGR’s Servant Leadership Conference. b. Use, at the City’s discretion, the “Marketplace” platform in compliance with all federal, state, and local procurement laws to obtain various goods and services commonly utilized by members, where available and applicable, from suppliers under present and future contracts. c. Allow their lead cooperative contracts, at the City’s discretion, which have been conducted in full compliance and competitively solicited, to be uploaded on the “Marketplace” platform under the purchasing cooperative program and make them available to other entities as provided for under this “Agreement.” d. Be solely responsible for the legal compliance, administration, interpretation, ordering, payments, liabilities, enforcement, and remediation of their participating cooperative contracts. e. Shall pay for the performance of their cooperative contracts from the current revenues available. f. Shall not create participating cooperative contracts as prohibited by Texas Government Code Ch. 791.011 (h) and (j). ARTICLE III ALLIANCE RESPONSIBILITIES 3. The ALLIANCE agrees to: a. Provide access to the ALLIANCE Purchasing Cooperative powered by Civic Marketplace, where members can purchase from multiple cooperative and agency piggyback contracts to achieve better pricing and more agreeable terms and conditions than can typically be negotiated when acting individually. b. The ability to post their own locally bid contracts on the platform as a part of the ALLIANCE Purchasing Cooperative and generate revenue shares from the ALLIANCE. Said ability to post and receive a revenue share by individual ALLIANCE members is subject to the individual member’s compliance with all Civic Marketplace terms and conditions. c. The ALLIANCE will confirm that all payments are tracked and that relevant records are available for review by the “City” and participating members upon request, ensuring full transparency. d. Additional future services and benefits are available to ALLIANCE members so long as they are not otherwise excluded from those new future services. ARTICLE IV CIVIC MARKETPLACE RESPONSIBILITIES Zoho Sign Document ID: 3292E235-J_T1HITVSTUFMFSCCHEG7TJVZNHK6DQNB3UHVTBCJCEDocusign Envelope ID: 6B3D3057-825B-455D-B62A-4BAFCC873D5D CITY OF DENTON, ALLIANCE FOR INNOVATION, AND CIVIC MARKETPLACE SERVICE AGREEMENT CITY_ALLIANCE_MARKETPLACE 2025.09.02 PAGE 4 4.The “Marketplace” agrees to: a.Leverage the technology available on the platform to track sales/engagement by end-user clients of uploaded contracts. b.Report and distribute said fees to the ALLIANCE, who will report and distribute the revenue share of those fees to the “City.” c.For bids which the “City” chooses to conduct and award and are approved by the ALLIANCE and the “Marketplace:” i.The “City” will award such bids and upload them to the platform for other agencies to purchase under that contract. ii.The bid documents shall contain the solicitation language required by state law to allow cooperative purchasing and specify that the successful bidder will pay a 3% transaction fee for all sales that are made by other agencies utilizing the “City” contract. This fee may be changed at any time with mutual agreement between the “City”, the ALLIANCE, and the “Marketplace.” iii.The “City” will receive a percentage of the Administrative Fee Revenue received by Civic Marketplace from any buying agency at any location for contracts “owned” by the “City” by their having bid and awarded that particular contract. ARTICLE V FEES AND PAYMENTS 5.Revenue Share: The ALLIANCE will provide the “City” with a 25% revenue share of the top-line transaction fees collected by the “Marketplace” for transactions processed through the platform. For clarity, the Revenue Share is based on 25% of the gross Administrative Fee charged to suppliers through suppliers, rather than on net proceeds or a downstream agreement, and is pursuant to the service agreement by and between the ALLIANCE and Civic Marketplace dated as of Friday, December 20, 2024. a.Administrative Fee Revenue: Administrative Fee Revenue percentages to be charged by the “Marketplace” on each contract will be determined in collaboration between the “City,” the “Marketplace,” or the ALLIANCE member, who owns a given contract and has conducted the bid for which they will be receiving a share of the Administrative Fee and agreed to in writing. b.The contracted supplier agrees to pay the Administrative Fee Revenue to the “Marketplace” for each purchase made through the platform. c.Administrative fees charged by the “Marketplace” will be reviewed annually by the parties hereto. Any proposed adjustments must be presented in writing no less than sixty (60) days before the review date and require mutual agreement before implementation. Zoho Sign Document ID: 3292E235-J_T1HITVSTUFMFSCCHEG7TJVZNHK6DQNB3UHVTBCJCEDocusign Envelope ID: 6B3D3057-825B-455D-B62A-4BAFCC873D5D CITY OF DENTON, ALLIANCE FOR INNOVATION, AND CIVIC MARKETPLACE SERVICE AGREEMENT CITY_ALLIANCE_MARKETPLACE 2025.09.02 PAGE 5 ARTICLE VI CONFIDENTIALITY AND DATA PROTECTION 6.Confidential Information. Each Party acknowledges that the Confidential Information of the other Party, its products, services, policies, customers, personnel, and other aspects of its operation (“Confidential Information”) is proprietary and confidential and shall not be revealed, sold, exchanged, traded, or disclosed to any person, company, or other entity during the Term. As to the disclosing Party’s Confidential Information, the receiving Party agrees: a.to use the Confidential Information only in connection with the performance of the Services; b.to maintain the Confidential Information as confidential and to exercise all reasonable precautions to prevent unauthorized access, use, or disclosure; c.not to disclose the Confidential Information to any third party other than the receiving party’s employees and agents who have a need to know for the permitted purpose under this Agreement and who are apprised of the confidential nature of the Confidential Information and all of the restrictions in this Agreement and; d.not to decompile, disassemble, or otherwise reverse engineer any Confidential Information or use any similar means to discover its underlying composition, structure, source code, or trade secrets. Each party will be responsible for any breach of the obligations in this Section by its respective employees and agents. Notwithstanding anything in this Agreement to the contrary, a party’s Confidential Information does not include information that: . is, or becomes, part of the public domain through no act or omission of the receiving party; . was in the receiving Party’s lawful possession prior to the disclosure and had not been obtained by the receiving Party either directly or indirectly from the disclosing Party; . is lawfully disclosed to the Contractor by a third party without restriction on disclosure; . is independently developed by the receiving Party without the use of or reference to the disclosing Party’s Confidential Information; or . is required to be disclosed by law or judicial, arbitral, or governmental order or process, provided the receiving Party gives the disclosing Party prompt written notice of such requirement to permit the disclosing Party to seek a protective order or other appropriate relief. Civic Marketplace expressly acknowledges and agrees that the “City” is subject to and shall adhere to the Texas Public Information Act. Zoho Sign Document ID: 3292E235-J_T1HITVSTUFMFSCCHEG7TJVZNHK6DQNB3UHVTBCJCEDocusign Envelope ID: 6B3D3057-825B-455D-B62A-4BAFCC873D5D CITY OF DENTON, ALLIANCE FOR INNOVATION, AND CIVIC MARKETPLACE SERVICE AGREEMENT CITY_ALLIANCE_MARKETPLACE 2025.09.02 PAGE 6 ARTICLE VII TERMS AND TERMINATION Terms of Agreement: The term of this Agreement commences on the date of signature by authorized representatives of all parties and shall automatically renew on each anniversary date unless terminated by either party. This Agreement may be executed separately, each of which shall be deemed an original and all of which together shall constitute the same instrument. Termination: Any party may terminate this Agreement by providing thirty (30) days' written notice to the other parties. Termination shall not affect the obligations, rights, or contracts entered into by any entity or the ALLIANCE. All such obligations and rights shall remain in effect and enforceable according to their respective terms In the event of termination, the parties agree to cooperate fully to ensure an orderly transition of ongoing activities, revenue share disbursements, and any pending deliverables. ARTICLE VIII GENERAL PROVISIONS Legal Compliance: The ALLIANCE, the “City,” and the “Marketplace” agree to comply with all applicable federal, state, and local laws, ordinances, rules, and regulations. This includes the requirement that all purchasing conducted under this Agreement comply with relevant competitive bidding and procurement statutes. The ALLIANCE, the “City,” and the “Marketplace” acknowledge that the parties maintain separate relationships with various cities, cooperative purchasing entities, and other cooperative organizations. This Agreement does not limit or affect the existing or future relationships with such entities. This Agreement shall not be construed as creating an exclusive arrangement between the parties regarding cooperative purchasing affiliations, nor shall any party be obligated to promote or prioritize others' cooperative relationships over their own existing affiliations. Payment and Records: The ALLIANCE and the “Marketplace” agree to pay all revenue share payments to the “City” within thirty (30) of receipt of revenue. No payment will be due for any revenue for which the ALLIANCE has not received said revenue. Dispute Resolution: The ALLIANCE, the “Marketplace,” and the “City” will attempt to resolve any dispute that arises in connection with this Agreement through informal discussions. If the dispute cannot be resolved informally, the parties may engage in mediation before pursuing any legal remedy. Zoho Sign Document ID: 3292E235-J_T1HITVSTUFMFSCCHEG7TJVZNHK6DQNB3UHVTBCJCEDocusign Envelope ID: 6B3D3057-825B-455D-B62A-4BAFCC873D5D CITY OF DENTON, ALLIANCE FOR INNOVATION, AND CIVIC MARKETPLACE SERVICE AGREEMENT CITY_ALLIANCE_MARKETPLACE 2025.09.02 PAGE 7 Amendments: No amendment of this Agreement will be effective unless it is in writing and signed by all parties. Entire Agreement: This Agreement constitutes the entire agreement among the parties and supersedes any prior agreements or understandings, written or oral, relating to the subject matter of this Agreement. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. Severability: If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect. Counterparts: If the parties sign this Agreement in several counterparts, each will be deemed an original, but all counterparts together will constitute one instrument. Effectiveness; Dates: This Agreement will become effective when all the parties have signed it. The date this Agreement is signed by the last party to sign it (as indicated by the date associated with that party’s signature) will be deemed the date of this agreement. If any party signs but fails to date a signature, the date that the ALLIANCE receives that signing party’s signature will be deemed to be the date that the signing party signed this Agreement. Notice: A notice or other communication under this Agreement will be effective if it is in writing and received by the party to which it is addressed. To the City of Denton: To the ALLIANCE: Lori Hewell, Purchasing Manager 901 Texas St. Denton, TX 76209 Lori.Hewell@CityofDenton.com Clay Pearson, Interim Executive Director Alliance for Innovation P.O. Box 1662 Keller, TX 76244 claypearson@transformgov.org To the CIVIC MARKETPLACE: Al Hleileh, CEO 5900 Balcones Dr. #26341 Austin, TX 78731 Al@civicmarketplace.com The above contact information shall be updated as necessary and shall not require an amendment to the Agreement. Zoho Sign Document ID: 3292E235-J_T1HITVSTUFMFSCCHEG7TJVZNHK6DQNB3UHVTBCJCEDocusign Envelope ID: 6B3D3057-825B-455D-B62A-4BAFCC873D5D CITY OF DENTON, ALLIANCE FOR INNOVATION, AND CIVIC MARKETPLACE SERVICE AGREEMENT CITY_ALLIANCE_MARKETPLACE 2025.09.02 PAGE 8 IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date. Signed and Agreed to this the __________ day of ________________, 202__ by and between: IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date. ALLIANCE FOR INNOVATION Date:___________________________________ By: ____________________________________ Clay Pearson, Interim Executive Director CITY OF DENTON Date:__________________________________ By: ____________________________________ [NAME] [TITLE] CIVIC MARKETPLACE, INC. Date:___________________________________ By: ____________________________________ Al Hleileh, CEO Zoho Sign Document ID: 3292E235-J_T1HITVSTUFMFSCCHEG7TJVZNHK6DQNB3UHVTBCJCE APPROVED AS TO LEGAL FORM: MACK REINWAND, CITY ATTORNEY ___________________________________ ATTEST: INGRID REX, INTERIM CITY SECRETARY _____________________________________ Oct 21 2025 Oct 21 2025 10:39 CST Docusign Envelope ID: 6B3D3057-825B-455D-B62A-4BAFCC873D5D 18TH 5 11/18/2025 NOVEMBER Sara Hensley City Manager Certificate Of Completion Envelope Id: 6B3D3057-825B-455D-B62A-4BAFCC873D5D Status: Completed Subject: Please DocuSign: City Council Contract 8948 Service Agreement Source Envelope: Document Pages: 9 Signatures: 3 Envelope Originator: Certificate Pages: 3 Initials: 1 Lori Hewell AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-06:00) Central Time (US & Canada) 901B Texas Street Denton, TX 76209 lori.hewell@cityofdenton.com IP Address: 198.49.140.104 Record Tracking Status: Original 10/24/2025 8:33:07 AM Holder: Lori Hewell lori.hewell@cityofdenton.com Location: DocuSign Signer Events Signature Timestamp Lori Hewell lori.hewell@cityofdenton.com Purchasing Manager City of Denton Security Level: Email, Account Authentication (None) Completed Using IP Address: 198.49.140.104 Sent: 10/24/2025 8:48:50 AM Viewed: 10/24/2025 8:48:58 AM Signed: 10/24/2025 8:49:35 AM Electronic Record and Signature Disclosure: Not Offered via Docusign Lori Hewell lori.hewell@cityofdenton.com Purchasing Manager City of Denton Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 198.49.140.104 Sent: 10/24/2025 8:49:36 AM Viewed: 10/24/2025 8:49:58 AM Signed: 10/24/2025 8:50:07 AM Electronic Record and Signature Disclosure: Not Offered via Docusign Marcella Lunn marcella.lunn@cityofdenton.com Senior Deputy City Attorney City of Denton Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 198.49.140.10 Sent: 10/24/2025 8:50:09 AM Viewed: 10/24/2025 9:04:07 AM Signed: 10/24/2025 9:05:46 AM Electronic Record and Signature Disclosure: Not Offered via Docusign Cheyenne Defee cheyenne.defee@cityofdenton.com Procurement Administration Supervisor City of Denton Security Level: Email, Account Authentication (None) Completed Using IP Address: 198.49.140.10 Sent: 10/24/2025 9:05:48 AM Viewed: 11/19/2025 9:14:06 AM Signed: 11/19/2025 9:14:27 AM Electronic Record and Signature Disclosure: Not Offered via Docusign Signer Events Signature Timestamp Sara Hensley sara.hensley@cityofdenton.com City Manager City of Denton Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 198.49.140.10 Sent: 11/19/2025 9:14:28 AM Viewed: 11/19/2025 10:05:38 AM Signed: 11/19/2025 10:05:55 AM Electronic Record and Signature Disclosure: Not Offered via Docusign Ingrid Rex ingrid.rex@cityofdenton.com Deputy City Secretary Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 198.49.140.10 Sent: 11/19/2025 10:05:56 AM Viewed: 11/19/2025 3:30:18 PM Signed: 11/19/2025 3:38:50 PM Electronic Record and Signature Disclosure: Not Offered via Docusign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Cheyenne Defee cheyenne.defee@cityofdenton.com Procurement Administration Supervisor City of Denton Security Level: Email, Account Authentication (None) Sent: 10/24/2025 8:49:36 AM Electronic Record and Signature Disclosure: Not Offered via Docusign Gretna Jones gretna.jones@cityofdenton.com Legal Secretary City of Denton Security Level: Email, Account Authentication (None) Sent: 10/24/2025 9:05:48 AM Viewed: 10/28/2025 2:42:44 PM Electronic Record and Signature Disclosure: Not Offered via Docusign City Secretary Office citysecretary@cityofdenton.com Security Level: Email, Account Authentication (None) Sent: 11/19/2025 3:38:51 PM Viewed: 11/19/2025 4:22:58 PM Electronic Record and Signature Disclosure: Not Offered via Docusign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 10/24/2025 8:48:50 AM Certified Delivered Security Checked 11/19/2025 3:30:18 PM Signing Complete Security Checked 11/19/2025 3:38:50 PM Completed Security Checked 11/19/2025 3:38:51 PM Payment Events Status Timestamps