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Agenda Packet 09-25-2023Town of Trophy Club Meeting Agenda Packet Town Council 1 Trophy Wood Drive Trophy Club, Texas 76262 September 25, 2023 6:00 PM Council Chambers CALL TO ORDER AND ANNOUNCE A QUORUM INVOCATION  PLEDGES led by Council Member Pledge of Allegiance to the American Flag. Pledge of Allegiance to the Texas Flag. PUBLIC COMMENT(S) This is an opportunity for citizens to address the Council on any matter pursuant to Texas Government Code Sec. 551.007. The Council is not permitted to discuss or take action on any presentations made concerning matters that are not listed on the agenda. Presentations are limited to matters over which the Council has authority. Speakers have up to four (4) minutes or the time limit determined by the Presiding Officer. Each speaker must have submitted their request to speak by completing the Speaker’s Form or may email mayorandcouncil@trophyclub.org COMMUNITY SPOTLIGHT 1.National Night Out, Tuesday, October 3, 2023 (Vicki Hardy) 2.Grapefest Grapestomp (Mayor Tiffany) 3.Working for You . . . Trophy Club a)  Update from Town Council Members b)  Update from Town Manager (Patrick Arata, Interim Town Manager) d)  Quick Civic Tip (Dean Roggia, Town Attorney) CONSENT AGENDA 4.Consider approval of the September 06, 2023, joint Town Council and Economic Development Corporation joint meeting minutes. (Tammy Dixon, Town Secretary) 5.Consider approval of the September 11, 2023, regular meeting minutes. (Tammy Dixon, Town Secretary) 6.Consider approval of an ordinance approving a negotiated settlement between the Atmos Cities Steering Committee and Atmos Energy Corp., Mid­Tex Division regarding the company’s 2023 Rate Review Mechanism filing. (Patrick Arata, Interim Town Manager) 7.Consider approval of a resolution of the Town of Trophy Club establishing an Arts and Culture Ad Hoc Committee (Tammy Dixon, Town Secretary) 8.Consider approval of the Arts and Culture Ad Hoc Committee members appointed by Mayor Tiffany. (Mayor Tiffany) 9.Consider approval to terminate the existing Local Agreement and enter into a new Local Agreement with the Denton County District Attorney's  Office and the Trophy Club Police Department in regards to seizures filed under Chapter 59 and Article 18.18 of the Texas Code of Criminal Procedure in Denton County, Texas. (Patrick Arata, Interim Town Manager) 10.Consider approval of a resolution revising the Employee Benefits Trust by modifying the trustees. (Denise Deprato, Director of Human Resources) 11.Consider approval of a resolution adopting a Compensation Policy for the Town of Trophy Club. (Denise Deprato, Director of Human Resources) 12.Consider approval of a Developer’s Agreement between the Town of Trophy Club and Trophy Club Estates Development, L.P. for the Willow Estates (2H); and authorizing the Mayor or her designee to execute same on behalf of the Town. (Matt Cox, Director of Community Development) 13.Consider approval of a Developer’s Agreement between the Town of Trophy Club and Trophy Club Estates Development, L.P. for the Oak Estates (3H); and authorizing the Mayor or her designee to execute same on behalf of the Town. (Matt Cox, Director of Community Development) 14.Consider approval of a Developer’s Agreement between the Town of Trophy Club and Trophy Club Estates Development, L.P. for the Cypress Estates (4H); and authorizing the Mayor or her designee to execute same on behalf of the Town. (Matt Cox, Director of Community Development) INDIVIDUAL ITEMS 15.Public Hearing to consider approval of an ordinance relative to the Service and Assessment Plan for Authorized Services (Emergency Services) for the Trophy Club Public Improvement District No. 1 (The Highlands at Trophy Club), the proposed Assessment Roll, and the levy of Special Assessments against the property in PID No. 1. (Patrick Arata, Interim Town Manager) 16.Discuss, consider, and take action regarding an ordinance amending Section 1.08.032 entitled “Board Established, Membership, Meetings” of Chapter 1, “General Provisions:; Article 1.08, “Parks and Recreation”; and Division 2 “Parks and Recreation Board” of the Town’s Code of Ordinances, by increasing the number of board members to provide for alternate members, and by establishing “Places and Terms.”  (Mayor Jeannette Tiffany). 17.Future Agenda Items List (Patrick Arata, Interim Town Manager) EXECUTIVE SESSION 18.Pursuant to the following designated section of the Texas Governmental Code, Annotated, Chapter 551 (Texas Open Meetings Act), The Town will recess into executive session to discuss the following: a. Section 551.071 consultation with Town Attorney to seek legal advice regarding legal issues related to the Lakes of Trophy Club Home Owner’s Association. b. Section 551.074, Personnel: To deliberate and consider the appointment, employment, evaluation, reassignment, duties, discipline or dismissal of public officers or employees; to wit: Town Manager; and Town Secretary. RECONVENE INTO REGULAR SESSION 19.Consider and take appropriate action regarding Executive Session (Mayor Jeannette Tiffany). ADJOURN The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on September 22, 2023, by 5:00 p.m. in accordance with Chapter 551, Texas Government Code. __________________________________ Tammy Dixon Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please contact the Town Secretary’s Office at 682­237­2900, 48 hours in advance, and reasonable accommodations will be made to assist you. 0 Town of Trophy ClubMeeting Agenda PacketTown Council 1 Trophy Wood DriveTrophy Club, Texas76262September 25, 2023 6:00 PM Council ChambersCALL TO ORDER AND ANNOUNCE A QUORUMINVOCATION PLEDGES led by Council MemberPledge of Allegiance to the American Flag.Pledge of Allegiance to the Texas Flag.PUBLIC COMMENT(S)This is an opportunity for citizens to address the Council on any matter pursuant toTexas Government Code Sec. 551.007. The Council is not permitted to discuss ortake action on any presentations made concerning matters that are not listed onthe agenda. Presentations are limited to matters over which the Council hasauthority. Speakers have up to four (4) minutes or the time limit determined by thePresiding Officer. Each speaker must have submitted their request to speak bycompleting the Speaker’s Form or may email mayorandcouncil@trophyclub.orgCOMMUNITY SPOTLIGHT1.National Night Out, Tuesday, October 3, 2023 (Vicki Hardy)2.Grapefest Grapestomp (Mayor Tiffany) 3.Working for You . . . Trophy Club a)  Update from Town Council Members b)  Update from Town Manager (Patrick Arata, Interim Town Manager) d)  Quick Civic Tip (Dean Roggia, Town Attorney) CONSENT AGENDA 4.Consider approval of the September 06, 2023, joint Town Council and Economic Development Corporation joint meeting minutes. (Tammy Dixon, Town Secretary) 5.Consider approval of the September 11, 2023, regular meeting minutes. (Tammy Dixon, Town Secretary) 6.Consider approval of an ordinance approving a negotiated settlement between the Atmos Cities Steering Committee and Atmos Energy Corp., Mid­Tex Division regarding the company’s 2023 Rate Review Mechanism filing. (Patrick Arata, Interim Town Manager) 7.Consider approval of a resolution of the Town of Trophy Club establishing an Arts and Culture Ad Hoc Committee (Tammy Dixon, Town Secretary) 8.Consider approval of the Arts and Culture Ad Hoc Committee members appointed by Mayor Tiffany. (Mayor Tiffany) 9.Consider approval to terminate the existing Local Agreement and enter into a new Local Agreement with the Denton County District Attorney's  Office and the Trophy Club Police Department in regards to seizures filed under Chapter 59 and Article 18.18 of the Texas Code of Criminal Procedure in Denton County, Texas. (Patrick Arata, Interim Town Manager) 10.Consider approval of a resolution revising the Employee Benefits Trust by modifying the trustees. (Denise Deprato, Director of Human Resources) 11.Consider approval of a resolution adopting a Compensation Policy for the Town of Trophy Club. (Denise Deprato, Director of Human Resources) 12.Consider approval of a Developer’s Agreement between the Town of Trophy Club and Trophy Club Estates Development, L.P. for the Willow Estates (2H); and authorizing the Mayor or her designee to execute same on behalf of the Town. (Matt Cox, Director of Community Development) 13.Consider approval of a Developer’s Agreement between the Town of Trophy Club and Trophy Club Estates Development, L.P. for the Oak Estates (3H); and authorizing the Mayor or her designee to execute same on behalf of the Town. (Matt Cox, Director of Community Development) 14.Consider approval of a Developer’s Agreement between the Town of Trophy Club and Trophy Club Estates Development, L.P. for the Cypress Estates (4H); and authorizing the Mayor or her designee to execute same on behalf of the Town. (Matt Cox, Director of Community Development) INDIVIDUAL ITEMS 15.Public Hearing to consider approval of an ordinance relative to the Service and Assessment Plan for Authorized Services (Emergency Services) for the Trophy Club Public Improvement District No. 1 (The Highlands at Trophy Club), the proposed Assessment Roll, and the levy of Special Assessments against the property in PID No. 1. (Patrick Arata, Interim Town Manager) 16.Discuss, consider, and take action regarding an ordinance amending Section 1.08.032 entitled “Board Established, Membership, Meetings” of Chapter 1, “General Provisions:; Article 1.08, “Parks and Recreation”; and Division 2 “Parks and Recreation Board” of the Town’s Code of Ordinances, by increasing the number of board members to provide for alternate members, and by establishing “Places and Terms.”  (Mayor Jeannette Tiffany). 17.Future Agenda Items List (Patrick Arata, Interim Town Manager) EXECUTIVE SESSION 18.Pursuant to the following designated section of the Texas Governmental Code, Annotated, Chapter 551 (Texas Open Meetings Act), The Town will recess into executive session to discuss the following: a. Section 551.071 consultation with Town Attorney to seek legal advice regarding legal issues related to the Lakes of Trophy Club Home Owner’s Association. b. Section 551.074, Personnel: To deliberate and consider the appointment, employment, evaluation, reassignment, duties, discipline or dismissal of public officers or employees; to wit: Town Manager; and Town Secretary. RECONVENE INTO REGULAR SESSION 19.Consider and take appropriate action regarding Executive Session (Mayor Jeannette Tiffany). ADJOURN The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on September 22, 2023, by 5:00 p.m. in accordance with Chapter 551, Texas Government Code. __________________________________ Tammy Dixon Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please contact the Town Secretary’s Office at 682­237­2900, 48 hours in advance, and reasonable accommodations will be made to assist you. 1 Town of Trophy ClubMeeting Agenda PacketTown Council 1 Trophy Wood DriveTrophy Club, Texas76262September 25, 2023 6:00 PM Council ChambersCALL TO ORDER AND ANNOUNCE A QUORUMINVOCATION PLEDGES led by Council MemberPledge of Allegiance to the American Flag.Pledge of Allegiance to the Texas Flag.PUBLIC COMMENT(S)This is an opportunity for citizens to address the Council on any matter pursuant toTexas Government Code Sec. 551.007. The Council is not permitted to discuss ortake action on any presentations made concerning matters that are not listed onthe agenda. Presentations are limited to matters over which the Council hasauthority. Speakers have up to four (4) minutes or the time limit determined by thePresiding Officer. Each speaker must have submitted their request to speak bycompleting the Speaker’s Form or may email mayorandcouncil@trophyclub.orgCOMMUNITY SPOTLIGHT1.National Night Out, Tuesday, October 3, 2023 (Vicki Hardy)2.Grapefest Grapestomp (Mayor Tiffany)3.Working for You . . . Trophy Cluba)  Update from Town Council Membersb)  Update from Town Manager (Patrick Arata, Interim Town Manager)d)  Quick Civic Tip (Dean Roggia, Town Attorney)CONSENT AGENDA4.Consider approval of the September 06, 2023, joint Town Council and EconomicDevelopment Corporation joint meeting minutes. (Tammy Dixon, Town Secretary)5.Consider approval of the September 11, 2023, regular meeting minutes. (TammyDixon, Town Secretary)6.Consider approval of an ordinance approving a negotiated settlement betweenthe Atmos Cities Steering Committee and Atmos Energy Corp., Mid­Tex Divisionregarding the company’s 2023 Rate Review Mechanism filing. (Patrick Arata,Interim Town Manager)7.Consider approval of a resolution of the Town of Trophy Club establishing an Artsand Culture Ad Hoc Committee (Tammy Dixon, Town Secretary)8.Consider approval of the Arts and Culture Ad Hoc Committee membersappointed by Mayor Tiffany. (Mayor Tiffany)9.Consider approval to terminate the existing Local Agreement and enter into anew Local Agreement with the Denton County District Attorney's  Office and theTrophy Club Police Department in regards to seizures filed under Chapter 59and Article 18.18 of the Texas Code of Criminal Procedure in Denton County,Texas. (Patrick Arata, Interim Town Manager)10.Consider approval of a resolution revising the Employee Benefits Trust bymodifying the trustees. (Denise Deprato, Director of Human Resources)11.Consider approval of a resolution adopting a Compensation Policy for the Townof Trophy Club. (Denise Deprato, Director of Human Resources)12.Consider approval of a Developer’s Agreement between the Town of TrophyClub and Trophy Club Estates Development, L.P. for the Willow Estates (2H);and authorizing the Mayor or her designee to execute same on behalf of theTown. (Matt Cox, Director of Community Development)13.Consider approval of a Developer’s Agreement between the Town of Trophy Club and Trophy Club Estates Development, L.P. for the Oak Estates (3H); and authorizing the Mayor or her designee to execute same on behalf of the Town. (Matt Cox, Director of Community Development) 14.Consider approval of a Developer’s Agreement between the Town of Trophy Club and Trophy Club Estates Development, L.P. for the Cypress Estates (4H); and authorizing the Mayor or her designee to execute same on behalf of the Town. (Matt Cox, Director of Community Development) INDIVIDUAL ITEMS 15.Public Hearing to consider approval of an ordinance relative to the Service and Assessment Plan for Authorized Services (Emergency Services) for the Trophy Club Public Improvement District No. 1 (The Highlands at Trophy Club), the proposed Assessment Roll, and the levy of Special Assessments against the property in PID No. 1. (Patrick Arata, Interim Town Manager) 16.Discuss, consider, and take action regarding an ordinance amending Section 1.08.032 entitled “Board Established, Membership, Meetings” of Chapter 1, “General Provisions:; Article 1.08, “Parks and Recreation”; and Division 2 “Parks and Recreation Board” of the Town’s Code of Ordinances, by increasing the number of board members to provide for alternate members, and by establishing “Places and Terms.”  (Mayor Jeannette Tiffany). 17.Future Agenda Items List (Patrick Arata, Interim Town Manager) EXECUTIVE SESSION 18.Pursuant to the following designated section of the Texas Governmental Code, Annotated, Chapter 551 (Texas Open Meetings Act), The Town will recess into executive session to discuss the following: a. Section 551.071 consultation with Town Attorney to seek legal advice regarding legal issues related to the Lakes of Trophy Club Home Owner’s Association. b. Section 551.074, Personnel: To deliberate and consider the appointment, employment, evaluation, reassignment, duties, discipline or dismissal of public officers or employees; to wit: Town Manager; and Town Secretary. RECONVENE INTO REGULAR SESSION 19.Consider and take appropriate action regarding Executive Session (Mayor Jeannette Tiffany). ADJOURN The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on September 22, 2023, by 5:00 p.m. in accordance with Chapter 551, Texas Government Code. __________________________________ Tammy Dixon Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please contact the Town Secretary’s Office at 682­237­2900, 48 hours in advance, and reasonable accommodations will be made to assist you. 2 Town of Trophy ClubMeeting Agenda PacketTown Council 1 Trophy Wood DriveTrophy Club, Texas76262September 25, 2023 6:00 PM Council ChambersCALL TO ORDER AND ANNOUNCE A QUORUMINVOCATION PLEDGES led by Council MemberPledge of Allegiance to the American Flag.Pledge of Allegiance to the Texas Flag.PUBLIC COMMENT(S)This is an opportunity for citizens to address the Council on any matter pursuant toTexas Government Code Sec. 551.007. The Council is not permitted to discuss ortake action on any presentations made concerning matters that are not listed onthe agenda. Presentations are limited to matters over which the Council hasauthority. Speakers have up to four (4) minutes or the time limit determined by thePresiding Officer. Each speaker must have submitted their request to speak bycompleting the Speaker’s Form or may email mayorandcouncil@trophyclub.orgCOMMUNITY SPOTLIGHT1.National Night Out, Tuesday, October 3, 2023 (Vicki Hardy)2.Grapefest Grapestomp (Mayor Tiffany)3.Working for You . . . Trophy Cluba)  Update from Town Council Membersb)  Update from Town Manager (Patrick Arata, Interim Town Manager)d)  Quick Civic Tip (Dean Roggia, Town Attorney)CONSENT AGENDA4.Consider approval of the September 06, 2023, joint Town Council and EconomicDevelopment Corporation joint meeting minutes. (Tammy Dixon, Town Secretary)5.Consider approval of the September 11, 2023, regular meeting minutes. (TammyDixon, Town Secretary)6.Consider approval of an ordinance approving a negotiated settlement betweenthe Atmos Cities Steering Committee and Atmos Energy Corp., Mid­Tex Divisionregarding the company’s 2023 Rate Review Mechanism filing. (Patrick Arata,Interim Town Manager)7.Consider approval of a resolution of the Town of Trophy Club establishing an Artsand Culture Ad Hoc Committee (Tammy Dixon, Town Secretary)8.Consider approval of the Arts and Culture Ad Hoc Committee membersappointed by Mayor Tiffany. (Mayor Tiffany)9.Consider approval to terminate the existing Local Agreement and enter into anew Local Agreement with the Denton County District Attorney's  Office and theTrophy Club Police Department in regards to seizures filed under Chapter 59and Article 18.18 of the Texas Code of Criminal Procedure in Denton County,Texas. (Patrick Arata, Interim Town Manager)10.Consider approval of a resolution revising the Employee Benefits Trust bymodifying the trustees. (Denise Deprato, Director of Human Resources)11.Consider approval of a resolution adopting a Compensation Policy for the Townof Trophy Club. (Denise Deprato, Director of Human Resources)12.Consider approval of a Developer’s Agreement between the Town of TrophyClub and Trophy Club Estates Development, L.P. for the Willow Estates (2H);and authorizing the Mayor or her designee to execute same on behalf of theTown. (Matt Cox, Director of Community Development)13.Consider approval of a Developer’s Agreement between the Town of TrophyClub and Trophy Club Estates Development, L.P. for the Oak Estates (3H); andauthorizing the Mayor or her designee to execute same on behalf of the Town.(Matt Cox, Director of Community Development)14.Consider approval of a Developer’s Agreement between the Town of TrophyClub and Trophy Club Estates Development, L.P. for the Cypress Estates (4H);and authorizing the Mayor or her designee to execute same on behalf of theTown. (Matt Cox, Director of Community Development)INDIVIDUAL ITEMS15.Public Hearing to consider approval of an ordinance relative to the Service andAssessment Plan for Authorized Services (Emergency Services) for the TrophyClub Public Improvement District No. 1 (The Highlands at Trophy Club), theproposed Assessment Roll, and the levy of Special Assessments against theproperty in PID No. 1. (Patrick Arata, Interim Town Manager)16.Discuss, consider, and take action regarding an ordinance amending Section1.08.032 entitled “Board Established, Membership, Meetings” of Chapter 1,“General Provisions:; Article 1.08, “Parks and Recreation”; and Division 2“Parks and Recreation Board” of the Town’s Code of Ordinances, by increasingthe number of board members to provide for alternate members, and byestablishing “Places and Terms.”  (Mayor Jeannette Tiffany).17.Future Agenda Items List (Patrick Arata, Interim Town Manager)EXECUTIVE SESSION18.Pursuant to the following designated section of the Texas Governmental Code,Annotated, Chapter 551 (Texas Open Meetings Act), The Town will recess intoexecutive session to discuss the following:a. Section 551.071 consultation with Town Attorney to seek legal adviceregarding legal issues related to the Lakes of Trophy Club Home Owner’sAssociation.b. Section 551.074, Personnel: To deliberate and consider the appointment,employment, evaluation, reassignment, duties, discipline or dismissal of publicofficers or employees; to wit: Town Manager; and Town Secretary.RECONVENE INTO REGULAR SESSION19.Consider and take appropriate action regarding Executive Session (MayorJeannette Tiffany). ADJOURN The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on September 22, 2023, by 5:00 p.m. in accordance with Chapter 551, Texas Government Code. __________________________________ Tammy Dixon Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please contact the Town Secretary’s Office at 682­237­2900, 48 hours in advance, and reasonable accommodations will be made to assist you. 3 TOWN COUNCIL COMMUNICATION CONSENT MEETING DATE: September 25, 2023 FROM: Tammy Dixon, Town Secretary AGENDA ITEM:Consider approval of the September 06, 2023, joint Town Council and Economic Development Corporation joint meeting minutes. BACKGROUND/SUMMARY: The Town Council and Economic Development Corporation held a joint meeting on September 06, 2023. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: N/A LEGAL REVIEW: N/A ACTION/OPTIONS: Move to approve the September 06, 2023, joint Town Council and Economic Development Corporation joint meeting minutes. 4 Town of Trophy Club Special Joint Meeting Minutes Town Council and Economic Development Corporation September 6, 2023 The Trophy Club Town Council and Economic Development Corporation met in Special Joint Meeting on September 6, 2023, at 6:00 p.m. The meeting was held at Town Hall, 1 Trophy Wood Dr, Trophy Club, TX 76262. CALL TO ORDER AND ANNOUNCE A QUORUM Mayor Tiffany called the Town Council meeting to order at 6:00 p.m. with the following members present: Jeannette Tiffany, Mayor Dennis Sheridan, Mayor Pro Tem Stacey Bauer, Councilmember Place 1 Jeff Beach, Councilmember Place 2 LuAnne Oldham, Councilmember Place 5 Steve Flynn, Councilmember Place 6 with the following member(s) absent: Karl Monger, Councilmember Place 4 Vice President Inge called the Economic Development Corporation to order at 6:00 p.m. with the following members present: Travis Inge, Vice President Andrew Borgan, Director Michael Clarke, Director John Mann, Director Terri Addington, Director Joseph Longo, Director with the following member(s) absent: Scott Haro, President constituting a quorum with the following members of the Town Staff participating: Patrick Arata, Interim Town Manager Tammy Dixon, Town Secretary Dean Roggia, Town Attorney Matt Cox, Director of Community Development Tamara Smith, Assistant to the Town Manager PUBLIC COMMENT There were no public comments. 5 Town Council/Economic Development Corporation Joint Meeting-September 6, 2023 Page 2 EXECUTIVE SESSION/REGULAR SESSION The Town Council and Economic Development Corporation convened into a closed meeting at 6:01 p.m. and reconvened into regular session at 7:09 p.m. in accordance with the Texas Government Code Chapter 551, Sections 551.072 and 551.087 to discuss matters relating to real property and economic development negotiations. 1. Discuss negotiations regarding prospective commercial project within the Town of Trophy Club. No Action Taken. 2. Discuss a real estate and economic development opportunity. No Action Taken. ADJOURN Mayor Tiffany adjourned the Town Council meeting at 7:09 p.m. Vice President Inge adjourned the Economic Development Corp. meeting at 7:09 p.m. ____________________________ Jeannette Tiffany, Mayor ____________________________ EDC President Attest: _______________________________ Tammy Dixon, Town Secretary 6 TOWN COUNCIL COMMUNICATION CONSENT MEETING DATE: September 25, 2023 FROM: Tammy Dixon, Town Secretary AGENDA ITEM:Consider approval of the September 11, 2023, regular meeting minutes. BACKGROUND/SUMMARY: The Town Council held a regular meeting on September 11, 2023. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: N/A LEGAL REVIEW: N/A ATTACHMENTS: Draft Meeting Minutes – September 11 ,2023 Town Council Regular Meeting ACTION/OPTIONS: Move to approve the September 11, 2023, Town Council regular meeting minutes. 7 Town of Trophy Club - Regular Meeting Minutes September 11, 2023 The Trophy Club Town Council met in a Regular Meeting on September 11, 2023, at 6:00 p.m. The meeting was held at Town Hall, 1 Trophy Wood Dr, Trophy Club, TX 76262. CALL TO ORDER AND ANNOUNCE A QUORUM Mayor Tiffany called the Town Council meeting to order at 6:00 p.m. with the following members present: Jeannette Tiffany, Mayor Dennis Sheridan, Mayor Pro Tem Stacey Bauer, Councilmember Place 1 Jeff Beach, Councilmember Place 2 Karl Monger, Councilmember Place 4 LuAnne Oldham, Councilmember Place 5 Steve Flynn, Councilmember Place 6 constituting a quorum with the following members of the Town Staff participating: Patrick Arata, Interim Town Manager Tammy Dixon, Town Secretary Dean Roggia, Town Attorney Jason Wise, Fire Chief Matt Cox, Community Development Director April Duvall, Finance Director Denise Deprato, Human Resources Director Jill Lind, Communications and Marketing Director Tamara Smith, Assistant to the Town Manager INVOCATION Pastor Jeff Brooks, Lake Cities Church of Christ, led the invocation. PLEDGES Councilmember Monger led the Pledge of Allegiances to the American and Texas Flags. PUBLIC COMMENTS There were no public comments. 8 Town Council Regular Meeting Minutes-September 11, 2023 Page 2 COMMUNITY SPOTLIGHT 1.National Preparedness Month – Sydney Casey, Liaison Texas Department of Emergency Management Denton County and Mark Bowlin, Assistant Emergency Management Coordinator, Denton County Office of Emergency Management (Jason Wise, Fire Chief) Mr. Bowlin and Ms. Casey provided an overview of the State and County Emergency Services which coordinate efforts between agencies and local governments prevent, mitigate and prepare for, respond to and recover from disasters. 2.Kathy Whitworth Championship Golf Tournament update by Cathy Wright and Bettye Odle. (Mayor Jeannette Tiffany) Ms. Wrigth and Ms. Odle provided the history of the Kathy Whitworth Championship Golf Tournament which was scheduled for the first time in Trophy Club to take place September 27 – September 30, 2023. They explained the tournament would be bringing together talented professional golfers and amateurs, aiming for a spot on the LPGA tour. The tournament was organized in partnership with the Trophy Club Country Club and the Women’s All Pro Tour. 3.DEA Special Agent in Charge (SAC) of Dallas Field Division to provide information regarding illegal fentanyl (SAC Eduardo Chávez) SAC Chávez gave and presentation and spoke on the dangers of illegal fentanyl use and the dangers of its national epidemic. 4. Working for You . . . Trophy Club a) Update from Town Council Members. Not provided. b) Update from Town Manager (Patrick Arata, Interim Town Manager) Mr. Arata provided an update on the Taste of Trophy Club Event scheduled for Friday, September 15, 2023; and the Byron Nelson High School Homecoming parade scheduled for September 20, 2023. c) Quick Civic Tip (Dean Roggia, Town Attorney). Not provided. CONSENT AGENDA Mayor Pro Tem Sheridan requested items #7 and #8 be pulled from consent and to be discussed following item #11. 5. Consider and take appropriate action to approve the August 28, 2023, Town Council Regular Meeting Minutes (Tammy Dixon, Town Secretary) 9 Town Council Regular Meeting Minutes-September 11, 2023 Page 3 6. Consider and take appropriate action to approve the August 31, 2023, Special Meeting minutes (Tammy Dixon, Town Secretary) 7.Consider and take appropriate action approving a resolution adopting an Employee Compensation Policy (Denise Deprato, Director of Human Resources) Pulled from Consent 8.Consider and take appropriate action amending the Compensation Pay Plan with an effective date of October 8, 2023. (Denise Deprato, Director of Human Resources) Pulled from Consent 9.Consider and take appropriate action regarding improvements to the Bobcat Blvd and the High School exit/entrance crosswalk to add pavement striping/marking and a second set of flashing lights and any other improvements required in an amount not to exceed $18,000 (Patrick Arata) Councilmember Flynn moved to approve consent agenda items 1-6, and 9. Councilmember Bauer seconded the motion. VOTE ON THE MOTION AYES: Bauer, Flynn, Sheridan, Tiffany, Monger, Beach, Oldham NAYES:None VOTE:7-0 INDIVIDUAL ITEMS 10. Discuss, consider and take appropriate action approving a resolution accepting an Annual Service and Assessment Plan Update for Authorized Services (Emergency Services) for the Trophy Club Public Improvement District No. 1 (The Highlands at Trophy Club), and the proposed Assessment Roll; setting a date for Public Hearing; authorizing the publication of notice and directing the mailing of notices as required by law (Patrick Arata, Interim Town Manager) Mr. Arata stated the public hearing would be scheduled for September 25, 2023, and a representative from the Public Improvement District would be present at the hearing. Mayor Pro Tem Sheridan moved to approve Resolution 2023-05 accepting an Annual Service and Assessment Plan Update for Authorized Services (Emergency Services) for the Trophy Club Public Improvement District No. 1 (The Highlands at Trophy Club), and the proposed Assessment Roll; setting September 25, 2023, for the date of the Public Hearing; authorizing the publication of notice and directing the mailing of notices as required by law. Councilmember Monger seconded the motion. The caption of the resolution reads as follows: 10 Town Council Regular Meeting Minutes-September 11, 2023 Page 4 RESOLUTION NO. 2023-05 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS ACCEPTING AN ANNUAL SERVICE AND ASSESSMENT PLAN UPDATE FOR AUTHORIZED SERVICES (EMERGENCY SERVICES) FOR THE TOWN OF TROPHY CLUB PUBLIC IMPROVEMENT DISTRICT NO. 1 (THE HIGHLANDS AT TROPHY CLUB); SETTING A DATE FOR A PUBLIC HEARING; AUTHORIZING THE PUBLICATION OF NOTICE AND DIRECTING THE MAILING OF NOTICES AS REQUIRED BY LAW; ENACTING OTHER PROVISIONS RELATING THERETO; AND PROVIDING AN EFFECTIVE DATE. VOTE ON THE MOTION AYES: Bauer, Flynn, Sheridan, Tiffany, Monger, Beach, Oldham NAYES:None VOTE:7-0 11.Proposed Budget for Fiscal Year October 1, 2023, to September 30, 2024 (Patrick Arata, Interim Town Manager) a) Conduct a Public Hearing regarding the proposed Fiscal Year 2023-2024 Budget pursuant to Section 9.05 of the Town Charter and Local Government Code 102.006 Mayor Tiffany opened the public hearing at 7:05 p.m. No one spoke in support or opposition. Mayor Tiffany closed the public hearing at 7:05 p.m. b) Consider and take appropriate action regarding an ordinance adopting a and approving the Budget for the fiscal year beginning October 1, 2023, and ending September 30, 2024. April Duvall, Finance Director provided the following presentation on the proposed Fiscal Year 2023-2024 budget: 11 Town Council Regular Meeting Minutes-September 11, 2023 Page 5 Ms. Deprato provided an overview of the major changes in Personnel as follows: Mayor Pro Tem Sheridan had questions pertaining to the Five-Year Capital Improvement Program (CIP) list. Mr. Arata explained the program laid out a plan for future years. Mayor Pro Tem Sheridan moved to approve the budget to include an amendment to change the language on the Capital Improvement Program for FY2024-FY2028 Appendix to read “List of Possible Projects,” and subsequently withdrew his motion. Councilmember Monger thanked staff for the prioritizing of the CIP list. Councilmember Oldham moved to amend the language on the Capital Improvement Appendix to clearly state that it is “Proposed.” Flynn seconded the motion. VOTE ON THE MOTION AYES: Bauer, Flynn, Sheridan, Beach, Oldham NAYES:Tiffany, Monger VOTE:5-2 12 Town Council Regular Meeting Minutes-September 11, 2023 Page 6 Councilmember Monger moved to approve Ordinance 2023-15 adopting and approving the budget for the Fiscal Year beginning October 1, 2023, and ending September 30, 2024. Mayor Pro Tem Sheridan seconded the motion. The caption of the ordinance reads as follows: ORDINANCE NO. 2023-15 AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS ADOPTING AND APPROVING THE BUDGET FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2023 AND ENDING SEPTEMBER 30, 2024, AND MAKING APPROPRIATIONS FOR EACH DEPARTMENT, PROJECT, OPERATION, ACTIVITY, PURCHASE, ACCOUNT AND OTHER EXPENDITURES; PROVIDING FOR EMERGENCY EXPENDITURES AND EXPENDITURES AS ALLOWED BY APPLICABLE LAW; PROVIDING FOR FILING OF DOCUMENTS; REPEALING CONFLICTING ORDINANCES; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. VOTE ON THE MOTION AYES: Bauer, Flynn, Sheridan, Tiffany, Monger, Beach, Oldham NAYES:None VOTE:7-0 Items 7 and 8 were pulled from consent. 7.Consider and take appropriate action approving a resolution adopting an Employee Compensation Policy (Denise Deprato, Director of Human Resources) Ms. Deprato reviewed the policy and answered questions from the Town Council. Councilmember Oldham stated she did not agree with current 22 agencies, especially larger agencies such as Frisco and Southlake. Ms. Deprato stated the current list had been used for the past several years and agreed it was time to reevaluate the agencies used. She explained there were two main factors used to establish benchmark agencies: 1) Is the agency comparable; and 2) Is the agency the Town’s competition. She further explained that a comparable agency would not just include population, but other factors such pay structure, tax rate, taxable income, should be considered. She stated the competitive agencies for Trophy Club would include Roanoke, Northlake, Justin, Keller, Southlake, Grapevine, and other surrounding agencies that the Town could lose employees to. A discussion ensued regarding the municipalities used for the Town’s current benchmark agencies. Following discussion Mr. Arata stated staff would make proposed edits to the policy and also reevaluate the benchmark agencies for future consideration. No action was taken. 13 Town Council Regular Meeting Minutes-September 11, 2023 Page 7 8.Consider and take appropriate action amending the Compensation Pay Plan with an effective date of October 8, 2023. (Denise Deprato, Director of Human Resources) Ms. Deprato explained in January of 2023 the Town Council approved adjustments to maintain the Compensation Pay Plan at the 50th Percentile of the Town’s benchmark agencies. She stated the amended Compensation Pay Plan provided a 4% market adjustment across all classifications which would assist the Town with maintaining the 50th percentile requirement set forth by Town Council. Councilmember Monger moved to approve the Compensation Pay Plan with an effective date of October 8, 2023. Councilmember Beach seconded the motion. VOTE ON THE MOTION AYES: Bauer, Flynn, Sheridan, Tiffany, Monger, Beach, Oldham NAYES:None VOTE:7-0 12.Future Agenda Items List (Patrick Arata, Interim Town Manager) Mr. Arata reviewed the future agenda items list. It was the consensus of the Town Council that the November meeting would include a work session to discuss roundabouts. Councilmember Flynn requested the MUD Feasibility Study be added to the agenda for the second meeting in October. Mayor Pro Tem Sheridan supported the request. Mayor Tiffany requested the time for the regular meetings be changed back to begin at 7:00 p.m. EXECUTIVE SESSION/REGULAR SESSION Pursuant to the Open Meetings Act, Chapter 551, the Town Council convened into a Closed Executive Session at 7:51 p.m. and reconvened into Regular Session at 8:52 p.m. in accordance with the Texas Government Code regarding: Section 551.074 Personnel Matters to deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee, to wit: Town Manager. No Action Taken. 14 Town Council Regular Meeting Minutes-September 11, 2023 Page 8 ADJOURN Mayor Tiffany adjourned the Town Council meeting at 8:52 p.m. ____________________________ Jeannette Tiffany, Mayor Town Council Attest: _______________________________ Tammy Dixon, Town Secretary 15 TOWN COUNCIL COMMUNICATION CONSENT MEETING DATE: September 25, 2023 FROM: Patrick Arata, Interim Town Manager AGENDA ITEM:Consider approval of an ordinance approving a negotiated settlement between the Atmos Cities Steering Committee and Atmos Energy Corp., Mid- Tex Division regarding the company’s 2023 Rate Review Mechanism filing. BACKGROUND/SUMMARY: The Town, along with 181 other Mid-Texas cities served by Atmos Energy Corporation, Mid-Tex Division (“Atmos Mid-Tex” or “Company”), is a member of the Atmos Cities Steering Committee (“ACSC”). In 2007, ACSC and Atmos Mid-Tex settled a rate application filed by the Company pursuant to Section 104.301 of the Texas Utilities Code for an interim rate adjustment commonly referred to as a GRIP filing (arising out of the Gas Reliability Infrastructure Program legislation). That settlement created a substitute rate review process, referred to as Rate Review Mechanism (“RRM”), as a substitute for future filings under the GRIP statute. Since 2007, there have been several modifications to the original RRM Tariff. The most recent iteration of an RRM Tariff was reflected in an ordinance adopted by ACSC members in 2018. On or about March 31, 2023, the Company filed a rate request pursuant to the RRM Tariff adopted by ACSC members. The Company claimed that its cost-of-service in a test year ending December 31, 2022, entitled it to additional system-wide revenues of $165.9 million. Application of the standards set forth in ACSC’s RRM Tariff reduces the Company’s request to $156.1 million, $113.8 million of which would be applicable to ACSC members. After reviewing the filing and conducting discovery, ACSC’s consultants concluded that the system-wide deficiency under the RRM regime should be $130.9 million instead of the claimed $156.1 million. After several settlement meetings, the parties have agreed to settle the case for $142 million. This is a reduction of $23.9 million on the Company’s initial request. The Executive Committee recommends a settlement at this amount. The Effective Date for new rates is October 1, 2023. ACSC members should take action approving the Ordinance before the end of September. BILL IMPACT The impact of the settlement on average residential rates is an increase of $6.47 on a monthly basis, or 7.31 percent. The increase for average commercial usage will be $24.72 or 5.19 percent. A bill impact comparison is attached. 16 SUMMARY OF ACSC’S OBJECTION TO THE UTILITIES CODE SECTION 104.301 GRIP PROCESS ACSC strongly opposed the GRIP process because it constitutes piecemeal ratemaking by ignoring declining expenses and increasing revenues while rewarding the Company for increasing capital investment on an annual basis. The GRIP process does not allow any review of the reasonableness of capital investment and does not allow cities to participate in the Railroad Commission’s review of annual GRIP filings or allow recovery of Cities’ rate case expenses. The Railroad Commission undertakes a mere administrative review of GRIP filings (instead of a full hearing) and rate increases go into effect without any material adjustments. In ACSC’s view, the GRIP process unfairly raises customers’ rates without any regulatory oversight. In contrast, the RRM process has allowed for a more comprehensive rate review and annual evaluation of expenses and revenues, as well as capital investment. RRM SAVINGS OVER GRIP While residents outside municipal limits must pay rates governed by GRIP, there are some cities served by Atmos Mid-Tex that chose to remain under GRIP rather than adopt RRM. Additionally, the City of Dallas adopted a variation of RRM which is referred to as DARR. When new rates become effective on October 1, 2023, ACSC residents will have a slight economic monthly advantage over comparable GRIP and comparable DARR rates (see Attachment). EXPLANATION OF “BE IT ORDAINED” PARAGRAPHS: 1. This section approves all findings in the Ordinance. 2. This section adopts the RRM rate tariffs and finds the adoption of the new rates to be just, reasonable, and in the public interest. 3. This section makes it clear that Cities may challenge future costs associated with gas leaks. 4. This section finds that existing rates are unreasonable. Such a finding is a necessary predicate to the establishment of new rates. The new tariffs will permit Atmos Mid-Tex to recover an additional $142 million on a system-wide basis. 5. This section approves an exhibit that establishes a benchmark for pensions and retiree medical benefits to be used in future rate cases or RRM filings. 6. This section requires the Company to reimburse the Town for expenses associated with review of the RRM filing, settlement discussions, and adoption of the Ordinance approving new rate tariffs. 7. This section repeals any resolution or ordinance that is inconsistent with the Ordinance. 8. This section finds that the meeting was conducted in compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. 9. This section is a savings clause, which provides that if any section is later found to be unconstitutional or invalid, that finding shall not affect, impair, or invalidate the remaining provisions of this Ordinance. This section further directs that the remaining provisions of the Ordinance are to be interpreted as if the offending section or clause never existed. 10. This section provides for an effective date upon passage. 11. This section directs that a copy of the signed Ordinance be sent to a representative of the Company and legal counsel for ACSC. 17 Conclusion and Financial Considerations: The Legislature’s GRIP process allowed gas utilities to receive annual rate increases associated with capital investments. The RRM process has proven to result in a more efficient and less costly (both from a consumer rate impact perspective and from a ratemaking perspective) than the GRIP process. Given Atmos Mid-Tex’s claim that its historic cost of service should entitle it to recover $165.9 million in additional system-wide revenues, the RRM settlement at $142million for ACSC Cities reflects substantial savings to ACSC Cities. Settlement at $142 million is fair and reasonable. The ACSC Executive Committee consisting of city employees of 18 ACSC members urges all ACSC members to pass the Ordinance before September 30, 2023. New rates become effective October 1, 2023. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: N/A LEGAL REVIEW: ACSC Executive Committee recommends ACSC Cities adopt the attached ordinance. Dean Roggia, Town Attorney has reviewed the draft ordinance and has approved as to form. ATTACHMENTS: Draft Ordinance ACTION/OPTIONS: Move to approve an ordinance approving a negotiated settlement between the Atmos Cities Steering Committee and Atmos Energy Corp., Mid-Tex Division regarding the company’s 2023 Rate Review Mechanism filing. 18 ORDINANCE NO. 2023- AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, APPROVING A NEGOTIATED SETTLEMENT BETWEEN THE ATMOS CITIES STEERING COMMITTEE (“ACSC”) AND ATMOS ENERGY CORP., MID- TEX DIVISION REGARDING THE COMPANY’S 2023 RATE REVIEW MECHANISM FILING; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED SETTLEMENT; FINDING THE RATES TO BE SET BY THE ATTACHED SETTLEMENT TARIFFS TO BE JUST AND REASONABLE AND IN THE PUBLIC INTEREST; APPROVING AN ATTACHMENT ESTABLISHING A BENCHMARK FOR PENSIONS AND RETIREE MEDICAL BENEFITS; REQUIRING THE COMPANY TO REIMBURSE ACSC’S REASONABLE RATEMAKING EXPENSES; DETERMINING THAT THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; ADOPTING A SAVINGS CLAUSE; DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND THE ACSC’S LEGAL COUNSEL. WHEREAS, the Town of Trophy Club, Texas (“Town”) is a gas utility customer of Atmos Energy Corp., Mid-Tex Division (“Atmos Mid-Tex” or “Company”), and a regulatory authority with an interest in the rates, charges, and services of Atmos Mid-Tex; and WHEREAS, the Town is a member of the Atmos Cities Steering Committee (“ACSC”), a coalition of similarly-situated cities served by Atmos Mid-Tex (“ACSC Cities”) that have joined together to facilitate the review of, and response to, natural gas issues affecting rates charged in the Atmos Mid-Tex service area; and WHEREAS, ACSC and the Company worked collaboratively to develop a Rate Review Mechanism (“RRM”) tariff that allows for an expedited rate review process by ACSC Cities as a substitute to the Gas Reliability Infrastructure Program (“GRIP”) process instituted by the Texas Legislature, and that will establish rates for the ACSC Cities based on the system-wide cost of serving the Atmos Mid-Tex Division; and WHEREAS, the current RRM tariff was adopted by the Town in a rate ordinance in 2018; and WHEREAS, on about March 31, 2023, Atmos Mid-Tex filed its 2023 RRM rate request with ACSC Cities based on a test year ending December 31, 2022; and WHEREAS, ACSC coordinated its review of the Atmos Mid-Tex 2023 RRM filing through its Executive Committee, assisted by ACSC’s attorneys and consultants, to resolve issues identified in the Company’s RRM filing; and 19 ORDINANCE NO. 2023- PAGE 2 WHEREAS, the Executive Committee, as well as ACSC’s counsel and consultants, recommend that ACSC Cities approve an increase in base rates for Atmos Mid-Tex of $142 million on a system-wide basis with an Effective Date of October 1, 2023; and WHEREAS, ACSC agrees that Atmos plant-in-service is reasonable; and WHEREAS, with the exception of approved plant-in-service, ACSC is not foreclosed from future reasonableness evaluation of costs associated with incidents related to gas leaks; and WHEREAS, the attached tariffs (Attachment 1) implementing new rates are consistent with the recommendation of the ACSC Executive Committee, are agreed to by the Company, and are just, reasonable, and in the public interest; and WHEREAS, the settlement agreement sets a new benchmark for pensions and retiree medical benefits (Attachment 2); and WHEREAS, the RRM Tariff contemplates reimbursement of ACSC’s reasonable expenses associated with RRM applications; and WHEREAS, the RRM Tariff includes a securitization interest regulatory asset amount of $19.5 million for expenses related to Winter Storm Uri; NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: Section 1. That the recitals above and findings set forth in this Ordinance are hereby in all things approved. Section 2. That, without prejudice to future litigation of any issue identified by ACSC, the Town Council finds that the settled amount of an increase in revenues of $142 million on a system-wide basis represents a comprehensive settlement of gas utility rate issues affecting the rates, operations, and services offered by Atmos Mid-Tex within the municipal limits arising from Atmos Mid-Tex’s 2023 RRM filing, is in the public interest, and is consistent with the Town’s authority under Section 103.001 of the Texas Utilities Code. Section 3. That despite finding Atmos Mid-Tex’s plant-in-service to be reasonable, ACSC is not foreclosed in future cases from evaluating the reasonableness of costs associated with incidents involving leaks of natural gas. Section 4. That the existing rates for natural gas service provided by Atmos Mid-Tex are unreasonable. The new tariffs attached hereto and incorporated herein as Attachment 1, are just and reasonable, and are designed to allow Atmos Mid-Tex to recover annually an additional $142 million on a system-wide basis, over the amount allowed under currently approved rates. Such tariffs are hereby adopted. 20 ORDINANCE NO. 2023- PAGE 3 Section 5. That the ratemaking treatment for pensions and retiree medical benefits in Atmos Mid-Tex’s next RRM filing shall be as set forth on Attachment 2, attached hereto and incorporated herein. Section 6. That Atmos Mid-Tex shall reimburse the reasonable ratemaking expenses of ACSC in processing the Company’s 2023 RRM filing. Section 7. That to the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Ordinance, it is hereby repealed. Section 8. That the meeting at which this Ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 9. That if any one or more sections or clauses of this Ordinance is adjudged to be unconstitutional or invalid, such judgment shall not affect, impair, or invalidate the remaining provisions of this Ordinance, and the remaining provisions of the Ordinance shall be interpreted as if the offending section or clause never existed. Section 10. That consistent with the Town Ordinance that established the RRM process, this Ordinance shall become effective from and after its passage with rates authorized by attached tariffs to be effective for bills rendered on or after October 1, 2023. Section 11. That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of Chris Felan, Vice President of Rates and Regulatory Affairs Mid-Tex Division, Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Thomas Brocato, General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas 78701. DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, BY A VOTE OF ____ TO ____, ON THIS THE 25TH DAY OF SEPTEMBER 2023. Jeannette Tiffany, Mayor ATTEST: Tammy Dixon, Town Secretary APPROVED AS TO FORM: ______________________________ Dean Roggia, Town Attorney 21 MID-TEX DIVISION ATMOS ENERGY CORPORATION RATE SCHEDULE: R – RESIDENTIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE: Bills Rendered on or after 10/01/2023 Application Applicable to Residential Customers for all natural gas provided at one Point of Delivery and measured through one meter. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the amounts due under the riders listed below: Charge Amount Customer Charge per Bill $ 22.25 per month Rider CEE Surcharge $ 0.05 per month 1 Total Customer Charge $ 22.30 per month Commodity Charge – All Ccf $0.48567 per Ccf 2 Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively, of Rider GCR. Weather Normalization Adjustment: Plus or Minus an amount for weather normalization calculated in accordance with Rider WNA. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company’s Tariff for Gas Service. 1Reference Rider CEE - Conservation and Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1, 2023. 2The commodity charge includes the base rate amount of $0.46724 per Ccf and Securitization Regulatory Asset amounts related to financing costs in the amount of $0.01843 per Ccf until recovered. Attachment 1 22 MID-TEX DIVISION ATMOS ENERGY CORPORATION RATE SCHEDULE: C – COMMERCIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE: Bills Rendered on or after 10/01/2023 Application Applicable to Commercial Customers for all natural gas provided at one Point of Delivery and measured through one meter and to Industrial Customers with an average annual usage of less than 30,000 Ccf. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and Ccf charges to the amounts due under the riders listed below: Charge Amount Customer Charge per Bill $ 72.00 per month Rider CEE Surcharge ($ 0.02) per month 1 Total Customer Charge $ 71.98 per month Commodity Charge – All Ccf $ 0.18280 per Ccf 2 Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively, of Rider GCR. Weather Normalization Adjustment: Plus or Minus an amount for weather normalization calculated in accordance with Rider WNA. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company’s Tariff for Gas Service. Presumption of Plant Protection Level For service under this Rate Schedule, plant protection volumes are presumed to be 10% of normal, regular, historical usage as reasonably calculated by the Company in its sole discretion. If a customer believes it needs to be modeled at an alternative plant protection volume, it should contact the company at mdtx.plantprotection@atmosenergy.com. 1 Reference Rider CEE - Conservation and Energy Efficiency as approved in GUD 10170. Surcharge billing effective July 1, 2023. 2The commodity charge includes the base rate amount of $0.16437 per Ccf and Securitization Regulatory Asset amounts related to financing costs in the amount of $0.01843 per Ccf until recovered. Attachment 1 23 MID-TEX DIVISION ATMOS ENERGY CORPORATION RATE SCHEDULE: I – INDUSTRIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE: Bills Rendered on or after 10/01/2023 Application Applicable to Industrial Customers with a maximum daily usage (MDU) of less than 200 MMBtu per day for all natural gas provided at one Point of Delivery and measured through one meter. Service for Industrial Customers with an MDU equal to or greater than 200 MMBtu per day will be provided at Company's sole option and will require special contract arrangements between Company and Customer. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's monthly bill will be calculated by adding the following Customer and MMBtu charges to the amounts due under the riders listed below: Charge Amount Customer Charge per Meter $ 1,382.00 per month First 0 MMBtu to 1,500 MMBtu $ 0.7484 per MMBtu 1 Next 3,500 MMBtu $ 0.5963 per MMBtu1 All MMBtu over 5,000 MMBtu $ 0.2693 per MMBtu1 Gas Cost Recovery: Plus an amount for gas costs and upstream transportation costs calculated in accordance with Part (a) and Part (b), respectively, of Rider GCR. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Curtailment Overpull Fee Upon notification by Company of an event of curtailment or interruption of Customer’s deliveries, Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the applicable Gas Day in the table entitled “Daily Price Survey.” Replacement Index In the event the “midpoint” or “common” price for the Katy point listed in Platts Gas Daily in the table entitled “Daily Price Survey” is no longer published, Company will calculate the applicable imbalance fees 1 The tiered commodity charges include the base rate amounts of $0.5684, $0.4163, and $0.0893 per MMBtu, respectively, plus Securitization Regulatory Asset amounts related to financing costs in the amount of $0.1800 per MMBtu until recovered. Attachment 1 24 MID-TEX DIVISION ATMOS ENERGY CORPORATION RATE SCHEDULE: I – INDUSTRIAL SALES APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE: Bills Rendered on or after 10/01/2023 utilizing a daily price index recognized as authoritative by the natural gas industry and most closely approximating the applicable index. Agreement An Agreement for Gas Service may be required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company’s Tariff for Gas Service. Special Conditions In order to receive service under Rate I, Customer must have the type of meter required by Company. Customer must pay Company all costs associated with the acquisition and installation of the meter. Presumption of Plant Protection Level For service under this Rate Schedule, plant protection volumes are presumed to be 10% of normal, regular, historical usage as reasonably calculated by the Company in its sole discretion. If a customer believes it needs to be modeled at an alternative plant protection volume, it should contact the company at mdtx.plantprotection@atmosenergy.com. Attachment 1 25 MID-TEX DIVISION ATMOS ENERGY CORPORATION RATE SCHEDULE: T – TRANSPORTATION APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE: Bills Rendered on or after 10/01/2023 Application Applicable, in the event that Company has entered into a Transportation Agreement, to a customer directly connected to the Atmos Energy Corp., Mid-Tex Division Distribution System (Customer) for the transportation of all natural gas supplied by Customer or Customer’s agent at one Point of Delivery for use in Customer's facility. Type of Service Where service of the type desired by Customer is not already available at the Point of Delivery, additional charges and special contract arrangements between Company and Customer may be required prior to service being furnished. Monthly Rate Customer's bill will be calculated by adding the following Customer and MMBtu charges to the amounts and quantities due under the riders listed below: Charge Amount Customer Charge per Meter $ 1,382.00 per month First 0 MMBtu to 1,500 MMBtu $ 0.5684 per MMBtu Next 3,500 MMBtu $ 0.4163 per MMBtu All MMBtu over 5,000 MMBtu $ 0.0893 per MMBtu Upstream Transportation Cost Recovery: Plus an amount for upstream transportation costs in accordance with Part (b) of Rider GCR. Retention Adjustment: Plus a quantity of gas as calculated in accordance with Rider RA. Franchise Fee Adjustment: Plus an amount for franchise fees calculated in accordance with Rider FF. Rider FF is only applicable to customers inside the corporate limits of any incorporated municipality. Tax Adjustment: Plus an amount for tax calculated in accordance with Rider TAX. Surcharges: Plus an amount for surcharges calculated in accordance with the applicable rider(s). Imbalance Fees All fees charged to Customer under this Rate Schedule will be charged based on the quantities determined under the applicable Transportation Agreement and quantities will not be aggregated for any Customer with multiple Transportation Agreements for the purposes of such fees. Monthly Imbalance Fees Customer shall pay Company the greater of (i) $0.10 per MMBtu, or (ii) 150% of the difference per MMBtu between the highest and lowest “midpoint” price for the Katy point listed in Platts Gas Daily in the table entitled “Daily Price Survey” during such month, for the MMBtu of Customer’s monthly Cumulative Imbalance, as defined in the applicable Transportation Agreement, at the end of each month that exceeds 10% of Customer’s receipt quantities for the month. Attachment 1 26 MID-TEX DIVISION ATMOS ENERGY CORPORATION RATE SCHEDULE: T – TRANSPORTATION APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE: Bills Rendered on or after 10/01/2023 Curtailment Overpull Fee Upon notification by Company of an event of curtailment or interruption of Customer’s deliveries, Customer will, for each MMBtu delivered in excess of the stated level of curtailment or interruption, pay Company 200% of the midpoint price for the Katy point listed in Platts Gas Daily published for the applicable Gas Day in the table entitled “Daily Price Survey.” Replacement Index In the event the “midpoint” or “common” price for the Katy point listed in Platts Gas Daily in the table entitled “Daily Price Survey” is no longer published, Company will calculate the applicable imbalance fees utilizing a daily price index recognized as authoritative by the natural gas industry and most closely approximating the applicable index. Agreement A transportation agreement is required. Notice Service hereunder and the rates for services provided are subject to the orders of regulatory bodies having jurisdiction and to the Company’s Tariff for Gas Service. Special Conditions In order to receive service under Rate T, customer must have the type of meter required by Company. Customer must pay Company all costs associated with the acquisition and installation of the meter. Attachment 1 27 MID-TEX DIVISION ATMOS ENERGY CORPORATION RIDER: WNA – WEATHER NORMALIZATION ADJUSTMENT APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE: Bills Rendered on or after 10/01/2023 Provisions for Adjustment The Commodity Charge per Ccf (100 cubic feet) for gas service set forth in any Rate Schedules utilized by the cities of the Mid-Tex Division service area for determining normalized winter period revenues shall be adjusted by an amount hereinafter described, which amount is referred to as the "Weather Normalization Adjustment." The Weather Normalization Adjustment shall apply to all temperature sensitive residential and commercial bills based on meters read during the revenue months of November through April. The five regional weather stations are Abilene, Austin, Dallas, Waco, and Wichita Falls. Computation of Weather Normalization Adjustment The Weather Normalization Adjustment Factor shall be computed to the nearest one-hundredth cent per Ccf by the following formula: (HSFi x (NDD-ADD) ) WNAFi = Ri (BLi + (HSFi x ADD) ) Where i = any particular Rate Schedule or billing classification within any such particular Rate Schedule that contains more than one billing classification WNAFi = Weather Normalization Adjustment Factor for the ith rate schedule or classification expressed in cents per Ccf Ri = Commodity Charge rate of temperature sensitive sales for the ith schedule or classification. HSFi = heat sensitive factor for the ith schedule or classification divided by the average bill count in that class NDD = billing cycle normal heating degree days calculated as the simple ten-year average of actual heating degree days. ADD = billing cycle actual heating degree days. Bli = base load sales for the ith schedule or classification divided by the average bill count in that class The Weather Normalization Adjustment for the jth customer in ith rate schedule is computed as: WNA i = WNAF i x q ij Where q ij is the relevant sales quantity for the jth customer in ith rate schedule. Attachment 1 28 MID-TEX DIVISION ATMOS ENERGY CORPORATION RIDER: WNA – WEATHER NORMALIZATION ADJUSTMENT APPLICABLE TO: ALL CUSTOMERS IN THE MID-TEX DIVISION UNDER THE RRM TARIFF EFFECTIVE DATE: Bills Rendered on or after 10/01/2023 Base Use/Heat Use Factors Residential Commercial Base use Heat use Base use Heat use Weather Station Ccf Ccf/HDD Ccf Ccf/HDD Abilene 9.51 0.1415 88.91 0.7010 Austin 8.87 0.1213 213.30 0.7986 Dallas 12.54 0.2007 185.00 0.9984 Waco 8.81 0.1325 125.26 0.7313 Wichita Falls 10.36 0.1379 122.10 0.6083 Weather Normalization Adjustment (WNA) Report On or before June 1 of each year, the company posts on its website at atmosenergy.com/mtx-wna, in Excel format, a Weather Normalization Adjustment (WNA) Report to show how the company calculated its WNAs factor during the preceding winter season. Additionally, on or before June 1 of each year, the company files one hard copy and an Excel version of the WNA Report with the Railroad Commission of Texas' Gas Services Division, addressed to the Director of that Division. Attachment 1 29 Line No.Description Pension Account Plan Post- Employment Benefit Plan Pension Account Plan Post- Employment Benefit Plan Supplemental Executive Benefit Plan Adjustment Total (a)(b)(c)(d)(e)(f)(g) 1 Proposed Benefits Benchmark - Fiscal Year 2023 Willis Towers Watson Report as adjusted (1) (2) (3)1,434,339$ (518,336)$ 2,336,419$ (2,678,818)$ 267,917$ 2 Allocation Factor 44.92%44.92%78.74%78.74%100.00% 3 Proposed Benefits Benchmark Costs Allocated to Mid-Tex (Ln 1 x Ln 2)644,336$ (232,848)$ 1,839,667$ (2,109,267)$ 267,917$ 4 O&M and Capital Allocation Factor 100.00%100.00%100.00%100.00%100.00% 5 Proposed Benefits Benchmark Costs to Approve (Ln 3 x Ln 4)644,336$ (232,848)$ 1,839,667$ (2,109,267)$ 267,917$ 409,804$ 6 7 O&M Expense Factor (WP_F-2.3, Ln 2)78.60%78.60%39.63%39.63%11.00% 8 9 Summary of Costs to Approve (1): 10 Total Pension Account Plan 506,464$ 729,006$ 1,235,469$ 11 Total Post-Employment Benefit Plan (183,024)$ (835,840)$ (1,018,864) 12 Total Supplemental Executive Benefit Plan 29,471$ 29,471 13 Total (Ln 10 + Ln 11 + Ln 12)506,464$ (183,024)$ 729,006$ (835,840)$ 29,471$ 246,076$ ATMOS ENERGY CORP., MID-TEX DIVISION MID-TEX RATE REVIEW MECHANISM PENSIONS AND RETIREE MEDICAL BENEFITS FOR CITIES APPROVAL TEST YEAR ENDING DECEMBER 31, 2022 Shared Services Mid-Tex Direct Attachment 2 30 Line No.Current Proposed Amount Percent (b)(c)(d)(e) 1 Rate R @ 43.6 Ccf 2 Customer charge 21.55$ 3 Consumption charge 43.6 CCF X 0.36223$ =15.79 4 Rider GCR Part A 43.6 CCF X 0.63625$ =27.74 5 Rider GCR Part B 43.6 CCF X 0.41732$ =18.20 6 Subtotal 83.28$ 7 Rider FF & Rider TAX 83.28$ X 0.06237 =5.19 8 Total 88.47$ 9 10 Customer charge 22.25$ 11 Consumption charge 43.6 CCF X 0.48567$ =21.18 12 Rider GCR Part A 43.6 CCF X 0.63625$ =27.74 13 Rider GCR Part B 43.6 CCF X 0.41732$ =18.20 14 Subtotal 89.37$ 15 Rider FF & Rider TAX 89.37$ X 0.06237 =5.57 16 Total 94.94$ 6.47$ 7.31% 17 (a) ATMOS ENERGY CORP., MID-TEX DIVISION MID-TEX RATE REVIEW MECHANISM AVERAGE BILL COMPARISON - BASE RATES TEST YEAR ENDING DECEMBER 31, 2022 Change Description 31 Line No.Current Proposed Amount Percent (b)(c)(d)(e)(a) ATMOS ENERGY CORP., MID-TEX DIVISION MID-TEX RATE REVIEW MECHANISM AVERAGE BILL COMPARISON - BASE RATES TEST YEAR ENDING DECEMBER 31, 2022 Change Description 18 Rate C @ 356.6 Ccf 19 Customer charge 63.50$ 20 Consumption charge 356.6 CCF X 0.14137$ =50.41 21 Rider GCR Part A 356.6 CCF X 0.63625$ =226.86 22 Rider GCR Part B 356.6 CCF X 0.30202$ =107.69 23 Subtotal 448.46$ 24 Rider FF & Rider TAX 448.46$ X 0.06237 =27.97 25 Total 476.43$ 26 27 Customer charge 72.00$ 28 Consumption charge 356.6 CCF X 0.18280$ =65.18 29 Rider GCR Part A 356.6 CCF X 0.63625$ =226.86 30 Rider GCR Part B 356.6 CCF X 0.30202$ =107.69 31 Subtotal 471.73$ 32 Rider FF & Rider TAX 471.73$ X 0.06237 =29.42 33 Total 501.15$ 24.72$ 5.19% 34 32 Line No.Current Proposed Amount Percent (b)(c)(d)(e)(a) ATMOS ENERGY CORP., MID-TEX DIVISION MID-TEX RATE REVIEW MECHANISM AVERAGE BILL COMPARISON - BASE RATES TEST YEAR ENDING DECEMBER 31, 2022 Change Description 35 Rate I @ 1720 MMBTU 36 Customer charge 1,204.50$ 37 Consumption charge 1,500 MMBTU X 0.4939$ =740.85 38 Consumption charge 220 MMBTU X 0.3617$ =79.64 39 Consumption charge 0 MMBTU X 0.0776$ =- 40 Rider GCR Part A 1,720 MMBTU X 6.2134$ =10,688.12 41 Rider GCR Part B 1,720 MMBTU X 0.6267$ =1,078.08 42 Subtotal 13,791.19$ 43 Rider FF & Rider TAX 13,791.19$ X 0.06237 =860.17 44 Total 14,651.36$ 45 46 Customer charge 1,382.00$ 47 Consumption charge 1,500 MMBTU X 0.7484$ =1,122.62 48 Consumption charge 220 MMBTU X 0.5963$ =131.30 49 Consumption charge 0 MMBTU X 0.2693$ =- 50 Rider GCR Part A 1,720 MMBTU X 6.2134$ =10,688.12 51 Rider GCR Part B 1,720 MMBTU X 0.6267$ =1,078.08 52 Subtotal 14,402.12$ 53 Rider FF & Rider TAX 14,402.12$ X 0.06237 =898.28 54 Total 15,300.40$ 649.04$ 4.43% 55 33 Line No.Current Proposed Amount Percent (b)(c)(d)(e)(a) ATMOS ENERGY CORP., MID-TEX DIVISION MID-TEX RATE REVIEW MECHANISM AVERAGE BILL COMPARISON - BASE RATES TEST YEAR ENDING DECEMBER 31, 2022 Change Description 56 Rate T @ 4720 MMBTU 57 Customer charge 1,204.50$ 58 Consumption charge 1,500 MMBTU X 0.4939$ =740.85 59 Consumption charge 3,220 MMBTU X 0.3617$ =1,164.50 60 Consumption charge 0 MMBTU X 0.0776$ =- 61 Rider GCR Part B 4,720 MMBTU X 0.6267$ =2,957.85 62 Subtotal 6,067.70$ 63 Rider FF & Rider TAX 6,067.70$ X 0.06237 =378.45 64 Total 6,446.15$ 65 66 Customer charge 1,382.00$ 67 Consumption charge 1,500 MMBTU X 0.5684$ =852.60 68 Consumption charge 3,220 MMBTU X 0.4163$ =1,340.29 69 Consumption charge 0 MMBTU X 0.0893$ =- 70 Rider GCR Part B 4,720 MMBTU X 0.6267$ =2,957.85 71 Subtotal 6,532.74$ 72 Rider FF & Rider TAX 6,532.74$ X 0.06237 =407.45 73 Total 6,940.19$ 494.04$ 7.66% 34 TOWN COUNCIL COMMUNICATION CONSENT MEETING DATE: September 25, 2023 FROM: Tammy Dixon, Town Secretary AGENDA ITEM:Consider approval of a resolution of the Town of Trophy Club establishing an Arts and Culture Ad Hoc Committee. BACKGROUND/SUMMARY: On August 14, 2023, the Town Council approved the formation of an Arts and Culture Ad Hoc Committee. This item is to formalize the Ad Hoc Committee by a resolution which establishes the Ad Hoc Committee, defines the duties, membership, and terms. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: N/A LEGAL REVIEW: Town Attorney, Dean Roggia, has reviewed the draft resolution as to form and legality. ATTACHMENTS: Draft Resolution ACTION/OPTIONS: Move to approve a resolution of the Town of Trophy Club establishing an Arts and Culture Ad Hoc Committee. 35 TOWN OF TROPHY CLUB, TEXAS RESOLUTION NO. 2023-xx A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB ESTABLISHING AN ARTS AND CULTURE AD HOC COMMITTEE; DEFINING THE DUTIES, MEMBERSHIP AND TERMS OF THE COMMITTEE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town of Trophy Club (the “Town”) is a home rule city acting under its charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS, the Town Council has determined there is great interest in the community regarding public art and art related programs; and WHEREAS, the Town Council seeks to create the Arts and Culture Ad Hoc Committee to be composed of citizens to recommend the creation of an arts and culture commission to align all public art and culture initiatives in the Town and to establish arts- related programs throughout the year. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, THAT: SECTION 1 There is hereby established the Town of Trophy Club Arts and Culture Ad Hoc Committee (the “Committee”). Structure and Organization a) The Committee shall consist of nine members appointed by the Mayor and approved by the Town Council. b) All Committee members serve at the pleasure of the Town Council and may be removed or replaced at the discretion of the Town Council. c) Members shall be resident citizens and qualified voters of the Town, at the time of appointment. d) Other qualifications for membership shall include persons who are generally interested in public art and culture. 36 Resolution 2023-XX Page 2 Procedures a) At the first scheduled meeting of the Committee, the first item of business shall be the selection of the Committee’s chairperson and vice-chairperson from among the membership of the Committee. b) The chair shall preside over the meetings. In the absence of the chair, the vice- chair shall assume the duties of the chair. c) In the absence of both the chair and vice-chair, any member of the Committee may be selected as acting chairperson for a particular meeting by a majority vote of the members present. d) The Committee shall establish its own rules of procedures. e) The Committee shall meet at least quarterly for one (1) year after the Effective Date of this Resolution at a Town facility. f) The Chair shall present recommendations to the Town Council with an initial update after six (6) months and a final report after the completion of the one (1) year. g) Upon the final report to the Town Council, the Committee will be dissolved. Duties and Responsibilities a) The Committee shall act in an advisory capacity to the Town Council. b) The Committee shall prepare and submit a final report and recommendations to the Town Council regarding the creation of an Arts and Culture Commission to align all public art and culture initiatives in the Town, including, but not limited to goals, an action plan, scope and priorities. SECTION 2 The Town, through the Town Manager, shall provide such clerical and staffing support to the Committee as the Town Manager deems reasonable and necessary to allow the Committee to perform its purposes. SECTION 3 Should the Committee recommend the creation of the Arts and Culture Commission, the Committee members may be appointed to the Arts and Culture Commission by the Town Council. SECTION 4 The Committee shall not be subject to the Open Meetings Act. SECTION 5 This resolution shall become effective on and after its date of adoption. 37 Resolution 2023-XX Page 3 DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, ON THIS THE 25th DAY OF SEPTEMBER, 2023. Jeannette Tiffany, Mayor ATTEST: Tammy Dixon, Town Secretary APPROVED AS TO FORM AND LEGALITY: Dean Roggia, Town Attorney 38 TOWN COUNCIL COMMUNICATION CONSENT MEETING DATE: September 25, 2023 FROM: Tammy Dixon, Town Secretary AGENDA ITEM: Consider approval of the Arts and Culture Ad Hoc Committee members appointed by Mayor Tiffany. BACKGROUND/SUMMARY: The resolution establishing the Arts and Cultural Ad Hoc Committee provides for nine members appointed by the Mayor subject to Town Council approval. Mayor Tiffany’s appointments are as follows: 1. Jean Ashenfelter 2. Sue Drake 3. Melissa Eason 4. Candace Dillard 5. Janet Greedy 6. Ron Eddins 7. Carol Tombari 8. Beth Ann Sands 9. Wanda Brewster BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: N/A LEGAL REVIEW: N/A ATTACHMENTS: N/A ACTION/OPTIONS: Move to approve the Arts and Culture Ad Hoc Committee members as appointed by Mayor Tiffany. 39 TOWN COUNCIL COMMUNICATION CONSENT MEETING DATE: September 25, 2023 FROM: Patrick Arata, Interim Town Administrator AGENDA ITEM: Consider approval to terminate the existing Local Agreement and enter into a new Local Agreement with the Denton County District Attorney's Office and the Trophy Club Police Department in regard to seizures filed under Chapter 59 and Article 18.18 of the Texas Code of Criminal Procedure in Denton County, Texas. BACKGROUND/SUMMARY: The Local Agreement regarding asset seizure and forfeiture cases under Article 59 of the Texas Code of Criminal Procedure will provide the Denton County Criminal District Attorney's Office with 20% of all money seized and forfeited for the services provided to the Trophy Club Police Department associated with the forfeiture of contraband. The new agreement will allow the Trophy Club Police Department to receive 80% of all currency seized and forfeited and 100% of all proceeds from the sale of personal property seized and forfeited, and if a motor vehicle is seized the Town will pay the District Attorney's Office $300.00 as in previous agreements. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: N/A LEGAL REVIEW: Dean Roggia, Town Attorney, has reviewed the agreement and as to form and legality. ATTACHMENTS: Local Agreement ACTION/OPTIONS: Move to terminate the existing Local Agreement and enter into a new Local Agreement with the Denton County District Attorney's Office and the Trophy Club Police Department in regard to seizures filed under Chapter 59 and Article 18.18 of the Texas Code of Criminal Procedure in Denton County, Texas 40 41 42 43 44 45 46 TOWN COUNCIL COMMUNICATION CONSENT MEETING DATE: September 25, 2023 FROM: Denise Deprato, Director of Human Resources AGENDA ITEM:Consider approval of a resolution revising the Employee Benefits Trust by modifying the trustees. BACKGROUND/SUMMARY: On August 28, 2023, Town Council approved the Employee Benefits Trust, authorizing the Trustees to purchase various forms of insurance for the benefit of the Town Officers, employees, qualified retirees, and their dependents. The Trustees designated were the Town Manager, Human Resources Manager, and Administrative Services Director. The Town no longer has the classifications of Human Resources Manager and Administrative Services Director and has the need to redesignate the Trustees of the Employee Benefits Trust to the Town Manager, Human Resources Director, and Finance Director. In addition, the Declaration of Trust, Section VII. Trust Funds requires clarification on how the Trust will be funded. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: There are no additional costs associated with implementing this policy. LEGAL REVIEW: Approved as to form and legality by the Town Attorney. ATTACHMENTS: - DRAFT RESOLUTION 2023-XX - RESOLUTION 2018-13 ACTION/OPTIONS: Move to approve a resolution revising the Employee Benefits Trust by modifying the trustees. 47 TOWN OF TROPHY CLUB RESOLUTION NO. 2023-XX A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, REVISING THE EMPLOYEE BENEFITS TRUST; MODIFYING THE TRUSTEES OF SAID TRUST TO THE TOWN MANAGER, FINANCE DIRECTOR, AND HUMAN RESOURCES DIRECTOR WHEREAS, on August 28, 2018, Town Council approved the Employee Benefits Trust; and WHEREAS, in the original Declaration of Trust dated September 4, 2018, the Town Council designated the Town Manager, Human Resources Manager, and Administrative Services Director as the Trustees of Said Trust, and WHEREAS, the titles of the Human Resources Manager and Administrative Services Director have been modified to Human Resources Director and Finance Director; and WHEREAS, the Town of Trophy Club, Texas (the "Town") provides or offers various employee benefits to its employees, including health, dental, life insurance and disability benefits; and WHEREAS, state law imposes a tax upon receipt of gross premiums and revenues associated with such benefits; and WHEREAS, state law also authorizes the exemption of such premiums and revenues from state law, provided that the Town establishes and maintains the funds under the ownership and control of a single, nonprofit trust; and WHEREAS, the Town Council of the Town finds it to be in the public interest and in the exercise of its essential governmental functions to authorize the creation of an Employee Benefits Trust for the reasons provided above. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: Section 1. The Town Council hereby modifies the Employee Benefits Trust, by designating the Town Manager, Human Resources Director, and Finance Director to be Trustees of said Trust, all of which is pursuant to the Amended and Restated Declaration of Trust attached to this Resolution as Exhibit "A." 48 RESOLUTION 2023- PAGE 2 PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas on this 25th day of September 2023. Jeannette Tiffany, Mayor ATTEST: Tammy Dixon, Town Secretary APPROVED TO AS FORM: Dean Roggia, Town Attorney 49 RESOLUTION 2023- EXHIBIT A Employee Benefit Trust Revised September 25, 2023 Declaration of Trust Page 1 of 8 AMENDED AND RESTATED DECLARATION OF TRUST I. CREATION OF TRUST The Town of Trophy Club ("Town"), as Settlor or creator of the trust, designates the Town of Trophy Club Town Manager, Finance Director, and Human Resources Director to be Trustees and declares that the Town holds in trust the funds previously described in Schedule A, which was attached to the Declaration of Trust as originally approved by the Town and made effective on September 4, 2018, which is the property of the Town, and all substitutions and additions to such funds, for the purpose of providing or offering, whether now or possibly in the future, life, disability, sick, accident, and other health benefits to the Town's officers, employees, and qualified retirees and their dependents. II. PURPOSE This is a nonprofit trust created for the purpose of providing or offering, whether now or possibly in the future, City officers, employees, and qualified retirees and their dependents with life, disability, sickness, accident, and other health benefits either directly or through the purchase of insurance and to perform operations in furtherance thereof. The Trust is intended to qualify as a tax-exempt trust performing an essential governmental function within the meaning of Section 115 of the Internal Revenue Code (the "Code"). III. DURATION The Trust shall continue until terminated by operation of law or by majority vote of the Trustees. IV. TRUSTEES: COMPOSITION, OFFICERS, COMPENSATION, AND MEETINGS A.Composition. The Trustees are the Town Manager, Finance Director, and Human Resources Director. Each Trustee's term is contemporaneous with his or her term of employment with the Town. Whenever a Trustee ceases to be an employee of the Town, the person succeeding him or her in office will automatically be appointed to serve as a successor Trustee of the Trust. B.Officers. The Trustees shall elect officers annually. C.Compensation. The Trustees shall be reimbursed for all reasonable and necessary expenses incurred by them in the performance of their duties and will otherwise receive no compensation for their service as Trustees. D.Meetings. A meeting of the Trustees may be called by the Chairman or on 50 RESOLUTION 2023- EXHIBIT A Employee Benefit Trust Revised September 25, 2023 Declaration of Trust Page 2 of 8 written request to the Chairman by two or more Trustees. Trustees shall have at least three days’ written notice of any meeting. For purposes of this section, electronic mail notice is written notice. V. RIGHTS, POWERS, AND DUTIES OF TRUSTEES; QUORUM AND VOTING A. Rights, Powers, and Duties. In addition to all other powers and duties conferred on them by this Trust document and imposed or authorized by law, the Trustees shall have the following powers and duties, but only to the extent permissible for a single purpose non-profit trust under Section 222.002(c)(5) of the Texas Insurance Code: 1. The Trustees shall carry out all of the duties necessary for the proper operation and administration of the Trust on behalf of the covered persons and shall have all the powers necessary and desirable for the effective administration of the affairs of the Trust. 2. The Trustees have the general power to make and enter into all contracts, leases, and agreements necessary or convenient to carry out any of the powers granted by this Trust document or by law or to effectuate the purpose of the Trust. All such contracts, leases, and agreements or any other legal documents herein authorized shall be approved by the Trustees by majority vote at a duly called meeting at which a quorum is present and signed by the Chairman on behalf of the Trust. The Trustees may also designate another Trustee to sign such documents. 3. The Trustees shall use the Trust's funds to accomplish the purpose of the Trust, as described in Section II herein, and to operate and administer the Trust solely in the interest of the covered City officers, employees, and qualified retirees and dependents thereof and for the exclusive purpose of providing or offering benefits to such persons and defraying the reasonable expenses of administration of the Trust. To this end, the Trustees may purchase life, disability, or accident and health insurance to provide or offer coverage for participating Town officers, employees, and qualified retirees and their dependents. The Trustees may also adopt a health benefit plan that covers Town officers, employees, and qualified retirees, and their dependents. 4. The Trustees may accept contributions to the Trust funds from any source including contributions from covered persons receiving benefits from the Trust. 5. The Trustees shall be authorized to contract with any qualified organization to perform any of the functions necessary for providing or offering life, disability, sick, accident, and other health benefits, including but not limited to excess loss insurance, stop loss insurance, claims administration, 51 RESOLUTION 2023- EXHIBIT A Employee Benefit Trust Revised September 25, 2023 Declaration of Trust Page 3 of 8 administrative services, and any other services that the Trustees shall deem expedient for the proper operation of the Trust. When required by law or desired by the Trustees, the Trustees shall seek sealed competitive bids or sealed competitive proposals with respect to contracts required to carry out the operations of the Trust and to affect the purpose of the Trust. 6. The Trustees shall arrange for the investing of the funds of the Trust so as to keep the same invested according to law and at the best interest rates obtainable for the benefit of the covered persons. The Trustees may hire money managers and shall adopt an investment policy for its own use and that of its agents in making investments. The Trustees shall select a depository for the Trust's funds and provide for the proper security of any and all investments. The Trustees shall designate signatories for the Trust's depository accounts. 7. The Trustees may purchase insurance for the Trustees and any other fiduciaries appointed by the Trustees and for the Trust itself to cover liability or losses occurring by reason of the act or omission of any one or more of the Trustees or any other fiduciary appointed by them. Any insurance purchased by the Trustees must give the insurer recourse against the Trustees or other fiduciaries concerned for breach of any fiduciary obligation or fiduciary duty owed to the Trust. 8. The Trustees shall arrange for proper accounting and reporting procedures for the Trust's funds and shall also provide for an annual audit of the Trust's financial affairs by a certified public accountant. 9. The Trustees may retain legal counsel to represent the Trust and the Trustees in all legal proceedings as well as to advise the Trust and the Trustees on all matters pertaining to the operation and administration of the Trust. 10.The Trustees have the authority to terminate the Trust at any time. 11.Upon termination of the Trust, the Trustees shall provide for the payment of Trust obligations, debts, losses, and other liabilities and shall provide for the disposition of the remaining Trust funds in accordance with Section IX herein. B.Quorum and Voting. A majority of the Trustees shall constitute a quorum for the transaction of business at any meeting of the Trustees and the vote of a majority of the Trustees present shall be required for approval of any action at such meeting. The vote of such majority of the Trustees at such meeting shall constitute action of the Trustees as a group. 52 RESOLUTION 2023- EXHIBIT A Employee Benefit Trust Revised September 25, 2023 Declaration of Trust Page 4 of 8 VI. BENEFICIARIES The beneficiaries of the Trust are the Town officers, employees, and qualified retirees and their dependents who are covered by life, disability, sick, accident, or other health benefits plan purchased or adopted by the Trust (also call "covered persons" herein). Beneficiaries may make contributions to the Trust for use by the Trustees in fulfilling the purposes of the Trust. No beneficiary shall have any claim against the funds or any other property of the Trust. The rights and interest of the beneficiaries are limited to the insurance or health benefits specified in any policy purchased or plan adopted by the Trustees. VII. TRUST FUNDS A. The Town of Trophy Club shall transfer to the Trust, by the end of each month preceding the enrollment period, the Employer and Employee contributions for all medical, dental, vision, life insurance, long-term disability benefits and any other health benefit plans adopted by the Trust. B. The Trust funds consist of the funds described in Section VII.A. above hereto as provided by the Settlor to institute this Trust, future contributions by the Settlor, beneficiary contributions, investment income, and any other money or property which shall come into the hands of the Trustees in connection with the administration of the Trust. The funds of the Trust shall not inure to the benefit of, or be distributed to, any private person, except for the payment of necessary costs and benefits described below. The Trustees may use the Trust's funds as follows: 1. to pay premiums on group health, accident and life policies or contracts; 2. to make authorized investments and paying fund management fees from the proceeds of the investment. VIII. LIABILITY OF TRUSTEES AND OFFICERS The Trustees shall use ordinary care and reasonable diligence in the exercise of their powers and the performance of their duties hereunder; and they shall not be liable for any mistake of judgment or other action made, taken or omitted by them in good faith, nor for any action taken or omitted by any agent, employee or independent contractor selected with reasonable care; nor for any loss incurred through investment of the Trust funds or failure to invest. No Trustee shall be liable for any action taken or omitted by any other Trustee. No Trustee shall be required to give a bond or other security to guarantee the faithful performance of his or her duties herein. To the fullest extent permitted by the law: A. the Town shall indemnify each Trustee who was, is, or is threatened to be made a party to any threatened, pending, or completed action, suit, or 53 RESOLUTION 2023- EXHIBIT A Employee Benefit Trust Revised September 25, 2023 Declaration of Trust Page 5 of 8 proceeding ("Proceeding"), any appeal therein, or any inquiry or investigation preliminary thereto, by reason of the fact that the Trustee is or was a Trustee; B. the Town shall pay or reimburse a Trustee for expenses incurred 1. in advance of the final disposition of a Proceeding to which such Trustee was, is or is threatened to be made a party, and 2. in connection with such Trustee's appearance as a witness or other participation in any Proceeding. IX. AMENDMENT, REVOCATION AND TERMINATION The Declaration of Trust and the Trust created herein shall terminate when and if required by operation of law. The Trustees shall have the power to amend, modify, terminate or revoke, in whole or in part, the Declaration of Trust and the Trust created herein by majority vote at a duly called meeting at which a quorum is present. Notwithstanding the foregoing, the Trustees shall have no power to amend Section II of this Declaration of Trust. Beneficiaries of the Trust shall have no right to amend this Declaration of Trust, and their approval shall not be a condition or requirement for an authorized amendment by the Trustees. Upon termination of the Trust, the Trustees shall pay all obligations, debts, losses, and other liabilities of the Trust. Thereafter, the Trustees shall first use the remaining trust funds to pay covered claims of persons covered under the Town's health benefits plan that may be in effect at the time of termination of the Trust and then, either apply any remaining balance of the funds to provide the benefits described herein or transfer such funds to a successor whose income is excluded under Section 115(1) of the Code. Notwithstanding the foregoing, the Trustees, upon termination of the Trust and payment of all Trust obligations may, by vote of a majority of the Trustees, transfer the remaining funds or any portion thereof to the trustees of any trust or trusts established by the Town for a substantially similar purpose to be applied for uses substantially similar to those set forth in Section II herein. X. GOVERNING LAW This Declaration of Trust and the Trust created herein shall be construed and governed by the laws of the State of Texas in force from time to time, without regard for conflicts of laws principles. Venue shall lie exclusively in Denton County, Texas. XI. MISCELLANEOUS Whenever the context so admits and such treatment is necessary to interpret this Declaration of Trust in accordance with its apparent intent, the use herein of the 54 RESOLUTION 2023- EXHIBIT A Employee Benefit Trust Revised September 25, 2023 Declaration of Trust Page 6 of 8 singular shall include the plural, and vice versa, and the use of the feminine, masculine, or neuter gender shall be deemed to include other genders. The captions or headings above the various Sections of the Declaration of Trust have been included only to facilitate the location of the subjects covered by each Section but shall not be used in construing this Declaration of Trust. If any clause or provision of this Declaration of Trust proves to be or is adjudged invalid or void for any reason, such invalid or void clause, provision, or portion shall not affect the whole, but the balance of the provisions hereof shall remain operative and shall be carried into effect insofar as is legally possible. IN WITNESS HEREOF, the undersigned parties have executed this Declaration of Trust, on the dates of their respective acknowledgements below. By joining in the execution of this Declaration of Trust, signify acceptance of the Trust created hereunder, and covenant that the Trust will be executed with all due fidelity. This Trust is effective as of the last date of signature below. ____________________________________________ _____________________ Mayor Date ____________________________________________ _____________________ Patrick Arata, Town Manager, Trustee Date ____________________________________________ _____________________ April Duvall, Finance Director, Trustee Date ____________________________________________ _____________________ Denise Deprato, Human Resources Director, Trustee Date 55 RESOLUTION 2023- EXHIBIT A Employee Benefit Trust Revised September 25, 2023 Declaration of Trust Page 7 of 8 ACKNOWLEDGMENTS THE STATE OF TEXAS COUNTY OF DENTON This instrument was acknowledged before me on this ______ day of ______________, 2023 by Jeannette Tiffany, Mayor, Town of Trophy Club on behalf of the Town. ___________________________________ Notary Public In and For the State of Texas (SEAL) THE STATE OF TEXAS COUNTY OF DENTON This instrument was acknowledged before me on this ______ day of ______________, 2023 by Patrick Arata, Town Manager, Town of Trophy Club on behalf of the Town. ___________________________________ Notary Public In and For the State of Texas (SEAL) THE STATE OF TEXAS COUNTY OF DENTON This instrument was acknowledged before me on this ______ day of ______________, 2023 by April Duvall, Finance Director, Town of Trophy Club on behalf of the Town. ___________________________________ Notary Public In and For the State of Texas (SEAL) THE STATE OF TEXAS COUNTY OF DENTON This instrument was acknowledged before me on this ______ day of ______________, 2023 by Denise Deprato, Human Resources Director, Town of Trophy Club on behalf of the Town. 56 RESOLUTION 2023- EXHIBIT A Employee Benefit Trust Revised September 25, 2023 Declaration of Trust Page 8 of 8 ___________________________________ Notary Public In and For the State of Texas (SEAL) 57 TOWN OF TROPHY CLUB, TEXAS RESOLUTION NO. 2018-13 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, AUTHORIZING CREATION OF AN EMPLOYEE BENEFITS TRUST; DESIGNATING THAT THE TOWN MANAGER,HUMAN RESOURCES MANAGER,AND ADMINISTRATIVE SERVICES DIRECTOR BE TRUSTEES OF SAID TRUST; AND AUTHORIZING THE TRUST TO PURCHASE VARIOUS FORMS OF INSURANCE FOR THE BENEFIT OF CITY OFFICERS, EMPLOYEES, QUALIFIED RETIREES, AND THEIR DEPENDENTS. WHEREAS, the Town of Trophy Club, Texas (the "Town") provides or offers various employee benefits to its employees, including health, dental, life insurance and disability benefits; and WHEREAS, state law imposes a tax upon receipt of gross premiums and revenues associated with such benefits; and WHEREAS, state law also authorizes the exemption of such premiums and revenues from state law, provided that the Town establishes and maintains the funds under the ownership and control of a single, nonprofit trust; and WHEREAS, the Town Council of the Town finds it to be in the public interest to authorize the creation of an Employee Benefits Trust for the reasons provided above. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: Section 1. The Town Council hereby authorizes creation of an Employee Benefits Trust, designating the Town Manager, Human Resources Manager, and Administrative Services Director to be Trustees of said Trust, and authorizing the Trust to purchase various forms of insurance for the benefit of Town officers, employees, qualified retirees, and their dependents, all of which is pursuant to the Declaration of Trust attached as Exhibit "A." 58 PASSED, APPROVED and RESOLVED by the Town Council of the Town of Trophy Club, Texas, on this 28th day of August 2018. C. Nick Sanders, Mayor - -) 71/-" L- Town of Trophy Club, Texas SEAL] ATTEST: Mi O A 4itti,\) ,,,,,,,hik, IL. o y Fir b es, Town Secretary cc Town of Trophy Club, Texas 1- t h*1 I'W 1 1C3,/ AP- '0 :D TOASFeRM: jLie,'' '' J. David Dodd Ill, own Attorney To ,,n of Trophy Club, Texas RES 2018-13 Page 2 of 2 59 EXHIBIT "A" DECLARATION OF TRUST I. CREATION OF TRUST The Town of Trophy Club("Town"), as Settlor or creator of the trust, designates the Town of Trophy Club Town Manager, Human Resources Manager, and Administrative Services Director to be Trustees and declares that the Town holds in trust the funds described in Schedule A attached hereto and incorporated herein by reference, which is the property of the Town, and all substitutions and additions to such funds, for the purpose of providing or offering, whether now or possibly in the future, life, disability, sick, accident, and other health benefits to the Town's officers, employees, and qualified retirees and their dependents. II. PURPOSE This is a nonprofit trust created for the purpose of providing or offering, whether now or possibly in the future, City officers, employees, and qualified retirees and their dependents with life, disability, sickness, accident, and other health benefits either directly or through the purchase of insurance and to perform operations in furtherance thereof. The Trust is intended to qualify as a tax-exempt trust performing an essential governmental function within the meaning of Section 115 of the Internal Revenue Code (the "code"). III. DURATION The Trust shall continue until terminated by operation of law or by majority vote of the Trustees. IV. TRUSTEES: COMPOSITION,OFFICERS, COMPENSATION,AND MEETINGS A.Composition. The Trustees are the Town Manager, Town Human Resources Manager, and Town Administrative Services Director. Each Trustee's term is contemporaneous with his or her term of employment with the Town. Whenever a Trustee ceases to be an employee of the Town,the person succeeding him or her in office will automatically be appointed to serve as a successor Trustee of the Trust. B. Officers. The Trustees shall elect officers annually. 60 C. Compensation. The Trustees shall be reimbursed for all reasonable and necessary expenses incurred by them in the performance of their duties and will otherwise receive no compensation for their service as Trustees. D. Meetings. A meeting of the Trustees may be called by the Chairman or on written request to the Chairman by two or more Trustees. Trustees shall have at least three days written notice of any meeting. For purposes of this section, electronic mail notice is written notice. V. RIGHTS,POWERS,AND DUTIES OF TRUSTEES; QUORUM AND VOTING A. Rights, Powers, and Duties. In addition to all other powers and duties conferred on them by this Trust document and imposed or authorized by law,the Trustees shall have the following powers and duties, but only to the extent permissible for a single purpose non-profit trust under Section 222.002(c)(5) of the Texas Insurance Code: 1. The Trustees shall carry out all of the duties necessary for the proper operation and administration of the Trust on behalf of the covered persons and shall have all the powers necessary and desirable for the effective administration of the affairs of the Trust. 2. The Trustees have the general power to make and enter into all contracts, leases, and agreements necessary or convenient to carry out any of the powers granted by this Trust document or by law or to effectuate the purpose of the Trust. All such contracts, leases, and agreements or any other legal documents herein authorized shall be approved by the Trustees by majority vote at a duly called meeting at which a quorum is present and signed by the Chairman on behalf of the Trust. The Trustees may also designate another Trustee to sign such documents. 3. The Trustees shall use the Trust's funds to accomplish the purpose of the Trust, as described in Section II herein, and to operate and administer the Trust solely in the interest of the covered City officers, employees, and qualified retirees and dependents thereof and for the exclusive purpose of providing or offering benefits to such persons and defraying the reasonable expenses of administration of the Trust. To this end,the Trustees may purchase life, disability, or accident and health insurance to provide or offer coverage for participating Town officers, employees, and qualified retirees and their dependents. The Trustees may also adopt a health benefit plan that covers Town officers, employees, and qualified retirees, and their dependents. 4. The Trustees may accept contributions to the Trust funds from any source including contributions from covered persons receiving benefits from the Trust. 5. The Trustees shall be authorized to contract with any qualified organization to perform any of the functions necessary for providing or offering life, disability, sick, accident, and other health benefits, including but not limited to excess loss insurance, stop loss insurance, 61 claims administration, administrative services, and any other services that the Trustees shall deem expedient for the proper operation of the Trust. When required by law or desired by the Trustees, the Trustees shall seek sealed competitive bids or sealed competitive proposals with respect to contracts required to carry out the operations of the Trust and to affect the purpose of the Trust. 6. The Trustees shall arrange for the investing of the funds of the Trust so as to keep the same invested according to law and at the best interest rates obtainable for the benefit of the covered persons. The Trustees may hire money managers and shall adopt an investment policy for its own use and that of its agents in making investments. The Trustees shall select a depository for the Trust's funds and provide for the proper security of any and all investments. The Trustees shall designate signatories for the Trust's depository accounts. 7. The Trustees may purchase insurance for the Trustees and any other fiduciaries appointed by the Trustees and for the Trust itself to cover liability or losses occurring by reason of the act or omission of any one or more of the Trustees or any other fiduciary appointed by them. Any insurance purchased by the Trustees must give the insurer recourse against the Trustees or other fiduciaries concerned for breach of any fiduciary obligation or fiduciary duty owed to the Trust. 8. The Trustees shall arrange for proper accounting and reporting procedures for the Trust's funds and shall also provide for an annual audit of the Trust's financial affairs by a certified public accountant. 9. The Trustees may retain legal counsel to represent the Trust and the Trustees in all legal proceedings as well as to advise the Trust and the Trustees on all matters pertaining to the operation and administration of the Trust. 10.The Trustees have the authority to terminate the Trust at any time. 11.Upon termination of the Trust, the Trustees shall provide for the payment of Trust obligations, debts, losses, and other liabilities and shall provide for the disposition of the remaining Trust funds in accordance with Section IX herein. B. Quorum and Voting. A majority of the Trustees shall constitute a quorum for the transaction of business at any meeting of the Trustees and the vote of a majority of the Trustees present shall be required for approval of any action at such meeting. The vote of such majority of the Trustees at such meeting shall constitute action of the Trustees as a group. 62 VI. BENEFICIARIES The beneficiaries of the Trust are the Town officers, employees, and qualified retirees and their dependents who are covered by life, disability, sick, accident, or other health benefits plan purchased or adopted by the Trust(also call "covered persons" herein). Beneficiaries may make contributions to the Trust for use by the Trustees in fulfilling the purposes of the Trust. No beneficiary shall have any claim against the funds or any other property of the Trust. The rights and interest of the beneficiaries are limited to the insurance or health benefits specified in any policy purchased or plan adopted by the Trustees. VII. TRUST FUNDS The Trust funds consist of the funds described in Schedule A hereto as provided by the Settlor to institute this Trust, future contributions by the Settlor, beneficiary contributions, investment income, and any other money or property which shall come into the hands of the Trustees in connection with the administration of the Trust. The funds of the Trust shall not inure to the benefit of, or be distributed to, any private person, except for the payment of necessary costs and benefits described below. The Trustees may use the Trust's funds as follows: 1. to pay premiums on group health, accident and life policies or contracts; 2. to make authorized investments and paying fund management fees from the proceeds of the investment. VII. LIABILITY OF TRUSTEES AND OFFICERS The Trustees shall use ordinary care and reasonable diligence in the exercise of their powers and the performance of their duties hereunder; and they shall not be liable for any mistake of judgment or other action made, taken or omitted by them in good faith, nor for any action taken or omitted by any agent, employee or independent contractor selected with reasonable care; nor for any loss incurred through investment of the Trust funds or failure to invest. No Trustee shall be liable for any action taken or omitted by any other Trustee. No Trustee shall be required to give a bond or other security to guarantee the faithful performance of his or her duties herein. To the fullest extent permitted by the law: (a)the Town shall indemnify each Trustee who was, is, or is threatened to be made a party to any threatened,pending, or completed action, suit, or proceeding("Proceeding"), any appeal therein, or any inquiry or investigation preliminary thereto, by reason of the fact that the Trustee is or was a Trustee; (b) the Town shall pay or reimburse a Trustee for expenses incurred (i) in advance of the final disposition of a Proceeding to which such Trustee was, is or is threatened to be made a party, and 63 ii) in connection with such Trustee's appearance as a witness or other participation in any Proceeding. IX. AMENDMENT,REVOCATION AND TERMINATION The Declaration of Trust and the Trust created herein shall terminate when and if required by operation of law. The Trustees shall have the power to amend, modify, terminate or revoke, in whole or in part,the Declaration of Trust and the Trust created herein by majority vote at a duly called meeting at which a quorum is present. Notwithstanding the foregoing, the Trustees shall have no power to amend Section II of this Declaration of Trust. Beneficiaries of the Trust shall have no right to amend this Declaration of Trust, and their approval shall not be a condition or requirement for an authorized amendment by the Trustees. Upon termination of the Trust,the Trustees shall pay all obligations, debts, losses, and other liabilities of the Trust. Thereafter,the Trustees shall first use the remaining trust funds to pay covered claims of persons covered under the Town's health benefits plan that may be in effect at the time of termination of the Trust and then, either apply any remaining balance of the funds to provide the benefits described herein or transfer such funds to a successor whose income is excluded under Section 115(1)of the Code. Notwithstanding the foregoing,the Trustees, upon termination of the Trust and payment of all Trust obligations may, by vote of a majority of the Trustees, transfer the remaining funds or any portion thereof to the trustees of any trust or trusts established by the Town for a substantially similar purpose to be applied for uses substantially similar to those set forth in Section II herein. X. GOVERNING LAW This Declaration of Trust and the Trust created herein shall be construed and governed by the laws of the State of Texas in force from time to time. XI. MISCELLANEOUS Whenever the context so admits and such treatment is necessary to interpret this Declaration of Trust in accordance with its apparent intent,the use herein of the singular shall include the plural, and vice versa, and the use of the feminine, masculine, or neuter gender shall be deemed to include other genders. The captions or headings above the various Sections of the Declaration of Trust have been included only to facilitate the location of the subjects covered by each Section but shall not be used in construing this Declaration of Trust. If any clause or provision of this Declaration of Trust proves to be or is adjudged invalid or void for any reason, such invalid or void clause, provision, or portion shall not affect the whole, 64 but the balance of the provisions hereof shall remain operative and shall be carried into effect insofar as is legally possible. REMAINDER OF PAGE INTENTIONALLY BLANK,• SIGNATURE PAGE FOLLOWS.] 65 IN WITNESS HEREOF, the undersigned parties have executed this Declaration of Trust, consisting of ten(10)pages and Schedule A attached hereto, on the dates of their respective acknowledgements below. By joining in the execution of this Declaration of Trust,the Trustees acknowledge receipt of the property described in Schedule A, signify acceptance of the Trust created hereunder, and covenant that the Trust will be executed with all due fidelity. This Trust is effective as of the last date of signature below. 5-' 1e--/-' 1-f A r MayorY Dae L IYIn _ 13 o ! OI Thomas M. Class, Sr., Trustee Date a% a 3/ "1 Ja s Edwards, Trustee Date r 7. 2;---- s -,z, 1 , (2, Jonat .n Philli is, Trustee Date 66 ACKNOWLEDGMENTS THE STATE OF TEXAS § COUNTY OF'Tiirrw11 § This instrument was acknowledged before me on this day of1Qe,( 2018, by C.Nick Sanders, Mayor, Town of Trophy Club on behalf of the Town. o:34 HOLLY FIMBRES i i* Notary Public 1 STATE OF TEXAS Notary P lic In and For the State of Texas My Om 7116/7014 SEAL) THE STATE OF TEXAS § COUNTY OF Thr w* § This instrument was acknowledged before me on this 3() day ofU`3' f 2018, by Thomas M. Class Sr., Town Manager, Town of Trophy Club on behalf of e Town. 11,, HOLLY FIMBRES i ; 4.- '* Notary Public v. , STATE OF TEXAS Notary Publ. n and For the State of Texas og• My Comm,ill 6/7019 SEAL) THE STATE OF TEXAS § COUNTY OF Tc rrco- This instrument was acknowledged before me on this 3+-k day of 5U 5+ 2018, by James Edwards, Human Resources Manager, Town of Trophy Club on behalf of the Town. o;:= y-:e HOLLY FIMBRESt.`!X40* . y * Notary i'uWlc 4STATE OF TEXAS_ nay comm.ms zot9Notary PualISAJ4U: ritriti. c In and For the State of Texas SEAL) 67 THE STATE OF TEXAS § COUNTY OF TG.rr-ctxi- § This instrument was acknowledged before me on this 3o+ day of Ub 2018, by Jonathan Phillips,Administrative Services Director, Town of Trophy Clubion behalf of the Town. vek HOLLY FIMBRES at/ 'I" Nota Public STATE OFPublic Notary Ppb c In and For the State of Texas av y My Comm:7/1 2p19 SEAL)) 68 SCHEDULE A The following is a list of the assets initially transferred by the Town of Trophy Club, Texas, to the Trust: Town of Trophy Club's first month (October 2018) contributions for Employee and Dependents, Medical/Pharmacy Benefits, Dental Benefits, Life Insurance Benefits, and Long- Term Disability Benefits. Town of Trophy Club's Employee and Dependents first month (October 2018)of Plan Year's payroll deductions or contributions for Medical/Pharmacy Benefits, Dental Benefits, Life Insurance Benefits, and Long-Term Disability Insurance Beneftis. 69 TOWN COUNCIL COMMUNICATION CONSENT MEETING DATE: September 25, 2023 FROM: Denise Deprato, Director of Human Resources AGENDA ITEM: Consider approval of a resolution adopting a Compensation Policy for the Town of Trophy Club BACKGROUND/SUMMARY: During the January 21, 2023, Council Meeting, Council requested a policy outlining Council’s direction and philosophy on the Town’s Compensation Plan. Council identified the need for a policy to stabilize and structure the Town’s Compensation plan to provide competitive salary to attract highly qualified new talent and to retain a skilled workforce. Council’s commitment to maintain the Compensation Pay Plan at the 50th percentile of the Town’s benchmark agencies, and provide annual merit increases to reward employees meeting performance standards is accomplished through this policy. In addition, the policy requires an annual Town Council review of the Compensation Pay Plan in an effort to maintain the Council’s directives and commitment to employees. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: N/A LEGAL REVIEW: N/A ATTACHMENTS: Draft Resolution Town Compensation Policy ACTION/OPTIONS: Move to approve a resolution adopting an Employee Compensation Policy 70 TOWN OF TROPHY CLUB RESOLUTION NO. 2023-XX A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS ADOPTING A COMPENSATION POLICY FOR THE TOWN OF TROPHY CLUB, A COPY OF WHICH IS ATTACHED HERETO AND INCORPORATED HEREIN AS EXHIBIT “A”; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on January 21, 2023, Town Council requested a Compensation Policy be put forth for their consideration and approval; and WHEREAS, the Town Council is committed to providing fair compensation for work performed by Town employees; and WHEREAS, the Town Council is dedicated to maintaining the Town’s Compensation Pay Plan at the 50th percentile of the Town’s benchmark agencies, and WHEREAS, Town Council recognizes the hard work and dedication of Town employees and is committed to providing annual merit increases to employees meeting performance standards. WHEREAS, upon consideration, the Town Council finds and determines it to be in the best interests of the Town to adopt Exhibit “A” as the Town’s Compensation Policy. NOW, THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB; Section 1. That the Town Council has reviewed the Compensation Policy and hereby adopts the said policy set forth in Exhibit “A,” a copy of which is attached hereto and incorporated herein in its entirety. Section 2. That 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 25th day of September 2023. APPROVED Jeannette Tiffany, Mayor ATTEST: Tammy Dixon, Town Secretary APPROVED TO AS FORM: Dean Roggia, Town Attorney 71 DRAFT Version 3.0 Page 1 of 3 As of 9/20/2023 Compensation Policy Town Council Policy Policy Number TC-001 Date of Adoption:September 25, 2023 Resolution Number: Policy Contact:Director of Human Resources 1. PURPOSE The Compensation Policy is established to set forth Town Council’s direction and philosophy on the Town’s Compensation Pay Plan for all employment Classifications. The Town’s compensation philosophy is to recognize and reward employee performance and maintain a competitive pay structure to retain and attract a highly qualified workforce. 2. POLICY 2.1. Compensation Pay Plan 2.1.1. Town Council shall approve a Compensation Pay Plan annually, no later than the first meeting each September after budget approval to establish the base salary Pay Range of all Town Classifications. 2.1.2. The Town Manager and/or their designee shall conduct an annual review to ensure the Town is remaining competitive and paying fair market value for the duties in which staff are performing. The annual review and recommendation to Town Council may include the following data: •A compensation study of the Town’s Benchmark Agencies •Federal Cost of Living Adjustment •Metroplex municipalities annual pay adjustments •Dallas/Fort Worth Living Wage 2.1.3. The Town shall conduct a Compensation Study of the Town’s Benchmark Agencies and set the minimum pay range for each classification at the 50th Percentile, at least every three years. 72 DRAFT Version 3.0 Page 2 of 3 As of 9/20/2023 2.1.4. The Town Manager and/or designee may request to the Town Council adjustments to the Compensation Pay Plan throughout the year, for example to include necessary new classifications and reclassification, as needed. 2.1.5. Town Officer Authority 2.1.5.1. The Town Manager, Town Secretary, and the Town Attorney have the authority to set their staff salaries within the Pay Range and budget set forth by Town Council. 2.2. Performance Merit Increases During the annual budget process, Town Council shall consider performance merit increases for full-time staff meeting performance standards. 2.3 The Town Council Finance sub-committee may provide Town Council regular updates during the annual budget process. 3. DEFINITIONS Benchmark Agencies Local municipalities that are comparable to or competitors of the Town, used to compare salary data for similar classifications. Classification A specific job outline, including, but is not limited to, classification title, Fair Labor Standards Act (FLSA) Status, reporting and supervisory structure, job summary, duties and responsibilities, qualifications, and work environment. Compensation Pay Plan A defined base salary Pay Range for all Town Classifications used to set guidelines to compensate fair market value for a body of worked performed. Pay Range A span between a minimum and maximum base salary for a specific Classification. 73 DRAFT Version 3.0 Page 3 of 3 As of 9/20/2023 ATTACHMENT A Benchmark Agencies 1. The Town establishes Benchmark Agencies consisting of comparable and competitive local municipalities to compare compensation data to ensure the Town is paying fair market value for the services rendered and duties performed by all classifications within the Town. 2. The Benchmark Agencies shall be reviewed as needed to ensure the local municipalities designated remain a comparable or competitive agency. 3. The Town’s 16 Benchmark Agencies are as follows: Comparable Azle Forest Hill Highland Village Glenn Heights Melissa Mineral Wells Red Oak Royse City Competitors Coppell Flower Mound Grapevine Justin Keller Northlake Roanoke Southlake 74 TOWN COUNCIL COMMUNICATION CONSENT MEETING DATE: September 25, 2023 FROM: Matt Cox, Director of Community Development AGENDA ITEM: Consider approval of a Developer’s Agreement between the Town of Trophy Club and Trophy Club Estates Development, L.P. for the Willow Estates (2H); and authorizing the Mayor or her designee to execute same on behalf of the Town. BACKGROUND/SUMMARY: On May 17, 2023 Council approved the Final Plat for the Willow Estates at Trophy Club (formerly gas well site 2H) consisting of nine (9) residential lots and one (1) common/open space lot with a public cul-de-sac street serving each lot, containing approximately 4.208 acres of land. The Developer’s Agreement was not presented and approved with the Final Plat due to staff, council and legal review, consultations, and revisions. As a result, this Developer’s Agreement is now ready for consideration and approval so Trophy Club Estates Development, LP. may begin construction of infrastructure at Willow Estates (2H). As per subdivision Ordinance 10.02.201 requirements, a Developer’s Agreement shall be signed by the Mayor after engineering plans and cost estimates have been approved. Trophy Club Estates Development, L.P. is responsible for the public improvements principally listed in the Chapter 10, Article 10.02, Division 4. 1) Water Distribution System 2) Sanitary Sewer System 3) Drainage and Storm Sewer 4) Street Construction A homeowner’s association (HOA) will be created with the filing of the Final Plat that will own and maintain any common areas/lots. Additionally, the satisfaction of Parkland Dedication shall be paid prior to construction beginning and the issuance of building permits. Article 10.03 Parkland Dedication and Open Space Section 10.03.009. Dedication or payment required prior to beginning development. It shall be unlawful for any person who is required to convey land, or pay money in lieu of land, as required by this article, to begin, or allow any other person or contractor to begin, any construction or improvements on any land within the development to which this article applies, until the required conveyance of land or payment of money in lieu of land is made to the town in accordance with this article. 75 Section 10.03.010 Dedication or payment required prior to issuance of building permits or provision of utility service. No building permits shall be issued for, and no permanent utility services shall be provided to any land within any development to which this article applies until the required conveyance of land or payment of money in lieu of land is made to the town in accordance with this article. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: N/A LEGAL REVIEW: Town Attorney, Dean Roggia, has reviewed the draft agreement as to form and legality. ATTACHMENTS: Developer’s Agreement ACTION/OPTIONS: Move to approve Developer’s Agreement between the Town of Trophy Club and Trophy Club Estates Development, L.P. for the Willow Estates (2H); and authorize the Mayor or her designee to execute same on behalf of the Town. 76 THE WILLOW ESTATES DEVELOPMENT CONTRACT FOR PUBLIC IMPROVEMENTS WHEREAS, TROPHY CLUB ESTATES DEVELOPMENT, LP (the “Developer”), whose business address is 13101 Preston Rd., Suite 510, Dallas, TX 75240, is the developer of real property located in the limits of the Town of Trophy Club, being described as THE WILLOW ESTATES SUBDIVISION (the “Development”), an unrecorded subdivision to the Town of Trophy Club, Texas being further identified on Exhibit A attached hereto; and WHEREAS, Developer wishes to enter into this Development Contract for Public Improvements (the “Agreement”) with the Town of Trophy Club, a Texas home-rule municipality (the “Town”) to provide for the construction of certain public improvements (the “Public Improvements”), as described in Exhibit B attached hereto and made a part hereof by reference, which, among other things, are necessitated by and will serve the Development; and WHEREAS, this agreement is entered into pursuant to Chapter 212 of the Texas Local Government Code, and Town Code of Ordinances Chapter 10 - Subdivision Regulation, and the Public Improvements are necessary to serve the Development and are roughly proportional to the benefits received and burdens imposed by the Development; and WHEREAS, this agreement is required to ensure that the Public Improvements are constructed in accordance with the Town’s standard specifications for public works projects, applicable ordinances and design criteria manuals (“Standard Specifications”), and the plans and specifications prepared by Developer’s engineer, BGE (“Developer’s Engineer”) dated May 2023, which were approved by the Town and are on file in the office of: Teague, Nall & Perkins, Tom Rutledge, Town Engineer, 100 Macon Street, Fort Worth, Texas 76102 (“Town Engineer”), which may be amended with the written approval of the Town Engineer or their designee (the “Project Specifications”), such Standard Specifications and Project Specifications being incorporated hereby by reference and herein called collectively the “Plans and Specifications”; and WHEREAS, the Developer understands and agrees that it is responsible for and has retained at its sole expense, the Developer’s Engineer to design the Public Improvements in accordance with the Plans and Specifications, taking into consideration the specific site conditions, including differing site conditions, that may impact the Public Improvements; and WHEREAS, the Developer shall provide for the construction of the Public Improvements by and through the Developer’s contractor North Texas Contracting Inc, (the “Contractor”) whose address is 4999 Keller Haslet Rd, Keller, TX 76248, a construction contractor experienced in the construction of improvements similar to the Public Improvements. The Contractor shall meet Town and statutory requirements for being insured, licensed, and bonded to perform work in public rights-of-way, and to be qualified in all respects to bid on public streets and public projects of a similar nature. The Developer agrees to submit contract documents to the Town and to participate in pre-construction meetings with the Town and all Contractors; and WHEREAS, Developer and Contractor recognize that the Town has an interest in ensuring that the Public Improvements, which will, upon completion and acceptance by the Town, become public 77 property, are properly constructed in accordance with the Plans and Specifications and that full payment by Developer is provided therefore; NOW, THEREFORE, the Developer, Contractor, and the Town (the “Parties”) for and in consideration of the recitals above and their mutual promises and covenants contained herein agree as follows: 1. Covenants of Developer and Contractor: a. Construction: Developer and Contractor shall construct the Public Improvements in accordance with the Plans and Specifications and complete the Public Improvements on or before eighteen (18) months from the final date of execution of this Agreement. Developer shall be responsible for all monies due to the Contractor for construction of the Public Improvements. In no event shall the Town be responsible for payment of any of the expenses or costs to construct the Public Improvements. The Town Engineer in its discretion may require the Developer to provide security for payments to the Contractor, which may be in the form of a cash deposit with the Town, an unconditional and irrevocable letter of credit, a dedicated construction account with a lending institution approved by the Town Engineer, or other security that the Town Engineer in their discretion deems adequate to ensure that the Developer does not default in its payment obligations to the Contractor. b. Authority of Town Engineer, Inspections, Tests and Orders, Developer and Contractor Warranty. All work on the Public Improvements shall be performed in a good and workmanlike manner and to the satisfaction of the Town Engineer or its representative. The Town Engineer shall decide all questions, which arise as to the quality and acceptability of materials furnished, work performed, and the interpretation of the Plans and Specifications and may reject any work not performed in accordance with the Plans and Specifications. The Contractor, its surety on the performance bond required herein, and the Developer, warrant, that the Public Improvements will be free from defects in materials and workmanship and that they will pay to remedy same for a period of two years after the completion of the Public Improvements and final acceptance by the Town. This warranty shall not constitute a limitation on the duty to remedy latent defects in construction that were not known at the time of final acceptance or within said two-year warranty period. The Developer and Contractor shall furnish the Town Engineer or their representative with every reasonable facility for ascertaining whether or not the work performed was in accordance with the Plans and Specifications applicable thereto. Any work done, or materials used without suitable inspection by the Town may be ordered removed and replaced at Contractor’s expense. The Town Engineer or its designee shall perform periodic inspections of the work and shall perform a final inspection prior to final acceptance by the Town and an inspection thirty (30) days prior to the expiration of two years from the date of final completion, inspection, and acceptance of the work by the Town. Upon failure of the Contractor to allow for inspection, to test materials furnished, to satisfactorily repair, remove or replace, if so directed, rejected, unauthorized or condemned work or materials, or to follow any other request or order of the Town Engineer or its representative, the Town Engineer shall notify the Developer of such failure and may suspend inspections of such work until such failure is remedied. If such failure is not remedied to the satisfaction of the Town Engineer, the Town shall have no obligation under this agreement to approve or accept the Public Improvements and the Town may withhold, suspend or revoke any permits or other approvals for the Development until such matter is remedied to the satisfaction of the Town Engineer. 78 c. Insurance. Contractor shall provide insurance in form and substance in accordance with the Town’s standard insurance requirements for public works projects, which are on file in the Town and/or in the Office of the Town Engineer and which are incorporated herein by reference. d. Means and Methods of Construction. The means and methods of construction shall be such as Contractor may choose; subject, however, to the Town’s right to reject the Public Improvements for which the means or method of constructions does not, in the judgment of the Town Engineer, assure that the Public Improvements are constructed in accordance with Plans and Specifications. e. Books and Records. All of the Developer’s and the Contractor’s books and other records related to the construction of the Public Improvements shall be available for inspection by the Town. f. Performance, Payment, and Maintenance Bonds. Prior to the execution of this agreement, the commencement of construction, or the issuance of any building permits, Developer or Contractor shall present to the Town performance bond(s), payment bond(s), and maintenance bond(s) that meet the requirements of Chapter 2253 of the Texas Government Code. Each bond shall be in the full amount of the costs to construct the Public Improvements, as estimated by the Developer’s engineer and approved by the Town Engineer, in favor of the Town ensuring completion of the Public Improvements in accordance with the Plans and Specifications and warranting against defects in materials and workmanship for a period of two years from the date of final acceptance by the Town. The Contractor shall provide a written estimate of the costs to construct the Public Improvements. The estimated Public Improvement construction costs shall be included in Exhibit B. The performance bond(s), payment bond(s), and maintenance bond(s) shall be executed by a corporate surety authorized to do business in Texas in accordance with Chapter 2253 of the Texas Government Code, shall be on the Town’s standard form or such other form approved by the Town, and shall contain a local resident agent for service of process. The Developer or Contractor may be a co-obligee on the performance bond with regard to the Contract’s obligations. g. Payment Bonds. The Developer or Contractor shall execute a payment bond in the full amount of the costs to construct the Public Improvements in favor of the Town insuring against claims from suppliers and subcontractors. The payment bond shall be executed by a corporate surety authorized to do business in Texas in accordance with Chapter 2253 of the Texas Government Code, shall be on the Town’s standard form or such other form approved by the Town, and shall contain a local resident agent for service of process. The Developer or Contractor may be a co-obligee on the payment bond. h. Retainage – Final Payments. As security for the faithful completion of the Public Improvements, Contractor and Developer agree that the Developer shall, retain ten (10) percent of the total dollar amount of the contract price until after final approval or acceptance of the Public Improvements by the Town. The Developer shall thereafter pay the Contractor the retainage, only after Contractor has furnished to the Developer satisfactory evidence including an affidavit that all indebtedness has been paid, that all indebtedness connected with the work and all sums of money due for labor, materials, apparatus, fixtures, or machinery furnished for all and used in the performance 79 of the work have been paid or otherwise satisfied. In addition, Contractor shall provide Developer with a consent to final payment from the payment bond surety. i. Encumbrances. Upon final completion, inspection, and acceptance of the Public Improvements by the Town, the Public Improvements shall become the property of the Town free and clear of all liens, claims, charges, or encumbrances of any kind. If, after acceptance of the Public Improvements, any claim, lien, charge or encumbrance is made, or found to exist, against the Public Improvements, or land dedicated to the Town, to which they are affixed, the Developer and Contractor shall upon notice by the Town promptly cause such claim, lien, charge or encumbrance to be satisfied and released or promptly post a bond with the Town in the amount of such claim, liens, charge or encumbrance, in favor of the Town, to ensure payment of such claim, lien, charge or encumbrance. j. INDEMNIFICATION. THE DEVELOPER AND CONTRACTOR SHALL AND HEREBY DO INDEMNIFY, DEFEND AND HOLD HARMLESS, THE TOWN, ITS OFFICERS, AGENTS AND EMPLOYEES FROM ALL SUITS, ACTIONS OR CLAIMS OF ANY CHARACTER, NAME AND DESCRIPTION BROUGHT FOR OR ON ACCOUNT OF ANY INJURIES OR DAMAGES RECEIVED OR SUSTAINED BY ANY PERSON, PERSONS OR PROPERTY ON ACCOUNT OF THE OPERATIONS OF THE CONTRACTOR, THEIR AGENTS, EMPLOYEES OR SUBCONTRACTORS; OR ON ACCOUNT OF ANY NEGLIGENT ACT OR FAULT OF THE CONTRACTOR, THEIR AGENTS, EMPLOYEES OR SUBCONTRACTORS IN CONSTRUCTION OF THE IMPROVEMENTS; AND SHALL PAY ANY JUDGMENT, WITH COSTS, WHICH MAY BE OBTAINED AGAINST THE TOWN GROWING OUT OF SUCH INJURY OR DAMAGE. k. Approval by the Town Engineer of any plans, designs or specifications submitted by Developer pursuant to this Agreement shall not constitute or be deemed to be a release of the responsibility and liability of the Developer, or the Developer’s Engineer, employees, officers or agents with respect to the construction of any of the Development’s improvements or facilities, or for the accuracy and competency of the Development’s improvements and facilities design and specifications prepared by the Developer’s Engineer, his officers, agents, servants or employees, it being the intent of the parties that the approval by the Town Engineer signifies the Town’s approval on only the general design concept of the improvements and facilities to be constructed. l. The Developer and Contractor shall comply with all local, state, and federal laws, rules, and regulations, relating to drainage, flood control, runoff, erosion, pollution, hazardous materials, waste, sedimentation, and any other control and mitigation requirements related thereto. The Developer and Contractor are responsible for all liability for drainage to adjacent and downstream property, but only to the extent directly caused by the design and construction of the Public Improvements contemplated by this Agreement. 80 m. This Agreement shall be construed in accordance with the Town of Trophy Club, Texas, Subdivision Regulations and all other applicable ordinances. Any conflicts between the provisions of this Agreement, the Town’s Subdivision regulations, Town Ordinances, and State and Federal Law, shall be construed in favor of the Town’s Ordinances as allowed by law, subject to Chapter 245 of the Local Government Code. To the extent any such conflict exists, only that portion of the Agreement in conflict shall be severable from the other provisions of the Agreement, and such conflict shall in no manner affect the validity or enforceability of the remaining provisions. n. All rights remedies and privileges permitted or available to the Town under this Agreement or at law or equity shall be cumulative and not alternative, and election of any such right, remedy or privilege shall not constitute a waiver or exclusive election of any rights, remedies, or privilege with respect to any other permitted or available right, remedy or privilege. Additionally, one instance of forbearance by the Town in the enforcement of any such right, remedy or privilege, shall not constitute a waiver of such right, remedy or privilege by the Town. A default under this Agreement by the Town shall not result in forfeiture of any rights, remedies, or privileges under this Agreement by the Town. 2. Agreement Controlling. The provisions of this Agreement shall control over any conflicting provision of any contract between the Developer and Contractor, and any other entity as it relates to the construction of the Public Improvements. 3. Covenants of Town of Trophy Club. Upon proper final completion and inspection of the Public Improvements in accordance with this Agreement, the Town agrees to accept the dedication of the Public Improvements. 4. Nexus and Rough Proportionality. The Developer acknowledges and agrees that there is a reasonable nexus between the demands created by the Development and the Public Improvements, and that the costs associated with the construction and dedication of land for the Public Improvements is roughly proportional to the benefits received and the burdens imposed by the Development. The Developer further acknowledges and agrees that all prerequisites to such a determination of rough proportionality have been met, and that any costs incurred relative to the conveyance, dedication, construction costs and other payments, if any, for the Public Improvements are related both in nature and extent to the impact of the Development. The Developer shall indemnify and hold the Town harmless against any claim by it or others claiming through it, that the required Public Improvements and associated dedication of land are unlawful exactions pursuant to the indemnification provision of this Agreement. In addition to the foregoing sentence, the Developer waives and releases all claims against the Town related to any and all rough proportionality and individual determination requirements mandated by Section 212.904, Texas Local Gov’t Code, or the Texas or U.S. Constitutions as those claims relate to any theory of rough proportionality. 5. Venue and Governing Law. The Parties herein agree that this Agreement shall be enforceable in Denton County, Texas, without regard to conflict of laws principles, and if legal action is necessary in connection therewith, exclusive venue shall lie in Denton County, Texas. The terms and provisions of this Agreement shall be construed in accordance with the laws and court decisions of the State of Texas. 6. Successor and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties, hereto, their respective successors and assigns. This Agreement may not be assigned without written consent of the Parties. 81 7. Legal Construction. In case any one or more of the provisions contained in the Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of the Agreement, and the Agreement shall be considered as if such invalid, illegal, or unenforceable provision had never been contained in the Agreement. 8. Counterparts. The Agreement may be executed in any number of counterparts, each of which shall be deemed an original and constitute one and the same instrument. 9. Texas Public Information Act. Unless otherwise provided by law, all information, documents, and communications relating to the Agreement shall be subject to the Texas Public Information Act (“Act”) and any opinion of the Texas Attorney General or a court of competent jurisdiction relating to the Act. The requirements of Subchapter J, Chapter 552, Government Code, may apply to this Agreement and each party agrees that this Agreement may be terminated with regard to such party if such party knowingly or intentionally fails to comply with a requirement of that subchapter, if applicable. 10. Governmental Function(s) and Immunity. The parties hereby acknowledge and agree that the Town is entering into the Agreement in the performance of and pursuant to its governmental functions for the health, safety, and welfare of the citizens of the Town, the general public, and the State of Texas, and nothing contained in the Agreement shall be construed as constituting a waiver of the Town’s governmental immunity from suit or liability, which is expressly reserved to the fullest extent allowed by law. 11. Waiver of Attorney’s Fees. The parties expressly covenant and agree that in the event of any litigation arising between the parties to this Agreement, each party shall be solely responsible for payment of its attorneys (except as required pursuant to the indemnity obligations in this Agreement) and that in no event shall either party be responsible for the other party’s attorneys’ fees regardless of the outcome of the litigation. 12. Additional Verifications. To the extent required by Texas law, the Developer and Contractor each verify that: (1) It does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association, as defined in Texas Government Code § 2274.001, and that it will not during the term of the contract discriminate against a firearm entity or firearm trade association; (2) It does not “boycott Israel” as that term is defined in Texas Government Code Ch. 2271 and § 808.001 and it will not boycott Israel during the term of this Agreement; and (3) It does not “boycott energy companies,” as those terms are defined in Texas Government Code §§ 809.001 and 2274.001, and it will not boycott energy companies during the term of the Agreement. 13. Ethics Disclosure. To the extent required by law, the Developer and Contractor each represent that it has completed a Texas Ethics Commission (the “TEC”) form 1295 (“Form 1295”) generated by the TEC’s electronic filing application in accordance with the provisions of Texas Gov’t Code Ch. 2252.908 and the rules promulgated by the TEC. The parties agree that, with the exception of the information identifying the Town and the contract identification number, the Town is not responsible for the information contained in the Form 1295. 82 Executed this, 25th day of September, 2023. DEVELOPER: NAME: ______________________________________ BY: _________________________________________ Name: Title: Address: CONTRACTOR: NAME: ______________________________________ BY: _________________________________________ Name: Title: Address: TOWN OF TROPHY CLUB: BY: _________________________________________ Jeannette Tiffany, Mayor ATTEST: BY: _________________________________________ Tammy Dixon, Town Secretary APPROVED AS TO FORM: BY: _________________________________________ Dean Roggia, Town Attorney 83 Exhibit A Parcel 2H BEING, all of that 4.208 acre (183,283 square foot) tract of land situated in the Rosalinda Allen Survey, Abstract Number 17, in the Town of Trophy Club, Denton County, Texas; being all of that tract of land described as Trophy Club Parcel 2H in Special Warranty Deed to Trophy Club Estates Development, LP. as recorded in Instrument No. 2023-1983 of the Official Records of Denton County, Texas; said 4.208 acre tract of land being more particularly described by metes and bounds as follows: BEGINNING, at the southeast corner Lot 3, Block G, The Highlands at Trophy Club Neighborhood 1, Phase 2A Addition, an addition to the Town of Trophy Club, as recorded in Document Number 2011-69 of the Plat Records of Denton County, Texas; said point being a southwest corner of that tract of land described in General Warranty Dedication Deed to the Town of Trophy Club, Texas as recorded in Document No. 2008-13746 of said Official Records; from said point a 5/8-inch iron rod with ”JACOBS” cap found bears North 52 degrees 01 minutes 07 seconds West, a distance of 0.23 feet; and from said point an “X” cut in concrete found at the northeast corner of Lot 20, Block B of said Phase 2A Addition bears South 38 degrees 56 minutes 26 seconds West, a distance of 276.80 feet; THENCE, North 89 degrees 59 minutes 57 seconds East, with a south line of said Town of Trophy Club tract, a distance of 512.62 feet to a 5/8-inch iron rod with “BGE” cap set at a reentrant corner in a south line of said Town of Trophy Club tract; THENCE, South 00 degrees 00 minutes 03 seconds East, with a west line said Town of Trophy Club tract, a distance of 357.54 feet to a 5/8-inch iron rod with ”JACOBS" cap found for corner; said point being in the west line of Lot 21, Block G, The Highlands at Trophy Club Neighborhood 5, Phase 2B Addition, an addition to the Town of Trophy Club as recorded in Document No. 2011-70 of said Plat Records; THENCE, South 89 degrees 59 minutes 57 seconds West, with the north line of Block G, The Highlands at Trophy Club Neighborhood 5, Phase 1C-2 Addition, an addition to the Town of Trophy Club as recorded in Cabinet Y, Page 312 of said Plat Records, a distance of 512.62 feet to a 5/8-inch iron rod with “BGE” cap set for corner; THENCE, North 00 degrees 00 minutes 03 seconds West, with the east line of Block G of said Phase 2A Addition, a distance of 357.54 feet to the POINT OF BEGINNING and containing an area of 4.208 acres or 183,283 square feet of land, more or less. 84 PROJECT:GAS WELL HOME DEVELOPMENT SITES LOCATION:TROPHY CLUB, TEXAS BID DATE:10.3.22 CONTACT:COLIN EGAN EMAIL:COLIN@NTEXCON.COM Item Description No.Qty Unit 2H MAY PUBLIC IFC SCOPE 2H - WILLOW ESTATES STORM 24" CL-III RCP 81 LF 10" CURB INLET 3 EA 24" FLARED HEADWALL 1 EA ROCK RIPRAP 17 SY WATER 6" DR-18 WATER LINE 580 LF 2" POLY 166 LF 6" GATE VALVE 2 EA FIRE HYDRANT 1 EA 1" DOMESTIC SERVICE 9 EA 1.5" DOMESTIC SERVICE 1 EA SANITARY 8" SDR-26 SANITARY PIPE 203 LF 8" SDR-35 SANITARY PIPE 156 LF 4' DIA SS MANHOLE 2 EA 4" DOMESTIC SERVICE W/ CLEANOUT 9 EA CONCRETE 6" 4000 PSI PAVING 2559 SY 4" 3000 PSI SIDEWALK 2532 SF 2H WILLOW ESTATES CHANGES:261,849.00$ NORTH TEXAS CONTRACTING, INC. Bid Bid Unit Amount 0.00 0.00 0.00 0.00 0.00 0.00 85.00 6,885.00 4,500.00 13,500.00 2,000.00 2,000.00 85.00 1,445.00 0.00 0.00 0.00 0.00 55.00 31,900.00 32.00 5,312.00 1,850.00 3,700.00 4,000.00 4,000.00 500.00 4,500.00 650.00 650.00 0.00 0.00 0.00 0.00 50.00 10,150.00 45.00 7,020.00 4,500.00 9,000.00 650.00 5,850.00 0.00 0.00 0.00 0.00 55.00 140,745.00 6.00 15,192.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Exhibit B 85 TOWN COUNCIL COMMUNICATION CONSENT MEETING DATE: September 25, 2023 FROM: Matt Cox, Director of Community Development AGENDA ITEM: Consider approval of a Developer’s Agreement between the Town of Trophy Club and Trophy Club Estates Development, L.P. for the Oak Estates (3H); and authorizing the Mayor or her designee to execute same on behalf of the Town. BACKGROUND/SUMMARY: On July 25, 2023, Council approved the Final Plat for the Oak Estates at Trophy Club (formerly gas well site 3H) consisting of eight (8) residential lots and one (1) common/open space lot with a public cul-de-sac street serving each lot, containing approximately 4.339 acres of land. The Developer’s Agreement was not presented and approved with the Final Plat due to staff, council and legal review, consultations, and revisions. As a result, this Developer’s Agreement is now ready for consideration and approval so Trophy Club Estates Development, LP. may begin construction of infrastructure at Oak Estates (3H). As per subdivision Ordinance 10.02.201 requirements, a Developer’s Agreement shall be signed by the Mayor after engineering plans and cost estimates have been approved. Trophy Club Estates Development, L.P. is responsible for the public improvements principally listed in the Chapter 10, Article 10.02, Division 4. 1) Water Distribution System 2) Sanitary Sewer System 3) Drainage and Storm Sewer 4) Street Construction A homeowner’s association (HOA) will be created with the filing of the Final Plat that will own and maintain any common areas/lots. Additionally, the satisfaction of Parkland Dedication shall be paid prior to construction beginning and the issuance of building permits. Article 10.03 Parkland Dedication and Open Space Section 10.03.009. Dedication or payment required prior to beginning development. It shall be unlawful for any person who is required to convey land, or pay money in lieu of land, as required by this article, to begin, or allow any other person or contractor to begin, any construction or improvements on any land within the development to which this article applies, until the required conveyance of land or payment of money in lieu of land is made to the town in accordance with this article. 86 Section 10.03.010 Dedication or payment required prior to issuance of building permits or provision of utility service. No building permits shall be issued for, and no permanent utility services shall be provided to any land within any development to which this article applies until the required conveyance of land or payment of money in lieu of land is made to the town in accordance with this article. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: N/A LEGAL REVIEW: Town Attorney, Dean Roggia, has reviewed the draft agreement as to form and legality. ATTACHMENTS: Developer’s Agreement ACTION/OPTIONS: Move to approve Developer’s Agreement between the Town of Trophy Club and Trophy Club Estates Development, L.P. for the Oak Estates (3H); and authorize the Mayor or her designee to execute same on behalf of the Town. 87 THE OAK ESTATES DEVELOPMENT CONTRACT FOR PUBLIC IMPROVEMENTS WHEREAS, TROPHY CLUB ESTATES DEVELOPMENT, LP (the “Developer”), whose business address is 13101 Preston Rd., Suite 510, Dallas, TX 75240, is the developer of real property located in the limits of the Town of Trophy Club, being described as THE OAK ESTATES SUBDIVISION (the “Development”), an unrecorded subdivision to the Town of Trophy Club, Texas being further identified on Exhibit A attached hereto; and WHEREAS, Developer wishes to enter into this Development Contract for Public Improvements (the “Agreement”) with the Town of Trophy Club, a Texas home-rule municipality (the “Town”) to provide for the construction of certain public improvements (the “Public Improvements”), as described in Exhibit B attached hereto and made a part hereof by reference, which, among other things, are necessitated by and will serve the Development; and WHEREAS, this agreement is entered into pursuant to Chapter 212 of the Texas Local Government Code, and Town Code of Ordinances Chapter 10 - Subdivision Regulation, and the Public Improvements are necessary to serve the Development and are roughly proportional to the benefits received and burdens imposed by the Development; and WHEREAS, this agreement is required to ensure that the Public Improvements are constructed in accordance with the Town’s standard specifications for public works projects, applicable ordinances and design criteria manuals (“Standard Specifications”), and the plans and specifications prepared by Developer’s engineer, BGE (“Developer’s Engineer”) dated May 2023, which were approved by the Town and are on file in the office of: Teague, Nall & Perkins, Tom Rutledge, Town Engineer, 100 Macon Street, Fort Worth, Texas 76102 (“Town Engineer”), which may be amended with the written approval of the Town Engineer or their designee (the “Project Specifications”), such Standard Specifications and Project Specifications being incorporated hereby by reference and herein called collectively the “Plans and Specifications”; and WHEREAS, the Developer understands and agrees that it is responsible for and has retained at its sole expense, the Developer’s Engineer to design the Public Improvements in accordance with the Plans and Specifications, taking into consideration the specific site conditions, including differing site conditions, that may impact the Public Improvements; and WHEREAS, the Developer shall provide for the construction of the Public Improvements by and through the Developer’s contractor North Texas Contracting Inc, (the “Contractor”) whose address is 4999 Keller Haslet Rd, Keller, TX 76248, a construction contractor experienced in the construction of improvements similar to the Public Improvements. The Contractor shall meet Town and statutory requirements for being insured, licensed, and bonded to perform work in public rights-of-way, and to be qualified in all respects to bid on public streets and public projects of a similar nature. The Developer agrees to submit contract documents to the Town and to participate in pre-construction meetings with the Town and all Contractors; and WHEREAS, Developer and Contractor recognize that the Town has an interest in ensuring that the Public Improvements, which will, upon completion and acceptance by the Town, become public 88 property, are properly constructed in accordance with the Plans and Specifications and that full payment by Developer is provided therefore; NOW, THEREFORE, the Developer, Contractor, and the Town (the “Parties”) for and in consideration of the recitals above and their mutual promises and covenants contained herein agree as follows: 1. Covenants of Developer and Contractor: a. Construction: Developer and Contractor shall construct the Public Improvements in accordance with the Plans and Specifications and complete the Public Improvements on or before eighteen (18) months from the final date of execution of this Agreement. Developer shall be responsible for all monies due to the Contractor for construction of the Public Improvements. In no event shall the Town be responsible for payment of any of the expenses or costs to construct the Public Improvements. The Town Engineer in its discretion may require the Developer to provide security for payments to the Contractor, which may be in the form of a cash deposit with the Town, an unconditional and irrevocable letter of credit, a dedicated construction account with a lending institution approved by the Town Engineer, or other security that the Town Engineer in their discretion deems adequate to ensure that the Developer does not default in its payment obligations to the Contractor. b. Authority of Town Engineer, Inspections, Tests and Orders, Developer and Contractor Warranty. All work on the Public Improvements shall be performed in a good and workmanlike manner and to the satisfaction of the Town Engineer or its representative. The Town Engineer shall decide all questions, which arise as to the quality and acceptability of materials furnished, work performed, and the interpretation of the Plans and Specifications and may reject any work not performed in accordance with the Plans and Specifications. The Contractor, its surety on the performance bond required herein, and the Developer, warrant, that the Public Improvements will be free from defects in materials and workmanship and that they will pay to remedy same for a period of two years after the completion of the Public Improvements and final acceptance by the Town. This warranty shall not constitute a limitation on the duty to remedy latent defects in construction that were not known at the time of final acceptance or within said two-year warranty period. The Developer and Contractor shall furnish the Town Engineer or their representative with every reasonable facility for ascertaining whether or not the work performed was in accordance with the Plans and Specifications applicable thereto. Any work done, or materials used without suitable inspection by the Town may be ordered removed and replaced at Contractor’s expense. The Town Engineer or its designee shall perform periodic inspections of the work and shall perform a final inspection prior to final acceptance by the Town and an inspection thirty (30) days prior to the expiration of two years from the date of final completion, inspection, and acceptance of the work by the Town. Upon failure of the Contractor to allow for inspection, to test materials furnished, to satisfactorily repair, remove or replace, if so directed, rejected, unauthorized or condemned work or materials, or to follow any other request or order of the Town Engineer or its representative, the Town Engineer shall notify the Developer of such failure and may suspend inspections of such work until such failure is remedied. If such failure is not remedied to the satisfaction of the Town Engineer, the Town shall have no obligation under this agreement to approve or accept the Public Improvements and the Town may withhold, suspend or revoke any permits or other approvals for the Development until such matter is remedied to the satisfaction of the Town Engineer. 89 c. Insurance. Contractor shall provide insurance in form and substance in accordance with the Town’s standard insurance requirements for public works projects, which are on file in the Town and/or in the Office of the Town Engineer and which are incorporated herein by reference. d. Means and Methods of Construction. The means and methods of construction shall be such as Contractor may choose; subject, however, to the Town’s right to reject the Public Improvements for which the means or method of constructions does not, in the judgment of the Town Engineer, assure that the Public Improvements are constructed in accordance with Plans and Specifications. e. Books and Records. All of the Developer’s and the Contractor’s books and other records related to the construction of the Public Improvements shall be available for inspection by the Town. f. Performance, Payment, and Maintenance Bonds. Prior to the execution of this agreement, the commencement of construction, or the issuance of any building permits, Developer or Contractor shall present to the Town performance bond(s), payment bond(s), and maintenance bond(s) that meet the requirements of Chapter 2253 of the Texas Government Code. Each bond shall be in the full amount of the costs to construct the Public Improvements, as estimated by the Developer’s engineer and approved by the Town Engineer, in favor of the Town ensuring completion of the Public Improvements in accordance with the Plans and Specifications and warranting against defects in materials and workmanship for a period of two years from the date of final acceptance by the Town. The Contractor shall provide a written estimate of the costs to construct the Public Improvements. The estimated Public Improvement construction costs shall be included in Exhibit B. The performance bond(s), payment bond(s), and maintenance bond(s) shall be executed by a corporate surety authorized to do business in Texas in accordance with Chapter 2253 of the Texas Government Code, shall be on the Town’s standard form or such other form approved by the Town, and shall contain a local resident agent for service of process. The Developer or Contractor may be a co-obligee on the performance bond with regard to the Contract’s obligations. g. Payment Bonds. The Developer or Contractor shall execute a payment bond in the full amount of the costs to construct the Public Improvements in favor of the Town insuring against claims from suppliers and subcontractors. The payment bond shall be executed by a corporate surety authorized to do business in Texas in accordance with Chapter 2253 of the Texas Government Code, shall be on the Town’s standard form or such other form approved by the Town, and shall contain a local resident agent for service of process. The Developer or Contractor may be a co-obligee on the payment bond. h. Retainage – Final Payments. As security for the faithful completion of the Public Improvements, Contractor and Developer agree that the Developer shall, retain ten (10) percent of the total dollar amount of the contract price until after final approval or acceptance of the Public Improvements by the Town. The Developer shall thereafter pay the Contractor the retainage, only after Contractor has furnished to the Developer satisfactory evidence including an affidavit that all indebtedness has been paid, that all indebtedness connected with the work and all sums of money due for labor, materials, apparatus, fixtures, or machinery furnished for all and used in the performance 90 of the work have been paid or otherwise satisfied. In addition, Contractor shall provide Developer with a consent to final payment from the payment bond surety. i. Encumbrances. Upon final completion, inspection, and acceptance of the Public Improvements by the Town, the Public Improvements shall become the property of the Town free and clear of all liens, claims, charges, or encumbrances of any kind. If, after acceptance of the Public Improvements, any claim, lien, charge or encumbrance is made, or found to exist, against the Public Improvements, or land dedicated to the Town, to which they are affixed, the Developer and Contractor shall upon notice by the Town promptly cause such claim, lien, charge or encumbrance to be satisfied and released or promptly post a bond with the Town in the amount of such claim, liens, charge or encumbrance, in favor of the Town, to ensure payment of such claim, lien, charge or encumbrance. j. INDEMNIFICATION. THE DEVELOPER AND CONTRACTOR SHALL AND HEREBY DO INDEMNIFY, DEFEND AND HOLD HARMLESS, THE TOWN, ITS OFFICERS, AGENTS AND EMPLOYEES FROM ALL SUITS, ACTIONS OR CLAIMS OF ANY CHARACTER, NAME AND DESCRIPTION BROUGHT FOR OR ON ACCOUNT OF ANY INJURIES OR DAMAGES RECEIVED OR SUSTAINED BY ANY PERSON, PERSONS OR PROPERTY ON ACCOUNT OF THE OPERATIONS OF THE CONTRACTOR, THEIR AGENTS, EMPLOYEES OR SUBCONTRACTORS; OR ON ACCOUNT OF ANY NEGLIGENT ACT OR FAULT OF THE CONTRACTOR, THEIR AGENTS, EMPLOYEES OR SUBCONTRACTORS IN CONSTRUCTION OF THE IMPROVEMENTS; AND SHALL PAY ANY JUDGMENT, WITH COSTS, WHICH MAY BE OBTAINED AGAINST THE TOWN GROWING OUT OF SUCH INJURY OR DAMAGE. k. Approval by the Town Engineer of any plans, designs or specifications submitted by Developer pursuant to this Agreement shall not constitute or be deemed to be a release of the responsibility and liability of the Developer, or the Developer’s Engineer, employees, officers or agents with respect to the construction of any of the Development’s improvements or facilities, or for the accuracy and competency of the Development’s improvements and facilities design and specifications prepared by the Developer’s Engineer, his officers, agents, servants or employees, it being the intent of the parties that the approval by the Town Engineer signifies the Town’s approval on only the general design concept of the improvements and facilities to be constructed. l. The Developer and Contractor shall comply with all local, state, and federal laws, rules, and regulations, relating to drainage, flood control, runoff, erosion, pollution, hazardous materials, waste, sedimentation, and any other control and mitigation requirements related thereto. The Developer and Contractor are responsible for all liability for drainage to adjacent and downstream property, but only to the extent directly caused by the design and construction of the Public Improvements contemplated by this Agreement. 91 m.This Agreement shall be construed in accordance with the Town of Trophy Club, Texas, Subdivision Regulations and all other applicable ordinances. Any conflicts between the provisions of this Agreement, the Town’s Subdivision regulations, Town Ordinances, and State and Federal Law, shall be construed in favor of the Town’s Ordinances as allowed by law, subject to Chapter 245 of the Local Government Code. To the extent any such conflict exists, only that portion of the Agreement in conflict shall be severable from the other provisions of the Agreement, and such conflict shall in no manner affect the validity or enforceability of the remaining provisions. n.All rights remedies and privileges permitted or available to the Town under this Agreement or at law or equity shall be cumulative and not alternative, and election of any such right, remedy or privilege shall not constitute a waiver or exclusive election of any rights, remedies, or privilege with respect to any other permitted or available right, remedy or privilege. Additionally, one instance of forbearance by the Town in the enforcement of any such right, remedy or privilege, shall not constitute a waiver of such right, remedy or privilege by the Town. A default under this Agreement by the Town shall not result in forfeiture of any rights, remedies, or privileges under this Agreement by the Town. 2.Agreement Controlling. The provisions of this Agreement shall control over any conflicting provision of any contract between the Developer and Contractor, and any other entity as it relates to the construction of the Public Improvements. 3.Covenants of Town of Trophy Club. Upon proper final completion and inspection of the Public Improvements in accordance with this Agreement, the Town agrees to accept the dedication of the Public Improvements. 4.Nexus and Rough Proportionality. The Developer acknowledges and agrees that there is a reasonable nexus between the demands created by the Development and the Public Improvements, and that the costs associated with the construction and dedication of land for the Public Improvements is roughly proportional to the benefits received and the burdens imposed by the Development. The Developer further acknowledges and agrees that all prerequisites to such a determination of rough proportionality have been met, and that any costs incurred relative to the conveyance, dedication, construction costs and other payments, if any, for the Public Improvements are related both in nature and extent to the impact of the Development. The Developer shall indemnify and hold the Town harmless against any claim by it or others claiming through it, that the required Public Improvements and associated dedication of land are unlawful exactions pursuant to the indemnification provision of this Agreement. In addition to the foregoing sentence, the Developer waives and releases all claims against the Town related to any and all rough proportionality and individual determination requirements mandated by Section 212.904, Texas Local Gov’t Code, or the Texas or U.S. Constitutions as those claims relate to any theory of rough proportionality. 5.Venue and Governing Law. The Parties herein agree that this Agreement shall be enforceable in Denton County, Texas, without regard to conflict of laws principles, and if legal action is necessary in connection therewith, exclusive venue shall lie in Denton County, Texas. The terms and provisions of this Agreement shall be construed in accordance with the laws and court decisions of the State of Texas. 6.Successor and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties, hereto, their respective successors and assigns. This Agreement may not be assigned without written consent of the Parties. 92 7. Legal Construction. In case any one or more of the provisions contained in the Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of the Agreement, and the Agreement shall be considered as if such invalid, illegal, or unenforceable provision had never been contained in the Agreement. 8. Counterparts. The Agreement may be executed in any number of counterparts, each of which shall be deemed an original and constitute one and the same instrument. 9. Texas Public Information Act. Unless otherwise provided by law, all information, documents, and communications relating to the Agreement shall be subject to the Texas Public Information Act (“Act”) and any opinion of the Texas Attorney General or a court of competent jurisdiction relating to the Act. The requirements of Subchapter J, Chapter 552, Government Code, may apply to this Agreement and each party agrees that this Agreement may be terminated with regard to such party if such party knowingly or intentionally fails to comply with a requirement of that subchapter, if applicable. 10. Governmental Function(s) and Immunity. The parties hereby acknowledge and agree that the Town is entering into the Agreement in the performance of and pursuant to its governmental functions for the health, safety, and welfare of the citizens of the Town, the general public, and the State of Texas, and nothing contained in the Agreement shall be construed as constituting a waiver of the Town’s governmental immunity from suit or liability, which is expressly reserved to the fullest extent allowed by law. 11. Waiver of Attorney’s Fees. The parties expressly covenant and agree that in the event of any litigation arising between the parties to this Agreement, each party shall be solely responsible for payment of its attorneys (except as required pursuant to the indemnity obligations in this Agreement) and that in no event shall either party be responsible for the other party’s attorneys’ fees regardless of the outcome of the litigation. 12. Additional Verifications. To the extent required by Texas law, the Developer and Contractor each verify that: (1) It does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association, as defined in Texas Government Code § 2274.001, and that it will not during the term of the contract discriminate against a firearm entity or firearm trade association; (2) It does not “boycott Israel” as that term is defined in Texas Government Code Ch. 2271 and § 808.001 and it will not boycott Israel during the term of this Agreement; and (3) It does not “boycott energy companies,” as those terms are defined in Texas Government Code §§ 809.001 and 2274.001, and it will not boycott energy companies during the term of the Agreement. 13. Ethics Disclosure. To the extent required by law, the Developer and Contractor each represent that it has completed a Texas Ethics Commission (the “TEC”) form 1295 (“Form 1295”) generated by the TEC’s electronic filing application in accordance with the provisions of Texas Gov’t Code Ch. 2252.908 and the rules promulgated by the TEC. The parties agree that, with the exception of the information identifying the Town and the contract identification number, the Town is not responsible for the information contained in the Form 1295. 93 Executed this, 25th day of September, 2023. DEVELOPER: NAME: ______________________________________ BY: _________________________________________ Name: Title: Address: CONTRACTOR: NAME: ______________________________________ BY: _________________________________________ Name: Title: Address: TOWN OF TROPHY CLUB: BY: _________________________________________ Jeannette Tiffany, Mayor ATTEST: BY: _________________________________________ Tammy Dixon, Town Secretary APPROVED AS TO FORM: BY: _________________________________________ Dean Roggia, Town Attorney 94 Exhibit A Parcel 3H BEING, all of that 4.339 acre (189,000 square foot) tract of land situated in the Thomas J. Allen Survey, Abstract Number 7, in the Town of Trophy Club, Denton County, Texas; being all of that tract of land described as Trophy Club Parcel 3H in Special Warranty Deed to Trophy Club Estates Development, LP. as recorded in Instrument No. 2023-1983 of the Official Records of Denton County, Texas; said 4.339 acre tract of land being more particularly described by metes and bounds as follows: BEGINNING, at a 5/8-inch iron rod with “BGE” cap set at northeast corner of said Trophy Club Parcel 3H tract; said point being a reentrant corner in the south line of Block L, The Highlands at Trophy Club Neighborhood 7, Phase 3C Addition, an addition to the Town of Trophy Club as recorded in Document No. 2014-107 of the Plat Records of Denton County, Texas; from said point an “X” cut in concrete found for corner bears South 72 degrees 40 minutes 23 seconds East, a distance of 27.80 feet; and from said point an “X” cut in concrete found for corner bears North 25 degrees 34 minutes 33 seconds East, a distance of 168.48 feet; THENCE, South 14 degrees 06 minutes 03 seconds East, at a distance of 202.64 feet passing a salient corner in the south line of said Block L, said point being a salient corner in the north line of Lot 1, Block 1, Freedom Park, an addition to the Town of Trophy Club as recorded in Document No. 2011-73 of said Plat Records, continuing in all a total distance of 450.00 feet to a 5/8-inch iron rod with “BGE” cap set at the southeast corner of said Trophy Club Parcel 3H tract; said point being a reentrant corner in the north line of said Block 1; THENCE, South 75 degrees 53 minutes 57 seconds West, with the south line of said Trophy Club Parcel 3H tract and a north line said Block 1, a distance of 420.00 feet to a 5/8-inch iron rod with “BGE” cap set at the southwest corner of said Trophy Club Parcel 3H tract; THENCE, North 14 degrees 06 minutes 03 seconds West, at a distance of 333.29 feet passing a salient corner in the north line of Block 1 and a salient corner in the south line of said Block L, continuing in all a total distance of 450.00 feet to a 5/8-inch iron rod with “BGE” cap set at the northwest corner of said Trophy Club Parcel 3H tract; said point being a reentrant corner in the south line of said Block L; THENCE, North 75 degrees 53 minutes 57 seconds East, with the north line of said Trophy Club Parcel 3H tract and a south line of said Block L, a distance of 420.00 feet to the POINT OF BEGINNING and containing an area of 4.339 acres or 189,000 square feet of land, more or less. 95 PROJECT:GAS WELL HOME DEVELOPMENT SITES LOCATION:TROPHY CLUB, TEXAS BID DATE:10.3.22 CONTACT:ADAM BERNARD EMAIL:ADAMB@NTEXCON.COM Item Description No.Qty Unit BREAKDOWN OF PERMANENT PUBLIC IMPROVEMENTS 3H - THE OAK ESTATES STORM 24" CL-III RCP 55 LF 10' CURB INLET 1 EA ROCK RIPRAP 17 SY WATER 6" DR-18 WATER LINE 212 LF 2" POLY 266 EA 6" GATE VALVE 3 EA FIRE HYDRANT 1 EA 1" DOMESTIC SERVICE 8 EA SANITARY 8" SDR-35 SANITARY PIPE 542 LF 4' DIA MANHOLE 3 EA 4" DOMESTIC SERVICE W/ CLEANOUT 8 EA CEMENT TREATED SAND ENCASE 8" SS LINE 20 LF CONCRETE 6" 4000 PSI PAVING 2429 SY 4" 3000 PSI SIDEWALK 948 SF 3H OAK ESTATES CHANGES:230,225.00$ NORTH TEXAS CONTRACTING, INC. Bid Bid Unit Amount 0.00 0.00 0.00 0.00 0.00 0.00 85.00 4,675.00 4,500.00 4,500.00 85.00 1,445.00 0.00 0.00 55.00 11,660.00 32.00 8,512.00 1,850.00 5,550.00 4,000.00 4,000.00 500.00 4,000.00 0.00 0.00 0.00 0.00 50.00 27,100.00 4,500.00 13,500.00 650.00 5,200.00 40.00 800.00 0.00 0.00 0.00 0.00 55.00 133,595.00 6.00 5,688.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Exhibit B 96 TOWN COUNCIL COMMUNICATION CONSENT MEETING DATE: September 25, 2023 FROM: Matt Cox, Director of Community Development AGENDA ITEM: Consider approval of a Developer’s Agreement between the Town of Trophy Club and Trophy Club Estates Development, L.P. for the Cypress Estates (4H); and authorize the Mayor or her designee to execute same on behalf of the Town. BACKGROUND/SUMMARY: On March 28, 2023, Council approved the Final Plat for the Cypress Estates at Trophy Club (formerly gas well site 4H) consisting of nine (9) residential lots and one (1) common/open space lot with a public cul-de-sac street serving each lot, containing approximately 3.581 acres of land. The Developer’s Agreement was not presented and approved with the Final Plat due to staff, council and legal review, consultations, and revisions. As a result, this Developer’s Agreement is now ready for consideration and approval so Trophy Club Estates Development, LP. may begin construction of infrastructure at Cypress Estates (4H). As per subdivision Ordinance 10.02.201 requirements, a Developer’s Agreement shall be signed by the Mayor after engineering plans and cost estimates have been approved. Trophy Club Estates Development, L.P. is responsible for the public improvements principally listed in the Chapter 10, Article 10.02, Division 4. 1) Water Distribution System 2) Sanitary Sewer System 3) Drainage and Storm Sewer 4) Street Construction A homeowner’s association (HOA) will be created with the filing of the Final Plat that will own and maintain any common areas/lots. Additionally, the satisfaction of Parkland Dedication shall be paid prior to construction beginning and the issuance of building permits. Article 10.03 Parkland Dedication and Open Space Section 10.03.009. Dedication or payment required prior to beginning development. It shall be unlawful for any person who is required to convey land, or pay money in lieu of land, as required by this article, to begin, or allow any other person or contractor to begin, any construction or improvements on any land within the development to which this article applies, until the required conveyance of land or payment of money in lieu of land is made to the town in accordance with this article. 97 Section 10.03.010 Dedication or payment required prior to issuance of building permits or provision of utility service. No building permits shall be issued for, and no permanent utility services shall be provided to any land within any development to which this article applies until the required conveyance of land or payment of money in lieu of land is made to the town in accordance with this article. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: N/A LEGAL REVIEW: Town Attorney, Dean Roggia, has reviewed the draft agreement as to form and legality. ATTACHMENTS: Developer’s Agreement ACTION/OPTIONS: Move to approve Developer’s Agreement between the Town of Trophy Club and Trophy Club Estates Development, L.P. for the Cypress Estates (4H); and authorize the Mayor or her designee to execute same on behalf of the Town. 98 THE CYPRESS ESTATES DEVELOPMENT CONTRACT FOR PUBLIC IMPROVEMENTS WHEREAS, TROPHY CLUB ESTATES DEVELOPMENT, LP (the “Developer”), whose business address is 13101 Preston Rd., Suite 510, Dallas, TX 75240, is the developer of real property located in the limits of the Town of Trophy Club, being described as THE CYPRESS ESTATES SUBDIVISION (the “Development”), an unrecorded subdivision to the Town of Trophy Club, Texas being further identified on Exhibit A attached hereto; and WHEREAS, Developer wishes to enter into this Development Contract for Public Improvements (the “Agreement”) with the Town of Trophy Club, a Texas home-rule municipality (the “Town”) to provide for the construction of certain public improvements (the “Public Improvements”), as described in Exhibit B attached hereto and made a part hereof by reference, which, among other things, are necessitated by and will serve the Development; and WHEREAS, this agreement is entered into pursuant to Chapter 212 of the Texas Local Government Code, and Town Code of Ordinances Chapter 10 - Subdivision Regulation, and the Public Improvements are necessary to serve the Development and are roughly proportional to the benefits received and burdens imposed by the Development; and WHEREAS, this agreement is required to ensure that the Public Improvements are constructed in accordance with the Town’s standard specifications for public works projects, applicable ordinances and design criteria manuals (“Standard Specifications”), and the plans and specifications prepared by Developer’s engineer, BGE (“Developer’s Engineer”) dated May 2023, which were approved by the Town and are on file in the office of: Teague, Nall & Perkins, Tom Rutledge, Town Engineer, 100 Macon Street, Fort Worth, Texas 76102 (“Town Engineer”), which may be amended with the written approval of the Town Engineer or their designee (the “Project Specifications”), such Standard Specifications and Project Specifications being incorporated hereby by reference and herein called collectively the “Plans and Specifications”; and WHEREAS, the Developer understands and agrees that it is responsible for and has retained at its sole expense, the Developer’s Engineer to design the Public Improvements in accordance with the Plans and Specifications, taking into consideration the specific site conditions, including differing site conditions, that may impact the Public Improvements; and WHEREAS, the Developer shall provide for the construction of the Public Improvements by and through the Developer’s contractor North Texas Contracting Inc, (the “Contractor”) whose address is 4999 Keller Haslet Rd, Keller, TX 76248, a construction contractor experienced in the construction of improvements similar to the Public Improvements. The Contractor shall meet Town and statutory requirements for being insured, licensed, and bonded to perform work in public rights-of-way, and to be qualified in all respects to bid on public streets and public projects of a similar nature. The Developer agrees to submit contract documents to the Town and to participate in pre-construction meetings with the Town and all Contractors; and WHEREAS, Developer and Contractor recognize that the Town has an interest in ensuring that the Public Improvements, which will, upon completion and acceptance by the Town, become public 99 property, are properly constructed in accordance with the Plans and Specifications and that full payment by Developer is provided therefore; NOW, THEREFORE, the Developer, Contractor, and the Town (the “Parties”) for and in consideration of the recitals above and their mutual promises and covenants contained herein agree as follows: 1.Covenants of Developer and Contractor: a.Construction: Developer and Contractor shall construct the Public Improvements in accordance with the Plans and Specifications and complete the Public Improvements on or before eighteen (18) months from the final date of execution of this Agreement. Developer shall be responsible for all monies due to the Contractor for construction of the Public Improvements. In no event shall the Town be responsible for payment of any of the expenses or costs to construct the Public Improvements. The Town Engineer in its discretion may require the Developer to provide security for payments to the Contractor, which may be in the form of a cash deposit with the Town, an unconditional and irrevocable letter of credit, a dedicated construction account with a lending institution approved by the Town Engineer, or other security that the Town Engineer in their discretion deems adequate to ensure that the Developer does not default in its payment obligations to the Contractor. b.Authority of Town Engineer, Inspections, Tests and Orders, Developer and Contractor Warranty. All work on the Public Improvements shall be performed in a good and workmanlike manner and to the satisfaction of the Town Engineer or its representative. The Town Engineer shall decide all questions, which arise as to the quality and acceptability of materials furnished, work performed, and the interpretation of the Plans and Specifications and may reject any work not performed in accordance with the Plans and Specifications. The Contractor, its surety on the performance bond required herein, and the Developer, warrant, that the Public Improvements will be free from defects in materials and workmanship and that they will pay to remedy same for a period of two years after the completion of the Public Improvements and final acceptance by the Town. This warranty shall not constitute a limitation on the duty to remedy latent defects in construction that were not known at the time of final acceptance or within said two-year warranty period. The Developer and Contractor shall furnish the Town Engineer or their representative with every reasonable facility for ascertaining whether or not the work performed was in accordance with the Plans and Specifications applicable thereto. Any work done, or materials used without suitable inspection by the Town may be ordered removed and replaced at Contractor’s expense. The Town Engineer or its designee shall perform periodic inspections of the work and shall perform a final inspection prior to final acceptance by the Town and an inspection thirty (30) days prior to the expiration of two years from the date of final completion, inspection, and acceptance of the work by the Town. Upon failure of the Contractor to allow for inspection, to test materials furnished, to satisfactorily repair, remove or replace, if so directed, rejected, unauthorized or condemned work or materials, or to follow any other request or order of the Town Engineer or its representative, the Town Engineer shall notify the Developer of such failure and may suspend inspections of such work until such failure is remedied. If such failure is not remedied to the satisfaction of the Town Engineer, the Town shall have no obligation under this agreement to approve or accept the Public Improvements and the Town may withhold, suspend or revoke any permits or other approvals for the Development until such matter is remedied to the satisfaction of the Town Engineer. 100 c. Insurance. Contractor shall provide insurance in form and substance in accordance with the Town’s standard insurance requirements for public works projects, which are on file in the Town and/or in the Office of the Town Engineer and which are incorporated herein by reference. d. Means and Methods of Construction. The means and methods of construction shall be such as Contractor may choose; subject, however, to the Town’s right to reject the Public Improvements for which the means or method of constructions does not, in the judgment of the Town Engineer, assure that the Public Improvements are constructed in accordance with Plans and Specifications. e. Books and Records. All of the Developer’s and the Contractor’s books and other records related to the construction of the Public Improvements shall be available for inspection by the Town. f. Performance, Payment, and Maintenance Bonds. Prior to the execution of this agreement, the commencement of construction, or the issuance of any building permits, Developer or Contractor shall present to the Town performance bond(s), payment bond(s), and maintenance bond(s) that meet the requirements of Chapter 2253 of the Texas Government Code. Each bond shall be in the full amount of the costs to construct the Public Improvements, as estimated by the Developer’s engineer and approved by the Town Engineer, in favor of the Town ensuring completion of the Public Improvements in accordance with the Plans and Specifications and warranting against defects in materials and workmanship for a period of two years from the date of final acceptance by the Town. The Contractor shall provide a written estimate of the costs to construct the Public Improvements. The estimated Public Improvement construction costs shall be included in Exhibit B. The performance bond(s), payment bond(s), and maintenance bond(s) shall be executed by a corporate surety authorized to do business in Texas in accordance with Chapter 2253 of the Texas Government Code, shall be on the Town’s standard form or such other form approved by the Town, and shall contain a local resident agent for service of process. The Developer or Contractor may be a co-obligee on the performance bond with regard to the Contract’s obligations. g. Payment Bonds. The Developer or Contractor shall execute a payment bond in the full amount of the costs to construct the Public Improvements in favor of the Town insuring against claims from suppliers and subcontractors. The payment bond shall be executed by a corporate surety authorized to do business in Texas in accordance with Chapter 2253 of the Texas Government Code, shall be on the Town’s standard form or such other form approved by the Town, and shall contain a local resident agent for service of process. The Developer or Contractor may be a co-obligee on the payment bond. h. Retainage – Final Payments. As security for the faithful completion of the Public Improvements, Contractor and Developer agree that the Developer shall, retain ten (10) percent of the total dollar amount of the contract price until after final approval or acceptance of the Public Improvements by the Town. The Developer shall thereafter pay the Contractor the retainage, only after Contractor has furnished to the Developer satisfactory evidence including an affidavit that all indebtedness has been paid, that all indebtedness connected with the work and all sums of money due for labor, materials, apparatus, fixtures, or machinery furnished for all and used in the performance 101 of the work have been paid or otherwise satisfied. In addition, Contractor shall provide Developer with a consent to final payment from the payment bond surety. i. Encumbrances. Upon final completion, inspection, and acceptance of the Public Improvements by the Town, the Public Improvements shall become the property of the Town free and clear of all liens, claims, charges, or encumbrances of any kind. If, after acceptance of the Public Improvements, any claim, lien, charge or encumbrance is made, or found to exist, against the Public Improvements, or land dedicated to the Town, to which they are affixed, the Developer and Contractor shall upon notice by the Town promptly cause such claim, lien, charge or encumbrance to be satisfied and released or promptly post a bond with the Town in the amount of such claim, liens, charge or encumbrance, in favor of the Town, to ensure payment of such claim, lien, charge or encumbrance. j. INDEMNIFICATION. THE DEVELOPER AND CONTRACTOR SHALL AND HEREBY DO INDEMNIFY, DEFEND AND HOLD HARMLESS, THE TOWN, ITS OFFICERS, AGENTS AND EMPLOYEES FROM ALL SUITS, ACTIONS OR CLAIMS OF ANY CHARACTER, NAME AND DESCRIPTION BROUGHT FOR OR ON ACCOUNT OF ANY INJURIES OR DAMAGES RECEIVED OR SUSTAINED BY ANY PERSON, PERSONS OR PROPERTY ON ACCOUNT OF THE OPERATIONS OF THE CONTRACTOR, THEIR AGENTS, EMPLOYEES OR SUBCONTRACTORS; OR ON ACCOUNT OF ANY NEGLIGENT ACT OR FAULT OF THE CONTRACTOR, THEIR AGENTS, EMPLOYEES OR SUBCONTRACTORS IN CONSTRUCTION OF THE IMPROVEMENTS; AND SHALL PAY ANY JUDGMENT, WITH COSTS, WHICH MAY BE OBTAINED AGAINST THE TOWN GROWING OUT OF SUCH INJURY OR DAMAGE. k. Approval by the Town Engineer of any plans, designs or specifications submitted by Developer pursuant to this Agreement shall not constitute or be deemed to be a release of the responsibility and liability of the Developer, or the Developer’s Engineer, employees, officers or agents with respect to the construction of any of the Development’s improvements or facilities, or for the accuracy and competency of the Development’s improvements and facilities design and specifications prepared by the Developer’s Engineer, his officers, agents, servants or employees, it being the intent of the parties that the approval by the Town Engineer signifies the Town’s approval on only the general design concept of the improvements and facilities to be constructed. l. The Developer and Contractor shall comply with all local, state, and federal laws, rules, and regulations, relating to drainage, flood control, runoff, erosion, pollution, hazardous materials, waste, sedimentation, and any other control and mitigation requirements related thereto. The Developer and Contractor are responsible for all liability for drainage to adjacent and downstream property, but only to the extent directly caused by the design and construction of the Public Improvements contemplated by this Agreement. 102 m. This Agreement shall be construed in accordance with the Town of Trophy Club, Texas, Subdivision Regulations and all other applicable ordinances. Any conflicts between the provisions of this Agreement, the Town’s Subdivision regulations, Town Ordinances, and State and Federal Law, shall be construed in favor of the Town’s Ordinances as allowed by law, subject to Chapter 245 of the Local Government Code. To the extent any such conflict exists, only that portion of the Agreement in conflict shall be severable from the other provisions of the Agreement, and such conflict shall in no manner affect the validity or enforceability of the remaining provisions. n. All rights remedies and privileges permitted or available to the Town under this Agreement or at law or equity shall be cumulative and not alternative, and election of any such right, remedy or privilege shall not constitute a waiver or exclusive election of any rights, remedies, or privilege with respect to any other permitted or available right, remedy or privilege. Additionally, one instance of forbearance by the Town in the enforcement of any such right, remedy or privilege, shall not constitute a waiver of such right, remedy or privilege by the Town. A default under this Agreement by the Town shall not result in forfeiture of any rights, remedies, or privileges under this Agreement by the Town. 2. Agreement Controlling. The provisions of this Agreement shall control over any conflicting provision of any contract between the Developer and Contractor, and any other entity as it relates to the construction of the Public Improvements. 3. Covenants of Town of Trophy Club. Upon proper final completion and inspection of the Public Improvements in accordance with this Agreement, the Town agrees to accept the dedication of the Public Improvements. 4. Nexus and Rough Proportionality. The Developer acknowledges and agrees that there is a reasonable nexus between the demands created by the Development and the Public Improvements, and that the costs associated with the construction and dedication of land for the Public Improvements is roughly proportional to the benefits received and the burdens imposed by the Development. The Developer further acknowledges and agrees that all prerequisites to such a determination of rough proportionality have been met, and that any costs incurred relative to the conveyance, dedication, construction costs and other payments, if any, for the Public Improvements are related both in nature and extent to the impact of the Development. The Developer shall indemnify and hold the Town harmless against any claim by it or others claiming through it, that the required Public Improvements and associated dedication of land are unlawful exactions pursuant to the indemnification provision of this Agreement. In addition to the foregoing sentence, the Developer waives and releases all claims against the Town related to any and all rough proportionality and individual determination requirements mandated by Section 212.904, Texas Local Gov’t Code, or the Texas or U.S. Constitutions as those claims relate to any theory of rough proportionality. 5. Venue and Governing Law. The Parties herein agree that this Agreement shall be enforceable in Denton County, Texas, without regard to conflict of laws principles, and if legal action is necessary in connection therewith, exclusive venue shall lie in Denton County, Texas. The terms and provisions of this Agreement shall be construed in accordance with the laws and court decisions of the State of Texas. 6. Successor and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties, hereto, their respective successors and assigns. This Agreement may not be assigned without written consent of the Parties. 103 7. Legal Construction. In case any one or more of the provisions contained in the Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of the Agreement, and the Agreement shall be considered as if such invalid, illegal, or unenforceable provision had never been contained in the Agreement. 8. Counterparts. The Agreement may be executed in any number of counterparts, each of which shall be deemed an original and constitute one and the same instrument. 9. Texas Public Information Act. Unless otherwise provided by law, all information, documents, and communications relating to the Agreement shall be subject to the Texas Public Information Act (“Act”) and any opinion of the Texas Attorney General or a court of competent jurisdiction relating to the Act. The requirements of Subchapter J, Chapter 552, Government Code, may apply to this Agreement and each party agrees that this Agreement may be terminated with regard to such party if such party knowingly or intentionally fails to comply with a requirement of that subchapter, if applicable. 10. Governmental Function(s) and Immunity. The parties hereby acknowledge and agree that the Town is entering into the Agreement in the performance of and pursuant to its governmental functions for the health, safety, and welfare of the citizens of the Town, the general public, and the State of Texas, and nothing contained in the Agreement shall be construed as constituting a waiver of the Town’s governmental immunity from suit or liability, which is expressly reserved to the fullest extent allowed by law. 11. Waiver of Attorney’s Fees. The parties expressly covenant and agree that in the event of any litigation arising between the parties to this Agreement, each party shall be solely responsible for payment of its attorneys (except as required pursuant to the indemnity obligations in this Agreement) and that in no event shall either party be responsible for the other party’s attorneys’ fees regardless of the outcome of the litigation. 12. Additional Verifications. To the extent required by Texas law, the Developer and Contractor each verify that: (1) It does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association, as defined in Texas Government Code § 2274.001, and that it will not during the term of the contract discriminate against a firearm entity or firearm trade association; (2) It does not “boycott Israel” as that term is defined in Texas Government Code Ch. 2271 and § 808.001 and it will not boycott Israel during the term of this Agreement; and (3) It does not “boycott energy companies,” as those terms are defined in Texas Government Code §§ 809.001 and 2274.001, and it will not boycott energy companies during the term of the Agreement. 13. Ethics Disclosure. To the extent required by law, the Developer and Contractor each represent that it has completed a Texas Ethics Commission (the “TEC”) form 1295 (“Form 1295”) generated by the TEC’s electronic filing application in accordance with the provisions of Texas Gov’t Code Ch. 2252.908 and the rules promulgated by the TEC. The parties agree that, with the exception of the information identifying the Town and the contract identification number, the Town is not responsible for the information contained in the Form 1295. 104 Executed this, 25th day of September, 2023. DEVELOPER: NAME: ______________________________________ BY: _________________________________________ Name: Title: Address: CONTRACTOR: NAME: ______________________________________ BY: _________________________________________ Name: Title: Address: TOWN OF TROPHY CLUB: BY: _________________________________________ Jeannette Tiffany, Mayor ATTEST: BY: _________________________________________ Tammy Dixon, Town Secretary APPROVED AS TO FORM: BY: _________________________________________ Dean Roggia, Town Attorney 105 Exhibit A Parcel 4H BEING, all of that 3.581-acre (156,000 square foot) tract of land situated in the Richard W. Allen Survey, Abstract Number 5, in the Town of Trophy Club, Denton County, Texas; being all of that tract of land described as Trophy Club Parcel 4H in Special Warranty Deed to Trophy Club Estates Development, LP. as recorded in Document No. 2023-1983 of the Official Records of Denton County, Texas; said 3.581- acre tract of land being more particularly described by metes and bounds as follows: BEGINNING, at a 5/8-inch iron rod with “BGE” cap set at the north corner of said Parcel 4H tract; said point being a reentrant corner in the southwest line of Lot 1X, Block H, The Highlands at Trophy Club Neighborhood 8 - Phase 2B, an addition to the Town of Trophy Club, as recorded in Document No. 2013- 229 of the Plat Records of Denton County, Texas; from said point a 5/8-inch iron rod with “JACOBS” cap found for corner bears North 52 degrees 29 minutes 35 seconds West, a distance of 154.16 feet; and from said point a 5/8-inch iron rod with “JACOBS” cap found for corner bears North 41 degrees 15 minutes 07 seconds East, a distance of 96.91 feet; THENCE, South 42 degrees 33 minutes 44 seconds East, with the southwest line of said Lot 1X, a distance of 480.00 feet a 5/8-inch iron rod with “BGE” cap set at the east corner of said Parcel 4H tract; said point being the most northerly corner of Lot 1, Block G, The Highlands at Trophy Club Neighborhood 8 - Phase 2A, an addition to the Town of Trophy Club, as recorded in Document No. 2012-183 of said Plat Records; THENCE, South 47 degrees 26 minutes 16 seconds West, with the north line of said Block G, a distance of 325.00 feet to a 5/8-inch iron rod with “BGE” cap set at the south corner of said Parcel 4H tract; said point being a reentrant corner in the north line of said Block G; THENCE, North 42 degrees 33 minutes 44 seconds West, with the east line of said Block G, a distance of 480.00 feet to a 5/8-inch iron rod with “BGE” cap set at the west corner of said Parcel 4H tract; said point being a reentrant corner in the southeast line of Block G of said Highlands at Trophy Club Neighborhood 8 - Phase 2B; THENCE, North 47 degrees 26 minutes 16 seconds East, with the northwest line of said Parcel 4H tract and the southwest line of second mentioned Block G, a distance of 325.00 feet to the POINT OF BEGINNING and containing an area of 3.581 acres or156,000 square feet of land, more or less. 106 PROJECT:GAS WELL HOME DEVELOPMENT SITES LOCATION:TROPHY CLUB, TEXAS BID DATE:10.3.22 CONTACT:COLIN EGAN EMAIL:COLIN@NTEXCON.COM Item Description No.Qty Unit 4H MAY PUBLIC IFC SCOPE 4H - CYPRESS ESTATES STORM 24" CL-III RCP (T&G)82 LF 5' X 3' PRECAST BOX CULVERT 50 LF 10' CURB INLET 2 EA 5' X 3' TXDOT WINGWALL 1 EA ROCK RIPRAP 58 SY WATER 6" DR-18 WATERLINE 265 LF 2" POLY 382 LF 6" GATE VALVE 2 EA FIRE HYDRANT 1 EA 1" DOMESTIC SERVICE 9 EA 8" X 6" TAPPING SLEEVE 1 EA SANITARY 8" SDR-35 SANITARY PIPE 471 LF 4' DIA SS MANHOLE 3 EA 4" DOMESTIC SERVICE W/ CLEANOUT 9 EA CONCRETE 6" 4000 PSI PAVING 2575 SY 4" 3000 PSI SIDEWALK 1792 SF 4H CYPRESS ESTATES CHANGES:270,026.00$ NORTH TEXAS CONTRACTING, INC. Bid Bid Unit Amount 0.00 0.00 0.00 0.00 0.00 0.00 85.00 6,970.00 165.00 8,250.00 4,500.00 9,000.00 4,500.00 4,500.00 85.00 4,930.00 0.00 0.00 0.00 0.00 55.00 14,575.00 32.00 12,224.00 1,850.00 3,700.00 0.00 0.00 4,000.00 4,000.00 500.00 4,500.00 2,100.00 2,100.00 0.00 0.00 50.00 23,550.00 4,500.00 13,500.00 650.00 5,850.00 0.00 0.00 0.00 0.00 55.00 141,625.00 6.00 10,752.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Exhibit B 107 TOWN COUNCIL COMMUNICATION REGULAR MEETING DATE: September 25, 2023 FROM: Patrick Arata, Interim Town Administrator AGENDA ITEM:Public Hearing to consider approval of an ordinance relative to the Service and Assessment Plan for Authorized Services (Emergency Services) for the Trophy Club Public Improvement District No. 1 (The Highlands at Trophy Club), the proposed Assessment Roll, and the levy of Special Assessments against the property in PID No. 1. BACKGROUND/SUMMARY: Annually, the Town Council accepts the Service and Assessment Plan update for Authorized Services (Emergency Services) for the Town of Trophy Club Public Improvement District No. 1 (The Highlands at Trophy Club), sets the date for a Public Hearing and authorizes the publication of Notice, and directs the mailings of such Notices as required by law. This notice states the approximate Total Annual Cost of the Authorized Services, which is figured after receiving the Fire rate from Trophy Club Municipal Utility District (TCMUD) No. 1. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: The Emergency Services District (ESD) in the PID pays for $541,701 worth of fire expenditures with a rate of $0.05186 which is less than last year’s rate of $0.05625. This is the district’s portion of fire services; the remainder is paid through the MUD. If the ESD assessment was not in place the Town would be responsible for covering those expenditures. LEGAL REVIEW: N/A ATTACHMENTS: •Annual Service Assessment Plan (SAP) update (2023) Town of Trophy Club PID No. 1 (ESD2) •Draft Ordinance 2023-XX •PID Assessment FY24 Flyer •Notice of Public Hearing ACTION/OPTIONS: Conduct Public Hearing and consider approval of an ordinance relative to the Service and Assessment Plan for Authorized Services (Emergency Services) for the Trophy Club Public Improvement District No. 1 (The Highlands at Trophy Club), the proposed Assessment Roll, and the levy of Special Assessments against the property in PID No. 1.108 109 110 111 112 113 114 115 116 117 118 119 120 PID Assessment Rate 0.05186 67687 470277 537349 580362 583540 73937 470278 557641 580363 583541 82144 470279 557642 580364 583542 83515 470280 557643 580365 583543 84263 470281 557644 580366 583544 98639 470282 557645 580367 583545 98641 470283 557646 580368 583546 171483 470284 557647 580369 583547 305643 470285 557648 580370 583548 315393 470286 557649 580371 583549 329833 470287 557650 580372 583550 338637 470288 557651 580373 583551 465509 470289 557652 580374 583552 465510 470290 557653 580375 583553 465511 470291 557654 580376 583554 465512 470292 557655 580377 583555 465513 470293 557656 580378 583556 465514 470294 557657 580379 583557 465515 470295 557658 580380 583558 465516 470296 557659 580381 583559 465517 470297 557660 580382 583560 465518 470298 557661 580383 583561 465519 470299 557662 580384 583562 465520 470300 557663 580385 583563 465521 498867 557665 580386 583564 465522 498868 557666 580387 583565 465523 498869 557667 580388 583566 465524 498870 557668 580389 583567 465525 498871 557669 580390 583568 465526 498873 557670 580392 583569 465527 498874 557671 580393 583570 465528 498875 557672 580394 583571 465529 498876 557673 580395 583573 465530 498877 557674 580396 583574 465531 498878 557675 580397 583575 465532 498879 557676 580398 583576 465533 498880 557677 580399 583577 465534 498911 557678 580400 583578 465535 498912 557679 580401 583579 465536 498913 557680 580402 583580 Town of Trophy Club Public Improvement District No. 1 Emergency Services District 2023 Assessment Roll 121 PID Assessment Rate 0.05186 Town of Trophy Club Public Improvement District No. 1 Emergency Services District 2023 Assessment Roll 465537 498914 557681 580403 583581 465538 498915 557682 580404 583582 465539 498916 557683 580405 583583 465540 498917 557684 580406 583584 465541 498918 557685 580407 583585 465542 498919 557686 580408 583586 465543 498920 557687 580409 583587 465544 498922 558332 580410 583588 465545 498923 558333 580411 583589 465546 498924 558334 580412 583590 465547 498925 558335 580413 583591 465548 498926 558336 580414 583592 465549 498927 558337 581612 583593 465550 498928 558338 583215 583594 465551 498929 558339 583216 583595 465552 498930 558340 583217 583596 465553 498931 558341 583218 583597 465554 498932 558342 583219 583598 465555 498933 558343 583220 583599 465556 498934 558344 583221 583600 465557 498935 558345 583222 583601 465558 498936 558346 583223 583602 465559 498937 558347 583224 583603 465560 498938 558348 583225 583604 465561 498939 558349 583226 583605 465562 498940 558350 583227 583606 465563 498945 558351 583228 583607 465564 498946 558352 583229 583608 465565 498947 558353 583230 583609 465566 498948 558354 583231 583612 465567 498949 558355 583232 583613 465568 498950 558356 583233 583614 465569 498951 558357 583234 583615 465570 498952 558358 583235 583616 465571 498953 558359 583236 583617 465572 498954 558360 583237 583618 465573 498955 558361 583238 583619 465574 498956 558362 583239 583620 465575 523472 558363 583240 583621 465576 525439 558364 583241 583622122 PID Assessment Rate 0.05186 Town of Trophy Club Public Improvement District No. 1 Emergency Services District 2023 Assessment Roll 465577 533255 558365 583242 583623 465578 533256 558366 583243 583624 465579 533257 558367 583244 583625 465580 533258 558368 583245 583626 465581 533259 558369 583246 583627 465582 533262 558370 583247 583628 465583 533264 558371 583248 583629 466259 533287 558372 583249 583630 466260 533289 558373 583250 583631 466261 533290 558374 583251 583632 469275 533291 558375 583252 583633 469276 533292 558376 583253 583634 469277 533293 558377 583254 583643 469278 533294 558378 583255 583644 469279 533295 558379 583256 583645 469280 533296 558380 583257 583646 469281 533297 558381 583258 583647 469282 533298 558382 583259 583648 469283 533307 558383 583260 583649 469284 533309 558384 583261 583650 469286 533310 558385 583262 583651 469287 533311 558386 583263 583652 469288 533312 558387 583264 583653 469289 533313 558388 583265 583654 469290 533314 558389 583266 583655 469291 533315 558390 583267 583656 469292 533316 558391 583268 583657 469293 533317 558392 583269 583658 469294 533318 558393 583270 583659 469295 533319 558394 583271 583660 469296 533320 558395 583272 583661 469297 533321 558396 583273 583662 469298 533322 558397 583274 583663 469299 533323 558398 583275 583664 469300 533324 558399 583276 583665 469301 533325 558400 583277 583666 469302 533326 558401 583278 583667 469303 533327 558402 583279 583668 469304 533328 558403 583280 583669 469305 533329 558404 583281 583670123 PID Assessment Rate 0.05186 Town of Trophy Club Public Improvement District No. 1 Emergency Services District 2023 Assessment Roll 469306 533330 558405 583282 583671 469307 533331 558406 583283 583672 469308 533332 558407 583284 583673 469309 533333 558408 583285 583674 469310 533334 558409 583286 583675 469311 533335 558410 583287 583676 469312 533336 558411 583288 583677 469313 533337 558412 583289 583678 469314 533338 558413 583290 583679 469315 533339 558414 583291 583680 469316 533340 558415 583292 583681 469317 533341 558416 583293 583682 469318 533342 558417 583294 583683 469319 533343 558418 583295 583684 469320 533344 558419 583296 583685 469321 533345 558420 583297 583686 469322 533346 558421 583298 583687 469323 533347 558422 583299 583688 469324 533348 558423 583300 583689 469325 533349 558424 583301 583690 469326 533350 558425 583302 583691 469327 533351 558426 583303 583692 469328 533352 558427 583304 583693 469329 533353 558428 583305 620681 469330 533354 558429 583306 621956 469331 533355 558430 583307 622299 469332 533356 558431 583308 622300 469333 533357 558432 583309 622301 469334 533358 558433 583310 622302 469335 533359 558434 583311 622303 469336 533360 558435 583312 622304 469337 533361 558436 583313 622305 469338 533362 558437 583314 622306 469343 533363 558438 583315 622307 469372 533364 558439 583316 622308 470048 533365 558440 583317 622309 470049 533366 558441 583318 622310 470050 533367 558442 583319 622311 470051 533368 558443 583320 622312 470052 533369 558444 583321 622313124 PID Assessment Rate 0.05186 Town of Trophy Club Public Improvement District No. 1 Emergency Services District 2023 Assessment Roll 470053 533370 558445 583322 622314 470054 533371 558446 583323 622315 470055 533372 558447 583324 622316 470056 533373 558448 583325 622317 470057 533374 558449 583326 622318 470058 533375 558450 583327 622319 470059 533376 558451 583328 622320 470060 533377 558452 583329 622321 470061 533378 558453 583330 622322 470062 533379 558454 583331 622323 470063 533380 558455 583332 622324 470064 533381 558456 583333 622325 470065 533382 558457 583334 622326 470066 533383 558458 583335 622327 470067 533384 558459 583336 622328 470068 533385 558460 583337 622329 470069 533386 558461 583338 622330 470070 533387 558462 583339 631471 470071 533388 558463 583356 635052 470072 533389 558464 583375 635053 470073 533390 558465 583376 635054 470074 533391 558466 583377 635055 470075 533392 558467 583378 635056 470076 533393 558468 583379 635057 470077 533394 558469 583380 635058 470078 533395 558470 583381 635059 470079 533396 558471 583382 635060 470080 533397 558472 583383 635061 470081 533398 558473 583384 635062 470082 533399 558474 583385 635063 470083 533400 558475 583386 635064 470084 533401 558476 583387 635065 470085 533402 558477 583388 635066 470086 533403 558478 583389 635067 470087 533404 558479 583390 635068 470088 533405 558480 583391 635069 470089 533406 558481 583392 635070 470090 533407 558482 583393 635071 470091 533408 558483 583394 635072 470092 533409 558484 583395 635073125 PID Assessment Rate 0.05186 Town of Trophy Club Public Improvement District No. 1 Emergency Services District 2023 Assessment Roll 470093 533410 558485 583396 635074 470094 533411 558486 583397 635075 470095 533412 558487 583398 635076 470096 533413 558488 583399 635077 470097 533414 558489 583400 635078 470098 533415 558490 583401 635079 470099 533416 558491 583402 635080 470100 533417 558492 583403 635081 470101 533418 558493 583404 635082 470102 533419 558494 583405 635083 470103 533420 558495 583406 635084 470104 533421 558496 583407 635085 470105 533422 558497 583408 635086 470106 533425 558498 583409 635087 470107 533428 558499 583410 635088 470108 533429 558500 583411 635089 470109 533430 558501 583412 635090 470110 533431 558502 583413 635091 470111 533432 558503 583414 635092 470153 533433 558504 583415 635093 470154 533434 558505 583416 635094 470155 533464 558506 583417 635095 470156 533480 558507 583418 635096 470157 533490 558508 583419 635097 470158 533498 558509 583420 635098 470159 533500 558510 583421 635099 470160 533501 558511 583422 635100 470161 534852 558512 583423 635101 470162 534853 558513 583424 635102 470163 534854 558514 583425 635103 470164 534855 558515 583426 635104 470165 534856 558516 583427 635105 470166 534857 558517 583428 635106 470167 534858 558518 583429 635107 470168 534859 558519 583470 635108 470169 534860 558520 583471 635109 470170 534861 558521 583472 635110 470171 534862 558522 583473 635111 470172 534863 558523 583474 635112 470173 534864 558524 583475 635113126 PID Assessment Rate 0.05186 Town of Trophy Club Public Improvement District No. 1 Emergency Services District 2023 Assessment Roll 470174 534865 558525 583476 635114 470175 534866 558526 583477 635115 470176 534867 558527 583478 635116 470177 534868 558528 583479 635117 470178 534869 558529 583480 635118 470179 534870 558530 583481 635119 470180 534871 558531 583482 635120 470181 534872 558532 583483 635121 470182 534873 558533 583484 635122 470183 534874 558534 583485 635123 470184 534875 558535 583486 635124 470185 534876 558536 583487 635125 470186 534877 558537 583488 635126 470187 534878 558538 583489 635127 470188 534879 558539 583490 635128 470189 534880 558540 583491 635129 470190 534881 558541 583492 635130 470191 534882 558542 583493 635131 470192 534883 558543 583494 635132 470193 534884 558544 583495 635133 470194 534885 558545 583496 635134 470195 534886 567352 583497 635135 470196 534887 567353 583498 635136 470197 534888 567354 583499 635137 470198 534889 567355 583500 635138 470199 534890 567356 583501 635139 470200 534891 567357 583502 635140 470201 534892 567358 583503 635141 470202 534893 567359 583504 635142 470203 534894 567360 583505 635143 470204 534895 567361 583506 635144 470205 534896 567362 583507 635145 470249 534897 567363 583508 635146 470250 534898 567364 583509 635147 470251 536563 567365 583510 635148 470252 536564 567366 583511 635149 470253 536565 567367 583512 635150 470254 536566 567368 583513 635151 470255 536567 567369 583514 635152 470256 536568 567370 583519 635153127 PID Assessment Rate 0.05186 Town of Trophy Club Public Improvement District No. 1 Emergency Services District 2023 Assessment Roll 470257 536569 567371 583520 635154 470258 536570 567372 583521 635155 470259 536571 567373 583522 635156 470260 536572 580345 583523 635157 470261 536573 580346 583524 635158 470262 536574 580347 583525 635159 470263 536575 580348 583526 635160 470264 536576 580349 583527 635161 470265 536577 580350 583528 635162 470266 536578 580351 583529 650739 470267 536579 580352 583530 657776 470268 536580 580353 583531 667200 470269 536581 580354 583532 681973 470270 536582 580355 583533 730909 470271 536583 580356 583534 730930 470272 536584 580357 583535 733756 470273 536585 580358 583536 744759 470274 536586 580359 583537 942882 470275 536587 580360 583538 470276 536588 580361 583539 128 129 Texas Property Code Section 5.014(A) Notice (Required Before Contract Execution) NOTICE OF OBLIGATIONS RELATED TO PUBLIC IMPROVEMENT DISTRICT A person who proposes to sell or otherwise convey real property that is located in a public improvement district established under Subchapter A, Chapter 372, Local Government Code (except for public improvement districts described under Section 372.005), or Chapter 382, Local Government Code, shall first give to the purchaser of the property this written notice, signed by the seller. For the purposes of this notice, a contract for the purchase and sale of real property having a performance period of less than six months is considered a sale requiring the notice set forth below. This Notice requirement does not apply to a transfer: 1) Under a court order or foreclosure; 2) By a trustee in bankruptcy; 3) To a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest; 4) By a mortgagee or a beneficiary under a deed of trust who has acquired the land at a sale conducted under a power of sale under a deed of trust or a sale under a court-ordered foreclosure or has acquired the land by a deed in lieu of foreclosure; 5) By a fiduciary in the course of the administration of a decedent’s estate, guardianship, conservatorship, or trust; 6) From one co-owner to another co-owner of an undivided interest in the real property; 7) To or from a government entity; or, 8) Of only a mineral interest, leasehold interest, or security interest. The following notice shall be given to the prospective purchaser before the execution of a binding contract of purchase and sale, either separately or as an addendum or paragraph of a purchase contract. In the event a contract of purchase and sale is entered into without the seller having provided the required notice, the purchases, subject to certain exception, is entitled to terminate the contract. A separate copy of this notice shall be executed by the seller and the purchase and must be filed in the real property records of the county in which the property is located at the closing of the purchase and sale of the property. 130 Texas Property Code Section 5.014(A) Notice (Required Before Contract Execution) NOTICE OF OBLIGATION TO PAY PUBLIC IMPROVEMENT DISTRICT ASSESSMENT TO TROPHY CLUB, TEXAS TROPHY CLUB PUBLIC IMPROVEMENT DISTRICT NO. 1 EMERGENCY SERVICES DISTRICT CONCERNING THE FOLLOWING PROPERTY ________________________________________________________________________ ________________________________________________________________________ As the purchaser of the real property described above, you are obligated to pay assessments to Trophy Club, Texas, for the costs of a portion of a public improvement or services project (the "Authorized Improvements") undertaken for the benefit of the property within Trophy Club Public Improvement District No. 1 Emergency Services District (the "District") created under Subchapter A, Chapter 372, Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. The exact amount of the assessment may be obtained from Trophy Club. The exact amount of each annual installment will be approved each year by Trophy Club Town Council in the annual service plan update for the district. More information about the assessments, including the amounts and due dates, may be obtained from Trophy Club. Your failure to pay any assessment or any annual installment may result in penalties and interest being added to what you owe or in a lien on and the foreclosure of your property. 131 Texas Property Code Section 5.014(A) Notice (Required Before Contract Execution) The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. Buyer (Print Name) Signature Date Buyer (Print Name) Signature The undersigned seller acknowledges providing this notice to the potential purchaser before the effective date of a binding contract for the purchase of the real property at the address described above. Seller (Print Name) Signature Date Seller (Print Name) Signature Date 132 Texas Property Code Section 5.0143 Notice (Required At Closing And Must Be Recorded In Denton County Deed Of Records) AFTER RECORDING RETURN TO: ___________________ ___________________ ___________________ ___________________ NOTICE OF OBLIGATION TO PAY PUBLIC IMPROVEMENT DISTRICT ASSESSMENT TO TROPHY CLUB, TEXAS TROPHY CLUB PUBLIC IMPROVEMENT DISTRICT NO. 1 EMERGENCY SERVICES DISTRICT CONCERNING THE FOLLOWING PROPERTY ________________________________________________________________________ ________________________________________________________________________ As the purchaser of the real property described above, you are obligated to pay assessments to Trophy Club, Texas, for the costs of a portion of a public improvement or services project (the "Authorized Improvements") undertaken for the benefit of the property within Trophy Club Public Improvement District No. 1 Emergency Services District (the "District") created under Subchapter A, Chapter 372, Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. The exact amount of the assessment may be obtained from Trophy Club. The exact amount of each annual installment will be approved each year by Trophy Club Town Council in the annual service plan update for the district. More information about the assessments, including the amounts and due dates, may be obtained from Trophy Club. Your failure to pay any assessment or any annual installment may result in penalties and interest being added to what you owe or in a lien on and the foreclosure of your property. 133 Texas Property Code Section 5.0143 Notice (Required At Closing And Must Be Recorded In Denton County Deed Of Records) The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. The undersigned purchaser acknowledged the receipt of this notice including the current information required by Section 5.0143, Texas Property Code, as amended. Buyer (Print Name) Signature Date Buyer (Print Name) Signature STATE OF TEXAS § § COUNTY OF ______________ § The foregoing instrument was acknowledged before me by ___________________ and __________________, known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this ______________, 20___ Notary Public, State of Texas 134 Texas Property Code Section 5.0143 Notice (Required At Closing And Must Be Recorded In Denton County Deed Of Records) The undersigned seller acknowledges providing a separate copy of the notice required by Section 5.014 of the Texas Property Code including the current information required by Section 5.0143, Texas Property Code, as amended, at the closing of the purchase of the real property at the address above. Seller (Print Name) Signature Date Seller (Print Name) Signature STATE OF TEXAS § § COUNTY OF ______________ § The foregoing instrument was acknowledged before me by ___________________ and __________________, known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this ______________, 20___ Notary Public, State of Texas 135 136 137 TOWN OF TROPHY CLUB NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN THAT a public hearing will be conducted by the Town Council of the Town of Trophy Club , Texas on the 25 th day of September, 2023 at 6:00 p.m. at the Municipal Building at 1 Trophy Wood Drive, Trophy Club, Texas 76262 . The public hearing will be held to consider proposed assessments to be levied against the assessable property within THE TOWN OF TROPHY CLUB PUBLIC IMPROVEMENT DISTRICT NO. 1 (the "District") pursuant to the provisions of Chapter 372 of the Texas Local Government Code , as amended . The general nature of the improvements are emergency services (the "Authorized Services "), including , without limitation, fire suppression and control , inspection services , arson investigations , hazardous material response , search and rescue , emergency recovery and extraction , pre-hospital medical stabilization or transportation of persons who are sick , injured, wounded, or otherwise incapacitated or helpless including basic life support ambulance services , advanced life support ambulance services , air ambulance services , and quick-response unit services provided by the Town . The Town has provided such services pursuant to an annual assessment within the District since 2007 . The total annual cost of the Authorized Services for the Town 's Fiscal Year 2023 - 2024 is approximately $541,701 . The boundaries of the District are described as follows : The District includes approximately 609.683 acres located within the corporate limits of the Town of Trophy Club , Denton County , Texas . The District is generally located to the north of Oakmont Drive , Oak Hill Drive and the Quorum Condominiums , east of the Lakes Subdivision and Parkview Drive , south of the Corp of Engineers Property and west of the Town 's eastern town limits. The District is more particularly described by metes and bounds and such description is available for inspection at Town Hall , 1 Trophy Wood Drive , Trophy Club , Texas 76262. All written or oral objections will be considered at the public hearing. A copy of the Service and Assessment Plan for Authorized Services and proposed Assessment Roll , which includes the assessments to be levied against each parcel in the District , is available for public inspection at the office of the Town Secretary , Town of Trophy Club , at 1 Trophy Wood Drive, Trophy Club , Texas 76262 . September , 2023 . Tammy Dixon , Town of Trophy 138 TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 2023-xx AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB ACCEPTING AND APPROVING A SERVICE AND ASSESSMENT PLAN FOR AUTHORIZED SERVICES (EMERGENCY SERVICES) AND AN ASSESSMENT ROLL FOR THE TOWN OF TROPHY CLUB PUBLIC IMPROVEMENT DISTRICT NO. 1 (THE HIGHLANDS AT TROPHY CLUB); MAKING A FINDING OF SPECIAL BENEFIT TO THE PROPERTY IN THE DISTRICT; LEVYING SPECIAL ASSESSMENTS AGAINST PROPERTY WITHIN THE DISTRICT; PROVIDING FOR PAYMENT OF THE ASSESSMENTS IN ACCORDANCE WITH CHAPTER 372, TEXAS LOCAL GOVERNMENT CODE, AS AMENDED; PROVIDING FOR THE METHOD OF ASSESSMENT AND THE PAYMENT OF THE ASSESSMENT; PROVIDING PENALTIES AND INTEREST ON DELINQUENT ASSESSMENTS, PROVIDING FOR SEVERABILITY; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on March 16, 2007, a petition was submitted and filed with the Town Secretary of the Town (the “Town Secretary”) pursuant to the Public Improvement District Assessment Act, Chapter 372, Texas Local Government Code (the “PID Act”), requesting the creation of a public improvement district over a portion of the area of the Town to be known as The Town of Trophy Club Public Improvement District No. 1 (the “District”); and WHEREAS, the petition contained the signatures of the owners of taxable property representing more than fifty percent of the appraised value of taxable real property liable for assessment within the District, as determined by the then current ad valorem tax rolls of the Denton Central Appraisal District and the signatures of property owners who own taxable real property that constitutes more than fifty percent of the area of all taxable property that is liable for assessment by the District; and WHEREAS, on May 7, 2007, after due notice, the Town Council of the Town (the “Town Council”) held the public hearing in the manner required by law on the advisability of the public improvements and services described in the petition as required by Sec. 372.009 of the PID Act and made the findings required by Sec. 372.009(b) of the PID Act and, by Resolution No. 2007-08 adopted by a majority of the members of the Town Council, authorized the District in accordance with its finding as to the advisability of the public improvements and services; and WHEREAS, on May 18, 2007, the Town published notice of its authorization of the District in the Trophy Club Times, a newspaper of general circulation in the Town; and 139 ORDINANCE NO. 2023 - PAGE 2 WHEREAS, no written protests of the District from any owners of record of property within the District were filed with the Town Secretary within 20 days after May 18, 2007; and WHEREAS, on May 21, 2007, the Council adopted a resolution directing the filing of a proposed assessment roll, and directing related action; and WHEREAS, the Town has conducted annual reviews from 2008 through 2022 as provided in the PID Act and has annually adopted ordinances approving a Service and Assessment Plan for Authorized Services and an Assessment Roll for The Town of Trophy Club Public Improvement District No. 1; and WHEREAS, on September 25, 2023 through the adoption of Resolution No. 2023- 29 and as part of its 2022-2023 annual review of the special assessments for emergency services, the Town Council, pursuant to Section 372.016(b) of the PID Act, caused the publication on September 13, 2023 of notice of a public hearing in a newspaper of general circulation in the Town to consider the proposed “Assessment Roll” and the “Service and Assessment Plan for Authorized Services” (the “Plan”) and the levy of the “Assessments” on property in the District; and WHEREAS, the Town Council, pursuant to Section 372.016(c) of the PID Act, directed the mailing of notice of the public hearing to consider the proposed Assessment Roll and the Plan and the levy of Assessments on property in the District to the last known address of the owners of the property liable for the Assessments; and WHEREAS, the Town Council convened the hearing at 6:00 p.m. on the 25th day of September, 2023, at which all persons who appeared, or requested to appear, in person or by their attorney, were given the opportunity to contend for or contest the Plan, the Assessment Roll, and each proposed assessment, and to offer testimony pertinent to any issue presented on the amount of the assessment, the allocation of costs of the Authorized Services, the purposes of the assessment, the special benefits of the assessment, and the penalties and interest on delinquent Assessments; and WHEREAS, pursuant to Sections 372.013 and 372.014 of the PID Act, the Town Council has directed the preparation of a Service and Assessment Plan for Authorized Services for the District (the “Plan”), such Plan is attached hereto as Exhibit “A,” covers a period of at least five years, and defines the annual indebtedness and the projected costs of the Authorized Services, as identified and defined in the Plan; and WHEREAS, the Plan includes an assessment plan that apportions the cost of the Authorized Services to be assessed against property in the District and such apportionment is made on the basis of special benefits accruing to the property because of the Authorized Services; and 140 ORDINANCE NO. 2023 - PAGE 3 WHEREAS, the Town Council finds and determines that the Assessment Roll and the Plan should be approved and that the assessments should be levied as provided in the Plan and Assessment Roll; and WHEREAS, the Town Council further finds that there were no written objections or evidence submitted to the Town Secretary in opposition to the Plan, the allocation of Costs, the Assessment Roll, and the levy of assessments; and WHEREAS, the Town Council closed the hearing, and, after considering all written and documentary evidence presented at the hearing, including all written comments and statements filed with the Town, determined to proceed with the adoption of this Ordinance in conformity with the requirements of the PID Act. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: SECTION 1. TERMS Terms not otherwise defined herein are defined in the Service and Assessment Plan for Authorized Services (the “Plan”) attached hereto and incorporated herein as Exhibit “A.” SECTION 2. FINDINGS The findings and determinations set forth in the preambles are hereby incorporated by reference for all purposes. The Town Council hereby finds, determines, and ordains, as follows: (a)The apportionment of the costs of the Authorized Services pursuant to the Plan is fair and reasonable, reflects an accurate presentation of the special benefit each property will receive from the public improvements identified in the Plan, and is hereby approved; (b)The Plan covers a period of at least five years and defines projected costs for the Authorized Services; (c)The Plan apportions the cost of the Authorized Services to be assessed against property in the District and such apportionment is made on the basis of special benefits accruing to the property because of the Authorized Services. (d)All of the real property in the District which is being assessed in the amounts shown in the Assessment Roll will be benefited by the Authorized Services proposed to be provided through the District in the Plan, and each parcel of real property will receive special benefits in each year equal to or greater than each annual Assessment and 141 ORDINANCE NO. 2023 - PAGE 4 will receive special benefits during the term of the Assessments equal to or greater than the total amount assessed; (e)The method of apportionment of the costs of the Authorized Services set forth in the Plan results in imposing equal shares of the Costs on property similarly benefited, and results in a reasonable classification and formula for the apportionment of the costs of the Authorized Services; (f)The Plan should be approved as the service plan and assessment plan for the District as described in Sections 372.013 and 372.014 of the PID Act; (g)The 2022 Assessment Roll in the form attached as Appendix “A” to the Plan (the “Assessment Roll”) should be approved as the 2023 Assessment Roll for the District; (h)The provisions of the Plan relating to due and delinquency dates for the Assessments, interest and penalties on delinquent Assessments and procedures in connection with the imposition and collection of Assessments should be approved and will expedite collection of the Assessments in a timely manner in order to provide the services needed and required for the area within the District; and (i)A written notice of the date, hour, place and subject to this meeting of the Town Council was posted at a place convenient to the public for the time required by law preceding this meeting, as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended, and that this meeting has been open to the public as required by law at all times during which this Ordinance and the subject matter hereof has been discussed, considered, and formally acted upon. SECTION 3. ASSESSMENT PLAN The Plan is hereby accepted and approved pursuant to the PID Act Sections 372.13 and 372.014 as the Service and Assessment Plan for the District. SECTION 4. ASSESSMENT ROLL The Assessment Roll is hereby accepted and approved pursuant to the PID Act Section 372.016 Assessment Roll of the District. SECTION 5. LEVY AND PAYMENT OF SPECIAL ASSESSMENTS FOR COSTS OF IMPROVEMENT PROJECT (a)The Town Council hereby levies an assessment on each tract of property located within the District, as shown and described in the Plan and the Assessment Roll, in 142 ORDINANCE NO. 2023 - PAGE 5 the respective amounts shown on the Assessment Roll as a special assessment on the properties set forth in the Assessment Roll. (b)The levy of the Assessments shall be effective on the date of execution of this Ordinance levying assessments and strictly in accordance with the terms of the Plan. (c)Each Assessment shall be paid annually pursuant to the terms of the Plan. (d)Each Assessment shall be collected each year in the manner set forth in the Plan by the Denton County Tax Assessor Collector or other qualified collection agent, duly authorized by the Town Council. SECTION 6. METHOD OF ASSESSMENT The method of apportioning the costs of the Authorized Services is as set forth in the Plan. SECTION 7. APPOINTMENT OF ADMINISTRATOR DTA (www.FinanceDTA.com) is hereby appointed and designated as the Administrator of the Service and Assessment Plan for Authorized Services and of the Assessments levied by this Ordinance. The Administrator shall perform the duties of the Administrator described in the Plan and in this Ordinance. In addition to other applicable costs of collection, whether legally authorized by contract or other District document, the Administrator’s fees, charges, and expenses for providing such service shall constitute Collection Costs. SECTION 8. PENALTIES AND INTEREST ON DELINQUENT ASSESSMENTS Delinquent assessments shall be subject to the penalties, interest, procedures, and foreclosure sales set forth in the Plan. The Assessments shall have lien priority as specified in the PID Act and the Plan. SECTION 9. APPLICABILITY OF TAX CODE To the extent not inconsistent with this Ordinance, and not inconsistent with the PID Act or the other laws governing public improvement districts, the provisions of the Texas Tax Code shall be applicable to the imposition and collection of Assessments by the Town. 143 ORDINANCE NO. 2023 - PAGE 6 SECTION 10. SEVERABILITY If any provision, section, subsection, sentence, clause, or phrase of this Ordinance, or the application of same to any person or set of circumstances is for any reason held to be unconstitutional, void, or invalid, the validity of the remaining portions of this Ordinance or the application to other persons or sets of circumstances shall not be affected thereby, it being the intent of the Town Council that no portion hereof, or provision or regulation contained herein shall become inoperative or fail by reason of any unconstitutionality, voidness, or invalidity of any other portion hereof, and all provisions of this Ordinance are declared to be severable for that purpose. SECTION 11. ENGROSSMENT AND ENROLLMENT The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance by filing this Ordinance in the ordinance records of the Town as required in the Town Charter. SECTION 12. EFFECTIVE DATE This Ordinance shall take effect, and the levy of the Assessments, and the provisions and terms of the Plan shall be and become effective on upon passage and execution hereof. ADOPTED, PASSED, and APPROVED by the Town Council, by a vote of _____ members voting “for” and members voting “against” and with absentee, on this 25th day of September 2023. Jeannette Tiffany, Mayor Town of Trophy Club, Texas ATTEST:[SEAL] Tammy Dixon, Town Secretary Town of Trophy Club, Texas APPROVED TO AS FORM: Dean Roggia, Town Attorney Town of Trophy Club, Texas 144 EXHIBIT A SERVICE AND ASSESSMENT PLAN FOR AUTHORIZED SERVICES FOR THE DISTRICT (THE “PLAN”) 145 TOWN COUNCIL COMMUNICATION REGULAR MEETING DATE: September 25, 2023 FROM: Tammy Dixon, Town Secretary AGENDA ITEM: Discuss, consider, and take action regarding an ordinance amending Section 1.08.032 entitled “Board Established, Membership, Meetings” of Chapter 1, “General Provisions”; Article 1.08, “Parks and Recreation”; and Division 2 “Parks and Recreation Board” of the Town’s Code of Ordinances, by increasing the number of board members to provide for alternate members, and by establishing “Places and Terms.” BACKGROUND/SUMMARY: This item is being brought forward at the request of Mayor Tiffany. The proposed ordinance increases the number of seats on the Parks and Recreation Board from seven to nine by providing for two alternates. Additionally, it repeals the terms subsection and replaces it with a new subsection entitled “Places and terms” as follows: (A) Members shall be designated as places number one through nine, with places eight and nine designated as alternates. (B) The term of office of members of the board shall be for two years. Places one, three, five, seven and nine shall be appointed to two-year terms ending on September 30 in odd- numbered years. Places two, four, six, and eight shall be appointed to two-year terms ending on September 30 in even-numbered years. Members of the Board may be removed before their terms of office expire.” BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: N/A LEGAL REVIEW: Town Attorney, Dean Roggia, has reviewed and approved the draft ordinance as to form. ATTACHMENTS: Draft Ordinance Redline Current Ordinance 146 ACTION/OPTIONS: Move to approve/deny an ordinance amending Section 1.08.032 entitled “Board Established, Membership, Meetings” of Chapter 1, Article 1.08, Division 2 entitled “Parks and Recreation Board” of the Town’s Code of Ordinances, by increasing the number of board members to provide for alternates, providing a place system, and terms. 147 TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 2023-XX AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS; AMENDING SECTION 1.08.032 “BOARD ESTABLISHED, MEMBERSHIP; MEETINGS” OF CHAPTER 1 “GENERAL PROVISIONS”; ARTICLE 1.08 “PARKS AND RECREATION”; AND DIVISION 2 “PARKS AND RECREATION BOARD” OF THE TOWN’S CODE OF ORDINANCES, BY INCREASING THE NUMBER OF BOARD MEMBERS TO PROVIDE FOR ALTERNATE MEMBERS, AND BY ESTABLISHING “PLACES AND TERMS”; PROVIDING THIS ORDINANCE IS CUMULATIVE OF ALL ORDINANCES; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town Council of the Town of Trophy Club, Texas (the “Town”) is a home rule municipality empowered to do all acts and make all regulations which may be necessary or expedient for the promotion of the public health, safety and general welfare; and WHEREAS, the Town has approximately one thousand acres of parkland available for the use and enjoyment of its residents; and WHEREAS, with the existing parkland, the Parks and Recreation Board plays a vital role in making recommendations regarding recreational amenities and park and recreational opportunities within the Town; and WHEREAS, because parkland and recreational amenities are intended for the benefit and enjoyment of the residents of the Town, it is important to allow those residents to play a key role in shaping the expansion and development of parkland and recreational opportunities; and WHEREAS, the Parks and Recreation Board allows residents to play a more active role and to provide direct citizen input to the Town staff for the development of parks and recreational facilities for the Town; and WHEREAS, the Town Council has determined it appropriate to increase the number of members serving on the Parks and Recreation Board in order to facilitate more efficient meetings, NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, THAT: 148 ORDINANCE NO. 2023-XX PAGE 2 SECTION 1. INCORPORATION OF PREMISES All of the premises and recitals above are true and correct and are hereby incorporated in the body of this Ordinance as if fully set forth herein. SECTION 2. AMENDMENTS Section 1.08.032 “Board established; membership; meetings” of Division 2 entitled “Parks and Recreation Board” of Article 1.08 entitled “Parks and Recreation” of Chapter 1 “General Conditions” of the Code of Ordinances, Town of Trophy Club, Texas (the “Code”) is hereby amended by revising the introductory paragraph and by replacing subsection (3) in its entirety to read as follows: § 1.08.032 Board established; membership; meetings. “The parks and recreation board shall consist of seven (7) regular members and two (2) alternate members and is hereby established as follows:” … “3.Places and terms. (A) Members shall be designated as place numbers one through nine, with places eight and nine designated as alternates. (B) The term of office of members of the board shall be for two (2) years. Places one, three, five, seven, and nine shall be appointed to two- year terms ending on September 30 in odd-numbered years. Places two, four, six, and eight shall be appointed to two-year terms ending on September 30 in even-numbered years. Members of the board may be removed before their terms of office expire.” All other subsections not revised herein remain unaltered. SECTION 3. CUMULATIVE This Ordinance shall be cumulative of all other provisions of ordinances of the Town, except where the provisions of this Ordinance are in direct conflict with the provisions of such ordinances, in which event the conflicting provisions of such ordinances are hereby repealed. 149 ORDINANCE NO. 2023-XX PAGE 3 SECTION 4. SEVERABILITY It is hereby declared to be the intention of the Town Council that the sections, paragraphs, sentences, clauses, and phrases of this Ordinance are severable, and if any section, paragraph, sentence, clause, or phrase of this Ordinance shall be declared unconstitutional by a the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining sections, paragraphs, sentences, clauses, or phrases of this Ordinance; since the same would have been enacted by the Town Council without the incorporation in this Ordinance of any such unconstitutional section, paragraph, sentence, clause, or phrase. SECTION 5. ENGROSSMENT AND ENROLLMENT The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance in accordance with State law and the Town’s Home Rule Charter. SECTION 6. EFFECTIVE DATE This Ordinance shall become effective from and after its date of adoption and publication as provided by law, and it is so ordained. PASSED AND APPROVED by the Town of Trophy Club, Texas, this the 25th day of September 2023. Jeannette Tiffany, Mayor ATTEST: Tammy Dixon, Town Secretary APPROVED AS TO FORM: Dean Roggia, Town Attorney 150 The following Code does not display images or complicated formatting. Codes should be viewed online. This tool is only meant for editing. § 1.08.032 Board established; membership; meetings. The parks and recreation board shall consist consisting of seven (7) regular members and two (2) alternate members is hereby established as follows: (1) Qualifications.Members shall be residents of the town. (2) Compensation.Members shall serve without compensation. (3)Staggered terms.Members’ terms shall be for two (2) years each and expiration of those terms shall be staggered. Places on the board shall be numbered 1 through 7. Places 1 through 3 on the initial board shall serve for a term of two (2) years, and places 4 through 7 shall serve an initial term of one (1) year. Upon expiration of that one (1) year term, members appointed to those seats shall serve on a regular two (2) year term interval. “Places and Terms. (A)Members shall be designated as places number one through nine, with places eight and nine designated as alternates. (B)The term of office of members of the board shall be for two (2) years. Places one, three, five, seven and nine shall be appointed to two-year terms ending on September 30 in odd-numbered years. Places two, four, six, and eight shall be appointed to two-year terms ending on September 30 in even- numbered years. Members of the Board may be removed before their terms of office expire.” (4) Hold-over when replacement member has not qualified.If a replacement has not qualified upon the expiration of a member’s term, then that member shall continue his/her membership until replaced. (5) Officers.The council shall annually elect a chairperson. The board shall annually elect a vice- chairperson and a secretary. (A) The chairperson shall preside over meetings and shall be entitled to vote upon each issue. The board shall conduct its meetings in accordance with the town’s board, commission and committee handbook. (B) The vice-chairperson shall assist the chairperson in directing the affairs of the board. In the absence of the chairperson, the vice-chairperson shall assume all duties of the chairperson. In the event that the vice-chairperson is absent, the proceedings shall be conducted in accordance with Robert’s Rules of Order. (C) The secretary shall review minutes of all meetings, and in the secretary’s absence the chairperson shall designate another member to act as secretary. Upon approval by the board, the secretary shall sign the official copy of the minutes. The secretary shall distribute, once a year at the first regular meeting, a copy of the current parks and recreation ordinance. (6) Director participation.The director of the parks and recreation department shall be in attendance at the board meetings. The director shall participate in meetings to provide staff assistance, reports, and recommendations as requested by the board. (7) Director to be ex-officio member.The director shall be an ex-officio member of the board, with the responsibility to participate in discussions but without the right to vote. 151 (8) Absence from meetings. (A) A member’s absence from three (3) meetings annually without formal consent of the board shall be deemed to constitute the resignation of that member and shall be certified by the chairperson to the town council. A member’s absence will be considered at the next regularly scheduled meeting following the absence. (B) Members should attempt to make all regular meetings; however, if a member finds difficulty in maintaining regular attendance, it is suggested that the member consider whether he/she has sufficient time to be an effective member. It is the responsibility of a member in this position to initiate a discussion with the chair or staff liaison about attendance. (C) The chairperson of the board is to maintain a charted attendance record for all members. If attendance becomes an issue, the staff liaison will attempt to secure a written resignation. (9) Meetings.Regular meetings shall be held at least once a month on the date and at the time established by the board as provided in this division, unless the chairperson designates another time, date and place and all members of the board are notified at least seven (7) days in advance. (10) Quorum.A majority of members shall constitute a quorum. (11) Minutes.Minutes of each board meeting shall be filed with the town secretary. (Ordinance 2005-27, sec. 3, adopted 12/5/05; 2006 Code, ch. 9, sec. 1.02; Ordinance 2008-32, sec. II, adopted 10/6/08; Ordinance 2015-22 adopted 8/25/15) 152 1 2 3 Request Day Who Requested Date of Last Action 1 8.27.19 CM Geraci 6.27.23 Mayor Sanders 2 8.23.22 CM Monger 8.28.23 3 8.9.22 CM Beach 6.27.23 1.10.23 CM Beach Added twice 4 6.13.23 CM Sheridan 6.27.23 5 6.13.23 CM Sheridan 6.27.23 Future Agenda Items Future Agenda Item Hogans Glen drainage. Develop a Strategic Plan for the Town addressing future goals with budgetary needs for each department. Future Agenda Items have 3 Categories: Council requested items that need additional research and will be brought back for public discussion at a Council Meeting. For agenda items with significant research time Council will be updated. Council requested future agenda items that need to be addressed. Researched agenda items that are scheduled to be reported to Council. (first 2-4 weeks) The Future Agenda Items list will be attached to the Council Meeting agenda to provide Council with a status on all items. During Council meetings, the future agenda items will be reviewed and removed if completed or added if new agenda items need to be addressed. Footnotes may be added. The strategic plan will be addressed at a future workshop. August 28, 2023 The Town Council decided on the Hogan’s Glen drainage matter during the June 13th Council meeting by approving $150,000 from the stormwater drainage funds to the HOA to mitigate the stormwater siltation. On August 28, 2023, the Council directed the Town Attorney to create an easement agreement with the HOA. Improvements at the existing Trophy Lake/Club Drive roundabout crosswalks. The Town has received the original signage plan for the round-a-bout at Trophy Club Dr. and Trophy Lake. During the June 27th Council meeting, Councilmember Beach directed Director of Community Development Matt Cox to complete additional research on alternative options for the flashing lights in a November or December Council meeting. Short-Term rentals. Councilmember Sheridan would like to review short-term rentals before they become an issue within the Town. During the June 27th Council meeting, Town Attorney David Dodd presented a short-term rental process. Councilmember Bauer would like additional definitions of the word “owner” to be defined in the registration ordinance. The Town has passed this topic to our new Legal Counsel to review and re-visit at a future Council meeting. Town staff to provide a plan of action for trash baskets in Town-Owned inlets. Councilmember Sheridan would like staff to prepare a plan of action to install trash collector baskets in storm drain inlets in the Town with a not to exceed amount of $75,000. Also, provide a plan to have PD30 put in trash collector baskets when phase 3 begins. Interim Town Manager Arata discussed the item with the Finance subcommittee on June 27th. 153 Request Day Who Requested Date of Last Action 6 7.25.23 CM Bauer 7.25.23 7 7.25.23 CM Bauer 7.25.23 8 8.14.23 CM Oldham 8.14.23 9 Comprehensive land plan. 8.14.23 Mayor Tiffany 8.14.23 10 8.18.23 Interim TM Arata 8.18.23 8.25.20 CM Shoffner 1.10.23 ¹8.28.23 CM Sheridan 8.28.23 11 9.11.23 CM Flynn 9.11.23 Mayor Tiffany would like to fully update and revise the 1997 comprehensive land plan, which will include a park master plan. Future Agenda Item Trophy Club park revenues. Councilmember Bauer would like to explore current and new options for revenue at Trophy Club Park. Legal description guidelines. Councilmember Oldham would like our Community Development Standards to incorporate legal description guidelines in the review process for the preparation of all real property descriptions, either for or on behalf of the Town of Trophy Club, Texas. MUD feasibility report. Councilmember Bauer would like to re-visit Phase 2 of the Trophy Club Community Pool. The request includes looking at the whole project, including slides, finances, and Parks Board recommendations. TnP and the Town attorney are working on agreements for Phase II. Halff will be at the October Council meeting to discuss the pool project. On August 25, 2020, Mayor Pro Tem Philip Shoffner added the Traffic Mitigation future agenda item. This item was removed from future agenda items on January 10, 2023. On August 18, 2023, Interim Town Manager Patrick Arata added the roundabouts back to the future agenda item. A workshop for the roundabouts will be November 13, 2023. ¹ On September 11, 2023, Councilmember Flynn asked to review the full MUD feasibility report from NewGen at the second Council meeting in October. Bobcat roundabouts. Councilmember Sheridan added a workshop to be scheduled in November after sufficient data has accumulated to discuss and learn about the best solution for traffic control by the High School. Trophy Club community pool. 154