Minutes TC 05/13/2019 TOWN OF TROPHY CLUB
TOWN COUNCIL SPECIAL SESSION MINUTES
MONDAY,MAY 13,2019,9:00 A.M.
LOCATION: 1 TROPHY WOOD DRIVE,TROPHY CLUB,TEXAS
COUNCIL CHAMBERS
The Town Council of the Town of Trophy Club, Texas, met in a Special Session on Monday, May 13, 2019. The
meeting was held within the boundaries of the Town and was open to the public.
TOWN COUNCIL MEMBERS PRESENT:
C. Nick Sanders Mayor
Philip Shoffner Mayor Pro Tern, Place 6
Alicia L. Fleury Council Member, Place 1
Eric Jensen Council Member, Place 2
Greg Lamont Council Member, Place 5
TOWN COUNCIL MEMBERS ABSENT:
Tim Kurtz Council Member, Place 4
STAFF PRESENT:
Tom Class Town Manager Jonathan Phillips Director of Administrative& Financial Services
David Dodd Town Attorney Mike Pastor Information Technology Manager
Holly Fimbres Town Secretary/RMO
Mayor Sanders announced the date of Monday, May 13, 2019, called the Town Council to order and announced a
quorum at 9:00 a.m.
EXECUTIVE SESSION
1. Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551
(Texas Open Meetings Act),the Council convened into executive session to discuss the following:
A) Section 551.074 Personnel Matters to discuss or deliberate the appointment, employment,evaluation,
reassignment, duties, discipline or dismissal of a public officer or employee and Section 551.071 under
Subsection (2) Consultation with Attorney to consult with its attorney on a matter in which the duty of
the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of
the State Bar of Texas clearly conflicts with the Texas Open Meetings Act.
1) Simon D.Whiting with Burford&Ryburn,L.L.P.(Mayor Sanders)
2) Town Manager Thomas M.Class,Sr.(Mayor Sanders)
CONVENED INTO EXECUTIVE SESSION-START TIME—9:01 A.M.
RECONVENED INTO SPECIAL SESSION-START TIME—9:26 A.M.
RECONVENED INTO SPECIAL SESSION
2. Consider and take appropriate action regarding the Executive Session(Mayor Sanders).
Motion:
Motion made by Mayor Sanders, seconded by Council Member Fleury, to approve the Voluntary Separation
Agreement and General Release between the Town of Trophy Club and Thomas M. Class, Sr. effective May 13,
2019.
Council Member Jensen commented that he would be voting against the motion because if the Town wished to
separate from the Town Manager, there was a clause within his Employment Agreement that he agreed to along
with three sitting Council Members. He felt that the language in the agreement was clear and that it should be the
direction that the Council should be taking.
Mayor Sanders stated that the terms within the Voluntary Separation Agreement,on Exhibit A, required him to read
the following statement:
"Thomas M. Class, Sr. served the residents, Council, and staff as the Trophy Club Town Manager from
January 30, 2017 to May 13, 2019, and worked diligently to manage Town operations and ensure that
Trophy Club maintained its standing as a premier residential community and "a great place to call home."
At all times Mr. Class promoted a culture exemplified by institutional integrity, maximum transparency,
effective communications, fiscal discipline, and personal accountability which resulted in the provision of
exceptional customer service and the delivery of quantifiable results.
During his tenure Mr. Class completed a reorganization of the Town's command structure, implemented a
merit-based evaluation system tied to a comprehensive strategic plan,coordinated all aspects of the Town
Hall construction project, managed the implementation of the TC Alerts notification system, oversaw the
issuance of a$4.5 million bond for designated capital improvement projects, and promoted fiscal discipline
resulting in budget savings of$1,122,222.00 over a two-year period while reducing property tax rates.
Under Mr. Class' leadership and direction the Police Department received a first-ever "fully-accredited"
rating by the Texas Police Chief's Association, and achieved a # 1 ranking in the "SafeWise 50 Safest Cities
in Texas" evaluation. The Fire Department procured grant funding for the Town-wide installation of AED
devices,and achieved a Fire response"dollar valued to dollar saved" percentage of 86.69%;well above the
54.70% national average. Additionally, during Mr. Class' tenure the Town achieved a # 1 ranking in the
HomeSnacks"10 Best Places to Live in Fort Worth suburbs,"and a#6 ranking in the"10 Best Places to Live
in Texas"evaluations.
Mr. Class served the Town of Trophy Club with great honor, integrity, and decency, and the Town Council
appreciates his efforts and wishes him well in all future endeavors."
As required, Mayor Sanders read the following statement, Exhibit B—Statement of Findings:
"After adequate investigation of the facts,the Council of the Town of Trophy Club has made the following
determinations with respect to the Town Manager,Thomas Class:
Mr. Class was specifically asked by one of the Council members to examine Town emails and records to
determine whether Old Town Development (OTD) had sold property covered by the Economic
Development Agreement among the Town, OTD, the Tax Increment Zone and the Economic Development
Corporation (Development Agreement) and whether OTD complied with the notice requirements of that
Development Agreement.
The examination was conducted by Town staff and Mr.Class planned to present the results(Results)at the
executive session of the Council on March 26, 2019, but circumstances at that meeting did not permit him
to do so. Mr. Class presented the Results in an email to the Council members dated Thursday, March 28,
2019 at 9:52 a.m. (Results Email), which indicated that property included in the Development Agreement
had been sold by OTD without notice to the Town as required by the Development Agreement, the
consequences of such lack of notice, and an email from a Council member to OTD representatives on the
Town email server indicating a probable conflict of interest involving a Council member.A rumor was later
circulated that the date of the Council member's email had been changed, but it had not been changed and
the rumor was untrue.
Town Council Special Session Minutes May 13, 2019 Page 2 of 4
This will confirm that: (1) Mr. Class has not misrepresented, falsified, altered, distorted or lied in any
document, report or statement, be it written or verbal,to the Town or its Council members at any time,(2)
he has not falsified or misrepresented any information to the Town or its Council members in connection
with the dates in the Results Email or in any other documents or statements made to the Council members
in connection with the Results or Council member email described in it, (3) he has acted truthfully and
appropriately in his dealings and communications with the Council and OTD representatives in connection
with his investigations and communications to the Town and its Council members regarding the Results
and the matters described in the Results Email, and (4) to the knowledge of the Town and its Council
members, Mr. Class has consistently acted within the scope of his authority and has fulfilled his duties and
responsibilities of the office of Town Manager,consistent with his Contract and Town policy."
Council Member Jensen asked that the amount of the separation payment be read into the record.
Mayor Sanders read "Item No. 2, Separation Payment, On or before 5:00 p.m. on May 13, 2019, EMPLOYER shall
pay and deliver to CLASS a settlement sum in the total amount of FOUR HUNDRED THOUSAND DOLLARS
($400,000.00)("Settlement Payment"),comprised as follows:
The Settlement Payment will be paid by EMPLOYER to CLASS, less only those employment taxes, Social
Security, Medicare and deductions or other withholdings that EMPLOYER is required by law to withhold, in
the form of a check made payable to CLASS, and the above withheld amounts will be paid directly by
EMPLOYER to the appropriate parties. CLASS will be directly paid the above Base Pay and Vacation Time
amounts, less applicable taxes and withholdings. The amounts paid pursuant to this Section 2 are paid to
CLASS as a compromise and settlement of any and all claims of CLASS arising from the Contract. CLASS
specifically agrees that he will not negotiate such check until after the seven (7) day revocation period in
Section 8(b) below has expired and that he will not negotiate such check in the event that he has exercised
his right to revoke this Agreement."
Council Member Fleury remarked that her vote would be based on all the facts, not just a select few, and it would
be based upon firsthand information received from all parties involved, not on false assumptions and Facebook
comments. Her vote would be based on what was best for the Town financially and legally, but also morally. It was
important to consider all the variables and not just certain clauses that were moot at this point.
Council Member Lamont commented that he normally would abstain from voting on a $400,000 expense since he
was in the last days serving on Council so that he was not burdening the incoming Council with it; however, based
on a conversation the Mayor had with the new incoming Council Members, he was concerned that they would not
listen to the Town's employment attorney and vote to fire the Town Manager. He stated that the employment
attorney warned the Council that the firing of the Town Manager would be considered as retaliatory and would add
a significant amount of penalties and punitive damages. It could result in a lawsuit of$3 to $4 million, plus legal
fees that could escalate from $300,000 to $400,000. That burden to the taxpayers was too much to allow him to
abstain. Additionally, he stated that Tom was a good person with a great reputation, he was sorry to see Tom go,
and he felt that in the end Tom would be proven right.
The vote was taken.
Motion carried 4-1-0,with Mayor Sanders, Mayor Pro Tem Shoffner, and Council Members Fleury and Lamont
voting in favor,and with Council Member Jensen voting against.
Mayor Sanders stated that the process of working on a separation agreement with Mr. Class had been a long and
difficult process for all involved. There may be some individual's question the terms of the agreement without
understanding the legal aspects of Mr. Class' Employment Agreement. He stated there were several years of
employee reviews where Mr. Class had the total support of the Council, along with salary increases and quarterly
reviews. In addition,the fact that Mr. Class filed a whistle blower and hostile work place letter with the Council,
the process and the ability to negotiate was overshadowed with the laws that protect the rights of the employee.
Even after,there was an examination of Mr. Class' Employment Agreement, as related to termination with cause
and the majority of Council did not find cause to proceed down that path. During this process, it became apparent
that comments made on social media, with only part of the facts, were at times derogatory and damaging to Mr.
Town Council Special Session Minutes May 13,2019 Page 3 of 4
Class. At times these comments were damaging to how the Council worked and caused further division among the
Council. These previously made negative comments caused it more difficult in the negotiations. He requested
that citizens use the next few weeks to reflect on these actions and to try to keep social media comments on a
positive note. It was time to move forward in a positive way so that the Town could attract a new Town Manager
and go through a process of healing and reconciliation with the sole purpose of keeping Trophy Club a great place
to call home.
ADJOURN
Mayor Sanders adjourned the meeting at 9:39 a.m.
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Holly Fimbre• Town Secretary •k �1 C. Nick Sanders, Mayor
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