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Agenda Packet TC 04/02/2007 1 Town of Trophy Club Town Council Regular Meeting Agenda 100 Municipal Drive Trophy Club, Texas 76262 Monday, April 2, 2007 7:00 P.M. A.1 Call to order and announce a quorum. A.2 Invocation. A.3 Pledge of allegiance to the American Flag. Pledge of allegiance to the Texas Flag. "Honor the Texas flag, I pledge allegiance to thee, Texas one and indivisible." A.4 Discuss and take appropriate action regarding a Proclamation recognizing April 5th, 2007 as Friends of the Family, "Annual Take Back the Night March". A.5 Citizen presentations: this is an opportunity for citizens to address the Council on any matter whether or not it is posted on the agenda. The Council is not permitted to take action on or discuss any presentations made to the Council at this time concerning an item not listed on the agenda. The Council will hear presentations on specific agenda items prior to the Council addressing those items. B.1 Discuss and take appropriate action regarding a Joint Election Agreement between Tarrant County and the Town of Trophy Club for a joint election to be held on May 12, 2007. C.1 Public Hearing: Conduct a public hearing to receive comments relative to a request for amendment to Planned Development District No. 27, known as The Highlands at Trophy Club, by amending PD-27 in its entirety to reflect changes to various sections of PD-27, including: Exhibit "B" - "Development Standards: Section III, "Definitions"; Section IV, "Lot Type Regulations"; Table No. 4-1, "Summary of Lot Type Regulations"; Section V, "Neighborhood Regulations"; Table No. 5-1, "Neighborhood Lot and Density Summary"; Section VI, "Development and Design Standards"; Table No. 6-1, "Roadway Standards"; Section VII, "Park and Open Space Requirements"; Section VIII, "Development Schedule"; Exhibit "C", "Concept Plan"; Exhibit "D", "Street Type Exhibits"; Exhibit "E", "Park Concept Plans"; and Exhibit "F", "Pathway Plan". Applicant: Carter & Burgess, Inc., Authorized Agent of Centurion Acquisitions, L.P.; 831 Trophy, L.P.; Standards Pacific of Texas, L.P.; K. Hovnanian Homes - DFW, L.L.C.; C Oil Investments LTD. (PDAMD-07-023) 2 D.1 Discuss and take appropriate action relative to an Ordinance amending Planned Development District No. 27, known as The Highlands at Trophy Club, by amending PD-27 in its entirety to reflect changes to various sections of PD-27, including: Exhibit "B" - "Development Standards: Section III, "Definitions"; Section IV, "Lot Type Regulations"; Table No. 4-1, "Summary of Lot Type Regulations"; Section V, "Neighborhood Regulations"; Table No. 5-1, "Neighborhood Lot and Density Summary"; Section VI, "Development and Design Standards"; Table No. 6-1, "Roadway Standards"; Section VII, "Park and Open Space Requirements"; Section VIII, "Development Schedule"; Exhibit "C", "Concept Plan"; Exhibit "D", "Street Type Exhibits"; Exhibit "E", "Park Concept Plans"; and Exhibit "F", "Pathway Plan". Applicant: Carter & Burgess, Inc., Authorized Agent of Centurion Acquisitions, L.P.; 831 Trophy, L.P.; Standards Pacific of Texas, L.P.; K. Hovnanian Homes - DFW, L.L.C.; C Oil Investments LTD. (PDAMD-07-023) D.2 Discuss and take appropriate action relative to a request for Meritorious Exception to Article IV, "Sign Regulations", Section 4.06, "Commercial and Institutional Signs" of Chapter 5, "General Land Use", for one additional Development Sign for Phase II of the Eagles Ridge subdivision, to be located at 322 Eagles Court. Applicant: First Graphic Services, Inc. D.3 Discuss and take appropriate action amending Resolution 2006-24 by amending to appoint one citizen to one seat on Planning and Zoning Commission for the remainder of the unexpired term expiring in 2007. D.4 Discuss and take appropriate action regarding The Highlands At Trophy Club Development and Public Improvement District Agreement. D.5 Receive and discuss a report from Town Manager Emmons regarding ongoing contract negotiations between the Town and the Trophy Club MUDs to provide wholesale water, wastewater treatment, distribution, collection, maintenance, and billing services and options available to the Town for providing water and wastewater services D.6 Discuss and take appropriate action to approve financials and variance report dated February 2007. D.7 Discuss and take appropriate action relative to an Ordinance amending Chapter 8 of the Code of Ordinances of the Town, entitled "Nuisances", by adding Article 6, Entitled "Standing or Stagnant Water" and discuss and provide input regarding an amendment to the Swimming Pool Ordinance, Chapter 3, Article XV of the Code of Ordinances. D.8 Discuss and take appropriate action regarding an Ordinance authorizing the issuance, sale and delivery of the Town of Trophy Club, Texas General 3 Obligation Bonds, Series 2007, in the principal amount of $3,260,000, for the purpose of constructing and improving the Town's streets. D.9 Discuss and take appropriate action regarding a Resolution directing publication of notice of intention to reissue combination Tax and Revenue Certificates of Obligation Series 2007, in the amount of $474,000, for Harmony Park reconstruction and improvement loan with the payments being reimbursed to the Town of Trophy Club by EDC 4A; and authorizing the execution of all necessary documents. D.10 Discuss and take appropriate action regarding a notice from the Public Utility Commission of Texas for a Consumer Price Index Adjustment to Municipal Telecommunications Right-of Way Access Line Rates. D.11 Items for Future Agenda. D.12 Reports. There will be no action taken regarding any individual project posted under this item and discussion will be limited. If extensive discussion is required, the item may be placed on a future agenda. a) Town Council report from EDC 4A Liaison, Council member Edstrom. b) Partner's in Mobility Report. c) Town Manager's Report. E.1 Pursuant to Texas Government Code, Annotated, Subchapter 551, Section 551.071 (a) & (b) "Consultation with Attorney", the Council will enter into executive session to discuss the following: (A) Consultation with Town Attorney on a matter in which the duty of the Attorney to the Governmental Body under the Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflict with the Open Meetings Act (551.071 (b)). (1) Legal advice relative to The Highlands At Trophy Club Development and Public Improvement District Agreement. (2) Legal advice relative to the interlocal agreement between the Town and the Trophy Club MUDs to provide wholesale water, wastewater treatment, and distribution, collection, maintenance and billing services and options available to the Town for providing water and wastewater services. E.2 Discuss and provide input regarding an interlocal agreement between the Town and the Trophy Club MUDs to provide wholesale water, wastewater treatment, and distribution, collection, maintenance, and billing services options available to the Town for providing water and wastewater services. F.1 Adjourn. 4 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.A.1 Call to order and announce a quorum. 5 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.A.2 Invocation. 6 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.A.3 Pledge of allegiance to the American Flag. Pledge of allegiance to the Texas Flag. "Honor the Texas flag, I pledge allegiance to thee, Texas one and indivisible." 7 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.A.4 Discuss and take appropriate action regarding a Proclamation recognizing April 5th, 2007 as Friends of the Family, "Annual Take Back the Night March". EXPLANATION: RECOMMENDATION: ACTION BY COUNCIL: (Mayor Sanders) Attachments: 1. March 1, 2007 – Letter from Friends of the Family 2. Proclamation 8 9 TOWN OF TROPHY CLUB, TEXAS PROCLAMATION 2007 – XX Proclaiming April 2007 as Sexual Assault Awareness Month WHEREAS, sexual assault affects every adult, teen, and child in the Town of Trophy Club either as a victim/survivor of sexual assault or as a family member, significant other, friend, neighbor or co-worker; and, WHEREAS, few survivors of sexual violence seek help immediately after victimization due to shame or fear of not being believed. In order to end sexual assault, we must alleviate these fears. We must begin by believing; and, WHEREAS, many citizens of Denton County are working to provide quality services and assistance to sexual survivors; and hundreds of volunteers help staff 24- hour hotlines, respond to emergency calls and offer support and advocacy during medical care and criminal justice proceedings, and offer safe shelter; and WHEREAS, the Trophy Club Women's Club has provided financial support in the way of grants to Friends of the Family since 2002; and WHEREAS, Friends of the Family staff and volunteers promote sexual assault awareness and avoidance by offering educational programs to schools, churches, and civic organizations, as well as professional training to medical, mental health, law enforcement, and criminal justice personnel regarding sexual assault issues; and WHEREAS, Denton County Friends of the Family, other sexual assault programs, and other professionals and advocates of non-violence have joined together as the Texas Association Against Sexual Assault (TAASA) to support each other in our work and to provide the Town of Trophy Club and the State of Texas and our citizens with a central source of information on sexual assault; and WHEREAS, during the month of April Friends of the Family will be intensifying efforts to promote public understanding of sexual assault and victims of sexual assault and Friends of the Family will be emphasizing the need for citizen involvement in efforts to reduce sexual assault through public education and changing public attitudes; and WHEREAS, Friends of the Family will be working also to publicize their services, increase community support for their agency and increase awareness of the healing potential for survivors. NOW, THEREFORE, I, Nick Sanders, Mayor of the Town of Trophy club, Texas, do hereby proclaim the month of April, 2007 as: “SEXUAL ASSAULT AWARENESS MONTH,” In the Town of Trophy Club. Passed and approved by the Town Council of the Town of Trophy Club, Texas, this 2nd day of April, 2007. 10 ______________________________ Mayor, Town of Trophy Club, Texas ATTEST: ___________________________ Town Secretary, Town of Trophy Club, Texas 11 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.A.5 Citizen presentations: this is an opportunity for citizens to address the Council on any matter whether or not it is posted on the agenda. The Council is not permitted to take action on or discuss any presentations made to the Council at this time concerning an item not listed on the agenda. The Council will hear presentations on specific agenda items prior to the Council addressing those items. 12 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.B.1 Discuss and take appropriate action regarding a Joint Election Agreement between Tarrant County and the Town of Trophy Club for a joint election to be held on May 12, 2007. EXPLANATION: Tarrant County will have a polling site in the Public Services Conference Room on Saturday, May 12, 2007 from 7:00 a.m. to 7:00 p.m. This will allow the Tarrant County voters to vote for both the Constitutional Amendment and Town Election at one location. RECOMMENDATION: ACTION BY COUNCIL: (lmr) Attachments: 1. Agreement 13 JOINT ELECTION AGREEMENT This Joint Election Agreement is made by and between the Tarrant County and the Town of Trophy Club for a joint election to be held on May 12, 2007 pursuant to Chapter 271 of the Election Code and this agreement. Tarrant County is holding a special election on May 12, 2007 and the Town of Trophy Club is holding a general election on May 12, 2007. In Consideration of the mutual benefits to the parties, it is agreed as follows: 1. The parties agree to hold a “joint election” insofar as sharing a mutual polling place at the Town of Trophy Club, Public Services Building on election day. Election day voting shall be conducted by separate election officials using separate ballots and voting equipment at the common polling place. 2. Early Voting shall be conducted separately and not affected by this joint election agreement. 3. It is agreed that in exchange for the convenience afforded the Tarrant County voters of the Town of Trophy Club, the Town will not charge Tarrant County for use of the Town’s facilities as a polling place on election day. IN TESTIMONY HEREOF, this agreement has been executed on behalf of the parties hereto as follows, to-wit: 1) It has on the ____ day of __________, 2007 been executed by the Tarrant County Judge pursuant to an order of the Commissioners Court so authorizing; 2) It has on the 2nd day of April, 2007 been executed on behalf of the Town of Trophy Club pursuant to action of the Town Council so authorizing; ACCEPTED AND AGREED TO BY TARRANT COUNTY: APPROVED: ATTEST: ____________________________ ___________________________ B. Glen Whitley Suzanne Henderson COUNTY JUDGE COUNTY CLERK ACCEPTED AND AGREED TO BY THE TOWN OF TROPHY CLUB: APPROVED: ATTEST: ____________________________ ___________________________ Nick Sanders Lisa Ramsey MAYOR TOWN SECRETARY 14 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.C.1 Public Hearing: Conduct a public hearing to receive comments relative to a request for amendment to Planned Development District No. 27, known as The Highlands at Trophy Club, by amending PD-27 in its entirety to reflect changes to various sections of PD-27, including: Exhibit "B" - "Development Standards: Section III, "Definitions"; Section IV, "Lot Type Regulations"; Table No. 4-1, "Summary of Lot Type Regulations"; Section V, "Neighborhood Regulations"; Table No. 5-1, "Neighborhood Lot and Density Summary"; Section VI, "Development and Design Standards"; Table No. 6-1, "Roadway Standards"; Section VII, "Park and Open Space Requirements"; Section VIII, "Development Schedule"; Exhibit "C", "Concept Plan"; Exhibit "D", "Street Type Exhibits"; Exhibit "E", "Park Concept Plans"; and Exhibit "F", "Pathway Plan". Applicant: Carter & Burgess, Inc., Authorized Agent of Centurion Acquisitions, L.P.; 831 Trophy, L.P.; Standards Pacific of Texas, L.P.; K. Hovnanian Homes - DFW, L.L.C.; C Oil Investments LTD. (PDAMD-07-023) (sld) Attachments: 1. Planning & Zoning Recommendations to Town Council 2. Proposed PD-27, The Highlands at Trophy Club 15 PLANNING & ZONING COMMISSION RECOMMENDATION: The Planning and Zoning Commission, at their March 15, 2007 Regular Session Meeting made a recommendation to the Town Council to approve proposed PD- 27 with the following revisions. The applicant has agreed with the recommendations of the Planning & Zoning Commission and has incorporated them into their submittal dated March 19, 2007. The following changes were made during the last three Planning & Zoning Commission meetings concerning amendments to PD-27. The page numbers reflected in this list refer to the page numbers on the scanned ordinance in your packet, not the actual packet pages. • Page 15: o Revised PD acreage total to approximately 697 acres • Page 16: o Provided a general update to the project location exhibit o Revised Trophy Club Drive to Trophy Lake Drive on the Exhibit o Revised acreage total • Page 17: o Section II, Paragraph A 4, Provided a correction to the Exhibit reference • Page 18: o Definition for The Highlands at Trophy Club Concept Plan, corrected exhibit reference from Exhibit A to Exhibit C o Definition to Side Street – removed reference to alleys • Page 19: o Revised town home structure definitions to include 6 units instead of 3 units • Page 21: o Garage: Removed reference to “main façade” and replaced with “front building line” • Page 23: o Garage: Removed reference to “main façade” and replaced with “front building line” • Page 24: o Lot Type 3, Section 5, Minimum Floor Area – inserted 1800 square foot minimum. Removed table showing golf course lots and minimum one story, one and a half and two story square foot minimums. 16 • Page 25: o Side yard - changed to a 5 foot minimum from a 6 foot minimum o Garage – deleted the 4 architectural enhancements • Page 26: o Minimum floor area – inserted 1600 square foot minimum on one story building and 1800 square foot minimum for two story building. Removed table showing golf course lots and minimum one story, one and a half and two story square foot minimums. • Page 27: o Garages - removed the option of two separate bays with a 6 inch separation • Page 28 - 29 o Paragraph 1 – minimum lot square footage increased to 3000 from 2500 o Paragraph 5 – minimum lot square footage increased to 3000 from 2500 o NEW: Minimum Floor Area: 1,400 square feet. A minimum of 70% of the units shall have a minimum floor area of 1,600 square feet. Front Yard: Shall alternate from 20’ to 23’ or 25’ for each townhome structure to create a variety of front yards on each street. A 20’ and 25’ front yard shall be the typical stagger as long as a 70’ pad can be constructed within the building area of a 30’ X 105’ lot. A 23’ setback shall only be used where a 70’ pad can not be constructed. The front building line for each lot shall be shown on the Final Plat for the subdivision. OLD: Minimum Floor Area: 1,350 square feet Front Yard: Shall be 15’ or 20’ and alternate for each townhome structure. The minimum front building line for each lot shall be shown on the Final plat for the Subdivision, to create a variety of front yards on each street. • Pages 29-30: o Lot width changed to 30 feet from 25 feet o NEW: Length of Structures: Maximum six (6) units per structure. A maximum of 30% of the units shall be in a five (5) or six (6) unit structure. A 17 maximum of 65% of the units shall be in a four (4) unit structure. Garages: May face front or side street. Garage doors facing a street must have one of the following: 1. Covered by a minimum 4’ deep Porte-cochere or eave, or 2. Set back 10’ minimum from front building line; and at least one of the following: 3. Architectural enhancements to garage doors, which can include decorative hardware, decorative windows, or panel detailing. 6. Screening Regulations: Lot Type 5 shall be screened from thoroughfares. Screening materials shall be a combination of masonry, wrought iron, berms, and plant materials. 7. Layout of Structures: Six (6) unit structures on the same street shall be separated by a four (4) unit (or smaller) structure. OLD: Length of Structures: Maximum three (3) units per structure. Appearance of Structures: All town home structures shall be designed with the appearance of a single family residential structure. Garages: Must face a residential alley unless approved otherwise on the Site Plan. 6. Screening Regulations: Lot Type 5 shall be screened from thoroughfares. Screening materials shall be a combination of masonry, wrought iron, and plant materials • Page 31 o Various modifications to reflect previously shown changes 18 • Pages 32 - 34 o Section 5 Paragraphs A though I – lot counts revised to more accurately reflect concept plan o Total lot count revised to 1564 from 1535 • Page 35 – 38 o New figures added to document • Page 39 o Table 5-1 – changed to more accurately reflect concept plan lot counts • Page 49 section 6A-3 o A new street classification of Residential Avenue - 60 foot Right of Way has been added • Page 52 o Table 6-1 – Residential Avenue - 60 foot Right of Way added • Page 57 o All references to Beck Park has been removed o NEW Park Dedication Area Summary Total Area Active Use Area Passive Use Area Location (Acres) (Acres) (Acres) Northwest Park Addition 13 11 2 Northeast Park 16 8 8 Open Space 100 100 Total: 129 19 110 OLD Park Dedication Area Summary Total Area Active Use Area Passive Use Area Location (Acres) (Acres) (Acres) Northwest Park Addition 13 11 2 Northeast Park 17 8 9 Beck Park 7 7 Open Space 115 115 Total: 152 26 126 • Page 58 – Section 7, Development Schedule total build out increased by one year and total lot count changed to 1564 19 • Page 59 - Exhibit C o Acreage total revised. • Page 61 – Exhibit D o Residential Avenue - 60 foot Right of Way added o Sidewalk note added to each street type exhibit • Page 74 o Pathway Concept Plan illustrates revisions proposed by the Developer 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.D.1 Discuss and take appropriate action relative to an Ordinance amending Planned Development District No. 27, known as The Highlands at Trophy Club, by amending PD-27 in its entirety to reflect changes to various sections of PD-27, including: Exhibit "B" - "Development Standards: Section III, "Definitions"; Section IV, "Lot Type Regulations"; Table No. 4-1, "Summary of Lot Type Regulations"; Section V, "Neighborhood Regulations"; Table No. 5-1, "Neighborhood Lot and Density Summary"; Section VI, "Development and Design Standards"; Table No. 6-1, "Roadway Standards"; Section VII, "Park and Open Space Requirements"; Section VIII, "Development Schedule"; Exhibit "C", "Concept Plan"; Exhibit "D", "Street Type Exhibits"; Exhibit "E", "Park Concept Plans"; and Exhibit "F", "Pathway Plan". Applicant: Carter & Burgess, Inc., Authorized Agent of Centurion Acquisitions, L.P.; 831 Trophy, L.P.; Standards Pacific of Texas, L.P.; K. Hovnanian Homes - DFW, L.L.C.; C Oil Investments LTD. (PDAMD- 07-023) EXPLANATION: RECOMMENDATION: ACTION BY COUNCIL: (sd) Attachments: 1. Ordinance 95 TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 2007-____ P&Z AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS, AMENDING ORDINANCE NO. 2006-11 CREATING PD PLANNED DEVELOPMENT DISTRICT NO. 27, THE SAME HAVING AMENDED 2000-06 P&Z OF THE TOWN, THE SAME BEING THE COMPREHENSIVE ZONING ORDINANCE, AND HAVING AMENDED THE OFFICIAL ZONING MAP OF THE TOWN, BY ADOPTING THIS ORDINANCE TO REFLECT CHANGES TO THE REGULATIONS GOVERNING PD NO. 27 AND WITH THE PROVISIONS OF THIS ORDINANCE REPLACING IN THEIR ENTIRETY THE REGULATIONS SET FORTH IN ORDINANCE NO. 2006-11 AS MORE FULLY DESCRIBED BELOW; PROVIDING THAT THE ZONING REGULATIONS CONTAINED IN THIS ORDINANCE ARE APPLICABLE TO ALL THOSE CERTAIN TRACTS OF LAND WHICH COMPRISE PD NO. 27 AND DESCRIBED AS A TOTAL OF 696.9 ACRES OF LAND LOCATED GENERALLY 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 CITY LIMIT AND BEING MORE PARTICULARLY DESCRIBED IN EXHIBIT “A”, (A COPY OF WHICH IS ATTACHED HERETO AND INCORPORATED HEREIN) FROM ITS CURRENT ZONING AS SET FORTH IN ORDINANCE NO. 2006-11 TO THAT SET FORTH IN THIS ORDINANCE; AND PROVIDING A ZONE CHANGE EXHIBIT MAP, TO PD PLANNED DEVELOPMENT NO. 27, TO BE KNOWN AS THE HIGHLANDS AT TROPHY CLUB; PROVIDING THAT SUCH TRACT OF LAND SHALL BE USED IN ACCORDANCE WITH THE REQUIREMENTS OF THE COMPREHENSIVE ZONING ORDINANCE AND ALL OTHER APPLICABLE ORDINANCES OF THE TOWN; PROVIDING THAT THE ZONING MAP SHALL REFLECT THE AMENDMENTS TO PD PLANNED DEVELOPMENT NO. 27 ZONING DISTRICT FOR THE SUBJECT PROPERTY; PROVIDING AND INCORPORATING EXHIBIT “B”, ENTITLED “DEVELOPMENT STANDARDS”; ESTABLISHING A PROJECT LOCATION; PROVIDING A PURPOSE AND INTENT; ESTABLISHING APPLICABILITY; PROVIDING DEFINITIONS; PROVIDING LOT TYPE REGULATIONS; PROVIDING A SUMMARY OF LOT TYPE REGULATIONS FOR LOT TYPES 1-5; ESTABLISHING NEIGHBORHOOD REGULATIONS FOR NEIGHBORHOODS 1-9; PROVIDING A NEIGHBORHOOD LOT AND DENSITY SUMMARY; SETTING FORTH REGULATIONS FOR THE VILLAGE CENTER, INCLUDING PERMITTED USES AND ARCHITECTURAL AND SITE DESIGN STANDARDS; PRESCRIBING DEVELOPMENT AND DESIGN STANDARDS INCLUDING STREET TYPES, ROADWAY STANDARDS ACCESSORY STRUCTURES, SCREENING & FENCES, LANDSCAPE STANDARDS, OFF-STREET PARKING REQUIREMENTS AND RESIDENTIAL ARCHITECTURAL STANDARDS; ESTABLISHING PARKS AND OPEN SPACE REQUIREMENTS; PROVIDING A DEVELOPMENT SCHEDULE; PROVIDING & INCORPORATING EXHIBIT “C”, ENTITLED “CONCEPT PLAN”; PROVIDING & INCORPORATING EXHIBIT “D” ENTITLED “STREET TYPE EXHIBITS”; PROVIDING AND INCORPORATING EXHIBIT “E”, ENTITLED “PARK CONCEPT PLANS”, DETAILING NORTHEAST AND NORTHWEST 96 PARK CONCEPT PLANS; PROVIDING AND INCORPORATING EXHIBIT “F”, ENTITLED “PATHWAY PLAN”; PROVIDING FOR THE INCORPORATION OF PREMISES; PROVIDING FINDINGS; PROVIDING REZONING; PROVIDING APPLICABLE REGULATIONS; PROVIDING FOR A ZONING MAP AMENDMENT; PROVIDING A CUMULATIVE REPEALER CLAUSE; PROVIDING FOR SAVINGS; PROVIDING SEVERABILITY; PROVIDING A PENALTY NOT TO EXCEED THE SUM OF TWO THOUSAND DOLLARS ($2,000.00) FOR EACH OFFENSE AND A SEPARATE OFFENSE SHALL BE DEEMED COMMITTED EACH DAY DURING OR ON WHICH A VIOLATION OCCURS OR CONTINUES; PROVIDING FOR PUBLICATION; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. (PDAMD-07-23) WHEREAS, the Town of Trophy Club (hereinafter referred to as “Town”) is a Home Rule Municipality acting under its Charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Texas Local Government Code; and WHEREAS, the Town previously approved Ordinance No. 2006-11 P&Z creating PD Planned Development No. 27, known as The Highlands at Trophy Club (hereinafter “PD No. 27”); and WHEREAS, the owner of the land zoned PD No. 27 (hereinafter referred to as “Land”), filed an application with the Town requesting various amendments to the regulations governing PD No. 27, including amendments to provisions relating to total acreage, definitions, town home structures, garages, minimum floor areas, side yards, lot widths, screening regulations, layout of structures, lot counts, concept plans, park dedication, streets, and the pathway concept plan; and WHEREAS, the Land is more specifically described in Exhibit “A”, a copy of which is attached hereto and incorporated herein, and WHEREAS, all legal notices, requirements and conditions having been complied with, the case to amend PD No. 27 came before the Planning and Zoning Commission; and WHEREAS, after public notices were given in compliance with State law and public hearings were conducted, and after considering the information submitted at those public hearings and all other relevant information and materials, the Planning and Zoning Commission of the Town has recommended to the Town Council the adoption of the amendments to Ordinance No. 2006-11 as set forth in this Ordinance; and WHEREAS, after complying with all legal notices, requirements, and conditions, a public hearing was held before Town Council at which the Town Council considered the proposed amendments and considered, among other things, the impact of the proposed amendments on density, the character of the land and its suitability for particular uses, with a view of encouraging the most appropriate use of land in the 97 Town, and does hereby find that the rezoning approved hereby accomplishes such objectives; and WHEREAS, the Town Council has determined that the proposed amendments to the standards set forth in PD No. 27 provide appropriate regulatory requirements to control future residential and non-residential developments in accordance with the Town’s Comprehensive Land Use Plan and other ordinances relating to land use and zoning; and WHEREAS, the Town Council has determined that there is a necessity for the amendments to Ordinance No. 2006-11 adopting PD No. 27 to be approved and due to the scope of the amendments to those regulations contained in Ordinance No. 2006-11, the Town Council has determined that this Ordinance should be adopted, that the proposed change is consistent with the Comprehensive Land Use Plan, and that the terms of this Ordinance shall replace those terms contained in Ordinance No. 2006-11 in their entirety except as may be specifically set forth herein; NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: SECTION 1. INCORPORATION OF PREMISES The above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. SECTION 2. FINDINGS After due deliberations and consideration of the recommendation of the Planning and Zoning Commission and the information and other materials received at the public hearing, the Town Council has concluded that the adoption of this Ordinance is consistent with the Comprehensive Land Use Plan and general zoning of the Town and in the best interests of the Town of Trophy Club, Texas, and of the public health, safety and welfare. SECTION 3. REZONING A Ordinance No. 2006-11 adopting PD Planned Development District No. 27 of the Town of Trophy Club, is hereby amended so that it reads in its entirety as follows; provided however, that any terms and conditions contained in Ordinance No. 2006- 11 relative to the amendment of the Town’s Comprehensive Plan (Ordinance No. 2000-06 P&Z) shall remain in full force and effect: 1. Rezoning: The zoning on the Land, more particularly described in Exhibit 98 “A”, attached hereto and incorporated herein, is zoned as PD Planned Development District No. 27, consisting of approximately 696.9 acres of land, for use in accordance with the requirements of this Ordinance and all other applicable ordinances, rules, and regulations of the Town. Requirements of this Ordinance are more specifically described and set forth in Exhibits “A”, “B”, “C”, “D”, “E”, and “F”, which are attached hereto and incorporated herein for all purposes, and shall apply to all 696.9 acres of PD Planned Development No. 27 unless otherwise specified in such Exhibits. In the event of any ambiguities or conflicts between the written word in the Development Standards of this Ordinance and the illustrations provided in the Exhibits to this Ordinance, the Development Standards of this Ordinance shall control. a. Development Standards: The development standards for this PD Planned Development are attached hereto as Exhibit “B”, “Development Standards”, and are incorporated herein as if copied in their entirety. Such standards and regulations include, but are not limited to, a project location map, purpose and intent, applicability, definitions, lot type regulations for lot types 1-5, a summary of lot type regulations for neighborhoods 1-9 (including without limitation Table No. 4-1 and Figure No. 5-1 through Figure No. 5-2), neighborhood lot and density summary; village center regulations including but not limited to permitted uses, architectural and site design standards; development and design standards including but not limited to street types, Trophy Club Drive, minor collector, local street, local two-way court, local one-way court, alley, roadway standards (including without limitation Table No. 6-1), accessory structures, screening and fences, landscape standards, off- street parking requirements, residential architectural standards, building materials, garages, signage in residential areas, HVAC screening, lighting, franchise utilities, elevations; park and open space requirements; and a development schedule. Such Development Standards shall be adhered to in carrying out the development of the land in accordance with this Ordinance, and shall individually and collectively constitute conditions precedent to the granting of any building permit or Certificate of Occupancy for all structures within PD Planned Development No. 27. b. Concept Plan: A concept plan for the Land, and all parts thereof, is attached hereto as Exhibit “C”, “Concept Plan” and incorporated herein as if copied in its entirety. Such Concept Plan shall be adhered to in carrying out the development of the land in accordance with this Ordinance, and compliance with each and every part of this Ordinance and such plan shall constitute a condition precedent to the issuance of any building permit for the land within PD Planned Development District No. 27. c. Street Types: The street types for this PD Planned Development are 99 attached hereto as Exhibit “D”, “Street Types”, and are incorporated herein as if copied in their entirety. Such street type standards shall be adhered to in carrying out the development of the land in accordance with this Ordinance, and compliance with each and every part this Ordinance and of such plan shall constitute a condition precedent to the issuance of any building permit for the land within PD Planned Development District No. 27. d. Park Plan Concepts: The park plan concepts for this PD Planned Development are attached hereto as Exhibit “E”, “Park Plan Concepts”, and are incorporated herein as if copied in their entirety. Such Park Plan Concepts shall be adhered to in carrying out the development of the land in accordance with this Ordinance, and compliance with each and every part of this Ordinance and such plan shall constitute a condition precedent to the issuance of any building permit for the land within PD Planned Development District No. 27. e. Pathway Plan: The pathway plan areas for this PD Planned Development are attached hereto as Exhibit “F”, “Pathway Plan”, and are incorporated herein as if copied in their entirety. Such Pathway Plan shall be adhered to in carrying out the development of the land in accordance with this Ordinance, and compliance with each and every part of this Ordinance and such plan shall constitute a condition precedent to the issuance of any building permit for the land within PD Planned Development District No. 27. SECTION 4. APPLICABLE REGULATIONS In all respects the Land shall be subject to the applicable regulations contained in the Comprehensive Zoning Ordinance and all other applicable and pertinent ordinances and regulations of the Town. SECTION 5. ZONING MAP The Planning and Zoning Coordinator is hereby directed to mark and indicate on the official Zoning District Map of the Town the zoning change herein made. SECTION 6. CUMULATIVE REPEALER 100 That this Ordinance shall be cumulative of all other Ordinances and shall not repeal any of the provisions of such Ordinances except for those instances where there are direct conflicts with the provisions of this Ordinance or as specifically provided otherwise in this Ordinance. SECTION 7. SAVINGS All rights and remedies of the Town of Trophy Club, Texas, are expressly saved as to any and all violations of the provisions of any other Ordinance affecting regulations governing and regulating the zoning, platting, and subdivision of land which have secured at the time of the effective date of this Ordinance; and, as to such accrued violations and all pending litigation, both civil and criminal, whether pending in court or not, under such Ordinances same shall not be affected by this Ordinance but may be prosecuted until final disposition by the courts. SECTION 8. SEVERABILITY If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance or application thereof to any person or circumstance is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance, and the Town Council hereby declares it would have passed such remaining portions of this Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 9. PENALTY It shall be unlawful for any person to violate any provision of this Ordinance, and any person violating or failing to comply with any provision hereof shall be fined, upon conviction, in an amount not more than Two Thousand Dollars ($2,000.00), and a separate offense shall be deemed committed each day or part of a day during or on which a violation occurs or continues. SECTION 10. PUBLICATION The Town Secretary of the Town of Trophy Club is hereby directed to publish the Caption, Penalty and Effective Date of this Ordinance as required by Section 52.011 of the Texas Local Government Code and Town Charter. SECTION 11. ENGROSSMENT & ENROLLMENT 101 The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance in accordance with the Town Charter and applicable law. SECTION 12. 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 Council of the Town of Trophy Club, Texas, this 2nd day of April, 2007. Mayor Town of Trophy Club, Texas Effective Date: ____________________ [SEAL] ATTEST: Town Secretary Town of Trophy Club, Texas APPROVED TO AS FORM: Town Attorney Town of Trophy Club, Texas 102 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.D.2 Discuss and take appropriate action relative to a request for Meritorious Exception to Article IV, "Sign Regulations", Section 4.06, "Commercial and Institutional Signs" of Chapter 5, "General Land Use", for one additional Development Sign for Phase II of the Eagles Ridge subdivision, to be located at 322 Eagles Court. Applicant: First Graphic Services, Inc. STAFF COMMENTS: At their March 15, 2007, the Planning and Zoning Commission unanimously recommended approval of this request. Per the Town’s sign code, only one (1) development sign is permitted per project/premise. Sign Type Number Size Height Duration Zoning District Development 1 per project/premise 32 sq ft 5 ft 90% of all lots/houses sold All Districts The development already has one sign located at 515 Clear Vista Drive. The applicant is requesting one additional sign to be located at 322 Eagles Court. (sld) 103 104 105 106 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.D.3 Discuss and take appropriate action amending Resolution 2006-24 by amending to appoint one citizen to one seat on Planning and Zoning Commission for the remainder of the unexpired term expiring in 2007. EXPLANATION: The following is from the Handbook for Elected and Appointed Officials. Mid-Term Vacancy When a member of a board or commission resigns midterm, the Staff Liaison will obtain a letter of resignation from the member and will forward to the Town Secretary. In cases where applications exceeding the number of open seats were received during the Annual Appointment process, applicants who were not appointed during the annual appointment process will be considered first. The Town Secretary will confirm those applicants’ continued interest and then forward the previously submitted application to the Town Council for review and consideration for appointment. In cases where applications did not exceed the number of open seats during the Annual Appointment process the vacancy will be posted. The Town Secretary will ensure that the vacancy is posted: • on the marquees on Trophy Club Drive, Trophy Lake Drive and Trophy • Wood Drive for a period of at least 3 days, or as time allows; • on cable’s public information channel for a period of two weeks; and • on the Town’s web page at: www.ci.trophyclub.tx.us, for a period of two weeks. Members appointed to fill vacancies serve out the remainder of a predecessor’s term. The following applicants applied on 9/18/06 for Annual Appointment to fill three vacant seats on the P & Z Commission: Robert Ashby, James Stephens, Dennis Sheridan, Alejandro Sanchez and Cy Holly. Cy Holly withdrew on 9/13 and Robert Ashby, James Stephens, Dennis Sheridan were reappointment. On March 7, 2007, I confirmed Mr. Alejandro Sanchez interest and forwarded his application to Kerin Fleck and Gene Hill. RECOMMENDATION: ACTION BY COUNCIL: 107 Attachments: 1. Application 2. Resolution 108 109 110 111 112 TOWN OF TROPHY CLUB, TEXAS RESOLUTION NO. 2007- A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, AMENDING RESOLUTION NO. 2006-24, TO FILL A VACANCY ON PLANNING AND ZONING COMMISSION BY APPOINTING ONE (1) CITIZEN TO P & Z FOR THE REMAINDER OF THE UNEXPIRED TERM (EXPIRING IN OCTOBER, 2007); PROVIDING THAT THE REMAINDER OF RESOLUTION NO. 2006-24 SHALL CONTINUE IN FULL FORCE AND EFFECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town benefits by having its citizens involved in local government through service on Town Committees and Boards; and WHEREAS, since the adoption of Resolution No. 2006-24, one vacancy has been created on the Planning and Zoning Commission, by the resignation of Steven Stamos; and WHEREAS, the Town Council has reviewed the qualifications of applicants for service on the Planning and Zoning Commission and has determined that the appointment of one of those applicants identified herein below is appropriate. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: Section 1. That Section 2 of Resolution No. 2006-24 is hereby amended to reflect the appointment of the following individual to serve on the Planning and Zoning Commission with such term of service ending on October 1 of the year specified below: Planning and Zoning 1. (2007) Section 2. That all of the other terms and provisions of Resolution No. 2006- 24 not in conflict with the terms of this Resolution shall continue in full force and effect. Section 3. That this Resolution shall become effective from and after its date of passage in accordance with law. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this 2nd day of April, 2007. 113 ________________________________ Nick Sanders, Mayor Town of Trophy Club, Texas ATTEST: ___________________________________ Town Secretary Town of Trophy Club, Texas [Seal] APPROVED AS TO FORM: ____________________________________ Town Attorney Town of Trophy Club, Texas 114 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.D.4 Discuss and take appropriate action regarding The Highlands At Trophy Club Development and Public Improvement District Agreement. EXPLANATION: RECOMMENDATION: ACTION BY COUNCIL: (be) Attachments: 1. Benchmarks 2. Southwest Securities Review of the Highlands of Trophy Club Development PID agreement. 3. Draft Development and PID Agreement 115 Highlands at Trophy Club Development Benchmarks: PID Agreement - Proposed by Staff, Legal Counsel and Consultants. (In Progress expected approval 4/16) PID Petition– Proposed by Owner. Publication has been made. Public Hearing planned on 4/16 PD 27 Amendment – Proposed by Owner. Recommended for approval by P&Z. Presented to Council on 4/2 Early Grading Permits – Submitted to staff, reviewed by consulting engineers and staff. Expected approval mid-April Water/Waste Water Contract - Draft presented to MUD on 3/8, Reviewed by Directors of MUD1 and MUD2, Comments Bond Documents – Prepared by Vinson & Elkins. Expected completion June Service Assessment Plan – Prepared by MuniCap. Presented to Council prior to debt issuance Issuance of Debt - Approved by Council based on Recommendations and Guidance of Southwest Securities May or June Approval of Infrastructure Plans Approval Final Plats and Developer’s Agreements 116 117 THE HIGHLANDS AT TROPHY CLUB DEVELOPMENT AND PUBLIC IMPROVEMENT DISTRICT AGREEMENT THIS TROPHY CLUB DEVELOPMENT AND PUBLIC IMPROVEMENT DISTRICT AGREEMENT (this "Agreement") is executed by and between 831 Trophy, L.P., a Texas limited partnership ("Owner"), and the Town of Trophy Club, a home rule municipality located in Denton and Tarrant County, Texas (the "Town") to be effective ________________ (the "Effective Date"). Owner and the Town are sometimes individually referred to as a "Party" and collectively as the "Parties" ARTICLE I RECITALS WHEREAS, all capitalized terms used herein are defined in Article II; and WHEREAS, Owner is a Texas limited partnership; and WHEREAS, the Town is a home rule municipality located in Denton and Tarrant County, Texas; and WHEREAS, Owner is the owner of the Property; and WHEREAS, the Property is located entirely within the Town limits but outside MUD 1 and MUD 2 which are governed by individual boards and, pursuant to an interlocal agreement, are governed jointly by the Master District; and WHEREAS, Owner intends to construct certain improvements necessary to serve The Highlands at Trophy Club, a master-planned residential community comprised of approximately 1,486 residential units located within the Property, which Property is zoned to permit such use pursuant to the PD Zoning; and WHEREAS, the Parties intend for the Town to be the retail provider of water and wastewater services to the Property; and WHEREAS, the Parties acknowledge that the Town must first acquire water supply capacity and wastewater treatment capacity before the Town can provide retail water and wastewater services to the Property; and WHEREAS, Owner intends to work with the Town and other jurisdictions to acquire water supply capacity and wastewater treatment capacity; and WHEREAS, the Town intends to rebate to owner utility fees in excess of the Town’s costs of acquiring water supply capacity and wastewater treatment capacity; and WHEREAS, the Parties acknowledge that the Town, including the Property, would benefit from the Connector Road; and 118 WHEREAS, the Parties understand that Denton County and Northwest Independent School District may participate in the construction of the Connector Road; and WHEREAS, Owner intends to work with the Town and other jurisdictions to construct the Connector Road; and WHEREAS, the Parties agree to establish certain restrictions and expectations regarding the development of the Property and the construction and funding of the Public Improvements that provide a special benefit to the Property; and WHEREAS, Owner and Town estimate that the cost of the Public Improvements shall be $21,675,000 which is the maximum amount to be financed with the proceeds from the PIDBonds; and WHEREAS, the Subdivision Regulations and Subdividers Agreement require Owner to pay 100% of the costs of the public improvements, including the costs, if any, of acquisition of any additional and necessary public rights of way and easements, and the Town has agreed to exercise its powers under the PID Act, and to provide alternative financing arrangements that will enable Owner to be reimbursed for a specified portion of such costs that are paid by Owner from the proceeds of PID Bonds that are payable solely and exclusively from the receipts collected from the Bond Security, all in accordance with the procedures and requirements of the PID Act; and WHEREAS, upon receipt of a legally compliant petition signed by the Owner(s) of 100% of the Property affected thereby, the Town, subject to the consent and approval of the Town Council, and in accordance with the terms of this Agreement and all legal requirements, intends to: (i) consider and act upon the creation of the PID encompassing the Property, in accordance with the PID Act; (ii) adopt the Service and Assessment Plan; (iii) adopt the Infrastructure Assessment Ordinance (to pay for the estimated cost of the Public Improvements shown on Exhibit B and the costs associated with the administration of the PID and the issuance of the PID Bonds, not to exceed the Infrastructure Assessment; (iv) adopt the Services Assessment Ordinance and (v) issue, in one series, up to $27,000,000 principal amount of PID Bonds for the purpose of reimbursing Owner for the cost of the Public Improvements and paying associated costs as described herein; and WHEREAS, subject to the appropriate Town Council approval, the Parties anticipate that the Town will issue up to $27,000,000 principal amount of PID Bonds to finance the Public Improvements; and WHEREAS, it is the intent of this Agreement to establish certain restrictions and impose certain commitments in connection with the development of the Property and the Parties hereto are proceeding in reliance on the enforceability of this Agreement; and NOW, THEREFORE, for and in consideration of the mutual obligations of the Parties set forth in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are acknowledged, the Parties agree as follows: 119 DEFINITIONS Unless the context requires otherwise, the following terms shall have the meanings hereinafter set forth: Administrative Costs shall include, without limitation, expenses incurred in the establishment, administration, and operation of the PID. Assessment Company means MuniCap, Inc. or another firm mutually acceptable to the Town and Owner. Assessments mean the Infrastructure Assessment and the Services Assessment. Bond Indenture means the indenture under which the PID Bonds were issued. Bond Ordinance means and refers to an ordinance of the Town Council that will authorize and approve the issuance and sale to a financial institution approved by the Town and Owner of bonds or refunding bonds and provides for their security and payment, either under the terms of said ordinance or a trust indenture approved therewith. Bond Security means assessments levied against the Property by the Town. Concept Plan means the concept plan approved by the Town with the PD Zoning. Connector Road means a connector road from the southeast corner of the property owned by Northwest Independent School District to U.S. 377. Construction Fund means the interest bearing construction fund account created under the Bond Indenture. Emergency Services shall include, without limitation, fire suppression and control, inspection services, arson investigations, hazardous material response, search and rescue, emergency recovery and extraction, the 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. End Buyer means any owner, developer, tenant, user, or occupant of a Fully Developed and Improved Lot. Estoppel Fees means the $200 fee paid to the Town for a written estoppel certificate. Fully Developed and Improved Lot means any lot, regardless of proposed use, which is served by Public Improvements and for which a final plat has been approved by the Town and recorded in the real property records of Denton County. 120 Home Buyer Disclosure Program means the disclosure program, adopted by the Assessment Company, that establishes a mechanism to disclose to each End Buyer the terms and conditions under which their lot is burdened by the PID. Infrastructure Assessment means that assessment levied by the Town Council pursuant to the Infrastructure Assessment Ordinance which amounts are estimated on Exhibit C. Infrastructure Assessment Ordinance means the ordinance approved by the Town Council which levies assessments on the Property to pay fo rr the costs of the Public Improvements as well as the costs associated with the administration of the PID and the issuance of the PID bonds. Inspection Fees means the Town's duly adopted Schedule of Fees Ordinance, as amended from time to time. Master District means the Trophy Club Master District. MUD 1 means the Trophy Club Municipal Utility District No. 1. MUD 2 means the Trophy Club Municipal Utility District No. 2. Notice means the notice required or contemplated by this Agreement (or otherwise given in connection with this Agreement). PD Zoning means Town Ordinance No. 2006-11 approved on May 8, 2006, as amended by Town Ordinance No. 2007-11, approved on __________, 2007, which may be amended from time to time on application by Owner. PID means the Trophy Club Public Improvement District No. 1. PID Act means Chapter 372, Texas Local Government Code, as amended. PID Bonds means the revenue bonds secured solely by the Infrastructure Assessments.Property means the real property described and depicted in Exhibit A, a copy of which is attached hereto and incorporated herein. Public Improvement means each of those improvements allowed by the PID Act and specifically identified in Exhibit B, a copy of which is attached hereto and incorporated herein. All or a collection of more than one Public Improvement is sometimes referred to as the Public Improvements. Public Improvement Costs means the costs of the Public Improvements. Schedule of Fees Ordinance means an ordinance duly adopted by the Town that levies uniform fees associated with the development of real property in the Town. Service and Assessment Plan means the Trophy Club Public Improvement District No. 1 Service and Assessment Plan, to be adopted by the Town Council for the purpose of 121 assessing allocated costs against property located within the boundaries of the PID having terms, provisions and findings approved and agreed to by Owner and the Town, as required by this Agreement. Services Assessment means that assessment levied annually by the Town Council for Emergency Services and Administrative Costs. Services Assessment Ordinance means each Ordinance approved by the Town Council levying, on an annual basis, the Services Assessment. Shared Cost Public Improvement means a public improvement in which the PID shall participate in the funding, acquisition, and construction of the public improvement, but only to the extent that the Property benefits from the Shared Cost Public Improvement as determined in the Service and Assessment Plan. Unless otherwise expressly stated, the term means the Water Tower as defined herein. Subdividers Agreement means the subdividers agreement required by the Subdivision Regulations. Subdivision Regulations means the duly adopted subdivision regulations of the Town that were in effect as of the Effective Date. Town means the Town of Trophy Club, a home rule municipality located in Denton and Tarrant County, Texas. Town Council means the Town Council of the Town. Town Ordinances means the applicable ordinances of the Town that were in effect as of the Effective Date. Trophy Club Public Improvement District No. 1 means the public improvement district containing the Property and to be created by the Town pursuant to the PID Act and this Agreement. Utility Fee means the fee paid for the right to connect to existing services, exclusive of monthly charges for service and usage. Water Tower means the minimum 500,000 gallon elevated water storage tower to be constructed on or near the Property. Water Tower Costs means the costs of construction of the Water Tower. ARTICLE II DEVELOPMENT STANDARDS 2.1 Planned Development District and Concept Plan. Owner shall develop the Property in compliance with the PD Zoning and the attached Concept Plan in effect on the Effective Date and in compliance with subsequent amendments to the PD Zoning 122 and Concept Plan approved by the Town pursuant to the customary Town approval process for zoning and concept plans. Additionally, upon the Town's issuance of applicable permits and approvals, Owner agrees to proceed diligently with the construction and development of the public improvements under and in accordance with the terms, provisions, and conditions stated in the applicable Subdividers Agreement. 2.2 Phasing. The Parties acknowledge that the Property will be developed in phases, which phases shall be determined by Owner. Owner may submit plats for all or any portion of the Property in any sequence, at its option. 2.3 Preliminary Plats. Preliminary plats for all or a portion of the Property shall be in conformance with the Concept Plan. Street and lot layout may vary from the Concept Plan without the requirement of the submittal of a new Concept Plan, as provided in this Agreement. 2.4 Vested Rights. This Agreement shall constitute a "permit" (as defined in Chapter 245 of the Texas Local Government Code) that is deemed filed with the Town on the Effective Date. Such "permit" vests Owner with the right to develop the property in accordance with this Agreement, the PD Zoning and the Concept Plan, subject to the requirements of the Subdividers Agreement. Owner does not, by entering into this Agreement, waive any rights or obligations arising under Chapter 245 of the Texas Local Government Code. Notwithstanding the foregoing, Owner waives any and all claims that Owner has or may have that any term or provision of this Agreement violates Section 212.904 of the Texas Local Government Code, as amended. By entering into this Agreement, Owner acknowledges that it has reviewed the apportionment of costs under this Agreement and finds those costs to be roughly proportionate given all factors and in consideration for the Town’s approval of the PID. Similarly, the Town does not waive (a) any defenses it may have to such rights and claims by Owner, or (b) any rights and claims existing under Chapter 245 or 212 of the Texas Local Government Code or under any other provision of law. ARTICLE III DEVELOPMENT CHARGES 3.1 Plat Review Fees. Development of any portion of the Property shall be subject to payment to the Town of the applicable fees according to the Town's ordinances, including without limitation the Schedule of Fees Ordinance adopted or amended from time to time by the Town Council and in effect on the date of submittal of each plat application. 3.2 Inspection Fees. All improvements, whether Public Improvements defined herein or not, are subject to payment to the Town of reasonable inspection fees and charges in accordance with this Agreement, the Subdividers Agreement, and all applicable Town Ordinances, including without limitation, the Inspection Fees. 3.3 Utility Fees. After the Town issues the PID Bonds and within 30 days of the award of a contract for the construction of the Water Tower, Owner shall pay $540,000 123 to the Town to purchase water supply capacity and wastewater treatment capacity which the Town intends to acquire and operate for the benefit of the Property. The Town shall charge each applicant for a residential builder permit in need of a 5/8” meter a fee of $2,300 for such water and wastewater capacity; provided however, that such fee shall increase as meter size increases in accordance with applicable Town ordinances. 3.4 Impact Fees. The Town will not levy any impact fees or other capital recovery fees other than the Infrastructure Assessments levied pursuant to this Agreement and the Service and Assessment Plan. This provision shall not prohibit the Town from collecting impact fees that are levied by a third aprty and collected by the Town as a pass through payment to such third party. Additionally, this section shall not limit the Town Council’s legislative authority exercised consistent with state law. ARTICLE IV DEVELOPMENT CONDITIONS 4.1 Subdividers Agreement. None of the terms and provisions of this Agreement shall be construed or applied to limit, revise, or modify any of the obligations of Owner under the Subdividers Agreement. 4.2 Water and Wastewater Capacity. Before the Town levies the Assessments, the Town shall enter into an agreement to secure water and wastewater capacity for development of the Property. The Town shall use its best efforts to complete this agreement no later than May 2007. Owner acknowledges that Town will not be able to provide water and sewer service until capacity is secured and that Town is not liable to Owner for any delay in development that results from, arises out of, or relates to such delay in obtaining water and sewer capacity or providing water and sewer service to the Property. The Town shall also use its best efforts to rebate to Owner amounts in excess of its costs of acquiring water supply capacity and wastewater treatment capacity from utility fees collected by the Town pursuant to Section 3.3 of this Agreement. Such rebate amount is calculated as follows: 1,486 lots x $2,300 per lot utility fees = $3,417,800 + $540,000 = $3,957,800 - $3,800,000 = $157,800. 4.3 Water Tower. Owner's engineers shall prepare and provide all contract specifications and necessary related documents for construction of the Water Tower within 30 days after the amount collected from the PID Bonds is deposited in the Construction Fund. After deposit of the monies collected from the PID Bonds and prior to the award of a contract for the construction of the Water Tower, Owner shall deposit into the Construction Fund an amount equal to the contract price less the amount collected from the PID Bonds for construction of the Water Tower. Assuming the Property will require 300,000 gallons of capacity, the Water Tower will be constructed with a capacity of 500,000 gallons and an estimated construction cost of $1,200,000, the Parties would expect the amount collected from the PID Bonds for construction of the Water Tower to be $720,000, or 60% of the Water Tower Costs and Owner’s 124 deposit into the Construction Fund for the Water Tower to be $480,000 [($1,200,000 - $720,000 = $480,000). Owner shall not be responsible for cost overruns if the Town elects to construct the Water Tower with a capacity in excess of 500,000 gallons. 4.4 Connector Road. The parties agree that the Connector Road is needed to mitigate traffic impact resulting from the Project and to provide accessibility for the Project. Neither the Town nor the PID will participate in the costs of the Connector Road. It is anticipated that Northwest Independent School District and Denton County will each participate in the associated cost by paying approximately $900,000 toward the construction of the Connector Road with Owner to pay the remaining costs in accordance with this section. Owner has requested and the Town is amenable to acting as project manager for the construction of the Connector Road, provided that the Town has the legal authority to undertake such construction, and that all entities having jurisdiction over the Connector Road do not oppose the Town undertaking such construction. It is anticipated that if all conditions are met for the Town to construct the Connector Road. Owner's engineers shall then prepare and provide all contract specifications and necessary related documents for construction of the Connector Road within 30 days after the Town notifies Owner that Town is ready to proceed with construction. It is estimated that the cost for constructing the Connector Road will be approximately $3,500,000.00. Thirty (30) days prior to the award of a contract for the construction of the Connector Road, Owner shall deposit an amount equal to the contract price less Denton County’s contribution of $900,000 and less Northwest Independent School District’s contribution of $900,000, into an account established by Town for the costs of constructing the Connector Road. Owner is not obligated to construct that portion of the Connector Road that requires the acquisition of land, rights- of-way or easements outside the Property until the Town and other controlling jurisdictions acquire the needed rights-of-way. ARTICLE V PUBLIC IMPROVEMENT DISTRICT 5.1 Creation / New Owners. The creation, establishment, and continued operation of the PID by the Town in accordance with this Agreement is a condition to Owner's continuing obligations as set forth in this Agreement. Following execution of this Agreement, Owner shall petition the Town, as provided for in the PID Act and this Agreement, for the creation of the PID and the levy of an Infrastructure Assessment and a separate Services Assessment. If there are any sales of the Property subsequent to the submission of the petition for the creation of the PID but prior to the PID’s creation, such new owners must sign an additional petition requesting the creation of the PID. 5.2 Levy of Assessments. Subject to and after Town Council approval of the creation of the PID, Owner, the Town and the Assessment Company, will work together to prepare the Service and Assessment Plan providing for the levy of the Infrastructure Assessment and the Services Assessment on the Property. The Service and Assessment Plan will provide that the Town will levy and collect the Services Assessment on an annual basis. The Town agrees that the cost of the Services Assessment levied against the Property will be equitably allocated such that owners or residents of the Property are not bearing a disproportionate burden of the costs of such 125 services. Promptly following completion of a Service and Assessment Plan acceptable to Owner and the Town and subject to Town Council making findings that the Public Improvements and the Emergency Services confer a special benefit on the Property, the Town Council shall consider an Infrastructure Assessment Ordinance and a Services Assessment Ordinance. The Town shall use best efforts to initiate and approve all necessary documents and ordinances required to effectuate this Agreement, to create the PID and to levy the assessments. Owner and the Assessment Company shall prepare the Service and Assessment Plan and develop the Property consistent with the terms of this Agreement. Nothing contained in this Agreement shall be construed as creating a contractual obligation that controls, waives, or supplants the Town Council's legislative discretion 5.3 Acceptance of Assessments and Recordation of Covenants Running with the Land. Concurrently with the levy of the Infrastructure Assessment and the Services Assessment, Owner (and each other owner of any of the Property at the time of such levy) shall approve and accept the levy of the Infrastructure Assessment and the Services Assessment in writing and shall cause to be recorded against all of the Property, covenants running with the land that will bind any and all current and successor owners of the Property to pay the Infrastructure Assessment and the Services Assessment, with applicable interest thereon, as and when due and payable thereunder and that the purchasers of such land take their title subject to and expressly assume the terms and provisions of such assessments and the liens created thereby. ARTICLE VI PUBLIC IMPROVEMENTS 6.1 Public Improvements. The Public Improvements listed on Exhibit B shall be updated by Owner consistent with the Service and Assessment Plan and the PID Act and shall reflect those public improvements on each approved final plat(s) for the Property as each final plat for each phase of the Property is approved by Town Council. Owner shall include an updated Exhibit B with each final plat application which shall be submitted to Town Council for consideration and approval concurrently with the submission of each final plat. Upon approval by Town Council of an updated Exhibit B this Agreement shall be deemed amended by such approved updated Exhibit B. The Public Improvement Costs and the timetable for installation of the Public Improvements, will be reviewed annually by the Parties in an annual update of the Service and Assessment Plan adopted and approved by the Town. 6.2 Shared Cost Public Improvements/the Water Tower. Shared Cost Public Improvements include, but are not limited to, the Water Tower. Upon full development of the Highlands of Trophy Club residential community, the Property will require 300,000 gallons of water per day, on average. The Town intends to construct the Water Tower on or near the Property for the express purpose of storing water to supply to the Property and for surrounding properties within the Town. The Water Tower shall be constructed with a minimum 500,000 gallons of capacity. Because the Property will only benefit from a portion of the Water Tower capacity, the PID shall fund only a 126 percentage of the costs of acquisition and construction of the Water Tower in an amount not to exceed that portion. 6.3 Construction, Ownership, and Transfer of Public Improvements. (a) Construction Plans. Based upon Owner’s time estimates, the parties expect that all Public Improvements will be completed within three years of the issuance of the PID Bonds. Owner shall prepare plans and specifications for each of the Public Improvements and submit them to the Town for approval in accordance with this section. The Town shall have 30 business days from its receipt of construction and/or engineering plans, or any amendment to previously approved plans, to approve or deny the plans; otherwise the plans are deemed approved. (b) Contract Award. The contracts for construction of Public Improvements shall be let in the name of the Town. Owner's engineers shall prepare and provide all contract specifications and necessary related documents within thirty (30) days of Town’s request for such documents. The Town shall administer all contracts. The costs of construction shall be paid from PID bond funds in accordance with Exhibit B and the Bond Indenture. (c) Construction Standards and Inspection. The Public Improvements shall be constructed and inspected in accordance with applicable state law, Town ordinances, building codes, the Bond Ordinance and other development requirements, including those imposed by any other governing body or entity with jurisdiction over the Public Improvements. At the Town's election, inspection of the Public Improvements to confirm compliance with applicable requirements will be either by a third-party inspector or in-house inspector selected by the Town. Such inspector shall be paid by the Town from Inspection Fees collected by the Town. (d) Competitive Bidding. This Agreement and construction of the Public Improvements are anticipated to be exempt from competitive bidding pursuant to Texas Local Government Code Section 252.022(a)(9) and 252.022(a)(11) based upon current cost estimates. However, in the event that the actual costs for the Public Improvements do not meet the parameters for exemption from the competitive bid requirement, then either competitive bid or alternative delivery methods may be utilized by Town as allowed by law. Notwithstanding the foregoing, the Town may elect to competitively bid or utilize alternative delivery methods for any portion or all of the Public Improvements. (e) Ownership. All of the Public Improvements shall be owned by the Town. Owner agrees to take any action reasonably required by the Town to transfer or otherwise dedicate easements for the Public Improvements to the Town and the public. The Town shall operate and maintain the Public Improvements. 127 ARTICLE VII PID BONDS 7.1 PID Bond Issuance. The Town intends to issue PID Bonds solely for the purpose of financing the costs of the Public Improvements and related costs (including Administrative Costs) and paying issuance costs and the cost of funding all reserves, accounts, and funds required by the Bond Ordinance (including a capitalized interest account, a debt service reserve fund and the Construction Fund. The Town and Owner have determined and hereby agree that the total estimated maximum aggregate costs of the Public Improvements is $21,675,000 and that the estimated maximum aggregate principal amount of the Bonds is $.27,000,000. By July 1, 2007, the Town intends to submit to Town Council an agenda item to issue PID Bonds in an amount up to but not to exceed the estimated maximum aggregate principal Bond amount of $27,000,000, with up to a 30 year maturity. Notwithstanding the foregoing, the Town’s obligation to issue PID bonds is subject to the Towns’ review and approval of (i) the bond security to ensure that there is sufficient value to repay the bonds and (ii) a market analysis to ensure that the assessments are reasonable relative to the market, as determined by the Town Council. 7.2 Bond Funds Deposited. Once the PID Bonds have been issued and the monies collected from the sale of those PID Bonds, those monies shall be applied in the following order of priority: First, to pay the costs of issuance, including all reasonable costs and expenses of the Town (including administrative expenses incurred prior to closing of the Bonds) not previously reimbursed by Owner, and any fees and expenses of the bond trustee, bond counsel, underwriter's counsel, and counsel to the trustee; Second, to pay the costs of funding all reserves, accounts and funds required by the Bond Ordinance, including, but not limited to capitalized interest; Third, to reimburse Owner for 50 percent of the costs of Acquisition Of Public Property specifically set forth on Exhibit B as allowed by the PID Act and as an offset for other expenses related to overall development of the Property; and Fourth, as a deposit into the Construction Fund created under the Bond Indenture. The Bond Indenture shall provide that after payments are made as set out above, the amounts on deposit in the Construction Fund shall be applied first, to pay for the Shared Cost Public Improvements, and second, to pay for the other Public Improvements. The Bond Indenture shall also provide that the last 50 percent of the costs of Acquisition Of Public Property shall be paid to Owner according to the following formula: [remaining 50 percent is paid on a percentage of completion of the Public Improvements basis such that all amounts are paid when Public Improvements are 75 percent complete]. If funds remain in the Construction Fund after the completion and/or acquisition of the Public 128 Improvements, then such funds shall thereafter be applied to pay or retire the PID Bonds. 7.3 Cost for Non Bank Qualified Bonds. Owner agrees to pay Town any additional cost Town may incur in the issuance of the PID Bonds and / or in the issuance of other Town obligations, whether prior to or after the execution of this Agreement because the PID Bonds or other Town obligations are deemed non bank qualified as a result of the issuance of the PID Bonds. The Town's Financial Advisor shall calculate such amount and the Town shall provide a written invoice to Owner. Owner shall pay such costs to Town within thirty (30) days of the date of Town's invoice. ARTICLE VIII PAYMENT OF PUBLIC IMPROVEMENTS 8.1 Construction Fund. On the date of issuance of the PID Bonds, the Town shall establish the Construction Fund. The Construction Fund shall be maintained at a current depository bank for Town funds and shall not be commingled with any other funds of the Town. The Town acknowledges that the funds in the Construction Fund shall be dedicated solely to the payment of the costs of Public Improvements, including Shared Cost Public Improvements, and in accordance with this Agreement and the PID Act. The Construction Fund shall be administered and controlled (including signatory authority) by the Town and funds in the Construction Fund shall be deposited and disbursed in accordance with the terms of the Bond Indenture. In the event of any conflict between the terms of this Agreement and the terms of the Bond Indenture relative to deposit and/or disbursement, the terms of the Bond Indenture shall control. 8.2 Cost Overrun. In advance of letting a contract for the Public Improvements, the Town shall confirm that the cost for construction of such Public Improvements, including Shared Cost Public Improvements, is consistent with the estimated cost provided on Exhibit B. If the total cost of the Public Improvements exceed by more than 10 percent the total amount of monies on deposit in the Construction Fund, Owner shall be responsible for the remainder of the costs of the Public Improvements. If the total Water Tower costs exceed the total amount of monies deposited in the Construction Fund, Owner shall be responsible for the remainder of the costs of the Water Tower. Prior to the award of the construction contract for the Water Tower, Owner shall post an irrevocable letter of credit in favor of Town in the amount of $250,000 as security for the obligation imposed by this section. The letter of credit shall be in form acceptable to and approved by the Town. 8.3 Remainder For Public Improvements. If funds remain in the Construction Fund after the completion of the Public Improvements, including Shared Cost Public Improvements, and the payment of all costs of Public Improvements, including Shared Cost Public Improvements, pursuant to the terms of this Agreement, then such funds shall thereafter be the exclusive property of the Town and shall be used by the Town for the purpose of paying or retiring the PID Bonds. 129 ARTICLE IX TERM The term of this Agreement shall be the greater of: (a) the period during which PID Bonds remain outstanding, or (b) for as long as MUD 1 and/or MUD 2 exist and continues to pay a fee for Emergency Services to the Town. ARTICLE X EVENTS OF DEFAULT; REMEDIES 10.1 Events of Default. No Party shall be in default under this Agreement until notice of the alleged failure of such Party to perform has been given in writing (which notice shall set forth in reasonable detail the nature of the alleged failure) and until such Party has been given a reasonable time to cure the alleged failure (such reasonable time to be determined based on the nature of the alleged failure, but in no event more than thirty (30) days after written notice of the alleged failure has been given). Notwithstanding the foregoing, no Party shall be in default under this Agreement if, within the applicable cure period, the Party to whom the notice was given begins performance and thereafter diligently and continuously pursues performance until the alleged failure has been cured. Notwithstanding the foregoing, however, a Party shall be in default of its obligation to make any payment required under this Agreement if such payment is not made within twenty days after it is due. 10.2 Remedies. If a Party is in default, the aggrieved Party may, at its option and without prejudice to any other right or remedy under this Agreement, seek any relief available at law or in equity, including, but not limited to, an action under the Uniform Declaratory Judgment Act, or actions for specific performance, mandamus, or injunctive relief. NOTWITHSTANDING THE FOREGOING, HOWEVER, NO DEFAULT UNDER THIS AGREEMENT SHALL ENTITLE THE AGGRIEVED PARTY TO TERMINATE THIS AGREEMENT. In addition to the aforementioned remedies, if Owner is in default under this Agreement the Town shall have the right to withhold approval of any final plat or disallow any additional meter installation with respect to the land covered by such final plat, which delay in approval may extend until Owner's default has been cured. The remedies set forth in this section are the sole and exclusive remedies for a default under this Agreement. This provision shall be sufficient evidence of Owner's waiver of any statutory approval periods as specified in the Chapter 212 of the Texas Local Government Code, as amended. 10.3 Governmental Powers; Waivers of Immunity. By its execution of this Agreement, the Town does not waive or surrender any of its governmental powers, immunities, or rights. Nothing in this Agreement is intended to delegate or impair the performance by the Town of its governmental functions Notwithstanding the foregoing, the Town acknowledges that this Agreement is a contract subject to Texas Local Government Code Chapter 271, Subchapter I. 130 ARTICLE XI ASSIGNMENT AND ENCUMBRANCE 11.1 Assignment. This Agreement is made solely for the benefit of the Town and Owner, and is not assignable except as follows: (a) the Owner may, without further consent or acknowledgement of the Town, pledge its rights hereunder to any lender or financial institution lending funds related to the Property; (b) the Owner may, without the consent or acknowledgement of the Town, assign its interest to a related entity that is an entity that is controlled or under common control with Owner so long as no other interest in this Agreement shall be created for an unrelated third party; and (c) the Owner may, with the prior written consent of the Town (which consent shall be considered by the Town in good faith based upon financial and performance criteria, and which shall not be unreasonably withheld, conditioned or delayed), otherwise assign its interest, in whole or in part in this Agreement to any person or entity that is or will become an owner of any portion of the Property. This Agreement may not be assigned by the Town. No other person shall acquire or have any right hereunder or by virtue hereof. Notwithstanding the foregoing, however, this Agreement shall continue to bind the Property and shall survive any transfer, conveyance, or assignment occasioned by the exercise of foreclosure or other rights by a lender, whether judicial or non-judicial. Any purchaser from or successor owner through a lender of any portion of the Property shall be bound by this Agreement and shall not be entitled to the rights and benefits of this Agreement with respect to the acquired portion of the Property until all defaults under this Agreement with respect to the acquired portion of the Property have been cured. 11.2 Encumbrance by Town. The Town shall not collaterally assign, pledge, grant a lien or security interest in, or otherwise encumber any of its rights, title, or interest under this Agreement without Owner's prior written consent. 11.3 Assignees as Parties. An Assignee approved or authorized in accordance with this Agreement shall be considered a "Party" for the purposes of this Agreement. ARTICLE XII RECORDATION AND ESTOPPEL CERTIFICATES 12.1 Binding Obligations. This Agreement and all amendments hereto (including amendments to the Concept Plan as allowed in this Agreement) and assignments hereof shall be recorded in the Real Property Records of Denton County. This Agreement, when recorded, shall be binding upon the Parties and their successors and assigns permitted by this Agreement and upon the Property; however, this Agreement shall not be binding upon, and shall not constitute any encumbrance to title as to, any End-Buyer of a Fully Developed and Improved Lot except for land use and development regulations that apply to such lots. 12.2 Estoppel Certificates. From time to time upon written request of Owner or any future owner, and upon the payment of a $200.00 fee to the Town , the Town Manager or his/her designee will, in his official capacity and to his best knowledge and belief, 131 execute a written estoppel certificate identifying any obligations of Owner under this Agreement that are in default or, with the giving of notice or passage of time, would be in default; and stating, to the extent true, that to the best knowledge and belief of the Town, Owner or future owner is in compliance with its duties and obligations under this Agreement. ARTICLE XIII ADDITIONAL PROVISIONS 13.1 Recitals. The recitals contained in this Agreement: (a) are true and correct as of the Effective Date; (b) form the basis upon which the Parties negotiated and entered into this Agreement; (c) are legislative findings of the Town Council of the Town; and (d) reflect the final intent of the Parties with regard to the subject matter of this Agreement. In the event it becomes necessary to interpret any provision of this Agreement, the intent of the Parties, as evidenced by the recitals, shall be taken into consideration and, to the maximum extent possible, given full effect. The Parties have relied upon the recitals as part of the consideration for entering into this Agreement and, but for the intent of the Parties reflected by the recitals, would not have entered into this Agreement. 13.2 Notices. All Notices shall be in writing, shall be signed by or on behalf of the Party giving the Notice, and shall be effective as follows: (a) on or after the 10th business day after being deposited with the United States mail service, Certified Mail, Return Receipt Requested with a confirming copy sent by FAX; (b) on the day delivered by a private delivery or private messenger service (such as FedEx or UPS) as evidenced by a receipt signed by any person at the delivery address (whether or not such person is the person to whom the Notice is addressed); or (c) otherwise on the day actually received by the person to whom the Notice is addressed, including, but not limited to, delivery in person and delivery by regular mail or by E-mail (with a confirming copy sent by FAX). All Notices given pursuant to this section shall be addressed as follows: To the Town: Town of Trophy Club Attn: Town Manager Brandon Emmons 100 Municipal Drive Trophy Club, Texas 76262 FAX: 817-491-9232 Email: bemmons@ci.trophyclub.tx.us With a copy to: Town of Trophy Club Attn: Town Attorney Patricia Adams 100 Municipal Drive Trophy Club, Texas 76262 FAX: 817-491-9312 Email: padams@ci.trophyclub.tx.us 132 With a copy to: Vinson & Elkins Attn: Lila Marsh, Bond Counsel Trammel Crow Center 2001 Ross Avenue, Suite 3700 Dallas, Texas 75201 Email: lmarsh@velaw.com To Owner: Centurion American Development Group Attn: Mehrdad Moayedi 3901 W. Airport Freeway, Suite 200 Bedford, Texas 76021 FAX: 817-391-2501 E-mail: laura@centurionamerican.com With a copy to: Misty Ventura Hughes & Luce LLP 1717 Main Street Suite 2800 Dallas, Texas 75201 FAX: 214-939-5849 E-mail: misty.ventura@hughesluce.com 13.3 Interpretation. The Parties acknowledge that each has been actively involved in negotiating this Agreement. Accordingly, the rule of construction that any ambiguities are to be resolved against the drafting Party will not apply to interpreting this Agreement. In the event of any dispute over the meaning or application of any provision of this Agreement, the provision will be interpreted fairly and reasonably and neither more strongly for nor against any Party, regardless of which Party originally drafted the provision. 13.4 Authority and Enforceability. The Town represents and warrants that this Agreement has been approved by ordinance or resolution duly adopted by the Town Council of the Town in accordance with all applicable public notice requirements (including, but not limited to, notices required by the Texas Open Meetings Act) and that the individual executing this Agreement on behalf of the Town has been duly authorized to do so. Owner represents and warrants that this Agreement has been approved by appropriate action of Owner, and that the individual executing this Agreement on behalf of Owner has been duly authorized to do so. Each Party acknowledges and agrees that this Agreement is binding upon such Party and enforceable against such Party in accordance with its terms and conditions. 13.5 Entire Agreement; Severability. This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements, whether oral or written, covering the subject matter of this Agreement. This Agreement shall not be modified or amended except in writing signed by the Parties. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable for any reason, then: (a) such unenforceable provision shall be deleted from this Agreement; (b) the 133 unenforceable provision shall, to the extent possible and upon mutual agreement of the parties, be rewritten to be enforceable and to give effect to the intent of the Parties; and (c) the remainder of this Agreement shall remain in full force and effect and shall be interpreted to give effect to the intent of the Parties. 13.6 Applicable Law; Venue. This Agreement is entered into pursuant to, and is to be construed and enforced in accordance with, the laws of the State of Texas, and all obligations of the Parties are performable in Denton County. Exclusive venue for any action to enforce or construe this Agreement shall be in the Denton County District Court. 13.7 Non Waiver. Any failure by a Party to insist upon strict performance by another Party of any material provision of this Agreement shall not be deemed a waiver thereof, and the Party shall have the right at any time thereafter to insist upon strict performance of any and all provisions of this Agreement. No provision of this Agreement may be waived except by writing signed by the Party waiving such provision. Any waiver shall be limited to the specific purposes for which it is given. No waiver by any Party of any term or condition of this Agreement shall be deemed or construed to be a waiver of any other term or condition or subsequent waiver of the same term or condition. 13.8 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and constitute one and the same instrument. 13.9 Further Documents. The parties agree that at any time after execution of this Agreement, they will, upon request of another party, execute and deliver such further documents and do such further acts and things as the other party may reasonably request in order to effectuate the terms of this Agreement. This provision shall not be construed as limiting or otherwise hindering the legislative discretion of the Town Council seated at the time that this Agreement is executed or any future Town Council. 13.10 Exhibits. The following Exhibits are attached to this Agreement and are incorporated herein for all purposes: Exhibit A Description and Depiction of the Property Exhibit B List of Public Improvements Exhibit C Infrastructure Assessment Chart 13.11 Costs and Expenses. Owner agrees that it will pay all of the Town's costs and expenses (including legal fees and financial advisory fees) related to the PID, including the Town's overhead costs and expenses. The Town's advisors shall submit to the Town, on a monthly statement, their fees relating to the establishment and administration of the PID, including legal fees relating to the development and review of the Assessment Plan. The Owner will pay these fees on behalf of the Town on a monthly basis. All fees of legal counsel related to the issuance of the Bonds, including fees for the preparation of customary bond documents and the obtaining of Attorney General approval for the Bonds, will be paid at closing from proceeds of the Bonds in accordance with the Town's customary arrangements with bond counsel. In addition 134 there shall be levied, as part of the infrastructure assessment, an administrative assessment which shall be paid annually to the Town to compensate the Town for its costs and expenses of administering and operating the PID. 13.12 Home Buyer Disclosures. Owner shall comply with the Home Buyer Disclosure Program and shall deed restrict the Property in a manner that obligates all subsequent individuals, corporations or other entities who purchase the Property or a portion thereof to comply with such Home Buyer Disclosure Program. Owner shall provide Town with written documentation that Owner has complied with this provision. [SIGNATURES APPEAR ON THE FOLLOWING PAGE] 135 Executed by Owner and the Town to be effective on the Effective Date. TOWN OF TROPHY CLUB, DENTON COUNTY, TEXAS By: Nick Sanders, Mayor ATTEST: By: Name: Title: STATE OF TEXAS § § COUNTY OF DALLAS § Before me, the undersigned authority, on this day personally appeared Nick Sanders, Mayor of the Town of Trophy Club, Denton County, Texas, a home rule city, and acknowledged to me that he executed the same on behalf of said Town. Notary Public in and for the State of Texas 136 831 TROPHY, L.P., a Texas limited partnership By: MMM Ventures, LLC, its general partner By: Mehrdad Moayedi, its Managing Partner STATE OF TEXAS § § COUNTY OF DALLAS § Before me, the undersigned authority, on this day personally appeared Mehrdad Moayedi, Managing Partner of MMM Ventures, LLC, general partner of 831Trophy, L.P., a Texas limited partnership, and acknowledged to me that he executed the same on behalf of said limited partnership. Notary Public in and for the State of Texas 137 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.D.5 Receive and discuss a report from Town Manager Emmons regarding ongoing contract negotiations between the Town and the Trophy Club MUDs to provide wholesale water, wastewater treatment, distribution, collection, maintenance, and billing services and options available to the Town for providing water and wastewater services EXPLANATION: RECOMMENDATION: ACTION BY COUNCIL: (be) Attachments: 1. Flowcharts 138 139 Item #1: Cash Settlement: How much should the MUDs be paid by the Town in order to tie in to the current infrastructure: Is $3.8 million an acceptable number? Yes, proceed to Item #2. No. Discussion Item #2: Payment Schedule: What is an acceptable down payment? Is the $540k offer proposed by centurion acceptable upon closing of the PID? Yes, proceed to item #3. No. Discussion Item #3: Balance for the remaining $3.26 million: Can the remaining $3.26 million be paid at the time of permitting? Yes, $2300 per permit, proceed to Item #4 No. Discussion Item #4: Permitting Timeline: Will a guarantee of 150 permits per year (cumulative) be acceptable? Yes, proceed to item #5 No, Discussion Item #5: Penalties: Is a 10% interest per annum acceptable if the remaining balance is not paid in 5 years after the first permit is pulled? Yes, proceed to conclusion No. Conclusion: The Town of Trophy Club will pay the Trophy Club MUDs a total of $3.8 million to connect to the existing water and wastewater infrastructure owned by the MUDs. A down payment of $540,000 will be made immediately following the closing and funding of the Highland’s PID. The remaining balance of $3,260,000 will be paid at a rate of $2300 per permit with a minimum of 150 140 permits pulled annually. The number of permits will be cumulative beginning on the date of the first permit. In the event that the remaining balance is not paid within five years, an interest of 10% per annum will be assessed on the remaining balance. 141 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.D.6 Discuss and take appropriate action to approve financials and variance report dated February 2007. EXPLANATION: RECOMMENDATION: ACTION BY COUNCIL: Attachments: 1. None 142 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.D.7 Discuss and take appropriate action relative to an Ordinance amending Chapter 8 of the Code of Ordinances of the Town, entitled "Nuisances", by adding Article 6, Entitled "Standing or Stagnant Water" and discuss and provide input regarding an amendment to the Swimming Pool Ordinance, Chapter 3, Article XV of the Code of Ordinances. EXPLANATION: While our current swimming pool ordinance addresses clarity of water, it does not provide a means for abatement. This leaves us without the ability to address health and safety concerns in vacant property or property for which the owner fails to comply. With varying opinions as to the scope that this ordinance should cover, staff is presenting Council with two options to address this issue. The first option is an amendment to the nuisance ordinance that Council saw at the last meeting which covers more than just swimming pools, but eliminates its applicability to some bodies of water that the Council expressed concern about during the last meeting. The second option is strictly the addition of an abatement section to our existing pool ordinance. This option would not provide us with the ability to enter a property in order to address complaints that were not related specifically to in-ground swimming pools. If Council prefers to proceed with the amendment of the existing pool ordinance and approves the language in the draft provided below, staff will place that ordinance in final form on the April 16th Consent Agenda. In the past two years, we have had 22 issues related to in-ground swimming pools, fifteen of which occurred last summer. Non-swimming pool related complaints are grouped in general code enforcement or nuisance issues, so we don’ have exact numbers. However, we can recall five specific issues, two involving tires, one Koi pond, one kiddie pool and one standing groundwater issue on a developer’s property. (bg) Attachments: 1. Ordinance adding Article 6 to address standing or stagnant water 2. Draft language for amendment to swimming pool ordinance 143 OPTION 1: Addition of standing or stagnant water ordinance to Nuisance Section in the Code of Ordinances. TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 2007 - AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS, AMENDING CHAPTER 8 OF THE CODE OF ORDINANCES OF THE TOWN OF TROPHY CLUB, TEXAS, BY ADDING ARTICLE 6, ENTITLED "STANDING OR STAGNANT WATER," TO PROVIDE FOR NEW PROVISIONS REGULATING STANDING OR STAGNANT WATER; PROVIDING FOR INCORPORATION OF PREMISES; SETTING FORTH DEFINITIONS; PRESCRIBING STANDING, STAGNANT OR NON-MAINTAINED WATER REGULATIONS; PROVIDING FOR ABATEMENT; PROVIDING FOR NOTICE OF VIOLATION; PROVIDING CRITERIA FOR MUNICIPAL COURT PROSECUTION; PROVIDING A PENALTY NOT TO EXCEED THE SUM OF TWO THOUSAND DOLLARS ($2,000.00) FOR EACH OFFENSE AND A SEPARATE OFFENSE SHALL BE DEEMED COMMITTED EACH DAY DURING OR ON WHICH A VIOLATION OCCURS OR CONTINUES; PROVIDING A CUMULATIVE REPEALER CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR PUBLICATION; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town of Trophy Club is a home rule municipality acting under its charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution; and WHEREAS, the Town Council finds that standing, stagnant or non-maintained water has and can cause health and safety risks which can otherwise cause or contribute significantly to adverse impacts to the residents of the Town; and WHEREAS, the Town Council finds that standing, stagnant or non-maintained water can cause deterioration in the aesthetic and environmental quality of the Town; and WHEREAS, the Town Council now deems it necessary for the safe, orderly, and healthful development of the Town and in the best interest of the Town of Trophy Club, Texas, to adopt new regulations governing standing and stagnant water within the Town. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: SECTION 1. INCORPORATION OF PREMISES The above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. SECTION 2. DEFINITIONS 144 Body of Water shall mean any/all water contained within any manufactured or man-made or non-naturally occurring structure; including, but not limited to, fountains,reflecting pools, private or semi-private swimming pools, or other items so that such items do not harbor or serve as a breeding ground for mosquitoes, flies or other pests, or adversely impacts the public health and safety, or creates an odor nuisance. This term shall not include Public Storm Water Systems or lakes and ponds located in Recreational Areas. Designated Officer shall mean the Code Enforcement Officer or Municipal Health Authority for the Town of Trophy Club, Texas, or his or her designee. Municipal Health Authority shall mean the Town Health Officer appointed pursuant to the Local Public Health Reorganization Act, as amended. Non-maintained shall mean the failure to keep a Body of Water clean, bacteria and insect free by chemical or mechanical means. Owner shall mean any individual, firm, corporation, partnership, sole proprietorship or any other legal entity owning any real property, whether occupied or unoccupied; improved or unimproved, within the corporate limits of the Town. Public Storm Water Systems shall mean the system of conveyances (including sidewalks, roads with drainage systems, municipal streets, catch basins, curbs, gutters, ditches, man-made channels, inlets, piped storm drains, pumping facilities, retention and detention basins, natural and human-made or altered drainage channels, reservoirs, and other drainage structures or storm drains) owned and operated by the Town and designed or used for collecting or conveying storm water, and which is not used for collecting or conveying sewage. Recreational Areas shall mean the common areas utilized for recreational purposes and which are open for use to the general public; a private association, including a Home Owners’ Association (HOA) or a private club. Stagnant shall mean standing or non-flowing Body of Water. SECTION 3. UNLAWFUL TO PERMIT THE PONDING OF STANDING, STAGNANT OR NON-MAINTAINED WATER A. It shall be unlawful for any Owner to cause, permit, maintain, or allow one or more of the following conditions, each of which is hereby deemed a public nuisance: The accumulation or ponding of standing, stagnant, or non-maintained Body of Water that harbors or is a breeding ground for mosquitoes, flies, or other pests or which causes a foul odor or adversely impacts the public health and safety by any means. B. A finding by a Code Enforcement Officer or Municipal Health Authority of the Town that accumulations or ponding of a Body of Water are remaining or have remained for a period in excess of forty-eight (48) hours shall constitute prima-facie evidence that standing, stagnant, or non-maintained Body of Water is conducive to the breeding or harboring of mosquitoes, flies, or other pests. Such finding by the Designated Officer may be made by one or more methods, including without limitation: measures of water turbidity, the presence of excessive organic matter in the water, the presence of foul 145 odors, visually apparent algal growth, or the presence of mosquitoes, flies, or other pests. The presence of mosquito larva is not required for standing, stagnant, or non- maintained Body of Water to be classified as a public nuisance. SECTION 4. ABATEMENT A. It shall be the duty of any Owner to abate nuisances described in this Article by: 1. Treating or causing the treating of standing or stagnant Body of Water with a material, either natural or man-made, that eliminates any offensive odor and renders the area harmless to the public health and eliminates the potential breeding ground for mosquitoes, flies or other pests. B. It shall be the duty of all Owners to maintain items that constitute a Body of Water, including but not limited to fountains, reflecting pools or ponds, private or semi-private swimming pools or other items so that such items do not harbor or serve as a breeding ground for mosquitoes, flies or other pests, or adversely impact the public health and safety, or create an odor nuisance. SECTION 5. NOTICE OF VIOLATION A. Notice Content. In the event that any Owner fails to comply with the provisions of this Article, the Town shall give seven (7) days notice in writing to such Owner of the violation of this Article. Such written notice shall be given: 1. Personally to the Owner in writing by letter addressed to the Owner at the Owner’s address as recorded in the appraisal district records for the appraisal district in which the property is located; or 2. If personal service cannot be obtained: a. By publication at least once in a newspaper of general circulation within the Town; or b. By posting the notice on or near the front door of each building to which the violation relates; or c. By posting the notice on a placard attached to a stake driven into the ground on the property to which the violation relates, if the property contains no building. 3. Notice Deemed Delivered. If the notice to an Owner is mailed in accordance with Subsection A, and the United States Postal Service returns the notice as “refused” or “unclaimed,” the validity of the notice is not affected, and the notice shall be considered as delivered. B. Abatement. If an Owner notified of a violation in accordance with this Article fails or refuses to comply with the provisions of this Article within seven (7) days of such notice of violation, the Town may go upon such Owner’s property and do or cause to be done 146 the work necessary to obtain compliance with this Article, pay for the work done or improvements made, and charge the expenses incurred in doing or having same done to such Owner by any means lawfully available. This remedy shall be cumulative of criminal prosecution as set forth in this Article. C. Future Violations Notice. In a notice provided under this Section, the Town may inform the Owner by regular mail and by a posting on the property, or by personally delivering the notice, that if such Owner commits another violation of the same kind or nature that poses a danger to the public health and safety on or before the first anniversary of the date of the notice, the Town without further notice may correct the violation at the Owner’s expense and assess the expense against the property. If a violation covered by a notice under this Section occurs within the one-year period, and the Town has not been informed in writing by the Owner that there has been a change in ownership, then the Town, without notice, may take any action permitted by Subsection B of this Section and assess its expenses as provided in Subsection D of this Section. D. Charges Assessed. The charges provided for in this Article shall be assessed against the real property on which the abatement work is done or improvements made and collected by the Town of Trophy Club, Texas. In the event the Owner of such premises upon which work was done and charges were incurred fails or refuses to pay such charges and expenses within thirty (30) days after the first day of the month following the one in which the work was done, a lien may be filed. To obtain a lien against the property, the Mayor, Municipal Health Authority or municipal official designated by the Mayor must file a statement of expenses with the County Clerk of the County in which the Town is located. The lien statement shall state the name of the Owner, if known, and the legal description of the property. The lien attaches upon the filing of the lien statement with the County Clerk. The lien on the property involved shall be inferior only to tax liens and liens for street improvements to secure the expense incurred, is security for the expenditures made, and shall accrue interest at the rate of ten (10) percent on the amount due from the date of payment by the Town. For any such expenditures and interest due, as aforesaid, the Town Council may bring a suit for foreclosure in the name of the Town of Trophy Club. The statement of expenses or a certified copy of the statement is prima facie proof of the expenses incurred by the Town in doing the work or making the improvements hereunder. The Town may foreclose a lien on property under this Article in a proceeding relating to the property under Subchapter E, Chapter 33, Tax Code, as amended. SECTION 6. MUNICIPAL COURT PROSECUTION A. In addition to the abatement provisions set forth in this Article, the Designated Official may utilize the Town’s Municipal Court for prosecution. B. If an Owner or an occupant of property notified of a violation in accordance with this Article fails or refuses to comply with the provisions of this Article within seven (7) days of such notice of violation, the Designated Official may issue a citation for each and every day that the violation continues or is maintained upon the property. SECTION 7. PENALTY 147 A. It shall be unlawful for any Owner to violate any provision of this Article, and any Owner violating or failing to comply with any provision of this Article shall be fined, upon conviction, an amount not less than One Dollar ($1.00) and not to exceed Two Thousand Dollars ($2,000.00), and a separate offense shall be deemed committed each day during or on which a violation occurs or continues. SECTION 8. CUMULATIVE REPEALER That this Ordinance shall be cumulative of all other Ordinances and shall not repeal any of the provisions of such Ordinances except for those instances where there are direct conflicts with the provisions of this Ordinance. Ordinances or parts thereof in force at the time this Ordinance shall take effect and that are inconsistent with this Ordinance are hereby repealed to the extent that they are inconsistent with this Ordinance. Provided however, that any complaint, action, claim or lawsuit which has been initiated or has arisen under or pursuant to such Ordinance on the date of adoption of this Ordinance shall continue to be governed by the provisions of that Ordinance and for that purpose the Ordinance shall remain in full force and effect. SECTION 9. SEVERABILITY If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance or application thereof to any person or circumstance is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance, and the Town Council hereby declares it would have passed such remaining portions of this Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 10. SAVINGS That all rights and remedies of the Town of Trophy Club are expressly saved as to any and all violations of the provisions of any Ordinances regulating standing or stagnant water have accrued at the time of the effective date of this Ordinance; and, as to such accrued violations and all pending litigation, both civil and criminal, whether pending in court or not, under such Ordinances, same shall not be affected by this Ordinance but may be prosecuted until final disposition by the courts. SECTION 11. PUBLICATION The Town Secretary of the Town of Trophy Club is hereby directed to publish, the Caption, Penalty and Effective Date of this Ordinance as required by Section 52.011 of the Texas Local Government Code. SECTION 12. ENGROSSMENT AND ENROLLMENT 148 The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance by copying the exact Caption, Penalty and Effective Date in the minutes of the Town Council and by filing this Ordinance in the ordinance records of the Town. SECTION 13. EFFECTIVE DATE That this Ordinance shall be in full force and effect from and after its date of passage, in accordance with law, and it is so ordained. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas this _____ day of ______, 2007. ___________________________________ Mayor, Town of Trophy Club, Texas ATTEST: _________________________________ Town Secretary, Town of Trophy Club, Texas APPROVED AS TO FORM: _________________________________ Town Attorney, Town of Trophy Club, Texas 149 OPTION 2: Suggested amendment language for Chapter 3, Article XV Swimming Pools Section 15.01 DEFINITIONS A. Unless otherwise provided for herein, the following terms shall have the respective meanings ascribed to them. Aboveground Swimming Pool: A structure in which the entire construction is above ground, or if partly above and partly below ground, the top of the receptacle basin is at least twenty-four inches (24”) above ground. In-Ground Swimming Pool: A structure intended for swimming or recreational bathing that contains water over twenty-four inches (24”) deep and has a capacity of over seven hundred (700) gallons that is dug into the ground. Kiddie Pool or Wading Pool: Any deflatable, portable or temporary special purpose pool or receptacle set aside primarily for use by children with a depth no greater than twenty-four inches (24”). Non-Maintained: The failure to keep water clean, bacteria and insect free by chemical or mechanical means. Permitting Department: The Permitting Division of the Community Development Department of the Town of Trophy Club, Texas. Person: An individual, firm, corporation, partnership, sole proprietorship or any other entity recognized in law. Spa: A hydro-massage pool or tub, including but not limited to hot tubs, whirlpool baths and tubs and Jacuzzi-type tubs or baths, for recreational or therapeutic use, not located in a health-care facility, designed for immersion of users and usually having a filter, heater, and motor-driven blower. The spa is intended for recreational bathing and contains water over twenty-four inches (24”) deep. Stagnant: Standing or non-flowing water. Swimming Pool: Any structure intended for swimming or recreational bathing that contains water over twenty-four inches (24”) deep and has a capacity of over seven- hundred (700) gallons. This includes in-ground, aboveground and on-ground swimming pools. As used in this Ordinance the term is limited to pools which are fitted with a filter for clarifying pool water, or which are designed to be fitted with a filter, whether installed or not. The term shall not include facilities located inside a residence, storable pools designed for seasonal setup and use which are stored at the end of the swimming 150 season, or spas installed on decks or porches if a fitted hard cover designed to prevent entry is maintained in place at all times when the spa is not in use. Unsanitary: Not free from elements, such as filth or pathogens that endanger health and hygiene. Section 15.02 APPLICABILITY AND PROHIBITED CONDUCT A. This ordinance shall be applicable to all new swimming pools and spas hereafter constructed, erected, or maintained, and shall apply to all existing pools and spas which have a depth greater than twenty four inches (24”) of water at any point. It shall be unlawful for any person to violate any provision of this Ordinance. B. No person shall construct, erect, or maintain an aboveground pool. C. No person in possession of land within the Town, whether as owner, purchaser, lessee, or licensee, upon which is situated a swimming pool having a depth greater than twenty-four inches (24”) or more of water at any point, shall fail to provide and maintain such fence or wall as herein provided. D. Any and all unfenced swimming pools existing at the time this ordinance is passed shall have ninety (90) days to comply with the terms and requirements herein stated, from the effective date of this ordinance. E. Except as specifically provided herein, it shall be unlawful of any person, corporation, partnership or other legal entity to construct, have constructed, or maintain any type of swimming pool without having first procured a permit for the construction of same from the Permitting Department. F. It shall be unlawful for any Person owning, leasing, claiming, occupying or having supervision or control of any swimming, kiddie or wading pool, within the corporate limits of the Town, to permit or allow swimming pool water to harbor or be a breeding ground for mosquitoes, flies, or other pests or which causes a foul odor or adversely impacts the public health and safety by any means. Section 15.03 EXCEPTIONS A. Kiddie Pools or Wading Pools, are exempt from the provisions of this Ordinance except as specifically provided herein. B. Hot tubs, whirlpool baths and tubs, and Jacuzzi-type tubs or baths with a capacity of not more than fifteen hundred (1,500) gallons shall be allowed above ground. 151 C. In lieu of the fence requirement in Section 6, subsection C (1)(a), rigid lock-down covers may be allowed for hot tubs, whirlpool baths and tubs, Jacuzzi-type baths and tubs, and spas , provided that prior approval is given through the fence permit application process and further provided that the cover is kept locked at all times that the hot tub, whirlpool bath and tub, Jacuzzi-type bath and tub, and/or spa is not in use. Section 15.04 SWIMMING POOLS A. Swimming Pool Permit Application: The following information shall be required for each swimming pool permit application: 1. Applicant’s name and address. 2. If person represents a corporation, partnership or other legal entity, the address of the president or registered agent of the entity. 3. Name of the foreman or contractor in charge of construction. 4. Name of the owner of the property. 5. Address of the location where swimming pool is to be constructed. 6. Size of swimming pool. 7. Approximate value. 8. Two (2) site plans showing the location of swimming pool in relation to the property lines with the distance indicated from the pool to any structures and to the property boundaries. All measurements shall be from the pool structure itself and not from the water’s edge and also show property setback lines, drainage plan, location of any and all drainage and/or public utility easements, and the location of required and/or existing fence. a. Fence permit, if applicable. B. Permit fees, in accordance with the current fee schedule, shall be paid prior to the issuance of a permit and the commencement of construction of a swimming pool. C. Fence Requirements: 1. Permanent Fence: Before a swimming pool, hot tub, whirlpool bath and tub, Jacuzzi-type bath and tub, and/or spa is filled with water, a permanent fence shall be erected surrounding the pool, which shall conform to the 152 International Building Code, as adopted and amended by the Town. a. The Pool Contractor or other person constructing a pool is responsible for the construction of a permanent fence that complies with this ordinance and all other applicable regulations. The property owner is responsible for the maintenance of a permanent fence that complies with this ordinance and all other applicable regulations. b. It shall be unlawful to maintain any swimming pool, hot tub, whirlpool bath and tub, Jacuzzi-type bath and tub, and/or spa in the corporate limits of Trophy Club, which is not fenced in accordance with the requirements of this section and all other applicable ordinances. 2. Temporary Fence: Prior to commencement of and during the construction of a swimming pool, a temporary fence shall be erected and maintained around the swimming pool construction site, which shall limit access to the construction site at all times except when construction is actually in progress. The top of the temporary fence shall be at least four feet (4’) in height. The wall of a dwelling may serve as part of the fence. a. All inspections will be canceled if a temporary fence is not installed on the job site and a reinspection fee will be assessed in an amount set by the Town’s Schedule of Fees. Continued failure to enclose the site with a temporary fence may result in a citation being issued to pool contractor. D. Form Survey Required: A form survey shall be submitted and approved by the Building Inspector prior to calling for the first inspection. E. Certificate of Completion: Prior to the issuance of a certificate of completion, the swimming pool shall pass each of the following inspections: 1. Belly steel and ground steel, 2. Deck steel and ground, 3. Gas line inspection (if applicable) and P-Trap/Backwash inspection. a. Before the backwash, p-trap & gas line are covered in any way, those items shall be inspected and approved. All pools shall have a p-trap and backwash line connected to the sanitary sewer. 4. Drainage Survey: The pool final inspection will not be approved if the Inspector determines that the grading and drainage of the lot is not in compliance with the approved drainage plans for the subdivision. If the 153 inspector cannot determine the lot water flow, an engineered survey shall be required. 5. Final inspection, including the fencing. a. At the final inspection, all local requirements, state requirements and Town-approved building codes must be met. F. Lighting: All lighting of a swimming pool shall be shielded or directed to face away from adjoining residences. If lights are not individually shielded they shall be so placed, or the enclosing wall or fence shall be so designed, that direct rays from the lights shall not be visible from adjacent or contiguous properties. G. Licensed Contractor: All electrical and plumbing work shall be performed by licensed contractors in accordance with the requirements of the Town-approved Building Code, as amended and all other applicable ordinances or regulations. H. Location: All swimming pools, to include but not limited to kiddie and wading pools, shall be located within the rear yard and shall not encroach upon any identified easement. I. Draining of Swimming Pools: On any new swimming pool permitted on or after June 24, 2005, all backwash or drainage from a swimming pool shall discharge into the sanitary sewer system. An indirect connection shall be made by means of an air break discharging into a tail piece installed a minimum of 6” or 152 mm above adjacent grade. The tailpiece shall be connected to a minimum 3” or 76 mm p-trap not less than 12” (304 mm) below grade which discharges into the yard cleanout riser. 1. Owners of existing pools (pools built or permitted prior to July 1, 2005) are not required by this Ordinance to retrofit the pool equipment and tie into the sanitary sewer. J. Screening: All swimming pool equipment shall be screened from the view of the public and from the view of adjacent private properties. K. Clarity of Water: a. The water in all private swimming pools within the Town shall be of sufficient clarity such that the bottom of the swimming pool is visible to the naked eye. In order to help achieve this objective, each swimming pool shall have a minimum free residual chlorine of one (1) part per million. b. In addition, it shall be unlawful for swimming pool water to have an acid reaction to a standard pH test. 154 c. All pools shall be treated, altered or maintained so as to prevent the development of an Unsanitary condition. d. Pools under construction or which are no longer being operated shall be maintained in a manner so as to prevent the development of Unsanitary conditions, potential injury, or possible drowning. e. Wastewater from a swimming pool shall be discharged into a sanitary sewer. There shall be no direct physical connection between the sewer system and any drain from the swimming pool or circulation system. f. Alternative equivalent methods of wastewater disposal may be approved by the Director of Community Development if the Director finds that the alternative method of disposal proposed would not create a public health hazard or public nuisance or violate any ordinance, state or federal law, rule or regulation. Wastewater disposal which creates a public health hazard or public nuisance is prohibited. L. Equipment: No pool equipment shall be placed within required or established front yard or within any identified easement. Equipment necessary for or related to the operation of the pool shall not be affixed to any required perimeter fence or common fences between property owners. Section 15.05 NOTICE OF VIOLATION A. In the event that any Person owning, claiming, occupying or having supervision or control of any swimming pool within the corporate limits of the Town fails to comply with the provisions of this Article, the Town shall give at least ten (10) days notice in writing to such person identifying the provision of the Article violated and notifying the Person of the ten (10) day period for remediation of the violation. Such notice shall be given: 1. Personally to the owner in writing; or 2. By letter addressed to the owner at the owner’s post office address or to the owner’s address shown on the last approved tax rolls of the Town; or 3. If personal service cannot be obtained or the owner’s post office address is unknown; a. By publication at least twice within ten (10) consecutive days; or b. By posting the notice on or near the front door of each building to which the violation relates; or 155 c. By posting the notice on a placard attached to a stake driven into the ground on the property to which the violation relates, if the property contains no building. B. If the owner of property fails or refuses to comply with the provisions of this Article within ten (10) days of notice of a violation, the Town may go upon such property and do so or cause to be done the work necessary to obtain compliance with this Article, and may pay for the work done or improvements made and charge the expenses incurred in doing or having same done to the owner of such property. C. The charges provided for in this Article shall be levied, assessed and collected by the Town of Trophy Club, Texas. In the event the owner of said premises upon which work was done and charges were incurred fails or refuses to pay such charges and expenses within thirty (30) days after the first day of the month following the one in which the work was done, the Mayor or his designee shall file or cause to be filed with the county clerk of Denton County, a statement by the Town Secretary setting out the expenses that the Town has incurred pursuant to the provisions of this Article, and the Mayor or his designee shall thereby perfect a privileged lien on the property involved, second only to tax liens and liens for street improvements to secure the expense incurred; together with ten percent (10%) interest from the date such payment was due. For any such expenditures and interest, as aforesaid, suit may be instituted and foreclosure had in the name of the Town of Trophy Club, and the statement so made, as aforesaid, or a certified copy thereof, shall be prima facie proof of the amount expended for any such work or improvements. Section 15.06 ABATEMENT A. The Town may abate without notice the following: a. Any violation of the fencing requirements of this Article that adversely impacts the public health and safety by any means by posing an immediate threat or hazard. b. Unsanitary swimming pool water that adversely impacts the public health and safety by any means by posing an immediate threat or hazard. B. Not later than the tenth (10th) day after the date the Town abates the unsanitary swimming pool water under this section, the Town shall give notice to the property owner in the manner required by Section 15.05(A). C. The notice shall contain: 156 a. An identification, which is not required to be a legal description, of the property. b. A description of the violations of this Article that occurred on the property. c. A statement that the Town abated the unsanitary swimming pool water; and d. An explanation of the property owner’s right to request an administrative hearing about the Town’s abatement. E. The Town Manager or the Manager’s designee shall conduct an administrative hearing on the abatement under this section if, not later than the thirtieth (30th) day after the date of the abatement, the property owner files with the Town a written request for a hearing. F. An administrative hearing conducted under this section shall be conducted not later than the twentieth (20th) day after the date a request for a hearing is filed. The owner may testify or present any witnesses or written information relating to the Town’s abatement. G. The Town may assess expenses and create liens under this section as it assesses expenses and creates liens under other provisions of this Article. H. The authority of the Town described by this section is in addition to the authority granted by Sections 7 and 10. Section 15.07 APPEALS Any person aggrieved by the terms of this Ordinance or the interpretation, application, or enforcement of this Ordinance by the Building Official shall have the right to appeal any action of the Building Official taken pursuant to this Ordinance with the exception of Section 8. Any such appeal shall be brought, by written application, filed by an interested party, to the Director of Community Development within ten (10) days following the action of the Building Official, which is the subject of the appeal. Enforcement of this Ordinance shall be stayed pending such appeal, except that such appeal does not stay the owner or applicant’s requirement to comply with temporary fencing regulations specified herein or as specified by other applicable laws, during the appeal period. In hearing such appeals, the Building Appeals Board shall review the determination of the Building Official and, in so doing, may consider whether or not the regulations and standards of this Ordinance will, by reason of exceptional circumstance or surroundings, constitute a practical difficulty or unnecessary hardship. The decision of the Building Appeals Board shall be final. Section 15.08 157 PENALTY It shall be unlawful for any person to violate any provision of this Ordinance, and any person violating or failing to comply with any provision hereof shall be fined, upon conviction, in an amount not more than Two Thousand Dollars ($2,000.00), and a separate offense shall be deemed committed each day during or on which a violation occurs or continues. 158 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.D.8 Discuss and take appropriate action regarding an Ordinance authorizing the issuance, sale and delivery of the Town of Trophy Club, Texas General Obligation Bonds, Series 2007, in the principal amount of $3,260,000, for the purpose of constructing and improving the Town's streets. EXPLANATION: RECOMMENDATION: ACTION BY COUNCIL: (jb) Attachments: 1. March 21, 2007 – Letter from Pete Tart 2. Ordinance 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.D.9 Discuss and take appropriate action regarding a Resolution directing publication of notice of intention to reissue combination Tax and Revenue Certificates of Obligation Series 2007, in the amount of $474,000, for Harmony Park reconstruction and improvement loan with the payments being reimbursed to the Town of Trophy Club by EDC 4A; and authorizing the execution of all necessary documents. EXPLANATION: This item was previously approved by Council on November 6, 2006, Resolution 2006- 28; however, the debt was not bank qualified. This Resolution will change the interest rate from approximately 7.5% per annum to 4.25%. The Resolution and other necessary documentation was prepared by Bond Counsel. RECOMMENDATION: ACTION BY COUNCIL: Attachments: 1. March 21, 2007 - Letter from Pete Tart 2. Certificate for Resolution 3. Resolution 4. Notice of Intention to Issue Combination Tax and Revenue Certificates of Obligation, Series 2007 5. Affidavit of Publication 195 196 197 198 199 200 201 202 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.D.10 Discuss and take appropriate action regarding a notice from the Public Utility Commission of Texas for a Consumer Price Index Adjustment to Municipal Telecommunications Right-of Way Access Line Rates. EXPLANATION: Background: HB 1777 went into effect on Sept 1, 1999. As of March 1, 2000, all telecommunications franchise fees in Texas are required to be based on a fee-per-access line method. The PUC, in October 1999, established three categories of access lines - residential, non-residential, and point-to-point. Each city was required to submit its 1998 base amount and allocation of the base amount to the PUC by Dec. 1, 1999. All CTPs were required to submit a city-by-city, December 31, 1998 access line count to the PUC by January 24, 2000. The PUC then calculated maximum access line rates for the three categories of access lines, for each city. The rate for each category, when multiplied by the number of lines in that category in a city, should equal that city's base amount. History of Rates: In March, 2000, the PUC established maximum initial access line rates for 1106 cities. These cities were then allowed to 1) exempt life-line customers, 2) choose lower rates, and 3) update base amounts and allocation formulas. CTPs were allowed to update line counts and petition unreasonable initial allocations. In response to this input from cities and CTPs, the PUC established final access line rates in April, 2000. CTPs were allowed to begin implementing these rates for the 2rd quarter of 2000 (April, May, June), but were required to begin implementing the rates by the 3rd quarter 2000 (July, August, September). State law allows a city to change its rates once a year, and its allocation once every 2 years. These changes must be initiated by the city each September and become effective the following January. CTPs may also petition the commission on unreasonable allocations in September of each year. The PUC will also annually adjust the access line rates by half of the increase in the Consumer Price Index starting in 2002. RECOMMENDATION: ACTION BY COUNCIL: (smd) Attachments: 1. March 20, 2007 - Letter from the Public Utility Commission of Texas 203 204 205 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.D.11 Items for Future Agenda. EXPLANATION: RECOMMENDATION: ACTION BY COUNCIL: (lmr) Attachments: 1. Items for Future Agendas 1. Ordinance to remove uninsured vehicles from the streets of Trophy Club by impounding the vehicle until the vehicle is properly insured and inspected. 2. Ordinance to impound any vehicle that is being driven on the streets of Trophy Club when the driver does not have a current or valid Drivers License. (4/2 Input – 4/16 Action) 3. Discuss and consider an Ordinance requiring bicycle helmets and bicycle laws. 4. Review of the Property Maintenance Ordinance. 5. Discussion about storm water discharge from pools. 6. Discussion of drainage ditch that runs between Village Trail and Lakeshore Drive and consideration of improvements for area to create a linear park. 7. Discuss and take appropriate action to repeal Ordinance 1987-07 and approve an Ordinance establishing the Town's Emergency Management System. 8. Research grant possibilities regarding phase two street calming. 206 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.D.12 Reports. There will be no action taken regarding any individual project posted under this item and discussion will be limited. If extensive discussion is required, the item may be placed on a future agenda. a) Town Council report from EDC 4A Liaison, Council member Edstrom. b) Partner's in Mobility Report. c) Town Manager's Report. Attachments: 1. None 207 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.E.1 Pursuant to Texas Government Code, Annotated, Subchapter 551, Section 551.071 (a) & (b) "Consultation with Attorney", the Council will enter into executive session to discuss the following: (A) Consultation with Town Attorney on a matter in which the duty of the Attorney to the Governmental Body under the Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflict with the Open Meetings Act (551.071 (b)). (1) Legal advice relative to The Highlands At Trophy Club Development and Public Improvement District Agreement. (2) Legal advice relative to the interlocal agreement between the Town and the Trophy Club MUDs to provide wholesale water, wastewater treatment, and distribution, collection, maintenance and billing services and options available to the Town for providing water and wastewater services. 208 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.E.2 Discuss and provide input regarding an interlocal agreement between the Town and the Trophy Club MUDs to provide wholesale water, wastewater treatment, and distribution, collection, maintenance, and billing services options available to the Town for providing water and wastewater services. EXPLANATION: RECOMMENDATION: ACTION BY COUNCIL: (be) Attachments: 1. Unresolved Contract Provisions 2. Interlocal Agreement 209 MUD provisions: #4 Whereas: WHEREAS, the Town guarantees the construction of a 500,000 gallon elevated storage tank at no cost to the MUDs or the Master District. The same will be connected to the water lines constructed by the Town, which shall in turn be connected to the water lines belonging to the MUDs. During the term of this contract and in perpetuity thereafter the said tank will remain a part of and will be accessible to the water system(s) serving the Town of Trophy Club. All maintenance for the elevated storage tank will be paid for thru the operations and maintenance component of the water rates provided for herein; and 4.2 Maximum Number of Gallons. Deleted 5.1 Wastewater Capacity. Master District represents to the TOWN that there is or will and will continue to be sufficient capacity in the existing wastewater treatment facilities, to serve the Property at full development 5.4 Effluent Produced. Deleted 6.2 Irrigation Wells. Deleted 7.11 Term. This Contract shall become effective upon approval by each of the respective governing bodies of Town and Master District and upon execution by their respective authorized representatives, and shall remain in effect for a term of five (5) years. Such initial term shall renew annually for a total of five (5) terms of one (1) year each, unless terminated by either party as provided herein 7.12 Termination of Contract for Operator Services. Deleted 210 WATER SUPPLY AND WASTEWATER SERVICES CONTRACT BETWEEN THE TOWN OF TROPHY CLUB, TEXAS AND TROPHY CLUB MASTER DISTRICT This WATER SUPPLY AND WASTEWATER SERVICES CONTRACT (“Contract”) is entered into between THE TOWN OF TROPHY CLUB, TEXAS, a home rule municipality located in Denton and Tarrant Counties (hereinafter “TOWN”) and TROPHY CLUB MASTER DISTRICT, A JOINT VENTURE BETWEEN TROPHY CLUB MUNICIPAL DISTRICT NO.ONE, AND TROPHY CLUB MUNICIPAL UTILITY NO. TWO ,both Districts created pursuant to Section 59, Article XVI, Texas Constitution and the Texas Water Code, Chapter 54 (hereinafter referred to as “MASTER DISTRICT”)The two Municipal Districts are hereafter referred to as “MUD ONE” and “MUD TWO”, and collectively as “the MUDs”. Recitals WHEREAS, Master District currently supplies water and wastewater services to those customers located within the boundaries of the MUDs; and WHEREAS, TOWN holds the CCN for a certain portion of property located within the territorial boundaries of the Town (hereinafter the “Property”) which property is not located within the boundaries of the MUDs nor is provided water or wastewater services therefrom; and WHEREAS, as a result of the development occurring on the Property, the TOWN desires to receive water supply and treatment services from Master District, and to a limited extent as set forth in this agreement, to have Master District operate the TOWN’s water and wastewater lines at an agreed upon rate based upon number of users, WHEREAS, the Town guarantees the construction of a 500,000 gallon elevated storage tank at no cost to the MUDs or the Master District all maintenance for the elevated storage tank will be paid for thru the operations and maintenance component of the water rates provided for herein; and WHEREAS, the Interlocal Cooperation Act, Texas Government Code, Chapter 791, et seq., as amended (the “Act”) provides authority for governmental entities of the State of Texas to enter into interlocal agreements with each other regarding governmental functions and services as set forth in the Act; and WHEREAS, the provision of water and wastewater facilities is a valid governmental function necessary for the public health, safety and welfare as provided in the Intergovernmental Relations Section of the Texas Government Code at Chapter 791.026; and 211 WHEREAS, each party hereto paying for the performance of governmental functions or services shall make such payments from current revenues legally available to the paying party and each party hereby finds and agrees that it is fairly compensated for the services or functions performed under the terms of this Agreement. NOW, THEREFORE, Town and Master District, for and in consideration of the recitals set forth above and terms and conditions below, agree as follows: The foregoing recitals ARTICLE I. INCORPORATION / DEFINITIONS / EXHIBITS 1.1 Incorporation of Recitals. The foregoing recitals are agreed upon and incorporated herein as a part of this Agreement. 1.2 Definitions. Unless the content indicates others, the following words used in this Contract shall have the following meanings: Commission means the Texas Commission on Environmental Quality and any successor or successors exercising any of its duties and functions related to municipal utility districts. Commission mandated means a requirement duly passed or enacted as part of a Commission rule, regulation, or permitting process. The term does not include a regulation or requirement that is merely proposed or being considered for passage, adoption or enactment by the Commission. Existing Infrastructure means Water System and Wastewater System and all components thereof existing and operational on the date of execution of this Contract. Gpd means the gallons per day of Water or Wastewater subject to this Contract. Gpm means gallons per minute. Interconnect Line means the water line(s) constructed by the TOWN to connect to the Master District Water System of the size and at the location to be mutually agreed upon by the TOWN and the Master District. Irrigation Wells means any and all wells that may be constructed within the Property or for the benefit of the Property by TOWN or its designee for irrigation and maintenance purposes. Lift Station means any mechanical means of conveying wastewater by force. 212 Master District Water System means all the water production pumps, lines, meters, components, facilities, and equipment owned and used by _Master District to pump, treat, monitor, convey, supply, and distribute water to the public. Master District Wastewater System means all the wastewater treatment facilities, lines, components and equipment owned and/or used by Master District to collect, convey, treat, monitor, regulate, and dispose of wastewater. Operator Services means the operation, inspection, maintenance and repair of the TOWN Water System and the TOWN Wastewater System as more particularly provided in Article VII of this Contract. Parties or Party shall mean either Master District or the TOWN or both, as the context provides. Points of Connection of Wastewater means that point or points where the TOWN Wastewater System connects to Master District Wastewater System. The location of the first Point of Connection of Wastewater shall be at the point shown on Exhibit “A” attached hereto and incorporated herein for all purposes. Any subsequent Point of Connection will be at a point(s) mutually agreeable to the Parties. Points of Connection of Water means that point or points where the TOWN Water System connects to Master District Water System. The first Point of Connection shall be at the shown on Exhibit “A”. Any subsequent Points of Connection will be at a point(s) mutually agreeable to the Parties. TOWN means the Town of Trophy Club, Texas, a home rule municipality located in Denton and Tarrant Counties, Texas, and all land included within the territorial limits and extraterritorial jurisdiction of the TOWN, at TOWN’s creation and thereafter annexed from time to time. TOWN Water System means the water distribution system that may be constructed, owned and operated by the TOWN for the distribution of potable water received from Master District to customers of the TOWN, ending at the Points of Connection of Water. Irrigation Wells are not considered part of the TOWN Water System for purposes of Master District’s operation and maintenance of such system. TOWN Wastewater System means the wastewater system that may be constructed, owned and operated by the TOWN to serve the TOWN for the collection of wastewater received from customers within the TOWN, ending at the Point of Connection of Wastewater, and will include any sewer force mains and lift stations that will be required to transport wastewater to the Point of Connection of Wastewater. Wastewater means the water-carried wastes, exclusive of ground, surface, and storm waters, normally discharged from the sanitary conveniences of dwellings, including apartment houses, hotels, offices buildings and institutions, of a domestic, not 213 industrial, nature, meeting the requirements of TCEQ and EPA set forth in and regulated by state and federal law, as may be amended or superseded from time to time. Wastewater Services means the services provided by Master District in receiving, treating, testing, and disposing of Wastewater from the TOWN Wastewater System in accordance with the Contract. Wastewater Trunk Facilities means the trunk line facilities that may be constructed by the TOWN to connect the TOWN Wastewater System to Master District Wastewater System as provided in Article V of this Contract. Water means potable water that meets federal and state standards for consumption by humans. Water Supply Services means the services provided by Master District in treating, pumping, transporting, and delivering Water from Master District Water System to the TOWN Water System for consumption by TOWN customers in accordance with this Contract. 1.3 Exhibits. The following Exhibits attached to this Contract are hereby made a part of the Contract as though fully incorporated herein: Exhibit “A” - Points of Connection of Water and Wastewater ARTICLE II. AGREEMENT CONCERNING WATER SUPPLY AND WASTEWATER SERVICES TO THE TOWN 1. 2.1 Master District’s Obligation to Provide Services. Master District agrees to provide Water Supply Services to the TOWN in accordance with the terms and conditions of this Contract. Master District agrees to accept Wastewater from, and to provide Wastewater Services to, the TOWN in accordance with the terms and conditions of this Contract, provided that all Wastewater discharged from the TOWN Wastewater System and delivered to the Points of Connection of Wastewater complies at the Points of Connection of Wastewater with the quantity and quality restrictions set forth herein.. 2.2 Standard of Service. The Water Supply Services and Wastewater Services provided by Master District to the TOWN under this Contract shall be substantially equivalent in quality to the water supply services and wastewater services Master District provides to other Master District customers. 214 ARTICLE III. CAPACITY BUY-IN AND IMPACT FEES 3.1 Upfront Payment. The Town agrees to pay Master District $540,000 for the right to access and receive water and wastewater treatment from the existing water and wastewater systems 3.2 Continuing Payments. The Town will pay to Master District an amount equal to $2300 per 5/8 by 3/4 meter equivalent for each connection to the existing infrastructure until said amounts totals $3,260,000. 3.3 Fort Worth Impact. The Town will collect an amount equal to the Impact fee assessed by the City of Forth Worth and remit this amount to the Master District, which will in turn remit the same to City of Fort Worth. ARTICLE IV. WATER SUPPLY TO THE TOWN 2. 4.1 Water Supply Services. Master District agrees to provide to the TOWN Water Supply Services sufficient to meet the needs of that part of the Town not served by the Master district throughout the term of this Contract as more specifically provided herein. 4.2 Maximum Number of Gallons. Master District agrees to provide up to 2.5 MGD of Water to the TOWN. 4.3 Construction of Commission Mandated Improvements To Existing Infrastructure. The parties understand that Master District may be required to construct certain Commission mandated improvements to the Existing Infrastructure. In the event that such Commission mandated improvements are required, the costs of those Commission mandated improvements shall be shared by TOWN and Master District in accordance with the terms of this Section. The parties agree that the costs of all improvements that are common to the Existing Infrastructure (hereinafter “System”) shall be shared proportionately between the Town and Master District based upon the number of users utilizing the System at the time that the Commission mandated improvement is to be constructed. Payment for these improvements will be made first utilizing any reserves accumulated prior to the construction of the improvements until reserves reach a predetermined point recommended by the MUDs’ auditors and agreed upon by the Town. All future debt service will be serviced by assessing a debt service component to the utility rates charged to all customers. 4.4 Construction of Commission Mandated Improvements. The parties understand the Master District may be required to construct certain Commission mandated improvements. In the event that such Commission mandated improvements are required, the costs of Commission mandated improvements shall be shared by TOWN and Master District in accordance with the terms of this Section. The parties agree that the costs of all improvements that are common to the Infrastructure 215 (hereinafter “System”) shall be shared proportionately between the Town and Master District based upon the number of users utilizing the System at the time that the Commission mandated improvement is to be constructed. Payment for these improvements will be made first utilizing any reserves accumulated prior to the construction of the improvements until reserves reach a predetermined point recommended by the MUDs’ auditors and agreed upon by the Town. All future debt service will be serviced by assessing a debt service component to the utility rates charged to all customers. 4.5 Construction of Other Capital Improvements. The parties understand that it may be necessary or advisable to construct certain improvements to Water System and/or Wastewater System. In the event that such improvements are required, the costs of those improvements shall be shared by TOWN and Master District in accordance with the terms of this Section. The decisions to be made of the advisability and/or necessity of said improvement shall be made by the parties hereto as the need arises. The Town and the Master District shall each appoint a representative to make the decision, and a third person, agreeable to both parties, to decide, if the representatives so appointed are unable to agree. 4.6 Points of Connection of and Title to Water. Master District shall deliver Water to the TOWN Water System at the Points of Connection of Water. Master District will not provide Water to the TOWN, except for testing of line purposes, until the completion and final acceptance of the Interconnect Line, at which time Master District shall begin supplying Water to the TOWN. Title to all Water delivered to the TOWN shall remain in Master District to the Points of Connection of Water, and upon passing through the Points of Connection of Water, title thereto shall pass to the TOWN. 4.7 Method of Calculation of Water Charges to the TOWN. Master District’s charge to the TOWN for water shall be calculated by adding up the total charges for each month due by each of the TOWN’s customers calculated at the in-district rates plus charges for any estimated or metered amounts for flushing or other usage by the TOWN that is not metered (such estimated amounts to be calculated as one in-district residential customer), provided that the Master District shall include a calculation and explanation of charges for any estimated or non-metered usage with its monthly report/invoice to the TOWN. ARTICLE V. WASTEWATER SERVICES TO THE TOWN 5.1 Wastewater Capacity. Master District agrees to provide Wastewater Services 600,000 gallons per day of Wastewater to serve the TOWN during the term of this Contract.. 5.2 Point of Connection of and Title to Wastewater. Master District shall receive Wastewater from the TOWN Wastewater System at the Points of Connection of Wastewater. Master District will not commence Wastewater Service to the TOWN until 216 the completion of the Wastewater Trunk Facilities. Title to all Wastewater deliverable hereunder to Master District shall remain in the TOWN to the Points of Connection of Wastewater and upon passing through the Points of Connection of Wastewater, title thereto shall pass to Master District. 5.3 Charges for Wastewater Services. Master District’s charge to the TOWN for Wastewater Services shall be calculated by adding up the total charges for that month for all of the TOWN’s customers, calculated at in-district rates, plus charges for any estimated or metered amounts for Water taken that is not metered but which would flow into the TOWN Wastewater System. 5.4 Effluent Produced. The Town shall have the right to all treated effluent produced resulting from all wastewater delivered to the wastewater treatment facilities from Town customers at no additional charge. ARTICLE VI. CONSTRUCTION OF THE TOWN’S INTERNAL WATER SUPPLY AND WASTEWATER SERVICES TO THE TOWN 6.1 Construction of the TOWN’s Internal Water and Wastewater Systems. The TOWN shall design and construct, at its sole cost and expense, a TOWN Water System and a TOWN Wastewater System to serve the TOWN. The TOWN Water System shall include all facilities necessary to convey Water from the Points of Connection of Water to the TOWN's customers. The TOWN's Wastewater System shall include all facilities necessary to transport Wastewater from the TOWN's customers to the Points of Connection of Wastewater. 6.2 Irrigation Wells. The TOWN has sole discretion regarding the number and location of Irrigation Wells that may be constructed within the TOWN. Any and all Irrigation Wells shall be owned, operated and maintained, or caused to be owned, operated and maintained by the TOWN ARTICLE VII. CONTRACT FOR OPERATOR SERVICES 7.1` Maintenance and Operations. Master District and the TOWN agree that Master District will act as operator for the TOWN and will provide the following Operator Services for the TOWN Wastewater System and the TOWN Water System: reading the individual customer meters; billing, collecting from, and responding to service calls from TOWN customers; marking water lines for contractors, the monitoring of telemetric equipment, if any; dead-end water flushes; attendance at TOWN Council meetings to present reports; back charging persons who cause damage to TOWN facilities; preparing and filing all operational and compliance reports required by law or requested by the TOWN, such as those required by the Commission and the United States Environmental Protection Agency; keeping a clear audit trail of all transactions made by Master District on behalf of the TOWN; keeping operating records on behalf of the 217 TOWN; responding to all correspondence and inquiries regarding TOWN operations from the TOWN’s Manager, consultants or customers in a prompt and professional manner; rendering reasonable assistance in the promotion of good relations with TOWN customers; semi-annual inspection of all TOWN fire hydrants; submission of a written report to the TOWN each month; billing and collection services; transfer of all TOWN funds to such accounts or entities as designated by the TOWN from time to time; notifying customers of upcoming termination of water service for non-payment; meter reading, removal and installment; non-emergency and emergency repairs; lift station cleaning as necessary; taking and submitting all water samples to an authorized Texas Department of Health laboratory in compliance with all rules and regulations applicable to the TOWN; purchase of materials to provide these services; performance of accuracy tests on meters as requested by the TOWN; preparation and distribution of the annual Consumer Confidence Reports; performance of all inspections required by the TOWN’s Rate Order or otherwise requested by the TOWN and back-charging any such tests to customers per the Rate Order or the TOWN’s instructions; administration of the TOWN’s Drought Contingency Plan as presently written and as it may be amended ; and all other such services that are needed or advisable to maintain the TOWN’s Water System and Wastewater System in good working order and in compliance with all applicable laws, rules, and regulations. 7.2 Billing of Customers. Master District shall read the individual meter at each connection within the TOWN on a monthly basis during the term of this Contract. TOWN shall make all water and sewer taps and inspections as required by the TOWN’s then-current rate order (the “Rate Order”). Based on such meter readings, Master District shall send statements to the customers of the TOWN in accordance with the TOWN’s then-current Rate Order. 7.4 Transfer of Collections to TOWN. Each month, Master District shall prepare and deliver a collections report to the TOWN which sets forth all monies collected from the TOWN’s customers pursuant to the Rate Order with sufficient specificity for the TOWN to track the source of such income, together with a check payable to the TOWN for all monies collected. For purposes of maintaining a clear audit trail, Master District shall not have the right to offset its charges to the TOWN against the collections of the TOWN, but shall turn over all collections and also invoice the TOWN for all charges under this Contract. The Parties agree to schedule such transfer of collections by Master District and payment of all invoices due to Master District so that collections will be turned over to the TOWN prior to the date that Master District invoices the TOWN for charges hereunder. 7.5 Invoice to TOWN for Operating Services. Master District shall prepare an invoice showing the charges to the TOWN for Operator Services provided to the TOWN in such month. Such invoice may be on the same invoice as that containing charges to the TOWN for Water Supply Services and Wastewater Services. For provision of the Operator Services, Master District will charge the TOWN a rate of $23 for combined water and wastewater Operator Services for each customer provided service to the Towns distribution or collection system. 218 7.6 TOWN Rate Order. The TOWN shall from time to time adopt a Rate Order setting forth its rates to be charged to customers in the TOWN and will provide Master District with a copy of the TOWN’s duly adopted Rate Order as it may be amended from time to time. Master District agrees to bill the TOWN’s customers in accordance with the TOWN’s Rate Order. The TOWN will set all of the rates for utilities (i.e., water and sewer rates) provided to its property owners and residents and shall provide such rates to Master District for Master District’s use in sending utility bills to the customers within the TOWN. The TOWN further agrees to adjust and maintain from time to time the rates charged to its customers so that the income to the TOWN from such rates, in addition to any maintenance tax levied by the TOWN or any operating advances made by a developer to the TOWN, shall at all times be sufficient to promptly pay to Master District all such charges when and as the same become due and payable under this Contract. Master District agrees to provide the TOWN with written notice of any change in the rates set by MUDs One and Two as charges for water supply and sewage treatment services to in-district residential customers and the TOWN will amend its rate order to be effective within sixty (60) days to reflect any changes . 7.7 Standards of Operation. The TOWN Water System and the TOWN Wastewater System shall be operated, maintained, and repaired in accordance with the standards applicable to municipal maintenance and operation standards for TOWN’s Water System and TOWN’s Wastewater System. 7.8 Monthly Reports. Master District shall provide the TOWN each month, before or at its regular monthly Board meeting, a report that contains the following: total service connections; total Water purchased; total Water accounted for; new meter orders and installations; current cash receipt from customer billings; a list of delinquent customers to which termination notices have been sent, (including an explanation of any appeals or protests filed by those customers); current billings to customers; current receivables from customer billings; aged receivables from customer billings; summary of maintenance and repair back-charges; summary of maintenance and repairs classified as to the TOWN Water System or the TOWN Wastewater System; certification of the date that required bacteriological tests were performed; and copies of all reports and correspondence made by Master District to local, state or federal regulatory agencies on behalf of the TOWN. 7.9 Insurance. Master District shall keep in force during the term of this Contract insurance in at least the following amounts: 7.9.1 (a) Comprehensive General Liability insurance with combined limits of $1,000,000 per occurrence and $2,000,000 in the aggregate covering bodily injury liability with a limit of not less than $500,000 for one person injured in any way and subject to such limit, $1,000,000 for more than one person injured in any way in any one accident and property damage liability with limits of not less than $500,000 for each accident and $1,000,000 aggregate; 219 (b) Automobile liability insurance on owned and non-owned and hired automotive equipment with $1,000,000 combined single limit per occurrence and (c) Workman’s Compensation and Employer’s Liability insurance in compliance with the Texas Employer’s Liability Act and other applicable law. Master District shall furnish a Certificate of Insurance that certifies insurance policies required under this Contract upon request by the TOWN. The TOWN shall keep in force during the term of this Contract insurance in at least the following amounts: 7.9.2 (a) Comprehensive General Liability insurance with combined limits of $1,000,000 per occurrence and $2,000,000 in the aggregate covering bodily injury liability with a limit of not less than $500,000 for one person injured in any way and subject to such limit, $1,000,000 for more than one person injured in any way in any one accident and property damage liability with limits of not less than $500,000 for each accident and $1,000,000 aggregate, after the TOWN takes ownership of any property; (b) Automobile liability insurance on owned and non-owned and hired automotive equipment with $1,000,000 combined single limit per occurrence and (c) Workman’s Compensation and Employer’s Liability insurance in compliance with the Texas Employer’s Liability Act and other applicable law, if the TOWN has any employees. The TOWN shall furnish a Certificate of Insurance that certifies insurance policies required under this Contract upon request by Master District. 7.10 Water Emergency. Under Town’s ordinance(s), Master District may declare a "water emergency period" if any condition or event occurs that interrupts the production, treatment, or transportation of Water in Master District Water System and may impose conditions on consumption or use of Water. If Master District declares a "water emergency period" and imposes conditions on Water consumption for its customers in the existing MUDs under the then-current ordinance, the TOWN agrees, upon notification by Master District to impose and enforce the same conditions of consumption on TOWN customers. Where it has become necessary to adopt a drought contingency plan. Master District will not apply its drought contingency plan on residential customers within the TOWN in a manner that is more stringent than Master District’s application of its drought contingency plan on residential customers within _the MUDs. 7.11 Term. This Contract shall become effective upon approval by each of the respective governing bodies of Town and Master District and upon execution by their respective authorized representatives, and shall remain in effect for a term of One (1) year. Such initial term shall renew annually for a total of five (5) terms of one (1) year each, unless terminated by either party as provided herein. 7.12 Termination of Contract for Operator Services. Either Party shall have the right to terminate this contract for Operator Services; however, upon such termination, 220 all other provisions of this Contract shall remain in full force and effect. The following constitutes default: a. Breach of any provision of this Operations Contract; b. Failure to perform obligations owed under the Operations Contract in a reasonably satisfactory manner; c. Failure to pay any funds owed under this Operations Contract; or d. Upon written notice by either party at least 180 days in advance thereof, but not earlier than one year from the date of this Contract. The Party claiming default shall give written notice to the other Party of the default, and such Party shall have thirty (30) days to cure such default. If such default is not cured to the reasonable satisfaction of the non-defaulting Party within such time, the non- defaulting Party may terminate this Operations Contract by sending written notice to the defaulting Party stating the effective date of the termination of this Operations Contract. Notwithstanding the foregoing, either Party may terminate this Operations Contract by giving one hundred and eighty (180) days written notice to the other Party. 7.13 Termination for Default. Any Party to this Contract who believes that the other Party to this Contract has defaulted in the performance of any condition, term, or obligation owed to that Party under the Contract other than the payment of monies owed hereunder shall give written notice of the default to the defaulting Party, specifying in detail the provision or provisions of the Contract that have been breached and specifying what action must be taken to cure or correct the default. Should the Party receiving the notice fail to correct the default within sixty (60) days following receipt of the written notice, if such corrective action is within the power of the defaulting Party, the Party giving the notice of default may terminate this Contract by giving a written termination notice to the defaulting Party specifying the termination date. 7.14 Consideration. The parties agree that sufficient consideration for this Agreement exists and is found in the cross promises set forth above and other good and valuable consideration. ______________________________________________ (ADDITIONAL CONSIDERATION LANGUAGE) 221 ARTICLE VIII. FIRE TAX 8.1 Fire Tax Town shall collect an amount equivalent to the sum that would be collected if the annual fire tax levied by the MUDs were collected from the residents residing within the Property. Such sum shall be payment for the pro rata share of the costs for providing fire services to those residents located within the Property. Costs shall mean the actual costs of operating the Fire Department currently funded by the Trophy Club MUDs, and operated by the TOWN pursuant to an interlocal agreement between Town and the Master District.. The amount of the sum levied and the decision to annually levy such sum shall be at the discretion of the TOWN, and nothing in this Contract shall be construed as binding future Town Council decisions or actions relating to the funding of fire services or the levying of taxes, assessments, or other charges for fire services. ARTICLE IX. MISCELLANEOUS 9.1 Successors. This Contract shall be binding upon the successors or assigns of the Parties hereto. 9.2 Remedies Cumulative. The Parties specifically agree that the remedy of specific performance of this Article is an appropriate and necessary remedy and agree that either Party may employ the remedy of specific performance in the event of a breach of this Article. It is not intended hereby to specify (and this Contract shall not be considered as specifying) an exclusive remedy for any default, but all remedies, including specific performance and mandamus, may be availed of by any Party and shall be cumulative of any other remedy herein specified. 9.3 Immunity The fact that Town and MUD accept certain responsibilities relating to the water and wastewater services under this Agreement as part of their responsibility for providing water and wastewater services to their respective residents makes it imperative that the performance of these vital services be recognized as a governmental function and that the doctrine of governmental immunity shall be, and it is hereby, invoked to the extent possible under the law. Neither Town nor Master District waives any immunity or defense that would otherwise be available to it against claims arising from the exercise of governmental powers and functions. 222 9.4 Force Majeure. If any Party is rendered unable, wholly or in part, by force majeure to carry out any of its obligations under this Contract, except the obligation to pay amounts owed or required to be paid pursuant to the terms of this Contract, then the obligations of such Party, to the extent affected by such force majeure and to the extent that due diligence is being used to resume performance at the earliest practicable time, shall be suspended during the continuance of any inability so caused to the extent provided but for no longer period. As soon as reasonably possible after the occurrence of the force majeure relied upon, the Party whose contractual obligations are affected thereby shall give notice and full particulars of such force majeure to the other Party. Such cause, as far as possible, shall be remedied with all reasonable diligence. The term "force majeure," as used herein, shall include without limitation of the generality thereof, acts of God, strikes, lockouts, or other industrial disturbances, acts of the public enemy, orders of any kind of the government of the United States or the State of Texas or any civil or military authority other than a Party to this Contract, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, hurricanes, restraint of government and people, civil disturbances, explosions, breakage or accidents to machinery, pipelines or canals, partial or entire failure of water supply resulting in an inability to provide water necessary for operation of the water and sewer systems hereunder or in an inability of Master District to provide Water or receive Wastewater, and any other inabilities of any Party, whether similar to those enumerated or otherwise, which are not within the control of the Party claiming such inability, which such Party could not have avoided by the exercise of due diligence and care. It is understood and agreed that the settlement of strikes and lockouts shall be entirely within the discretion of the Party having the difficulty, and that the above requirement that any force majeure shall be remedied with all reasonable dispatch shall not require the settlement of strikes and lockouts by acceding to the demands of the opposing Party when such settlement is unfavorable to it in the judgment of the Party experiencing such difficulty. 9.5 Applicable Law. This Contract shall be governed by the laws of the State of Texas and no lawsuit shall be prosecuted on this Contract except in a court of competent jurisdiction located in Denton County. 9.6 No Additional Waiver Implied. No waiver or waivers of any breach or default (or any beaches or defaults) by any Party hereto of any term, covenant, condition, or liability hereunder, or the performance by any Party of any duty or obligation hereunder, shall be deemed or construed to be a waiver of subsequent breaches or defaults of any kind, under any circumstances. 9.7 Addresses and Notice. Unless otherwise provided in this Contract, any notice, communication, request, reply, or advice (herein severally and collectively, for convenience, called "Notice") herein provided or permitted to be given, made, or accepted by any Party to the other (except bills), must be in writing and may be given or be serviced by depositing the same in the United States mail postpaid and registered or certified and addressed to the Party to be notified, with return receipt requested, or by delivering the same to such Party, addressed to the Party to be notified. Notice deposited in the mail in the manner hereinabove described shall be conclusively 223 deemed to be effective, unless otherwise stated in this Contract, from and after the expiration of three (3) days after it is so deposited. Notice given in any such other manner shall be effective when received by the Party to be notified. For the purpose of notice, addresses of the Parties shall, until changed as hereinafter provided, be as follows: If to ______________, to: If to TOWN, to: MUD Manager Town Manager, 100 Municipal Drive 100 Municipal Drive Trophy Club, Texas 76262 Trophy Club, Texas 76262 The Parties shall have the right from time to time and at any time to change their respective addresses and each shall have the right to specify and any other address by at least fifteen (15) days' written notice to the other. 9.8 Merger and Modification. This Contract, including the exhibits that are attached hereto and incorporated herein for all purposes, embodies the entire agreement between the parties relative to the subject matter hereof. This Contract shall be subject to change or modification only with the written mutual consent of the Parties. 9.9 Severability. The provisions of this Contract are severable, and if any part of this Contract or the application thereof to any person or circumstances shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Contract and the application of part of this Contract to other persons or circumstances shall not be affected thereby. 9.10 Assignability. This Contract shall be binding upon and inure to the benefit of the parties hereto and their successors. This Contract shall not be assigned without the written consent of the governing bodies of the respective entities. 9.11 Benefits of Contract. This Contract is for the benefit of ______________ and TOWN and their successors and assigns and shall not be construed to confer any benefit on any other person or entity except as expressly provided for herein. 9.12 Non Binding Mediation. The parties agree that they shall first attempt to resolve disputes hereunder by the use of non-binding mediation. Therefore, in the event that any alleged default under this Contract cannot be resolved by agreement of the parties or in the event that the parties cannot resolve a conflict in or disagreement regarding interpretation of a specific provision(s) of this Contract, the dispute, conflict or disagreement shall be submitted to non-binding mediation as a condition precedent to (1) the filing of any lawsuit, and (2) the filing of any other type of legal or equitable action to resolve such default or dispute or to pursue available legal or equitable remedies. The costs of mediation shall be shared equally by all parties participating in the mediation. 224 9.13 Consent and Approvals. Whenever this Contract provides for the approval or consent of one of the Parties, such consent or approval shall not be unreasonably withheld or delayed. [EXECUTION PAGES FOLLOW] 225 TOWN OF TROPHY CLUB, TEXAS By: Name: Title: ATTEST: By: Name: Title: (TOWN SEAL) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 2 By: ATTEST: By: Name: Title: 226 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 4-2-2007 Subject: Agenda Item No.F.1 Adjourn.