Agenda Packet TC 07/23/2007Town of Trophy Club
Town Council Regular Meeting Agenda
100 Municipal Drive
Trophy Club, Texas 76262
Monday, July 23, 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 state under God
and indivisible."
A.4 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.
A.5 Discuss and take appropriate action in regard to a Proclamation to recognize the
outstanding achievement by Daniel Mastropiero - Troop #937, and congratulating
him on his achievement of the Eagle Scout Award.
B.1 Discuss and take appropriate action regarding a request from Carter & Burgess,
Inc. on behalf of 831 Trophy, L.P./Centurion Acquisitions, L.P. to approve both
Preliminary and Final Platting of The Highlands at Trophy Club Master
Thoroughfare/Infrastructure to be known as a Final Plat of Trophy Club Drive &
Trophy Club Park Drive (23.685 acres) (FP-07-010).
A. Discuss and take appropriate action regarding the approval of the Subdivider's
Agreement for a 23.685 acre tract of land known as Trophy Club Drive and
Trophy Club Park Drive.
B.2 Discuss and take appropriate action regarding an Ordinance amending Section
8.01 entitled "Applicability/Conflict and Waiver" of Article VIII entitled "Schedule
of Fees" of Chapter 1 entitled "Administration" of the Code of Ordinances by
adding subsection "C" Temporary Suspension" which sets forth the terms,
conditions, and expiration of a temporary suspension of certain building permit
fees for qualified residents who sustained damages as a result of recent storms.
B.3 Discuss and take appropriate action regarding a Resolution suspending the July
30, 2007 effective date of the proposal by Atmos Energy, Mid-Texas Division to
implement GRIP Rate Adjustments for gas utility investment in 2006, authorizing
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participation with the ATMOS Cities Steering Committee in a review into the
basis of the proposed rate adjustments and authorizing intervention in
administrative and court proceedings involving the proposed GRIP Rate
adjustments.
B.4 Discuss and take appropriate action to approve Minutes dated May 21, 2007.
B.5 Discuss and take appropriate action to approve Minutes from the Town Hall
meeting with FEMA dated July 10, 2007.
B.6 Discuss and take appropriate action relative to the interlocal agreements
between the Town and the Trophy Club MUDs to provide wholesale water and
wastewater treatment and operational services to the Town.
B.7 Discuss and receive input regarding potential amendments to the Charter and
the holding of a November Charter Election.
B.8 Discuss and receive input regarding suggested revisions to the Ethics Section of
the Handbook for Elected and Appointed Officials.
B.9 Items for Future Agenda.
B.10 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 Manager Report on the Charter Review Committee meeting.
b) Report from EDC 4B Liaison, Council member Sterling.
c) Town Manager's Report.
C.1 Discuss and review preliminary FY 2007-08 Budget.
D.1 Adjourn.
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COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 7-23-2007
Subject: Agenda Item No.A.1
Call to order and announce a quorum.
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COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 7-23-2007
Subject: Agenda Item No.A.2
Invocation.
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COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 7-23-2007
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 state under God
and indivisible."
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COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 7-23-2007
Subject: Agenda Item No.A.4
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.
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COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 7-23-2007
Subject: Agenda Item No.A.5
Discuss and take appropriate action in regard to a Proclamation to
recognize the outstanding achievement by Daniel Mastropiero - Troop
#937, and congratulating him on his achievement of the Eagle Scout
Award.
EXPLANATION:
RECOMMENDATION:
ACTION BY COUNCIL:
(lmr)
Attachments: 1. Proclamation
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TOWN OF TROPHY CLUB
PROCLAMATION NO. 2007 -
BOY SCOUT TROOP 937
A PROCLAMATION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY
CLUB, TEXAS, TO RECOGNIZE THE LEADERS AND MEMBERS OF BOY
SCOUT TROOP 937 WHO REPRESENT OUR TOWN AND THEIR TROOP;
WHO BY THEIR PARTICIPATION AND DETERMINATION BRING HIGH
HONOR TO THE TOWN AND ALL OF OUR RESIDENTS; RECOGNIZING AND
CONGRATULATING DANIEL MASTROPIERO ON HIS ACHIEVEMENT FOR
EARNING THE EAGLE SCOUT AWARD; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the Town of Trophy Club is fortunate to be home to residents of all
ages who participate, lead, coach and in other ways support organized Scouting
activities in the Town; and
WHEREAS, the Town of Trophy Club is fortunate to have the support of the
Troop leaders and the parents who support our scouts in these activities; and
WHEREAS, the Town Council of the Town of Trophy Club desires to recognize
Daniel Mastropiero of Troop 937 for his outstanding achievements and perseverance.
NOW THEREFORE, BE IT PROCLAIMED BY THE TOWN COUNCIL OF THE TOWN
OF TROPHY CLUB, TEXAS:
Section 1. That the Town of Trophy Club, Texas, recognizes and congratulates
Daniel Mastropiero for his attainment of the Eagle Award as the highest rank that Scouting
offers.
2007 Eagle Scout
Daniel Mastropiero
Section 2. That the Town of Trophy Club acknowledges this individual as having
distinguished himself through his continued, active service in Scouting. His outstanding effort,
dedication and commitment to excellence that are the source of high community pride and that
have resulted in significant positive recognition for our Town.
Section 3. That this Proclamation shall become effective from and after its
date of passage in accordance with law.
__________________________________________
Nick Sanders, Mayor
Town of Trophy Club, Texas
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ATTEST:
__________________________________________
Town Secretary
Town of Trophy Club, Texas
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COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 7-23-2007
Subject: Agenda Item No.B.1
Discuss and take appropriate action regarding a request from Carter &
Burgess, Inc. on behalf of 831 Trophy, L.P./Centurion Acquisitions, L.P. to
approve both Preliminary and Final Platting of The Highlands at Trophy
Club Master Thoroughfare/Infrastructure to be known as a Final Plat of
Trophy Club Drive & Trophy Club Park Drive (23.685 acres) (FP-07-010).
A. Discuss and take appropriate action regarding the approval of the
Subdivider's Agreement for a 23.685 acre tract of land known as Trophy
Club Drive and Trophy Club Park Drive.
APPLICANT: Carter & Burgess, Inc.
7950 Elmbrook Drive
Dallas, TX 75247
OWNER: Mehrdad Moayedi
831 Trophy L.P./Centurion Acquisitions, Inc.
3901 W. Airport Freeway, Suite 200
Bedford, TX 76021
HISTORY: Preliminary plat approval of the Master right-of-way was granted by the
Town Council on December 18, 2006. The Master right-of-way was included as part of
The Highlands at Trophy Club Neighborhoods 1, 2, 5, 6, and 7. On January 30, 2007,
application was made for final platting of the infrastructure/thoroughfare for Trophy Club
Drive and Marshall Creek Road East (now named Trophy Club Park Drive).
STAFF REVIEW: There was comprehensive staff review for the thoroughfare plats. Bi-
monthly meetings also involved the Town of Roanoke, Marshall Creek, Denton County
and Northwest ISD to coordinate the alignment of the road to the High School.
On the final review of the construction documents by the Town Engineer, the applicant
was asked to provide a letter agreement from the golf course for the sewer through the
golf course.
The applicant states that the golf course has agreed verbally with the location of the
sanitary sewer line that crosses their property. Tim Dagg, the golf course director, gave
a verbal agreement to the location across the golf course at an on-site walk-thru of the
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sanitary sewer alignment on February 20, 2007. Easements designating this alignment
location were prepared and submitted to the Town Engineer and Town Attorney for
review on June 19, 2007. After Town approval, the documents will be forwarded to the
applicant who will forward them to ClubCorp for approval.
In addition, the Town engineer asked that the sanitary sewer manhole cover be
changed from a standard rim to a “hinged” rim and the applicant indicated that the plans
will be updated once the detail is received from the Town and before final construction
sets are published.
The items above are stated for reference and historical purposes only. Town Council
action is not needed on these items.
SUMMARY: The Town Engineer has reviewed the construction documents for The
Highlands Master Improvements and has determined that they are consistent with the
Town’s standards and regulations for development and construction. Landscaping and
irrigation plans were also reviewed by the staff and the Town Engineer and are
consistent with the Town’s standards.
Innovative Traffic Solutions (ITS) has reviewed the Traffic Impact Analysis (TIA) report
submitted by Carter & Burgess for The Highlands at Trophy Club. ITS’s summary of
their review (memo dated June 18, 2007) is enclosed.
PLANNING & ZONING COMMISSION: The Planning & Zoning Commission
recommended approval on July 2, 2007, by a unanimous vote of 6-0 with the following
stipulations:
1) that Street A be designated as Galloway Blvd (Page 2);
2) the 45-ft. right-of-way line on each sheet be designated as “centerline” (Pages 2-
7);
3) delete note 2 on Sheet 2: “Should the entity responsible for maintenance of
common held property fail to perform the function, the Town has the authority to
provide appropriate maintenance and repair and collect appropriate fees and
reimbursements.” The “entity” is the Town; therefore this note is not necessary.
4) indicate as “temporary” the 50-ft. access easement across the common area of
the slip road (Page 2);
5) label Durango Drive and other streets outside the platted area for reference
purposes (Page 2);
6) be consistent with the name of the common area, choosing either “HOA Tract
No. 2” or “Common Area” (Pages 2-7);
STAFF RECOMMENDATION: Staff recommends approval.
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EXCERPT FROM PLANNING & ZONING COMMISSION MINUTES
JULY 2, 2007
C.1 FP-07-010 CONSIDER A REQUEST FROM CARTER & BURGESS, INC. ON
BEHALF OF 831 TROPHY, L.P./CENTURION ACQUISITIONS, L.P. TO
APPROVE BOTH PRELIMINARY AND FINAL PLATTING OF THE
HIGHLANDS AT TROPHY CLUB MASTER THOROUGHFARE/
INFRASTRUCTURE TO BE KNOWN AS A FINAL PLAT OF TROPHY CLUB
DRIVE & TROPHY CLUB PARK DRIVE (23.685 ACRES).
Jim Wiegert, Carter & Burgess, asked for approval of the Final Plat for Trophy Club
Drive and Trophy Club Park Drive which are the master improvements which include
road improvements with the associated storm drainage and also a water line. There is
sanitary sewer which will serve the neighborhoods of the Highlands of Trophy Club and
connect into the existing sewer system just upstream of the treatment plant. A water
model has been submitted for the design and construction of the water line
improvements. A traffic impact analysis (TIA) was also submitted.
Dean Stuller, Innovative Transportation Solutions, Inc. (ITS) reviewed the TIA submitted
by Carter & Burgess. ITS is in agreement with the TIA except for signalization at
Trophy Club Drive and Trophy Lake Drive. The TIA calls for signalization at the end of
Stage 3. ITS recommends signalization of the intersection of Trophy Club Drive and
Trophy Lake Drive at the end of Stage 2 construction in The Highlands.
Tom Rutledge, Town Engineer, stated that Teague Nall and Perkins have had several
reviews of plans submitted by Carter-Burgess and all comments have been addressed.
Chairman Hill asked that “Street A” on the Sheet 2 plat be designated as Galloway Blvd.
as that is what will go before Town Council next week on the Highlands Neighborhoods
3 & 4 plats. Mr. Wiegert agreed to make that change.
Chairman Hill asked if Northwest Parkway was a correct street name on Sheet 4 for the
road in the vicinity of the high school. Mr. Rutledge stated that nothing has been
formalized but in meetings that have taken place with Carter & Burgess, Town Staff,
Roanoke, Marshall Creek, and the School District, comments have been made that
Northwest Parkway is an acceptable name.
Chairman Hill stated that at that intersection there seems to be a common area which
juts out into the traffic lanes. Is that going to be a future traffic problem? Mr. Wiegert
explained that it designates where the right-of-way is; it is not an indication of the curb
line. There will not be a jut in the pavement.
Chairman Hill asked for an explanation of the drainage easements (by separate
instrument) shown on Sheets 5, 6, and 7. Mr. Wiegert explained that the ultimate
drainage area for the road flows naturally toward the street. It is collected within the
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subdivisions and taken down with the grade to the south and eventually to the creek.
Once those lots are constructed, there will be a drainage swale to keep the drainage
from overloading onto the street and at that time the drainage easements will be
abandoned.
Chairman Hill asked if the temporary turnaround easement and drainage easement on
Sheet 7 will be abandoned once the road is elongated. Mr. Wiegert confirmed.
Commissioners Ashby, Sanchez, Reed and Vice Chairman Stephen had no questions.
Commissioner Sheridan asked for an explanation of the breakdown of the right-of-way
on Trophy Club Drive on Sheet 2. It is stated as 45-ft. and 5-ft. Why isn’t it listed as 50-
ft.? Mr. Wiegert explained that the right-of-way is required to be 90-ft. and 45-ft. calls
out the dimensions of the centerline of the road. Mr. Rutledge added that this plat is
unique in that lots are not being platted but rather right-of-way is being platted. He
explained that on Sheet 2 the centerline is listed. The road that currently exists is built
on an 80-ft. right-of-way and the standards have now changed to 90-ft. The centerline is
indicated to reflect current standards. Commissioner Sheridan asked that the 45-ft. line
be designated as “centerline” on each sheet so that the meaning is clearer.
Commissioner Sheridan asked that Note 2 on Sheet 2 indicate the name of the entity
responsible for maintenance of common held property. Mr. Wiegert indicated the entity
will be the Town of Trophy Club; staff will either clarify or have the note removed.
Commissioner Sheridan asked why there is a 50-ft. access easement across the
common area into the slip road. Mr. Wiegert responded that the developer, Hillwood,
wanted to have an access point at midway of the slip road as that is where the model
homes are to be located. It is temporary and will eventually be removed. Mr. Rutledge
recommended that it be stated as “temporary” on the plat.
Commissioner Sheridan asked that Durango Drive be labeled on the plat for reference.
Commissioner Sheridan asked for an explanation of the difference between Stage 2
and Stage 3. Mr. Wiegert explained that a set number of homes are planned for each
stage but those numbers were not readily available. [This information was provided to
the Commissioners in an email following the meeting. Stage 1 – 741 homes, Stage 2
will add 485 additional homes for a total of 1,226, and Stage 3 will add 338 additional
homes for a total of 1,564.]
Commissioner Sheridan asked for clarification that the name “Northwest Parkway” is not
a part of this plat and therefore if the name changes this plat will not need to be
amended. Mr. Rutledge confirmed.
On page 2, for the slip roads, Commissioner Sheridan noted that there is an indication
of “common area” and on other sheets such as page 4 in the upper right this area is
designated as “HOA Tract No. 2”. He asked if there is a difference. Mr. Wiegert stated
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that there is not a difference. Commissioner Sheridan asked Mr. Wiegert to pick one
and be consistent throughout.
As there were no further comments or questions the Chairman called for a motion.
Motion: Commissioner Sheridan motioned to approve with the following
stipulations:
7) that Street A be designated as Galloway Blvd (Page 2);
8) the 45-ft. right-of-way line on each sheet be designated as “centerline” (Pages 2-
7);
9) delete note 2 on Sheet 2: “Should the entity responsible for maintenance of
common held property fail to perform the function, the Town has the authority to
provide appropriate maintenance and repair and collect appropriate fees and
reimbursements.” The “entity” is the Town; therefore this note is not necessary.
10) indicate as “temporary” the 50-ft. access easement across the common area of
the slip road (Page 2);
11) label Durango Drive and other streets outside the platted area for reference
purposes (Page 2);
12) be consistent with the name of the common area, choosing either “HOA Tract
No. 2” or “Common Area” (Pages 2-7);
Second: Vice Chairman Stephen
Ayes: Hill, Sanchez, Sheridan, Stephens, Reed, Ashby
Action: 6-0, Approved
Motion carried.
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COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 7-23-2007
Subject: Agenda Item No.B.2
Discuss and take appropriate action regarding an Ordinance amending
Section 8.01 entitled "Applicability/Conflict and Waiver" of Article VIII
entitled "Schedule of Fees" of Chapter 1 entitled "Administration" of the
Code of Ordinances by adding subsection "C" Temporary Suspension"
which sets forth the terms, conditions, and expiration of a temporary
suspension of certain building permit fees for qualified residents who
sustained damages as a result of recent storms.
EXPLANATION:
Discussion resulted after the July 10, 2007 Town Hall Meeting with FEMA as to the
appropriateness of waiving certain building fees for residents either displaced and/or
sustained damages as a result of the recent storms.
RECOMMENDATION:
Staff recommends approval.
ACTION BY COUNCIL:
(bse)
Attachments: 1. Ordinance
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TOWN OF TROPHY CLUB, TEXAS
ORDINANCE NO. 2007-
AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS TEMPORARILY
SUSPENDING CERTAIN BUILDING PERMIT FEES UNDER CHAPTER 1 OF THE
CODE OF ORDINANCES, BY AMENDING SECTION 8.01 ENTITLED
“APPLICABILITY/CONFLICT AND WAIVER” OF ARTICLE VIII ENTITLED
“SCHEDULE OF FEES” OF CHAPTER 1 ENTITLED “ADMINISTRATION” OF THE
CODE OF ORDINANCES OF THE TOWN OF TROPHY CLUB TO ADD SUBSECTION
“C” ENTITLED “TEMPORARY SUSPENSION”; PROVIDING FOR THE
INCORPORATION OF PREMISES; PROVIDING AN AMENDMENT SETTING FORTH
TERMS AND CONDITIONS OF THE TEMPORARY SUSPENSION OF FEES AND
PROVIDING A TERMINATION DATE FOR THE SUSPENSION; PROVIDING A
CUMULATIVE REPEALER CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING
A SEVERABILITY CLAUSE; PROVIDING FOR PUBLICATION; PROVIDING FOR
ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, Disaster Declaration 1709-DR was signed by President Bush on June 29, 2007; and
WHEREAS, the Town of Trophy Club (hereinafter referred to as “Town”); suffered widespread
and severe damage and loss of property resulting from storms and flooding occurring on June 18th, 2007;
and
WHEREAS, on July 10th, 2007, FEMA amended Disaster Declaration 1709-DR to include eleven
additional counties that are now eligible for individual assistance to help homeowners, renters and
businesses recover from the effects of the recent severe storms, tornadoes and flooding and such
assistance includes Individual Assistance for damages resulting from the extensive flooding that has
occurred since the initial disaster declaration; and
WHEREAS, a total of seventeen counties are now eligible for individual assistance as a result of
the 2007 summer storms; and
WHEREAS, the Town Council has determined it necessary and appropriate to facilitate the repair
of damaged structures and to prevent further loss of property value by temporarily suspending certain
building permit fees for those individuals adversely affected by the summer storms who are eligible to
receive federal assistance as a result of Disaster Declaration 1709-DR; and
WHEREAS, the Town Council has determined that this temporary suspension is necessary for
the public health, safety and welfare;
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF
TROPHY CLUB, TEXAS.
SECTION 1.
INCORPORATION OF PREMISES
All of the above premises are found to be true and correct and are incorporated into the body of
this Ordinance as if copied in their entirety.
SECTION 2.
AMENDMENT
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Section 8.01 entitled “Applicability/Conflict and Waiver” of Article VIII entitled “Schedule of Fees”
of Chapter 1 entitled “Administration” of the Code of Ordinances of the Town of Trophy Club is hereby
amended to add subsection “C” entitled “Temporary Suspension” which shall be and read in its entirety as
follows:
“C. Temporary Suspension. Based on the widespread and severe damage and loss of
property occurring from storms and flooding on or about June 18, 2007, which resulted in the
issuance of Disaster Declaration 1709-DR, those fees imposed for building permits under
Section 8.03 of this Article and specifically identified in this section (hereinafter “Select
Permit(s)”) are temporarily suspended for Qualified Residents (defined herein) who file an
application for a Select Permit during the Temporary Suspension Period (defined herein). As
used in this section, Qualified Resident shall mean a resident who has registered with FEMA
for aid due to the events that resulted in the issuance of Disaster Declaration 1709-DR and
for whom a determination of qualification has been made by the Town Manager. The
Temporary Suspension Period shall mean the period commencing upon the effective date of
this Ordinance and continuing in full force and effect for thirty (30) days thereafter. Permit
applications for Select Permit(s) which are filed by Qualified Residents after the expiration of
the Temporary Suspension Period shall be assessed all applicable permit fees. During such
Temporary Suspension Period, Qualified Residents shall be required to file an application
and obtain all required permits from the Town; however, no permit fee shall be assessed to
Qualified Residents for those Select Permit(s) which are specifically identified as follows:
1. Article VIII, Section 8.03 Subsection I entitled Electrical Permits;
2. Article VIII, Section 8.03 Subsection J entitled Fence Permits;
3. Article VIII, Section 8.03 Subsection P entitled Mechanical Permits;
4. Article VIII, Section 8.03 Subsection T entitled Retaining Wall Permit;
5. Article VIII, Section 8.03 Subsection U entitled Re-Roofing Permit.
The Town Manager is authorized to refund fees for Select Permit(s) to Qualified Residents
who filed a permit application prior to the effective date of this Ordinance.”
SECTION 3.
CUMULATIVE REPEALER
That this Ordinance shall be cumulative of all other Ordinances of the Town affecting fees and
shall not repeal any of the provisions of such Ordinances except in those instances where provisions of
those Ordinances are in direct conflict with the provisions of this Ordinance and in the event of such
repeal, this Ordinance shall be in effect only for the time period specified herein; whether such
Ordinances are codified or uncodified, and all other provisions of the Ordinances of the Town of Trophy
Club, codified or uncodified, not in conflict with the provisions of this Ordinance, shall remain in full force
and effect. Notwithstanding the foregoing, any complaint, action, cause of action or claim which prior to
the effective date of this Ordinance has been initiated or has arisen under or pursuant to such repealed or
amended Ordinance(s) shall continue to be governed by the provisions of that Ordinance and for that
purpose the Ordinance shall be deemed to remain and continue in full force and effect.
SECTION 4.
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 fees 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.
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SECTION 5.
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 6.
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 7.
ENGROSSMENT AND ENROLLMENT
The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this
Ordinance by copying the exact Caption and Effective Date clause in the minutes of the Town Council of
the Town of Trophy Club and by filing this Ordinance in the Ordinance records of the Town and by
amending the Code of Ordinances to reflect the changes adopted herein by Council.
SECTION 8.
EFFECTIVE DATE
This Ordinance shall become effective from and after its date of adoption and publication as
provided by law, and it is so ordained.
PASSED AND APPROVED by the Town of Trophy Club, Texas this the 23rd day of July 2007.
Mayor, Nick Sanders
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
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COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 7-23-2007
Subject: Agenda Item No.B.3
Discuss and take appropriate action regarding a Resolution suspending
the July 30, 2007 effective date of the proposal by Atmos Energy, Mid-
Texas Division to implement GRIP Rate Adjustments for gas utility
investment in 2006, authorizing participation with the ATMOS Cities
Steering Committee in a review into the basis of the proposed rate
adjustments and authorizing intervention in administrative and court
proceedings involving the proposed GRIP Rate adjustments.
EXPLANATION: A staff report and frequently asked questions are provided below. If
approved, the Resolution will suspend the July 30, 2007 effective date of the proposal
by Atmos Energy, Mid-Tex Division to implement interim grip rate adjustments and will
also authorize steering committee intervention in administrative and court proceedings.
If Council desires to suspend the effective date, action must be taken before July 30,
2007.
RECOMMENDATION:
ACTION BY COUNCIL:
Attachments: 1. Staff Report
2. Frequently Asked Questions
2. Resolution
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STAFF REPORT
ON ATMOS MID-TEX GRIP SUSPENSION RESOLUTION
Purpose of the Resolution:
The law mandates that a Gas Reliability Infrastructure Program (GRIP)
surcharge request cannot become effective until sixty (60) days following the filing. The
effective date may be suspended by a city for 45 days. If the City does not take action
to suspend the filing, the Company may begin implementing a monthly surcharge ($0.59
on all residential customers, $1.47 for commercial customers, and $28.74 for industrial
customers) after July 30, 2007. The resolution suspends the effective date to the
maximum extent permitted by law to allow the cities time to evaluate the filing,
determine whether the filing complies with law, and if lawful, to determine what further
strategy to pursue. This is particularly important given that the Atmos Cities Steering
Committee initiated a rate case (GUD No. 9670) in which it was determined that Atmos
had included inappropriate expenditures in its previous GRIP surcharges for rate years
2003, 2004, and 2005. But for the investigation by the Cities, through ACSC, and other
intervenors, the impropriety of these expenditures and of their inclusion in the GRIP
surcharges, would not have been exposed, and the refund of $2.5 million would not
have been ordered.
Additionally, Atmos has just received a rate increase of approximately $5 million
and should be collecting sufficient revenues to earn its allowed return without the
necessity for a surcharge to recover incremental investment.
What is GRIP:
GRIP is piecemeal ratemaking and would be illegal under traditional ratemaking
that is in the public interest. Atmos, TXU Gas, and other gas utilities persuaded the
legislature in 2003 to make an exception to the prohibition against piecemeal
ratemaking to encourage increased investment in transmission and distribution pipe by
allowing prompt recovery of investment, despite the possibility that increased revenues
and declining expenses could more than offset increased investment. Unfortunately,
utilities have used the GRIP filings to include other costs unrelated to infrastructure
improvements. GRIP surcharges are only allowed until the next general rate case.
NOTE: IT IS CRITICAL THAT ALL CITIES PASS THE RESOLUTION TO SUSPEND
ON OR BEFORE JULY 30, 2007.
Explanation of “Be It Resolved” Paragraphs:
1. A city is authorized to suspend the effective date for 45 days. However,
since the Company controls and can extend its effective date during settlement
discussions to increase a city’s jurisdiction and the period of time necessary to reach
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settlement, the resolution refers to suspension “for the maximum period allowed by law”
rather than a specific date.
2. This paragraph authorizes participation with the Atmos Cities Steering
Committee and coordinated control over legal counsel and consultants. Along with
paragraph 3, this paragraph avoids the necessity of returning to the City Council with
another resolution to authorize efforts related to an appeal of the Council’s ultimate
decision on the Atmos application.
3. This paragraph authorizes the intervention of the city, assuming such is
recommended by the Atmos Cities Steering Committee, in any appeals that may be
filed at the Railroad Commission challenging the City’s action. It further authorizes the
handling of appeals from Railroad Commission decisions to the courts in Austin, if the
Atmos Cities Steering Committee believes that effort is desirable.
4. Texas law requires utility companies to reimburse cities for all costs (legal
and consulting) associated with ratemaking, whether the case is initiated by the utility or
a regulatory authority. Although the implementation of a tariff that imposes a surcharge
is ratemaking, entitling the participating cities to reimbursement, Atmos has not
historically agreed to reimburse ACSC for its legal expenses, nor has the Railroad
Commission required it to do so. The ACSC Executive Committee has determined that
it is appropriate and necessary to investigate this GRIP filing and to take appropriate
action, and has authorized the expenditure of funds to do so. Legal counsel and
consultants approved by the ACSC Executive Committee will submit monthly invoices to
the City of Arlington which will then forward the invoices to Atmos for reimbursement.
No individual city incurs liability for payment of rate case expenses by adopting a
suspension resolution.
5. This paragraph directs that a copy of the signed resolution be sent to a
representative of the Company and legal counsel for the Atmos Cities Steering
Committee.
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FREQUENTLY ASKED QUESTIONS REGARDING
ATMOS' GRIP FILING
Q: What is GRIP?
A: The Gas Reliability Infrastructure Program was originally enacted by the Texas
Legislature in 2003 to allow gas utilities an opportunity to recover costs
associated with replacing aging portions of natural gas pipeline to enhance
reliability and public safety without the necessity of a full blown rate case.
However, Atmos-Mid Tex has used the statute to recover any change in invested
capital. As a result, Atmos-Mid Tex has surcharged items not related to system
safety or reliability, including furniture, artwork, computers, air conditioners, new
parking lots as well as first class airfare and luxurious accommodations for
executives and their spouses, hundreds of thousands of dollars in lavish meals,
liquor, employee gifts, limousine travel, and charitable contributions.
Q: If Atmos' GRIP filing is approved, what impact will it have on ratepayers'
bills?
A: For an average residential customer (4.6 Mcf per month): $0.59 monthly
For an average commercial customer (34.7 Mcf): $1.47 monthly
For an average industrial customer (3,918 MMBtu): $28.74 monthly
Q: How long will these surcharges be collected?
A: These surcharges will be levied on every customer's bill every month until the
implementation of final rates in Atmos' next rate case (as late as 2012.)
Q: Atmos has provided the City a denial resolution and told us to deny Atmos'
GRIP application as soon as possible. Should the City do that right now?
A: No, Pursuant to the statute, the city may suspend the implementation of the
effective date of the Company's application for 45 days (in this case, until
September 13). Denying the request now expedites the implementation of
surcharges on your citizens while the citizens of the cities that suspend the
implementation will have their surcharges delayed for several months.
Q: If the City is going to deny the GRIP surcharge anyway, why postpone
doing that by adopting a suspension resolution now?
A: The extra time allows an expert working on behalf of Atmos Cities Steering
Committee to review and analyze the surcharge application. The expert will be
reviewing all of the costs that Atmos is requesting to be collected through the
surcharge. One area of his review will be to ensure that costs that were
36
disallowed by the Railroad Commission in the most recent rate case are not
included in this application. The expert will issue a report to all ACSC members
regarding his findings. The report may also be filed with the Railroad
Commission. The ACSC Executive Committee will review the findings and will
issue a recommendation to all members in advance of September 13. ACSC
members will be provided with any resolutions/ordinances necessary to take final
action.
Q: Will postponement have any effect upon ratepayers?
A: In addition to allowing more time for review, suspending the effective date of the
surcharge will save residential customers approximately $875,000 per month in
surcharges that would otherwise be levied system-wide.
Q: This is Atmos Mid-Tex's fourth GRIP surcharge. What happened to the
other three surcharges?
A: The table below reflects the history of the Atmos Mid-Tex GRIP requests.
In Atmos Mid-Tex's most recent rate case, GUD 9670, the Railroad Commission
reviewed the GRIP surcharges the Company levied in 2003, 2004, and 2005 and
disallowed $2.5 million in unreasonable expenses. The Railroad Commission
judges that heard the evidence regarding Atmos' GRIP surcharges concluded
that the inclusion of costs associated with liquor, lavish meals, first class travel,
employee gifts, expensive artwork, etc. indicated a collapse of corporate control
and management and a breakdown of the Company’s operations and
maintenance budgeting and cost control process. The evidence in GUD 9670
also revealed that Atmos capitalized expenditures of certain short lived items,
such as Kleenex, trash can liners, staples, office supplies and other similar items
as part of the GRIP surcharge process.
ATMOS MID-TEX GRIP FILINGS
2003 – 2006
Atmos
Filing
Date Filing
Made with
the Cities
Amount
Requested
Amount
Approved by
RRC
Amount of
Residential
Surcharge
2003
GRIP
12/17/04
$6,691,224 $6,691,224 $4,727,865
$0.29 per
customer
2004
GRIP
09/19/05 $6,731,115 $6,731,115 $4,756,051
$0.29 per
customer
2005
GRIP
03/31/06 $11,890,764 $11,890,764 $8,705,096
$0.52 per
37
customer
2006
GRIP
05/31/07 $12,422,428
($0.59/ cust)
38
Q: Did the legislature address GRIP in the recent legislative session?
A: The Senate Business and Commerce Committee unanimously approved a bill
that would have repealed the GRIP statute, largely in response to the abuses of
the GRIP surcharge by Atmos Mid-Tex. However, by the end of the session, the
gas utility lobby was successful in killing meaningful reform and the legislation
died.
Q: What can cities do to alert legislators regarding problems with the GRIP
statute?
A: It is important to start building support for legislative reform now. Issues
regarding utility ratemaking and GRIP surcharges are very technical and can be
difficult to effectively communicate during the heat of a legislative session. Cities
can build on the effective information campaign that started in the session that
recently concluded and prepare for the next session by communicating with the
legislators about this GRIP filing. The Executive Committee has requested that a
model resolution supporting legislative changes to protect natural gas ratepayers
and opposing GRIP surcharges be prepared to distributed to members to provide
to their legislative delegation.
39
RESOLUTION NO. ____
A RESOLUTION BY THE TOWN OF TROPHY CLUB,
TEXAS SUSPENDING THE JULY 30, 2007 EFFECTIVE
DATE OF THE PROPOSAL BY ATMOS ENERGY CORP.,
MID-TEX DIVISION TO IMPLEMENT INTERIM GRIP RATE
ADJUSTMENTS FOR GAS UTILITY INVESTMENT IN
2006; AUTHORIZING PARTICIPATION WITH THE ATMOS
CITIES STEERING COMMITTEE (“ACSC”) IN A REVIEW
AND INQUIRY INTO THE SUFFICIENCY OF THE FILING
AND THE BASIS OF THE PROPOSED RATE
ADJUSTMENTS; AUTHORIZING INTERVENTION IN
ADMINISTRATIVE AND COURT PROCEEDINGS
INVOLVING THE PROPOSED GRIP RATE
ADJUSTMENTS; REQUIRING REIMBURSEMENT OF
REASONABLE LEGAL AND CONSULTANT
RATEMAKING COSTS; REQUIRING DELIVERY OF THIS
RESOLUTION TO THE COMPANY AND LEGAL
COUNSEL; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Town of Trophy Club, Texas (“Town”) is a gas utility customer of
Atmos Energy Corp., Mid-Tex Division (“Atmos Mid-Tex” or “the Company”), and a
regulatory authority with an interest in the rates and charges of Atmos Mid-Tex; and
WHEREAS, Atmos Mid-Tex made filings with the Town and the Railroad
Commission of Texas (“Railroad Commission”) on or about May 31, 2007, proposing to
implement interim rate adjustments (“GRIP rate increases”), pursuant to Texas Utilities
Code § 104.301, on all customers served by Atmos Mid-Tex, effective July 30, 2007;
and
WHEREAS, Atmos Mid-Tex was recently granted a rate increase as a result of
its filing in GUD No. 9670, in which the Final Order was only signed on March 29, 2007;
and
WHEREAS, in GUD No. 9670, it was determined that Atmos Mid-Tex had
inappropriately included certain expenditures in its prior GRIP rate increases for rate
years 2003, 2004, and 2005; and
WHEREAS, it is incumbent upon the Town, as a regulatory authority, to examine
this latest GRIP filing to determine its compliance with the Texas Utilities Code; and
WHEREAS, ratepayers of Atmos Mid-Tex, including the Town and its residents,
will be adversely impacted by the proposed GRIP rate increases; and
WHEREAS, it is advantageous for the Town and its citizens to coordinate the
Town’s response to Atmos' filing with similarly situated municipalities; and
40
WHEREAS, the Town has benefited from prior participation with the Atmos Cities
Steering Committee ("ACSC"); and
WHEREAS, it is efficient and cost beneficial for the Town to again coordinate
review of the reasonableness of the proposed GRIP rate increases and joint
participation in any proceedings at the Railroad Commission related to the proposed
GRIP rate increases; and
WHEREAS, the Executive Committee of ACSC has recommended suspension
and established a budget for evaluation of the Atmos filing; and
WHEREAS, a GRIP proceeding involves rate making, entitling cities to
reimbursement of reasonable rate case expenses;
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB, TEXAS, THAT:
Section 1. The July 30, 2007 effective date of the GRIP rate increases
proposed by Atmos Mid-Tex is hereby suspended for the maximum period allowed by
law to permit adequate time to investigate the sufficiency of the GRIP Rate Increase
filing, review the proposed increases, analyze all necessary information, and take
appropriate action related to the proposed increases.
Section 2. The Town is authorized to cooperate with ACSC to hire and direct
legal counsel and consultants, to negotiate with the Company, to make
recommendations to the Town regarding the proposed GRIP rate increases, and to
direct any administrative proceedings or litigation associated with the proposed GRIP
rate increases.
Section 3. The Town is authorized to intervene in any administrative
proceedings or litigation associated with the proposed GRIP rate increases.
Section 4. Atmos Mid-Tex shall promptly reimburse the Town’s reasonable
costs associated with the Town’s ratemaking activities related to the proposed GRIP
rate increases.
Section 5. A copy of this Resolution shall be sent to Atmos Mid-Tex, care of
Charles R. Yarbrough, II, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1800,
Dallas, Texas 75240, and to Geoffrey Gay, legal counsel to ACSC, at Lloyd Gosselink,
816 Congress Avenue, Suite 1900, Austin, Texas 78701.
This Resolution is effective on this the 23rd day of July, 2007.
____________________________________
Mayor, Nick Sanders
41
ATTEST:
__________________________
Town Secretary, Lisa Ramsey
APPROVED AS TO FORM:
___________________________
Town Attorney, Patricia A. Adams
42
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 7-23-2007
Subject: Agenda Item No.B.4
Discuss and take appropriate action to approve Minutes dated May 21,
2007.
EXPLANATION:
Council member Sterling was absent from this meeting and will need to abstain from
voting.
RECOMMENDATION:
ACTION BY COUNCIL:
(lmr)
Attachments: 1. May 21, 2007 Minutes
43
MINUTES OF A REGULAR TOWN COUNCIL MEETING FOR THE
TOWN OF TROPHY CLUB
LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS
Monday, May 21, 2007
7:00 P.M.
STATE OF TEXAS §
COUNTY OF DENTON §
The Town Council of the Town of Trophy Club, Texas, met in a Regular Session on Monday, May 21,
2007. The meeting was held within the boundaries of the Town and was open to the public.
TOWN COUNCIL MEMBERS PRESENT:
Nick Sanders Mayor
Roger Williams Mayor Pro Tem
Pam Cates Council Member
Susan Edstrom Council Member
Gregory Lamont Council Member
TOWN COUNCIL MEMBERS ABSENT:
Philip Sterling Council Member
STAFF AND GUEST(S) PRESENT:
Brandon Emmons Town Manager
Sakura Moten-Dedrick Finance Director
Lisa Ramsey Town Secretary
Patricia Adams Town Attorney
Adam Adams Parks and Recreation Director
Scott Kniffen Police Chief
Danny Thomas Fire Chief
Mike Pastor IS Manager
Carolyn Huggins Planning Coordinator
Gene Hill Planning & Zoning Chairman
A.1 Mayor Sanders called the Regular Session to order at 7:07 p.m. noting a quorum was present.
Mayor Sanders announced that Council Member Sterling was out on vacation
A.2 Pastor Joel Quile, Lakes City Church of Christ gave the Invocation.
A.3 Conrad Staton of Troop 937 led the Pledges.
A.4 Discuss and take appropriate action in regard to a Proclamation to recognize the outstanding
achievement by Conrad Staton/Trophy Club Boy Scout Troop 937, and congratulating him on his
achievement of the Eagle Scout Award.
Mayor Sanders read the Proclamation and introduced Conrad Staton.
Motion made by Edstrom, seconded by Cates to approve the Proclamation.
Motion passed unanimously.
Mayor Sanders congratulated Mr. Staton on his achievement and presented him with the Proclamation.
A.5 Discuss and take appropriate action regarding a Proclamation declaring and supporting the Click
it or Ticket campaign, May 21 through June 3, 2007.
44
Mayor Sanders read the Proclamation
Motion made by Williams, seconded by Edstrom to approve the Proclamation.
Motion passed unanimously.
A.6 Citizen presentations:
Mayor Sanders read a statement saying that he was deeply saddened by the recent activities that might
be called political zeal. Sanders said, “Politics may be defined as The often internally conflicting
interrelationships among people in a society, does not mean that those involved in or supporting a
campaign for public office should sacrifice integrity and courteous behavior for the sake of the cause.
Sanders ended with a quote by Henry David Thoreau, “Things do not change; we change.”
Mayor Sanders read a statement submitted by Mayor Pro Tem Williams stating that Williams reluctantly
pulled the agenda item dealing with the ethics violation on Matthew Graham. Williams said, “This item
would be referred to the June 4th meeting he did not want to burden the new Council with what could be a
contentious issue. A citizen has the right to say and write almost anything they desire under the laws of
our land. This issue is not about freedom of speech, as Mr. Graham would have you believe, but rather
about ethics and ethical behavior. The Council developed and put in place a Handbook for Elected and
Appointed Officials in December 2006; one of the purposes was to help ensure a more civil atmosphere
in all town proceedings.” Williams’ statement concluded with the hope that civil discussions on issues
and not ridiculous letters in the newspaper may result in future elections.
Matthew Graham, 116 Greenhill Trail South submitted a letter to be read into the record stating that this
Council has fulfilled its responsibility, and paid its homage to that which is already a part of Trophy Club,
that makes Trophy Club great.
Dave Edstrom, 269 Oak Hill Drive submitted a letter to be read into the record. Edstrom requested that
the Council remove Article 3, titled Conduct of Town Officials from the Town Handbook as it violates the
First Amendment rights of free expression for those who serve on the Town volunteer committees.
All matters listed as Consent Agenda are considered to be routine by the Town Council and will be
enacted by one motion. There will not be a separate discussion of these items. If discussion is desired,
that item will be removed from the consent agenda and will be considered separately.
Mayor Pro Tem Williams pulled Item B.3.
Motion made by Edstrom, seconded by Lamont to approve the Consent Agenda, Items B.1. B.2, and B.4.
Motion passed unanimously without further discussion
B.1 Consent Agenda: Discuss and take appropriate action to approve several name changes and the
execution of signature resolutions for new Town Bank Accounts at First Financial Bank for the
Grant Fund and Hotel/Motel Fund by Brandon Emmons, Sakura Moten-Dedrick, Lisa Ramsey
and Nick Sanders.
B.2 Consent Agenda: Discuss and take appropriate action to approve both a name change and the
addition of new Town Bank Accounts at Texpool for the Hotel/Motel Fund, Grant Fund, PID Fund
and $474K Harmony Park Fund by Brandon Emmons, Sakura Moten-Dedrick, Lisa Ramsey and
Nick Sanders.
B.3 Consent Agenda: Discuss and take appropriate action to approve the renewal of Beautification
Funds in a Certificate of Deposit (CD) for six (6) months at a rate of 4.25% with First Financial
Bank.
45
Mayor Pro Tem Williams questioned if this was the best rate. Mayor Sanders said it is not the best rate;
as a result of the RFP, it is the process of services being moved into First Financial Bank. Town Manager
Emmons added several banks had higher CD rates and the Town only wanted six months.
Motion made by Williams, seconded by Lamont to approve.
Motion passed unanimously without further discussion
B.4 Consent Agenda: Discussion and appropriate action to approve Interlocal Cooperation
Agreement-Tax Collection between Denton County and the Town of Trophy Club and designating
Sakura Moten-Dedrick, Finance Director, as the Liaison for the Town.
End of Consent Agenda
TOWN COUNCIL CONVENED INTO PUBLIC HEARING
PUBLIC HEARING
C.1 Public Hearing: Consider a Replat for 5 and 7 Stephen’s Court, also described as Lots 9 and 8 of
Estates of Hogan's Glen, Phase II. (RP-07-011)
Public Hearing Opened at 7:33 p.m.
Representative Agent Mark Carr was in attendance.
No one addressed council.
Public Hearing Closed at 7:34 p.m.
TOWN COUNCIL RECONVENED INTO REGULAR SESSION
*REGULAR SESSION
D.1 Discuss and take appropriate action relative to a request for Replat for 5 and 7 Stephens Court,
also described as Lots 9 and 8 of Estates of Hogan's Glen, Phase II. (RP-07-011)
Planning and Zoning Chairman Gene Hill reported on April 19, 2007, the Commission recommended
approval by unanimous vote.
Motion made by Lamont, seconded by Cates to approve.
Motion passed unanimously without further discussion.
D.2 Discuss and take appropriate action regarding a Resolution supporting passage by the Texas
Legislature of House Bill 3181 regulating the obstruction of emergency vehicles by trains blocking
streets, railroad crossings, or public highways.
Mayor Sanders introduced Justin Assistant City Administrator, Virginia Blevins who helped draft this bill.
Blevins gave a brief presentation of this House Bill which was changed to HB1757and showed a NBC 5
Newsclip featuring the obstruction of emergency vehicles by trains.
Motion made by Edstrom, seconded by Lamont to approve.
Council member Lamont recalled a law that limited the time a train engineer could drive before having a
replacement. Ms. Blevins was unable to confirm if this is still a law and said that they are running more
freight and running nose to nose so some trains have to pull over onto the side bars in order to allow the
other to pass. The Railroads have allowed additional freight, but not the capital improvements to
compensate for the additional freight.
46
Motion passed unanimously without further discussion.
D.3 Discuss and take appropriate action relative to Final Plat approval of an approximate 12.23 acre
tract of land legally described as A. Medlin Survey, Abstract No. 832, known as Churchill Downs.
Applicant: Southwest T.O.O. Development L.L.C. (FP-07-011)
A. Discuss and take appropriate action regarding the approval of the Subdivider's Agreement for a
12.23 acre tract of land legally described as A. Medlin Survey, Abstract No. 832, known as Churchill
Downs.
Mayor Sanders advised that Staff is waiting for a letter from the CORP in order to move forward.
No action; died for lack of motion.
D.4 Discuss and take appropriate action regarding the Parkland dedication for Churchill downs.
Town Manager Emmons explained the Ordinance requires the Town accept land donation in an amount
of 5 acres or more. In the event that cash is accepted the value shall be calculated at a rate of one acre
per forty four lots. Based upon the methodology for parkland dedication contained in the Town’s
ordinance, the Developer of Churchill Downs would owe $57,670 that would be paid as money in lieu of
parkland dedication. That cost calculation is based upon the following: 35 Dwelling units require a Park
Land turnover of .79 acres. Using the land purchase price of $73,000.00 per acre would require the
developer to pay $57,670.00 in monies in lieu of land.
Motion made by Williams, seconded by Cates moved to refer to a future meeting.
Council member Edstrom would like a better understanding of Mr. Price’s offer.
Motion to refer passed unanimously without further discussion.
D.5 Discuss and take appropriate action regarding a request from Allied Waste Services to adjust the
holiday pick up schedule and regularly scheduled collection days.
Town Manager Emmons introduced Jeri Harwell from Allied and said he would like to see Allied amend
their contract with the schedule change that can be approved at a future meeting under the Consent
Agenda. Ms. Harwell said Allied respectfully request this schedule change in order to better serve the
residents. Mondays are so busy that it is often hard to get to all residents. If a holiday falls on Friday,
pick up would be on Saturday, If a holiday is on a Monday, pickup will be Wednesday.
Mayor Sanders asked about notification to the residents. Ms. Harwell said they will notify with door
hangers.
Town Manager Emmons suggested a July 1st, effective date in order to get the notification out to the
residents.
Council member Edstrom questioned if Council understood the change. Ms. Harwell said one reason for
the holiday change was so that their workers do not have to work every holiday, this shift will help Allied’s
level of service.
Motion made by Cates, seconded by Lamont to approve.
Mayor Sanders clarified the motion was to approve the regularly scheduled collection days to Tuesday
and Fridays and for waste collection to be moved back one day during holiday weeks.
Motion passed unanimously without further discussion.
47
D.6 Discuss and take appropriate action regarding a Resolution determining the total cost of the Town
Of Trophy Club Public Improvement District No. 1 improvements (The Highlands At Trophy Club),
preparing a proposed assessment roll, directing the filing of the proposed assessment roll, calling
a public hearing to consider proposed assessments and providing for the publication of notice.
Mayor Sanders recognized Mehrdad Moayedi from Centurion Development Group, Kyle Saulsman from
Carter and Burgess and Robert Miklos from Hughes and Luce.
Town Manager Emmons said this Resolution is one of the requirements for the PID. The project list has
been cleaned up with firm cost. This Resolution will actually set the price allowing the Service and
Assessment Plan to be created. If in the future the Resolution is rescinded the whole process would
need to be started over, thus the addition of section 11.
Mayor Sanders said Attachment A of the Resolution is the same as Attachment B of the PID Agreement.
The Project list and percentage of the project allocated to the PID. The amount in the Resolution is the
amount allocated to the PID not the total cost of the project. Town Attorney Patricia Adams
understanding was that the Council would have another opportunity to review and debate the project list
at the time the SAP was reviewed. Adams clarified that if Council approved tonight the project list would
not be coming back for debate during the SAP phase and everything will be based on the figures in
Exhibit A. Mayor Sanders added that Town Manager Emmons reviewed the May 7th tape and confirmed
Town Attorney Adams’ understanding was based on Kirk Wilson’s comments at that meeting.
Robert Mikleos explained the Council sets the assessment; the total cost now and hopefully on June 18th
that figure will go into dividing the levied assessments for each parcel. The levy hearing fixes the specific
assessment per parcel, and Council will have the opportunity to review and the ability to adjust the
service costs through the annual review of the SAP over the next several years. If costs change Council
could adjust the SAP, but at this time Council needs to determine a cost for preparation of the
assessment. The assessment could go up only if it was determined that there was omission on
something that had been left out, by another Public Hearing with a supplemental assessment. Mayor
Sanders questioned if the cost of steel and concrete increase. Mikleos answered that a Public Hearing
with a supplemental assessment would be necessary, but that the Developer’s Agreement would cover
some of the cost overruns and the developer would be on the hook. The contingency fund would
compensate for some of the overruns.
Lila Marsh from Vinson and Elkins said that she has studied the statue that relates to amendments to the
plan and asked the Council to be mindful that the assessment on a homestead on the hills of residential
development cannot be changed. Ms. Marsh said the Attorney General will look at the allocation from a
procedural stand point, and as previously presented by Keenan Rice from MuniCap, these are only
estimates at this time.
Mayor Sanders reminded the Council that the Developer’s Agreement still needs to be approved
Trip Davenport from Bank of America Securities believes the cost overruns were addressed in the
Developer’s Agreement would be covered by the developer.
Mayor Sanders said Town Manager Emmons and Town Attorney Adams have been very diligent in
protecting the Town’s residents. Sanders explained the May 21, 2007 Memorandum from Centurion
Development Group that addresses the land acquisitions which are qualified items under the PID and
describes how the funds will be used.
Motion made by Edstrom, seconded by Williams to approve.
Motion passed unanimously without further discussion.
D.7 Discuss and take appropriate action regarding a Resolution supporting the Safe Routes to School
Program and approving the submission of a grant application for the 2007-2008 fiscal year.
48
Mayor Sanders commented that the 5th Whereas clause should say within rather than with.
Town Manager Emmons said the Safe Routes to School Program is a 100% Federal grant program
designed to provide for alternatives to motorized transportation to school. The Town of Trophy Club, in
conjunction with NISD and the Town of Marshall Creek, will be applying for funds to construct sidewalks
and controlled crosswalks near Medlin, Lakeview, and Beck schools.
Motion made by Edstrom, seconded by Cates to approve with corrections.
Council member Cates believes sidewalks are important and will promote safety but feels there are a lot
of people on Trophy Club Drive that will not like sidewalks.
Mayor Sanders noticed the Resolution does not include the City of Roanoke. Town Manager Emmons
explained staff just received written consent from Roanoke today.
Motion made by Edstrom; seconded by Cates to amend the last Whereas clause to include Roanoke after
Marshall Creek.
Motion passed unanimously with amendments.
D.8 Discuss and take appropriate action on a request for Final Plat approval for Lots 1, 2, and 3,
Block A, Golf Maintenance Facility Addition, being 4.038 acres of land located in the Mary Medlin
Survey, Abstract 832. Applicant: Beck Properties Trophy Club, L.P. (FP-07-020)
Mayor Sanders announced that staff still does not have the engineering seal, therefore no action would
be taken tonight.
No action taken.
D.9 Discuss and take appropriate action authorizing the Town Manager to execute an agreement for
the purchase of a 2008 C4500 Type III Ambulance, to provide for financing, and to execute all
necessary documents.
Town Manager Emmons provided the Town has budgeted a $4,000 interest payment (based on an
estimated total cost of $160,000) in the current year’s budget, with full annual payments starting in
FY08/09. This ambulance will be the primary response vehicle, and the existing 1999 model ambulance
will be relegated to reserve status. Emmons said staff recommends Council authorize the issuance of
Contractual Obligations in the amount not to exceed $150,000 and proceed with the purchase for a 2008
C4500 Ambulance from Professional Ambulance.
Motion made by Williams to refer to next Council Meeting in order to let the new Council make budgetary
decisions.
Council member Lamont clarified the basic cost is for this year’s budget.
Motion to refer died for lack of a second.
Motion made by Edstrom; seconded by Cates to approve.
Motion passed 3:1, with Williams opposing.
D.10 Discuss and take appropriate action regarding a Resolution approving the submission of the grant
application for the Special Crimes Investigator, in the amount of $71,600.00 from the 421 Criminal
Justice Planning Fund, for the 2007-2008 fiscal year and designating the Town Manager as the
authorized official for the Town.
49
Town Manager Emmons explained the Grant would allow for a new position of a Special Investigator in
the Police Department to investigate all “cyber-crime” allegations, hold educational sessions on internet
safety for schools and civic organizations, be trained in the forensic examination of data and computers,
and investigate all sex crimes.
Motion made by Edstrom, seconded by Cates to approve.
Mayor Pro Tem Williams questioned what would happen after budget year 2007-08. Town Manager
Emmons said the Town may apply for continued funding; however there are no guarantees for out years.
Police Chief Kniffen said this position would also be funded to provide internet safety education to our
schools. This is a three-year grant, with 100% match the first year, 80% the second and 60% the third.
This grant does not permit a car allowance and most of the work will be done at the office.
Council member Lamont questioned if the new Council should make this decision.
Motion made by Edstrom, seconded by Cates to approve.
Motion to refer made by Lamont; seconded by Williams.
Council member Edstrom confirmed approval of this item is only allowing the Town to submit the
proposal.
Motion to refer was withdrawn by Lamont, the second agreed.
Motion to approve passed unanimously without further discussion.
D.11 Discuss and provide input regarding the RFP for a Police Department needs assessment.
Town Manager Emmons explained the needs assessment will allow a consultant to examine the Town’s
needs and provide recommendations to the existing facility. Emmons provided that the needs
assessment is necessary in order to accurately prepare for the next budget year.
Council member Edstrom clarified that only the needs assessment would be approved, as not to
encumber the new Council.
Motion made by Lamont, seconded by Williams to approve.
Motion passed unanimously without further discussion.
D.12 Discuss and take appropriate action regarding a Resolution authorizing the Police Department to
adopt a policy to allow the towing of vehicles if proof of liability insurance cannot be obtained.
Motion made by Edstrom, seconded by Lamont to approve.
Council member Cates requested a copy of the policy.
Motion passed unanimously without further discussion.
D.13 Discuss and take appropriate action to approve financials for both March and April 2007 and to
approve a variance report dated April 2007.
Motion made by Edstrom, seconded by Lamont to approve.
Mayor Pro Tem acknowledged staff for their hard work on the financials and variance report.
50
Motion passed unanimously without further discussion.
D.14 Discuss and take appropriate action regarding the regularly scheduled Town Council meetings for
July.
Town Manager Emmons said he was unable to receive input from one Council member and another
preferred the July 2nd meeting be rescheduled.
Mayor Sanders and Council members Edstrom and Cates are fine with either date.
This Item will be placed on next agenda for consideration.
D.15 Discuss and take appropriate action to approve Minutes dated, March 19, 2007.
Motion made by Williams, seconded by Edstrom to approve.
Motion passed 3:0:1, with Cates abstaining.
D.16 Discuss and take appropriate action regarding an ordinance canvassing the returns and declaring
the results of the General Election held on May 12, 2007.
Motion made by Edstrom, seconded by Cates to approve.
Mayor Pro Tem Williams congratulated Council Elects, Wilson and Moss. Williams expressed
disappointment for the low voter turnout and encouraged the Town residents to become active in Town
government by voting.
Council member Cates would like to see larger voting signs
Motion passed unanimously without further discussion.
D.17 Town Manager Emmons to designate an Acting Town Manager.
Town Manager Emmons appointed Fire Chief Danny Thomas as the Acting Town Manager.
D.18 Discuss and provide input regarding amendments to Section 4.05(B)(2) of Article IV, Chapter 5 of
the Code of Ordinances relating to number, size and placement of political signs.
Mayor Sanders would like to see the Ordinance language regarding the distance from the curb, right of
way and easement clarified.
Council member Edstrom’s understanding of Ordinance 2007-10 approved on March 5th, 2007 was for
allowance of only one sign per candidate, per seat on the ballot; if there are only two seats open a
resident may only have two signs in their yard. Mayor Sanders and Council member Lamont disagreed
with Edstrom’s understanding. Council member Lamont asked what a resident would do if their family
was divided on the candidates or if they live on a corner lot and did not want to offend anyone and asked
that the designated official be clarified.
Mayor Pro Tem Williams suggested that a definition of a multi-faceted sign be included.
No action was taken.
D.19 Items for Future Agenda.
Council member Edstrom requested the Elected and Appointed Official Handbook be added to the list for
revisions to the Ethics Section.
51
D.20 Discuss and take appropriate action to determine whether the May 11th complaint filed by
Council Member Lamont against Bob Radder, a member of the Public Service advisory group
and Zoning Board of Adjustment, on its face presents a violation of the Handbook for Elected and
Appointed Officials Handbook for which sanctions, such as reprimand, formal censure, or loss of
appointment would be appropriate in order to serve the legitimate goal of orderly governance,
integrity, and public confidence in government.
Motion made by Edstrom, seconded by Cates to postpone indefinitely.
Mayor Sanders said the matter of postponing can be debated; if carried; this motion would in essence
vote down the item and would not come back unless another complaint was received.
Council member Edstrom believes taking this forward serves no public good for the Town of Trophy Club
and reminded the Council she cautioned them of this section being used for political gain back when the
Handbook was approved.
Council member Cates read a statement regarding freedom of speech and requested that people take up
personal vendettas on their own time and to use their position on the Council for what it is intended.
Mayor Pro Tem Williams said he begrudgingly withdrew his complaint, especially after Mr .Graham’s
rendition of his Letter to the Editor last Friday. Williams believes the handbook was put into place to
address violations and feels Mr. Radder’s comments were offensive especially since they were made
following the Mayor’s statement. William’s respects others opinions and is not talking about freedom of
speech but ethical conduct.
Council member Lamont explained this is not a personal vendetta and said Mr. Radder made untrue
statements that violated the handbook, which was reviewed by the Town Attorney and approved by the
Town Council.
Kathleen Wilson, 34 Meadowbrook Lane – Believes Mr. Radder is protected under the 1st Amendment.
Joel Quile, 200 Durango – Appreciates the process that Council works through differences and issues.
Neil Twomey, 203 Oakmont Drive – Believes the Ethics Section abridges his first amendment rights.
Motion to postpone indefinitely tied 2:2, with Cates and Edstrom voting.
Motion to postpone indefinitely passed 3:2, with Sanders, Edstrom and Cates voting for.
D.21 Reports.
a) EDC 4BLiaison, Council member Sterling was absent; no report given.
b) Council member Cates referred her report on periodic, internal audits of procedures as
related to procurement policies, journal entries and the travel and training policies until
the June 4th meeting.
c) Mayor Pro Tem Williams thanked past and current staff members for their hard work and
diligence. Williams said he has enjoyed his six years on the Council and thinks it is important
for there to be different voices in order to make the best decisions for the residents.
d) Council member Lamont referenced his favorite quote, “if we wake up tomorrow everything
will
be fine.”
e) Town Manager Emmons gave his report.
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E.1 Adjourn.
Motion made by Williams, seconded by Lamont to adjourn.
Meeting adjourned at 9:35 p.m.
________________________________ ________________________________
Lisa Ramsey, Town Secretary Nick Sanders, Mayor
Town of Trophy Club, Texas Town of Trophy Club, Texas
53
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 7-23-2007
Subject: Agenda Item No.B.5
Discuss and take appropriate action to approve Summary from the Town
Hall meeting with FEMA dated July 10, 2007.
EXPLANATION:
These are not official Minutes as this was not an official Council meeting.
RECOMMENDATION:
ACTION BY COUNCIL:
(lmr)
Attachments: 1. July 10, 2007 Town Hall Meeting Minutes
54
SUMMARY OF A TOWN HALL MEETING FOR THE
TOWN OF TROPHY CLUB
LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS
Tuesday, July 10, 2007
7:00 P.M.
STATE OF TEXAS §
COUNTY OF DENTON §
The Town Council of the Town of Trophy Club, Texas, met in a Town Hall meeting on Tuesday, July 10,
2007. The meeting was held within the boundaries of the Town and was open to the public.
TOWN COUNCIL MEMBERS PRESENT:
Nick Sanders Mayor
Pam Cates Council Member
TOWN COUNCIL MEMBERS ABSENT:
Susan Edstrom Mayor Pro Tem
Jim Moss Council Member
Kathleen Wilson Council Member
Philip Sterling Council Member
STAFF AND GUEST(S) PRESENT:
Brandon Emmons Town Manager
Lisa Ramsey Town Secretary
Danny Thomas Fire Chief
A.1 A quorum of the Council was not in attendance.
A.2 Welcome from Mayor Sanders.
Mayor Sanders introduced Denton County Commissioner, Andy Eads, Denton County Emergency
Management Director, Jody Gonzales, FEMA Individual Assistance Program Specialist, Max Hughes,
Small Business Administration (SBA) Communication Specialist, Gary Copeland, FEMA Disaster
Recovery Team Specialist, Rudy Rivera, and the following FEMA Community Relations Field Specialists;
Yvonne Wilson, Adriana Arzac, Timara Graves, Lauren Bass, Esther Herrera, Mary Pool, Nick Ho and
Sharon Ellenshaw.
A.3 Comments by Fire Chief Danny Thomas.
Fire Chief Danny Thomas thanked the residents for attending and FEMA Community Relations Team,
representatives and field staff for their quick response and support of the community.
Commissioner Eads empathized with the resident’s and the community loss and thanked Jody Gonzales
for his support and help. Commissioner Eads complimented Mayor Sanders for his diligence in
contacting other agencies and organizations to implement an action plan with the Town, FEMA, CORP
and adjacent communities to ensue that this does not happen again.
Denton County Emergency Management Director, Jody Gonzales thought it was a great idea to bring all
the parties together and encouraged the residents to ask questions. Gonzales said the Commissioner’s
Court enacted a Disaster Recovery Resolution that enables the Town to take certain measures regarding
response and mitigation. This Resolution lets the State of Texas know there are residents in dire need of
help.
55
Mayor Sanders asked the residents to sign in so that we can double check our list to be sure that we
have names of all who suffered damage from this storm. Sanders said solving the problem with flood
water is not easy due to all of the jurisdictions involved and many of the contributories are related to the
CORP, which may be a long process.
A.4 Comments and update by FEMA.
FEMA Individual Assistance Program Specialist, Max Hughes introduced himself and said they provide
registration facilities for victims of disaster. The Disaster Recovery Center (DRC) has been set up in
Haltom City at 5517 Denton Hwy (US-377); and will be staffed with representatives from FEMA, SBA,
state and insurance agencies.
A.5 Questions
Resident Jim Dykes, 107 Carnoustie Drive – Thought they were flood proof and asked how this
happened.
Mayor Sanders explained that Lake Turner is the holding area for water going to Lake Grapevine and
already full as a result of previous rainfall, therefore the excess went over the spill way. Also part of this
holding mechanism is Marshall Branch Creek which extends past the ball fields and Riviera Court;
additionally there are other creeks that merge into Marshall Branch Creek.
Fire Chief Danny Thomas added that the Town got over 1 inch of rain every fifteen minutes during the
peak time of 1:00 A.M. and the storm system simply could not keep up with the influx of rain. Town
Manager Emmons said the system is designed for a 10-year rain event and the storm was classified as a
100-year rain event.
Mr. Dykes pointed out all systems have design limits and this was a huge flood; resulting in property
damage for residences not even in a flood plain. Town Manager Emmons clarified the rainfall would have
been absorbed had it not been for the previous 29 straight days of rain. Mayor Sanders commented to
resident’s reference to the wall of water, saying the water reached a point where it could not spread out
any more, causing it to rise rapidly and come over the Lake Turner spill-way and some of the flowage
areas were partially blocked. One flowage area that runs across Marshall Creek Branch, behind the
Quorum Apartments and across the golf course was also partially blocked and in some areas on private
property, the 3-18” pipes actually merge into a smaller pipe in which the Town does not have control over.
Sanders is working with County Commissioner Eads, Texas State Senator Jane Nelson, Texas State
Representatives Tan Parker and Vicki Truitt and other parties to address and help get grant money to fix
some of the flowage issues.
Resident Gary Cunningham, 16 Skyline – Said his property did not get flooded but his neighbor’s did.
Cunningham asked who owns Marshall Branch Creek as half of his back yard sits on this area. Town
Manager Emmons said he would research to find out if it is a dedicated easement. Mayor Sanders said
Texas Law mandates the person up-hill drains to the person down-hill and so forth.
Tamara Pearlman, 130 Summit Cove - Has only lived in her house for two-months and was told that she
was not in a flood plain but had 12 inches of water. Pearlman’s insurance company interfaced with FEMA
and quoted her $284.00 a year for flood insurance.
Mayor Sanders verified flood insurance is available through FEMA.
Disaster Recovery Team Specialist Rudy Rivera said the DRC will have representatives to assist with
insurance quotes.
Flower Mound Resident, Mary Boggs, 987 Regency Drive – Lost half of her yard to a creek that her
property sits on and asked if FEMA aid was available. Max Hughes said FEMA only covers internal
damages to the home in respect to safety and security but a mitigation loan to build a retaining wall might
be an option. (SBA) Communication Specialist, Gary Copeland encouraged Ms. Boggs to register with
FEMA to start the process.
56
Mayor Sanders explained the following process:
1. Register with FEMA
2. Indicate if you have insurance
3. Receive a rejection letter from FEMA and file with personal insurance company
4. Receive a rejection letter from personal insurance company and forward that letter to FEMA
Resident Wendy Milton, 1026 Trophy Club Drive – Said the process was remarkable, she was told by
FEMA it would take up to 10-days for a representative to come to her home; the representative was there
in two-days.
David Viss, 210 Fresh Meadow Drive – Questioned the eligibility guidelines for a FEMA grant and SBA
loans. Max Hughes said once a person registers with FEMA an Inspector will be sent to the home to
estimate total damages. FEMA covers only damages associated to home safety and security within the
home and does not clean pools, cover damages to fences or cover a yard that is falling away from the
home.
Terry Thomas, 23 Hillcrest Court – Asked about loan consideration for damages incurred to both his
home and business. Max Hughes explained the social security number is tied to the application, which is
mainly associated to a residence. FEMA aid is not available for repair to businesses; however a SBA
loan would be an option. Mr. Thomas also requested the Fire Department check out the smell of
petroleum coming from under his drive way.
Small Business Administration Representative, Gary Copeland explained the SBA loans available for
home owners, renters and businesses. When registering at the DRC loan applications can also be filled
out and submitted from the center. The DRC anticipates being opened at least two to three weeks in
Haltom City.
Resident Vera James, 12 Biltmore Court – Asked if age and if IRAs were considered liquidation for loan
eligibility. Gary Copeland explained that all persons are considered individually and IRAs and retirement
funds are not added to the calculations for loan eligibility.
John Morrow, 2 Hillcrest Court – Questioned which cities were covered by the Declaration and if financial
backgrounds would be considered for loan eligibility requirements. Jody Gonzales responded all cities in
both Denton and Tarrant County are covered under the Declaration. Gary Copeland explained SBA
would look at the applicant’s ability to repay and would run a cursory credit check. Copeland reassured
that this is a disaster loan and Congress has granted special requirements for assistance.
Chris Hill, 3 Cypress Court - Would like to find out exactly where his property line is as the line and creek
are not indicated clearly on the survey. Hill would like to be added to the grant list for erosion issues that
did not affect the house. Town Manager Emmons will follow up on Mr. Hill’s question regarding his
property line.
Susan Olsen, 350 Quorum #803B – Questioned what compensation is available for her vehicle which
was totaled. Gary Copeland was not sure what the monetary award is and advised Ms. Olsen to get the
loss information, an inspection or estimate on repairs and bring to the DRC along with her registration.
Gary Copeland advised the citizens not to use the insurance payment to pay off the mortgage, unless the
bank demands, otherwise SBA cannot reimburse the money. Copeland also cautioned the FEMA and
SBA representatives who will be conducting the inspections will be wearing a badge and do not charge
for their services. Unfortunately, disasters such as these bring out people who will try and take
advantage of the vulnerable.
Donald Werkstell, 7 Fresh Meadow Creek Court – Questioned if his friend’s rental property damage would
be covered and what aid was available for the damage to his fence. Copeland advised the rental
property would be covered under SBA and mitigation help would be available for the fence to prevent this
57
from happening again. Copeland added the SBA loans are tax deductible and with no pre-payment
penalty, they are not income derivative. If an applicant is declined for an application with the SBA they
will be referred back over to FEMA.
Misty Fossman, 7 Crooked Creek Court – Asked if she would have issues since she has already cleaned
up and moved out after FEMA’s inspection. Max Hughes advised since Ms. Fossman has pictures and
Town staff can testify to her damage, she will not have any issues receiving FEMA’s help. Ms. Fossman
asked who would be liable if a water reservoir broke on private property. Mayor Sanders and Town
Manager Emmons both confirmed that the spill way did not breach; the design has two spill ways, the
primary spill way is on the east and normally fills up, this storm caused both to overfill and therefore could
not hold the water back.
Fred Brooks, 16 Riviera Court – Said he has already started the process and has the rejection letter from
his insurance company, however, has not heard back from FEMA. Max Hughes suggested he come to
the DRC and bring the letter, declaration of insurance and statement of loss. Hughes said that he would
be able to claim money already paid out for repair.
Dirk Anderson, 350 Quorum 703A – Asked for clarification of what FEMA considered as safe and secure.
Max Hughes defined an internal area that is dry, mold free and safe where the door can securely be
closed.
Chuck Frame, 17 Fair Green - Does not think that they completed an application; however they have
faxed the insurance rejection letter to FEMA. Mr. Frame does not want a loan, but a grant for a new floor
and carpet. Max Hughes asked that he come by the DRC and register.
Gray Copeland advised people would be prohibited from FEMA aid if approved for a SBA Loan.
FEMA Disaster Recovery Team Specialist, Rudy Rivera added the DRC will also be staffed with
representatives available to help victims with stress and post traumatic syndrome.
A.6 Adjourn.
The Town Hall meeting ended at 8:40 P.M.
______________________________________ _____________________________________
Lisa Ramsey, Town Secretary Nick Sanders, Mayor
Town of Trophy Club, Texas Town of Trophy Club, Texas
58
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 7-23-2007
Subject: Agenda Item No.B.6
Discuss and take appropriate action relative to the interlocal agreements
between the Town and the Trophy Club MUDs to provide wholesale water
and wastewater treatment and operational services to the Town.
EXPLANATION:
Included in the agenda are the draft agreements that were distributed at the Joint
workshop held on July 12, 2007 with the MUDs and Town Council.
RECOMMENDATION:
ACTION BY COUNCIL:
Attachments: 1. Draft Payment Contract
2. Draft Operations Contract
59
PAYMENT CONTRACT
CONTRACT FOR WATER SUPPLY AND WASTEWATER TREATMENT,
BETWEEN THE TOWN OF TROPHY CLUB, TEXAS, TROPHY CLUB MUNICIPAL
UTILITY DISTRICT NO. 1 AND TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.
2
This WATER SUPPLY and WASTEWATER TREATMENT 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 MUNICIPAL UTILITY DISTRICT NO. ONE (hereinafter “MUD1”), AND TROPHY
CLUB MUNICIPAL UTILITY NO. TWO (hereinafter “MUD2”), both Districts created
pursuant to Section 59, Article XVI, Texas Constitution and the Texas Water Code,
Chapter 54. MUD1 and MUD2 are hereafter referred to collectively as “MUDs.”
Recitals
WHEREAS, MUDs currently supply water and wastewater treatment and
distribution and collection services to those customers located within the boundaries of
MUDs; and
WHEREAS, Town is empowered under the Texas Constitution and laws of the
State of Texas to provide Water and Wastewater Services to a certain portion of
property located within the territorial boundaries of Town which property is not located
within the boundaries of MUDs nor is provided water or wastewater services therefrom,
hereinafter referred to as the “Property” and more fully described in Exhibit “A”; and
WHEREAS, as a result of the development occurring on the Property, Town
desires to receive access to water supply and wastewater treatment from MUDs to
serve the Property, in accordance with the terms and provisions set forth herein; and
WHEREAS, Town has created Trophy Club Public Improvement District No. 1
(hereinafter the “PID”) within the boundaries of the Property; and
WHEREAS, in the process of creating the PID and the accompanying
development agreement, the Developer(s) of the Property has agreed to make certain
payments to Town for the right to access and receive water supply and wastewater
treatment from the existing waster and wastewater facilities owned by MUDs and Town
has agreed to enter into this interlocal agreement with MUDs to secure the desired
water supply and wastewater treatment facilities for the Property, and such services
specifically set forth herein; and
WHEREAS, Town has made no comment regarding whether MUD1 or MUD2 is
or in what combination MUDs are the rightful recipient of the payments referred to
above, and this Contract is not intended to make any such comment as to the Town’s
60
belief of how MUDs should use or distribute among themselves the funds received from
Town under this Contract; and
WHEREAS, in order to allow the Town and Developer(s) to proceed forward with
the development of the Property, the Parties have agreed that the funds to be paid by
Town pursuant to this Contract will be deposited into an escrow account with a neutral
escrow agent until such time as MUD1 and MUD2 reach agreement with each other as
to how such funds should be distributed or used; and
WHEREAS, MUDs understand and acknowledge that by entering into this
Contract to provide Water Supply Transmission Services and/or Wastewater Services,
they are committing their respective assets and ownership interests for use by the Town
collectively in accordance with the terms of this Contract for the purpose of allowing the
Town to provide Water and wastewater services to Town Customers; and
WHEREAS, the purpose of this Agreement is to outline the terms and conditions
under which MUDs will provide access to water supply and wastewater treatment and
the payments that will be made for such access; and
WHEREAS, Town acknowledges that MUD1, MUD2 or a combination of both
can only provide Water and/or Wastewater Treatment capacity to the extent that such
MUD or MUDs own(s) the respective capacities to provide.
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 which authorizes the Parties to contract to obtain or provide all or part of water
supply and wastewater treatment facilities under a contract that extends for any period
on which the parties agree; and
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 Contract.
NOW, THEREFORE, Town and MUDs, for and in consideration of the recitals set
forth above and terms and conditions below, agree as follows:
ARTICLE I.
INCORPORATION / DEFINITIONS / EXHIBITS
61
1.1 Incorporation of Recitals. The foregoing recitals are agreed upon and
incorporated herein as a part of this Contract.
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.
Developer(s) means the owner and additional owners of the Property as
identified in the Highlands at Trophy Club Development and Public Improvement District
Agreement executed by and between Town and record owners of the Property and shall
also include subsequent Person(s) who purchase the Property or a portion thereof.
Development Agreement means that separate agreement between Town and the
Developer(s) of the Property, as amended from time to time, regulating the terms and
conditions of the development of that Property and under which the Developer has
agreed to make certain payments to Town in consideration for Town’s agreement to
enter into a contract with MUDs to purchase water supply and wastewater treatment for
the benefit of the Property.
EPA means the federal Environmental Protection Agency and any successor or
successors exercising any of its duties and functions related to municipal utility districts.
Existing Infrastructure means Water System and Wastewater System and all
components thereof existing and operational and owned and/or controlled by MUDs,
whether individually or jointly, on the date of execution of this Contract.
Fort Worth Water Contract means the Contract for Water Service Between the
City of Fort Worth, Texas, and Trophy Club Municipal Utility District NO. 1, dated
September 22, 1992, as amended.
Interconnect Line means the water line(s) constructed by Town to connect to
MUDs’ Water System of the size and at the location to be mutually agreed upon by
Town and MUDs.
Lift Station means any mechanical means of conveying wastewater by force.
MUDs Escrow Account means the escrow account established by MUDs with a neutral
third-party escrow agent such as TexPool, a bank, or other escrow business, where
funds paid by Town under this Contract will be deposited and remain invested until
MUD1 and MUD2 reach agreement with each other as to how such funds should be
distributed or used. ALTERNATIVELY: remain invested until disposition of the funds is
directed by agreement of MUD1 and MUD2, by court order, or by order of a binding
arbitrator.
62
DISCUSSION POINT: MUD lawyers each proposed alternative language.
Meter Fee means a fee of $2,300 added to the cost of each residential building
permit in need of a 5/8” meter for such 5/8” meter, which fee shall be to compensate
MUDs for the right to access and receive Water Supply Transmission Services and
Wastewater Treatment from Existing Infrastructure.
Parties or Party shall mean either one or more of the MUDs or Town or both, as
the context provides.
Person(s) means an individual, corporation, partnership, association, joint
venture or any other third party legal entity.
Points of Connection of Wastewater means that point or points where Town
Wastewater System connects to MUDs’ Wastewater System.
Points of Connection of Water means that point or points where Town Water
System connects to MUDs’ Water System.
Property means that certain portion of property located within the territorial
boundaries of Town of Trophy Club and to which Town is empowered under the Texas
Constitution and laws of the state of Texas to provide Water and Wastewater Services
and which property is not located within the boundaries of either of MUDs nor is
provided Water or Wastewater services from either of MUDs.
Town means 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 Town, at Town’s creation and thereafter annexed from
time to time, excluding any and all land that is part of the Town but which lies outside of
the service area as identified in the Fort Worth Water Contract.
Town Customers means any Person(s) who has the right to receive, who
contract to receive or who otherwise receive Water and/or Wastewater Services from
Town Water Distribution System and/or Town Wastewater Collection System.
Town Wastewater Collection System means the wastewater system that may be
constructed, owned and operated by Town to serve Town for the collection of
Wastewater received from customers within 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.
Town Water Distribution System means the water distribution system that may
be constructed, owned and operated by Town for the distribution of potable water
received from MUDs to Town Customers and beginning at the Points of Connection of
Water.
63
Town Water Tower means a minimum 500,000 gallon elevated storage tank to
be constructed and owned by Town.
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
industrial, nature, meeting the requirements of the Commission (defined above) and
EPA, including any successor agencies, 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 MUDs in receiving,
treating, testing, and disposing of Wastewater from Town Wastewater System in
accordance with the Contract.
Wastewater System means the wastewater collection lines, lift stations, pipes,
valves, meters, pumps, motors, treatment plant, effluent discharge lines, and other
facilities and equipment owned or controlled by MUD1, MUD2, or Trophy Club Master
District and operated as part of the central wastewater collection and treatment system
for MUD1 and MUD2 and their customers, and also including the existing PERMIT TO
DISCHARGE WASTES, TPDES PERMIT NO. WQ0011593001, issued March 26, 2007,
by the Commission to MUD1, as amended, or any other such governmental permit
authorizing the treatment of wastewater by MUDs.
Wastewater Trunk Facilities means the trunk line facilities that may be
constructed by Town to connect Town Wastewater System to MUDs Wastewater
System as provided in Article V of this Contract.
Water or Water Supply means potable water that meets federal and state
standards for consumption by humans.
Water Supply Transmission Services means the services provided by MUDs in
treating, pumping, transporting, and delivering Water from MUDs’ Water System to
Town Water Distribution System for consumption by Town customers in accordance
with this Contract.
Water System means the water wells, water transmission pipeline from the City
of Fort Worth (or other wholesale water supplier), mixing and treatment facilities, pipes,
valves, meters, ground storage tanks, elevated storage tank, pumps, motors,
distribution lines and other facilities and equipment owned or controlled by MUD1,
MUD2 or Trophy Club Master District and operated as part of the central treated water
system for MUD1 and MUD2 and their customers, and also including the existing
CONTRACT FOR WATER SERVICE BETWEEN THE CITY OF FORT WORTH,
TEXAS, AND TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (as the owner of
legal title and operator of common utility facilities in Trophy Club development at that
time) dated September 22, 1992, as amended, or any other such wholesale water
supply contract to MUDs.
64
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” - Property Boundaries
Exhibit “B” - Points of Connection of Water and Wastewater
ARTICLE II.
POINTS OF CONNECTION - WATER
2.1 Points of Connection of Water. MUDs shall deliver Water to Town Water
Distribution System at the Points of Connection of Water. The location of the first Point
of Connection of Water shall be at the point shown on Exhibit “B.” MUDs shall not be
required to provide Water to Town, except for testing of line purposes, until the
completion by Town and final approval of the Interconnect Line by MUDs, which final
approval shall not be unreasonably withheld by MUDS. Any subsequent Points of
Connection of Water will be at a point(s) mutually agreed upon in writing by the Parties
and shall be based upon design standards and industry standard engineering practices.
ARTICLE III.
POINTS OF CONNECTION - WASTEWATER
3.1 Points of Connection of Wastewater. MUDs shall receive Wastewater from
Town Wastewater System at the Points of Connection of Wastewater. The location of
the first Point of Connection of Wastewater shall be at the point shown on Exhibit “B,”
MUDs shall not be required to commence Wastewater Service to Town until the
completion by Town and final approval of the Wastewater Trunk Facilities by MUDs,
which final approval shall not be unreasonably withheld by MUDS. Any subsequent
Points of Connection of Wastewater will be at a point(s) mutually agreed upon in writing
by the Parties and shall be based upon design standards and industry standard
engineering practices.
ARTICLE IV.
COMPENSATION TO MUDS FOR ACCESS TO EXISTING INFRASTRUCTURE
4. 1 Consideration. MUDs understand and acknowledge that Town has entered into
a separate Development Agreement for the Property and that the terms of the
Development Agreement require Town to obtain access to and provide water and
wastewater treatment services for the Property. In consideration for the right to access
and receive Water Supply Transmission Services and Wastewater Services from
Existing Infrastructure and so that Town may fulfill its obligations under the
Development Agreement, Town agrees to pay MUDs in accordance with the terms of
this section:
A. Lump Sum Payment. Within fifteen (15) days of Town’s receipt of the
$540,000 lump sum payment due Town from Developer pursuant to the Development
65
Agreement for the right to access Water Supply and Wastewater Treatment, Town shall
deposit such sum into “MUDs Escrow Account.” Such payment shall be in
consideration for the right to access Water Supply in the Existing Infrastructure prior to
any connection to the Existing Infrastructure. Town shall make payments to MUDs
Escrow Account as directed by a majority of both MUD Boards, by order of a binding
arbitrator, or as directed by court order.
B. Meter Fees. Town’s fee schedule provides that a Meter Fee shall be paid
to Town by the applicant for each residential building permit in need of a 5/8” meter,
which fee shall be paid by Town to MUDs in accordance with the terms of this section in
order to compensate MUDs for the right to access and receive Water Supply
Transmission Services and Wastewater Services from Existing Infrastructure. Upon
collection of one or more Meter Fees by Town, such Meter Fees shall be deposited by
Town into MUDs Escrow Account. Town shall continue to collect and to deposit such
Meter Fees into MUDs Escrow Account until such time as the total amount paid into that
account equals $3,260,000. Town shall collect and deposit a minimum of one hundred
fifty (150) Meter Fees each year, for a total of five (5) successive years commencing on
May 7, 2008 (hereinafter “Collection Period”). In the event that more than 150 Meter
Fees are collected by Town in any one or more years of the Collection Period, such
Meter Fees in excess of the 150 Meter Fees required under this Section shall be carried
over to the following year or years and shall be a credit toward the total Meter Fees due
for such subsequent year or years. In the event that fewer than 150 Meter Fees are
collected by Town during any one or more year(s) of the Collection Period, including
those Meter Fees carried over from any given year in which more than 150 Meter Fees
were collected by Town, Town shall within ten (10) days of collection of such Meter
Fees from Developer, pay into MUDs Escrow Account the difference between the
amount that would have been paid had 150 Meter Fees been paid at $2,300 each and
the amount of Meter Fees actually collected by Town. On or after May 7, 2013, Town
shall calculate the total amount of Meter Fees paid to MUDs. Town shall provide MUDs
written notice of any amount paid less than $3,260,000 (the "Meter Fee Remainder").
The Meter Fee Remainder shall either be paid in thirty (30) days of Town’s receipt of
that payment from Developer pursuant to the Development Agreement, or within such
thirty (30) day period, a letter of credit, or other financial security, which secures ten
percent (10%) annual rate of interest of the Meter Fee Remainder, shall be obtained
from Developer by Town pursuant to the Development Agreement, Annually thereafter,
Town shall obtain from Developer pursuant to the Development Agreement, a letter of
credit or other financial security, as approved by Town, securing the ten percent (10%)
annual rate of interest of any remaining amount of Meter Fees paid less than
$3,260,000, until the full $3,260,000 is paid. Any and all letters of credit or other
financial security obtained by Town pursuant to this Section shall be obtained for the
benefit of MUDs as security to ensure that payment of the $3,260,000 amount due to
MUDs is paid in full.
C. Town Water Tower. Town shall, as it determines in its sole discretion,
construct and put into operation Town Water Tower at such time as Town determines it
necessary and appropriate to construct such Town Water Tower.
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DISCUSSION POINT: Time line or trigger for construction of the water tower, i.e,
tie commencement of construction to number of homes, number of permits
issued or population.
D. Impact Fees. Town understands that MUDs have a separate agreement
for water services with the City of Fort Worth (hereinafter “Fort Worth Contract”) and
that pursuant to that Fort Worth Contract, MUDs collect certain impact fees from their
customers that are paid to Fort Worth. Town understands and agrees that as a water
supply customer of MUDs, Town will be required to pay all impact fees due under the
Fort Worth Contract. Therefore, Town agrees to take such actions necessary to collect
or to allow for the collection from Town Customers an amount equal to the impact fee
assessed by the City of Fort Worth pursuant to the Fort Worth Contract and to remit
such sum to MUDs in the amount and in accordance with the terms set forth in the Fort
Worth Contract. Upon receipt of such funds from Town, MUDs shall immediately remit
that amount to the City of Fort Worth. Notwithstanding the foregoing, no amount shall
be due and owing from Town to MUDs until such time as payment for impact fees is
collected by Town from Town Customers.
ARTICLE V.
TERM
5.1 Term. This Contract shall become effective upon approval by each of the
respective governing bodies of Town, MUD1 and MUD2 and upon execution by their
respective authorized representatives, and shall remain in effect for a term of one (1)
year, and shall renew annually for seven (7) additional terms of one (1) year each
unless terminated by any Party as provided herein.
DISCUSSION POINT – The number 7 was added to provide a more definite term.
The first draft had continuous one year renewals for an indefinite period of time.
5.2 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, and 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.
5.3 Termination without default. Any Party shall have the right to terminate this
contract without cause upon written notice to the other Party. Such notice of
termination must be provided at least 180 days in advance of such termination date, but
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in no case shall termination be allowed earlier than one (1) year from the date of
execution of this Contract.
ARTICLE VI.
MISCELLANEOUS
6.1 Remedies Cumulative. The Parties specifically agree that the remedy of specific
performance of this Contract is an appropriate and necessary remedy and agree that
any Party may employ the remedy of specific performance in the event of a breach of
this Contract. 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.
6.2 Immunity. The fact that Town and MUDs accept certain responsibilities relating
to the access to and receipt of Water and Wastewater Services under this Contract 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 MUDs waive any immunity or defense against third party claims that would
otherwise be available to it against claims arising from the exercise of governmental
powers and functions. The Parties hereto agree that each respectively waives its
sovereign immunity to suit for the limited purpose of adjudication of a claim for breach of
this Contract. Notwithstanding the foregoing agreement, remedies in such action shall
be limited to those provided by Chapter 271 of the Texas Local Government Code.
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6.3 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 MUDs 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.
6.4 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.
6.5 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.
6.6 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
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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 MUDs, 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 any other address by at
least fifteen (15) days' written notice to the other.
6.7 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 all Parties affected by
such change or modification.
6.8 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.
6.9 Successors and Assigns. 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.
Notwithstanding the foregoing, this Contract is a non-exclusive Contract and all Parties
hereto may, without consent or notice to the other Parties, contract with one or more
third parties for the same or similar commodities or services provided under the terms of
this Contract.
DISCUSSION POINT: Added so as not to impede exercise of valid governmental
functions by any of the parties in the event that any of the entities wanted or were
requested to contract with a third party.
6.10 Benefits of Contract. This Contract shall not be construed to confer any benefit
on any other Person or entity except as expressly provided for herein.
6.11 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
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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.
6.12 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.
TOWN OF TROPHY CLUB, TEXAS
(TOWN SEAL)
By:
Name:
Title:
ATTEST:
By:
Name:
Title:
(MUD 1 SEAL)
TROPHY CLUB MUNICIPAL UTILITY
DISTRICT NO. 1
By:
ATTEST:
By:
Name:
Title:
(MUD 2 SEAL)
TROPHY CLUB MUNICIPAL UTILITY
DISTRICT NO. 2
By:
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ATTEST:
By:
Name:
Title:
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EXHIBIT “A”
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EXHIBIT “B”
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OPERATIONS CONTRACT
CONTRACT FOR WATER AND WASTEWATER OPERATIONAL SERVICES
BETWEEN THE TOWN OF TROPHY CLUB, TEXAS, TROPHY CLUB MUNICIPAL
UTILITY DISTRICT NO. 1 AND TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.
2
This Contract for Water and Wastewater Operations Services (“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
MUNICIPAL UTILITY DISTRICT NO. 1 (hereinafter “MUD1”), AND TROPHY CLUB
MUNICIPAL UTILITY NO. 2 (hereinafter “MUD2”), both Districts created pursuant to
Section 59, Article XVI, Texas Constitution and the Texas Water Code, Chapter 54.
MUD1 and MUD2 are hereafter referred to collectively as the “MUDs.”
Recitals
WHEREAS, MUDs currently supply water and wastewater treatment and
distribution and collection services to those customers located within the boundaries of
MUDs; and
WHEREAS, Town is empowered under the Texas Constitution and laws of the
State of Texas to provide Water and Wastewater Service to a certain portion of property
located within the territorial boundaries of Town which property is not located within the
boundaries of MUDs nor is provided water or wastewater services therefrom,
hereinafter referred to as the “Property” and more fully described in Exhibit “A”; and
WHEREAS, as a result of the development occurring on the Property, Town and
MUDs have entered into a separate interlocal agreement for the right to access and
receive water supply and wastewater treatment from the existing water and wastewater
facilities owned by MUDs for the benefit of those residents of the Trophy Club Public
Improvement District No. 1 (hereinafter the “PID”) and under this agreement Town
desires to receive certain operational and administrative services from MUDs as more
fully described herein; and
WHEREAS, the purpose of this Agreement is to outline the terms and conditions
under which MUDs will provide operational and administrative services related to the
provision of Water Supply Transmission Services and Wastewater Services to Town for
the benefit of Town Customers (defined below); 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
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WHEREAS, the provision of operational services necessary for and related to the
operation of a Town Water Distribution System and Town Wastewater Collection
System is a valid governmental function necessary for the public health, safety and
welfare for which an interlocal agreement is allowed pursuant to the Act; and
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 Contract.
NOW, THEREFORE, Town and MUDs, for and in consideration of the recitals set
forth above and terms and conditions below, agree as follows:
ARTICLE I.
INCORPORATION / DEFINITIONS / EXHIBITS
1.1 Incorporation of Recitals. The foregoing recitals are agreed upon and
incorporated herein as a part of this Contract.
1.3 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.
EPA means the Environmental Protection Agency and any successor or
successors exercising any of its duties and functions related to municipal utility districts.
Existing Infrastructure means Water System and Wastewater System and all
components thereof existing and operational and owned and/or controlled by MUDs,
whether collectively or individually, on the date of execution of this Contract.
Fort Worth Water Contract means the Contract for Water Service Between the
City of Fort Worth, Texas, and Trophy Club Municipal Utility District NO. 1, dated
September 22, 1992, as amended.
Interconnect Line means the water line(s) constructed by Town to connect to
MUDs Water System of the size and at the location to be mutually agreed upon by
Town and MUDs.
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Lift Station means any mechanical means of conveying wastewater by force.
MUD11 Adopted Rate Order shall mean the Rate Order adopted by Trophy Club
Municipal Utility District No. 1 and numbered Order 2005-1013 effective November 1,
2005, and any amendments or revisions thereto.
Operational Services means the operation, inspection, maintenance and repair of
Town Water Distribution System and Town Wastewater Collection System, Town Water
Tower and Wells, and includes without limitation Water Supply Transmission Services
and Wastewater Services, including related administrative services, as more fully set
forth herein.
DISCUSSION POINT: Should wells be included?
Parties or Party shall mean either one or more of the MUDs or Town or both, as
the context provides.
Person(s) means an individual, corporation, partnership, association, joint
venture or any other third party legal entity.
Points of Connection of Wastewater means that point or points where Town
Wastewater System connects to MUDs’ Wastewater System.
Points of Connection of Water means that point or points where Town Water
System connects to MUDs’ Water System.
Town means 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 Town, at Town’s creation and thereafter annexed from
time to time.
Town Customers means any Person(s) residing within the Property and who
have the right to receive, who contract to receive or otherwise receiving Water and/or
Wastewater Services from Town Water Distribution System and/or Town Wastewater
Collection System.
Town Water Distribution System means the water distribution system that may
be constructed, owned and operated by Town for the distribution of potable water
received from MUDs to Town Customers, beginning at the Points of Connection of
Water.
Town Water Tower means a minimum 500,000 gallon elevated storage tank
owned and constructed by Town.
Town Wastewater Collection System means the Wastewater system that may be
constructed, owned and operated by Town to serve Town for the collection of
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Wastewater received from Town Customers, 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
industrial, nature, meeting the requirements of the Commission 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 MUDs in receiving,
treating, testing, and disposing of Wastewater from Town Wastewater System in
accordance with this Contract.
Wastewater System means the wastewater collection lines, lift stations, pipes,
valves, meters, pumps, motors, treatment plant, effluent discharge lines, and other
facilities and equipment owned or controlled by MUD1, MUD2, or Trophy Club Master
District and operated as part of the central wastewater collection and treatment system
for MUD1 and MUD2 and their customers, and also including the existing PERMIT TO
DISCHARGE WASTES, TPDES PERMIT NO. WQ0011593001, issued March 26, 2007,
by the Commission to MUD1, as amended, or any other such governmental permit
authorizing the treatment of wastewater by MUDs.
Wastewater Trunk Facilities means the trunk line facilities that may be
constructed by Town to connect Town Wastewater System to MUDs Wastewater
System as provided in Article V of this Contract.
Water or Water Supply means potable water that meets federal and state
standards for consumption by humans.
Water Supply Transmission Services means the services provided by MUDs in
treating, pumping, transporting, and delivering Water from MUDs Water System to
Town Water Distribution System for consumption by Town Customers in accordance
with this Contract.
Water System means the water wells, water transmission pipeline from the City
of Fort Worth (or other wholesale water supplier), mixing and treatment facilities, pipes,
valves, meters, ground storage tanks, elevated storage tank, pumps, motors,
distribution lines and other facilities and equipment owned or controlled by MUD1,
MUD2 or Trophy Club Master District and operated as part of the central treated water
system for MUD1 and MUD2 and their customers, and also including the existing
CONTRACT FOR WATER SERVICE BETWEEN THE CITY OF FORT WORTH,
TEXAS, AND TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (as the owner of
legal title and operator of common utility facilities in Trophy Club development at that
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time) dated September 22, 1992, as amended, or any other such wholesale water
supply contract to MUDs.
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, including without limitation wells for
irrigation.
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” - The Property
Exhibit “B” - Points of Connection of Water and Wastewater
ARTICLE II.
WATER SUPPLY, WATER SUPPLY TRANSMISSION SERVICES AND
WASTEWATER SERVICES PROVIDED BY MUDS
2.1 Water Supply. MUDs agree to provide to Town Water Supply sufficient to meet
the needs of the Property, as defined herein and more fully described in Exhibit “A,”
throughout the term of this Contract. Water shall be provided to Town for the benefit of
the Property as more specifically provided herein and shall meet all quality standards
required by the Commission, the Texas Water Code, as amended, the Texas
Administrative Code, as amended, all applicable, federal, state, and local laws, rules
and regulations, and in accordance with those written standard operating procedures
utilized by MUDs for MUDs’ water customers and with those practices utilized by MUDs
in providing water supply transmission services and wastewater services to customers
of MUDs.
2.2. MUDs’ Obligation to Provide Water Supply Transmission Services and
Wastewater Services. MUDs agree to provide Water Supply Transmission Services
and Wastewater Services to Town for the benefit of the Property and in accordance with
the terms and conditions of this Contract. MUDs agree to accept Wastewater from, and
to provide Wastewater Services to, Town in accordance with the terms and conditions
of this Contract, provided that all Wastewater discharged from Town Wastewater
System and delivered to the Points of Connection of Wastewater complies at the
Points of Connection of Wastewater with the restrictions established by the
Commission. Immediately at the time of final approval of the Interconnect Line by
MUDs, which final approval shall not be unreasonably withheld by MUDs, MUDs shall
begin providing Water Supply Transmission Services to Town for the Property.
Immediately at the time of final approval of the Wastewater Trunk Facilities by MUDs,
which final approval shall not be unreasonably withheld by MUDs. MUDs shall begin
providing Wastewater Services to Town.
2.3 Standard of Service – Water Supply Transmission Services and Wastewater
Services. The Water Supply Transmission Services and Wastewater Services provided
by MUDs to Town under this Contract shall be in accordance with all standards set forth
by the Commission, the Texas Water Code, as amended, the Texas Administrative
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Code, as amended, all applicable, federal, state, and local laws, rules and regulations,
and in accordance with those written standard operating procedures utilized by MUDs
for MUDs’ water customers and with those practices utilized by MUDs in providing water
supply transmission services and wastewater services to customers of MUDs.
ARTICLE III.
OPERATIONAL SERVICES RELATED TO WATER SUPPLY DISTRIBUTION
SYSTEM, WASTEWATER COLLECTION SERVICES, AND TOWN WELLS
3.1 Town’s Obligation to Construct Town Water Distribution System and Town
Wastewater Collection System. Town shall design and construct, at its sole cost and
expense, a Town Water Distribution System and a Town Wastewater Collection System
to serve Town Customers, including without limitation Wells and Town Water Tower.
Town Water Distribution System shall include all facilities necessary to store Water and
to convey Water from the Points of Connection of Water to Town Customers. Town
Wastewater Collection System shall include all facilities necessary to transport
Wastewater from Town Customers to the Points of Connection of Wastewater. Town
intends to construct Town Water Tower.
DISCUSSION POINT: Time line or trigger for construction of the water tower, i.e,
tie commencement of construction to number of homes, number of permits
issued or population.
3.2 MUDs’ Obligation to Provide Operational Services. MUDs agree to provide
Operational Services related to Town Water Distribution System and Town Wastewater
Collection System in accordance with the terms and conditions of this Contract in
addition to providing Water Supply Transmission Services and Wastewater Services to
Town hereunder.
3.3 Standard of Service – Town Wastewater Collection System and Town Water
Distribution System. The Operational Services provided by MUDs to Town and Town
Customers under this Contract shall be in accordance with all standards by the
Commission, the Texas Water Code, as amended, the Texas Administrative Code, as
amended, all applicable, federal, state, and local laws, rules and regulations, and in
accordance with those written standard operating procedures utilized by MUDs for
MUDs’ water customers and with those practices utilized by MUDs in providing
Operational Services to customers of MUDs.
3.4 Wells. Town has sole discretion regarding the specifications for, number and
location of Wells that may be constructed within Town. Any and all Wells constructed
by or at the direction of Town or dedicated to and accepted by Town shall be owned by
Town. Pursuant to this Contract MUDs shall provide Operational Services for all such
Town-owned Wells; provided however, that Town shall notify MUDs of the number and
location of Wells that Town constructs or intends to construct. Such well specifications
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shall be approved by MUDs. MUDs shall not unduly withhold their approval and must
do so only for just cause.
ARTICLE IV.
CHARGES TO TOWN AND EFFLUENT
4.1 Method of Calculation of Water Charges to Town. MUDs’ charge to Town for
Water shall be calculated by adding the total charges for each month due from each of
Town’s Customers, in the same amount as set forth in Sections 2.01(A) and 2.02(A) of
MUD1 Adopted Rate Order.
DISCUSSION POINT: Needs Clarification.
4.2 Charges for Wastewater Services. MUDs’ charge to Town for Wastewater
Services shall be calculated by adding the total charges for each month due from each
of Town’s Customers, in the same amount as set forth in Sections 2.01(A) and 2.02(A)
of MUD1 Adopted Rate Order.
4.3 Effluent Produced. 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 for Town use and as prescribed by the Texas
Administrative Code, including without limitation, Section 210 of the Texas
Administrative Code, as may be amended from time to time.
4.4 Rate Changes - MUD1Adopted Rate Order. MUDs agree to provide Town with
at least ninety (90) days written notice of its intent to change one or more rates or
charges within MUD Adopted Rate Order so that the Parties may renegotiate this
Contract based upon the proposed changes to MUD1 Adopted Rate Order.
ARTICLE V.
RATE ORDERS AND SERVICES TO TOWN CUSTOMERS
5.1 Town Rate Order. Town reserves the right at any time to adopt its own rate
order, setting forth rates different from those of MUDs to be charged to Town
Customers and which may be amended from time to time at the discretion of Town
Council (hereinafter “Town Rate Order”). Upon adoption or amendment of a Town Rate
Order, Town shall provide MUDs with a copy of the duly adopted Town Rate Order.
Town Rate Order shall set all of the rates for utilities (i.e., water and sewer rates)
provided to Town Customers and shall provide such rates to MUDs for MUDs’ use in
sending utility bills to Town Customers. MUDs shall bill Town Customers in accordance
with Town Rate Order. Town further agrees to take all actions, including without
limitation, legislative and administrative actions, necessary to ensure that revenues and
other income to Town shall at all times be sufficient to promptly pay to MUDs all such
charges when and as the same become due and payable under this Contract.
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5.2 Rate Changes - Town Rate Order. Town agree to provide MUDs with at least
ninety (90) days written notice of its intent to change one or more rates or charges
within Town Rate Order.
5.3 Administrative Services. MUDs and Town agree that MUDs shall provide
Operational Services for Town Wastewater Collection System and Town Water
Distribution System, including without limitation the following: reading the individual
meters of Town Customers; billing, collecting from, and responding to service calls from
Town Customers; marking water lines for contractors, monitoring of telemetric
equipment, if any; dead-end water flushes; preparing and filing all operational and
compliance reports required by law or requested by Town, including without limitation
those that are Commission mandated and/or otherwise required by the EPA, or any
successor agency; provide qualified representatives to present reports at Council
meetings upon request; providing documentation of costs and expenses incurred by
MUDs in providing Operational Services, provide documentation of all transactions
made by MUDs on behalf of Town, whether directly with Town or with Town’s
Customers. In furtherance of this, MUDs will provide to Town’s Customers the identical
quality and quantity of services which it presently provides to all MUD customers.
5.4 Billing of Town Customers. MUDs shall read the individual meters of Town
Customers on a monthly basis during the term of this Contract. Based on such meter
readings, MUDs shall send statements to Town’s Customers in accordance with the
then-current Town Rate Order. MUDs shall collect payments from Town Customers
and deposit those payments in Town’s bank account on a daily basis.
5.5 Transfer of Collections to Town. Each month, MUDs shall prepare and deliver
a collections report to Town which sets forth the total amount of monies due from
Town’s Customers pursuant to Town’s Rate Order and the total amount of monies
collected from Town’s Customers pursuant to Town Rate Order. Such report shall
provide sufficient specificity for Town to track the source and amount of such income,
usage of Town Customers and the basis for the charges assessed to Town Customers.
MUDs shall not have the right to offset its charges to Town against the collections from
Town Customers, but shall turn over one hundred percent of all collections and shall
separately invoice Town for any and all charges that may be assessed against Town
under the terms of this Contract.
5.6 Invoice to Town. Charges assessed by MUDs to Town shall be limited to the
type and amount of charges set forth in Sections 2.01(A) and 2.02(A) of MUDs Adopted
Rate Order. MUDs shall prepare an invoice showing the charges to Town and shall
provide a detailed explanation of all such charges assessed by MUDs, including without
limitation, backup documentation if requested by Town so that Town can identify the
nature and type of charge and the basis upon which the charge was assessed to Town.
If Town contests a charge, Town shall notify MUDs within ten (10) business days of the
charge contested and the basis for the contest, and shall have the right to withhold
payment until the dispute is resolved by the Parties. Payments made by Town shall be
made payable to MUD1 and MUD2 jointly.
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DISCUSSION POINT: Late charges and interest on late payments and payment of
disputed amounts over to MUDs to hold rather than Town retaining.
5.7 Water Emergency. Under Town’s ordinance(s), MUDs may declare a "water
emergency period" if any condition or event occurs that interrupts the production,
treatment, or transportation of Water in MUDs Water System and may impose
conditions on consumption or use of Water. If MUDs declare a "water emergency
period" and impose conditions on Water consumption for its customers in the existing
MUDs under the then-current ordinance, Town agrees, upon timely notification by
MUDs to impose and enforce restrictive conditions of consumption on Town Customers.
Such restrictive conditions shall be equivalent to those imposed upon MUDs and/or
MUDs customers pursuant to the Fort Worth Water Contract. Where it has become
necessary to adopt a drought contingency plan, MUDs shall not apply their drought
contingency plan to Town’s Customers in a manner that is more stringent than MUDs’
application of their drought contingency plan on residential customers within the MUDs.
ARTICLE VI.
TERM
6.1 Term. This Contract shall become effective upon approval by each of the
respective governing bodies of Town and MUDs and upon execution by their respective
authorized representatives, and shall remain in effect for an initial term of one (1) year
from the date of approval by the last Party subject to this Contract (hereinafter “Initial
Term”), and shall renew automatically annually for three (3) additional terms of one (1)
year each unless terminated by either Party as provided herein.
DISCUSSION POINT: Term of this Contract and its relationship to the other
contract.
6.2 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 and notifying the
defaulting Party that failure to correct the default within sixty (60) days following receipt
of the written notice by such Party, shall result in termination on a date certain
specified in the notice.
6.3 Termination without Default. Any Party shall have the right to terminate this
Contract without cause upon written notice to any other Party. Such notice of
termination must be provided at least 180 days in advance of such termination date, but
in no case shall termination be allowed earlier than one (1) year from the date of
execution of this Contract.
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ARTICLE VII.
MISCELLANEOUS
7.1 Remedies Cumulative. The Parties specifically agree that the remedy of specific
performance of this Contract is an appropriate and necessary remedy and agree that
any Party may employ the remedy of specific performance in the event of a breach of
this Contract. 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.
7.2 Immunity. The fact that Town and MUDs accept certain responsibilities relating
to the provision of Operational Services under this Contract 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 MUDs waive
any immunity or defense against third party claims that would otherwise be available to
it against claims arising from the exercise of governmental powers and functions. The
Parties hereto agree that each respectively waives its sovereign immunity to suit for the
limited purpose of adjudication of a claim for breach of this Contract. Notwithstanding
the foregoing agreement, remedies in such action shall be limited to those provided by
Chapter 271 of the Texas Local Government Code.
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7.3 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 MUDs 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.
7.4 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.
7.5 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.
7.6 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
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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 MUDs, 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 any other address by
at least fifteen (15) days' written notice to the other.
7.7 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 all Parties affected by
such change or modification.
7.8 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.
7.9 Successors and Assigns. 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.
Notwithstanding the foregoing, this Contract is a non-exclusive Contract and all parties
hereto may, without consent or notice to the other Parties, contract with one or more
third parties for the same or similar commodities or services provided under the terms of
this Contract.
7.10 Benefits of Contract. This Contract is for the benefit of MUD1, MUD2, 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.
7.11 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
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(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.
7.12 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.
TOWN OF TROPHY CLUB, TEXAS
(TOWN SEAL)
By:
Name:
Title:
ATTEST:
By:
Name:
Title:
(MUD 1 SEAL)
TROPHY CLUB MUNICIPAL UTILITY
DISTRICT NO. 1
By:
ATTEST:
By:
Name:
Title:
(MUD 2 SEAL)
TROPHY CLUB MUNICIPAL UTILITY
DISTRICT NO. 2
By:
ATTEST:
87
By:
Name:
Title:
88
EXHIBIT “A”
89
EXHIBIT “B”
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COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 7-23-2007
Subject: Agenda Item No.B.7
Discuss and receive input regarding potential amendments to the Charter
and the holding of a November Charter Election.
EXPLANATION:
Included in the backup for this agenda item are those items that have been
previously discussed by the charter group and Council as potential amendments
to the Town Charter. These items are presented so that Council can establish a
list of items to be submitted to the voters as amendments to the Town’s Charter.
Ballot language will be prepared for those items selected by Town Council and
submitted to Council for review and discussion at the August 6, 2007 Council
meeting.
An election calendar has been provided in the event that Council decides to
proceed with a November 2007 election on charter amendments.
RECOMMENDATION:
ACTION BY COUNCIL:
( )
Attachments: 1. Items suggested by Staff and Council
2. November Election Calendar
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Items suggested by Staff and Council:
Section 3.01 Selection of Terms - Propose 3 year terms
Section 3.01 Number of Terms - limit to 2 consecutive terms for the same position
(would allow for council to run for Mayor and vice versa)
Section 3.16 (b) Procedure for Enacting Ordinances and Resolutions; Publications -
Amend section to specify "majority of the Council" is necessary to pass an ordinance
rather than (3) or more members
Section 4.07 Town Secretary - Propose Town Manager to appoint Town Secretary with
Council affirming the appointment
Section 5.04 (d) Filing for Office - Propose resign to run provision for elected officials
Section 6.01 and 6.03 - Recall - Removal based on 1 ground rather than "more than
one ground"
*Section 6.04(f) Recall - Propose changing 45 day specific requirement for calling
election to general requirement for removal of Councilmember (allow for time to comply
with statutory requirements)
Section 7.03 Referendum – Allow for language to include non-binding referendums.
Section 10.03 Power to Grant Franchise - Propose to change limit to allow a franchise
with a 30 year term (Current term is 20)
Citizen Suggestions to the Charter:
Section 3.01 Number, Selection and Term – Propose creation of four single member
districts and one at-large district
Section 3.01 Number, Selection and Term – Propose creation of 2 districts (divided
along MUD lines) with 2 members and one at-large district
Section 3.06 Mayor – Propose allowing Mayor to vote in all matters
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COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 7-23-2007
Subject: Agenda Item No.B.8
Discuss and receive input regarding suggested revisions to the Ethics
Section of the Handbook for Elected and Appointed Officials.
EXPLANATION:
Based on previous discussions by Council regarding the Ethics Section of the
Handbook for Elected and Appointed Officials, this item is being presented to Council
for input and to allow staff adequate time to revise.
RECOMMENDATION:
ACTION BY COUNCIL:
(bse)
Attachments: 1. Ethics Section of the Handbook for Elected and Appointed Officials
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Town of Trophy Club Code of Ethics and Conduct
For Town Elected and Appointed Officials
Statement of Purpose
The Citizens and the businesses of the Town of Trophy Club are entitled to have fair,
ethical and accountable local government which earns the public’s full confidence for
integrity. The strong desire of the Town to fulfill this expectation therefore requires that
the Town officials, both elected and appointed:
• Comply with both the letter and sprit of the laws and policies affecting
the operations of government;
• Be independent, impartial and fair in their judgment and actions; and
• Use their respective office or position for the public good, not for the
personal gain.
To this end, the Town Council has adopted this Code of Ethics and Conduct for Town
officials in order to assure public confidence in the integrity of local government and its
effective and fair operation.
Definitions
The following words, terms and phrases, when used in this section, shall have the
following meanings subscribed to them:
Business. A corporation, partnership, sole proprietorship, firm, holding company, joint
stock company, receivership, trust or any other for profit or non-profit entity.
Town Council. The legislative and governing body of the Town consisting of the Mayor
and Council members.
Town Official. Any member of the Town Council and any appointed member of a Town
board, commission, committee or citizens advisory group set up by ordinance,
resolution, charter, state law or otherwise, on a temporary or permanent basis.
Employee. Any person employed by the Town, including those individuals on a part-
time basis, including independent contractors hired by the Town for repetitive
performance of services, but not independent contractors engaged for occasional
services.
Nepotism
Nepotism is showing favoritism toward a relative. The practice of hiring personnel or
awarding contracts which favor a relative is prohibited by the Town.
Exclusions to this prohibition are:
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a. Employees who have been continuously employed by the Town for more
than two years prior to the election or appointment of the official.
b. Individuals who are employees of the Town as of the effective date of this
policy.
1. Act in the Public Interest
Recognizing that stewardship of the public interest must be their primary concern, Town
officials shall work for the common good of the people of the Town of Trophy Club and
not for any private or personal interest, and they shall assure fair and equal treatment of
all persons, claims and transactions coming before the Town Council, boards,
commissions, committees and advisory groups.
2. Comply with the Law
Town officials shall comply with the laws of the nation, the State of Texas, and the Town
of Trophy Club in the performance of their public duties. These laws include, but are not
limited to: the United States and Texas Constitutions; laws pertaining to conflicts of
interest, election campaigns, financial disclosures, employer responsibilities, and open
processes of government; and Town ordinances, resolutions and policies.
3. Conduct of Town Officials
The professional and personal conduct of Town officials must be above reproach and
avoid even the appearance of impropriety. Town officials shall refrain from abusive
conduct, personal charges or verbal attacks upon the character or motives of other
Town officials and employees, boards, commissions, committee and citizen advisory
group members and the public.
4. Respect for Process
Town officials shall perform their duties in accordance with the processes and rules of
order established by the Town Council and boards, commissions, committees and
citizen advisory groups governing the public deliberation of public policy issues,
meaningful involvement of the public, and implementation of policy decisions of the
Town Council by Town staff.
5. Conduct of Public Meetings
Town officials have an obligation to attend meetings and to be prepared for public
issues; to listen courteously and attentively to all public discussions before the body;
and to focus on the business at hand. They shall refrain from interrupting other
speakers, making personal comments not germane to the business of the body, or
otherwise interfering with the orderly conduct of meetings.
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6. Decisions Base on Merit
It is expected and required that Town officials review material, participate in discussion
and base their decision on the merits and substance of the matter at hand.
7. Communication
Prior to permitting final action on a matter under consideration, Town officials shall
publicly share substantive information, which they may have received from sources
outside the public decision-making process, that is relevant to such action by the
Council, boards, commissions, committees or citizens advisory groups.
8. Conflicts of Interest and Disclosure
Town officials shall familiarize themselves with and abide by the following conflicts of
interest and disclosure statutes and principles:
a. Chapter 171 of the Local Government Code which requires a member of
the governing body or another office, whether elected, appointed, paid or
unpaid, of any municipality to file an affidavit disclosing a substantial
interest in a business entity or property that would be beneficially affected
by a decision of the governing body or of any other board or commission
upon which the member serves and thereafter to abstain from participation
in discussion and voting on the matter. Once the disclosure is made the
Town official is to remove himself from the meeting area to ensure his
presence does not hinder the discussion of the item or influence the vote.
b. Section 176 of the Local Government Code which requires Town Council
members and the Town Manager to file a conflicts disclosure statement
disclosing any business relationship with a person or business doing
business with the Town or being considered by the Town for a business
relationship.
c. Section 176.003(a)(2)(B) of the Local Government Code which requires
the disclosure of gifts of an aggregate value of more than $250.00 in the
twelve (12) month period preceding the date that a local government
officer becomes aware of a transaction described in Section 176, other
than gifts of food, lodging, transportation, or entertainment accepted as a
guest.
d. Sections 553.001-553.003 of the Government Code which requires the
filing of an affidavit before the date the Town will acquire a property in
which public servants have a legal or equitable interest.
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e. In order to assure their independence and impartiality on behalf of the
public good, Town officials are prohibited from using their positions to
influence government decisions in which they have a personal interest.
9. Corruption
Town officials shall familiarize themselves with and abide by the Texas Penal Code
mandates concerning corruption, including without limitation, Section 36.02 prohibiting
receipt of prohibited gifts, Section 39.02 concerning abuse of official capacity and
Section 39.06(a) concerning misuse of official information and all other applicable state
laws regulating or related to public service.
10. Political Advocacy
Town officials shall not utilize the Town’s name or logo for purposes of endorsing any
political candidate or business.
11. Confidential Information
Town officials shall respect the confidentiality of information concerning Town property,
personnel or proceedings of the Town. They shall neither disclose confidential
information without proper legal authorization, nor use such information to advance their
personal interests.
12. Use of Public Resources
Town officials shall not use public resources generally unavailable to the public, such as
Town staff time, equipment, supplies or facilities, for private gain or personal purposes.
13. Representation of Private Interests
In keeping with their role as stewards of the public interest, Town officials shall not
appear on behalf of private interests of third parties before the Council or any board,
commission, committee, or proceeding of the Town.
14. Advocacy
Town officials shall represent the official policies or positions of the Town Council,
board, commission, committee or advisory group to the best of their ability when
designated as delegates for this purpose. When presenting their individual opinions and
positions, Town officials shall explicitly state that they do not represent their body or the
Town of Trophy Club, nor will they allow the inference that they do.
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15. Policy Role of Town Officials
Town officials shall respect and adhere to the Town of Trophy Club governmental
structure as outlined in the Town’s charter, policies and procedures. In this structure,
the Town Council determines the policies of the Town with the advice, information and
analysis provided by the public, boards, commissions, committees, advisory groups and
Town staff. Except as provided by Town ordinance, Town officials therefore shall not
interfere with the administrative functions of the Town or the professional duties of the
Town staff; nor shall they impair the ability of Staff to implement Council policy
decisions.
16. Independence of Boards, Commissions, and Committees
Because of the value of the independent advice of boards, commissions, committees
and advisory groups to the public decision-making process, Town officials shall refrain
from using their position to influence unduly the deliberations or outcomes of board,
commission, committee, and advisory group proceedings.
17. Positive Work place Environment
Town officials shall support the maintenance of a positive and constructive work place
environment for Town employees and for citizens and businesses dealing with the
Town. Town officials shall recognize their special role in dealing with Town employees
and refrain from creating the perception of inappropriate direction to Staff.
18. Implementation
As an expression of the standards of conduct for the Town officials expected by the
Town, the Trophy Club Code of Ethics and Conduct is intended to be self-enforcing. It
therefore becomes most effective when Town officials are thoroughly familiar with it and
embrace its provisions. Ethical standards shall be included in the regular orientations for
candidates for Town Council, applicants to boards, commissions, committees, and
advisory groups, and newly elected and appointed Town officials. Town officials
entering office, including those appointed to boards, commissions, committees and
advisory groups shall sign a statement affirming they have read and understood the
Town of Trophy Club Code of Ethics and Conduct and agree to be bound by its terms.
In addition, the Code of Ethics and Conduct shall be reviewed periodically by the Town
Council, boards, commissions, committees, and advisory groups, and the Town Council
shall consider recommendations from boards, commissions, committees, advisory
groups, employees, and citizens for revision as it becomes necessary.
19. Compliance and Enforcement
The Town of Trophy Club Code of Ethics and Conduct expresses standards of ethical
conduct expected for Town officials of the Town of Trophy Club Town Council, boards,
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commissions, committees and advisory groups. Town officials themselves have the
primary responsibility to assure that ethical standards are understood and met, and that
the public can continue to have full confidence in the integrity of government. The chairs
of boards, commissions and committees and the Mayor have the additional
responsibility to intervene when Town officials’ actions appear to be in violation of the
Code of Ethics and Conduct and are brought to their attention. The Town Council may
impose sanctions, such as reprimand, formal censure or loss of appointment, on Town
officials whose conduct does not comply with the Town’s ethical standards. The Town
Council also may act to remove members of boards, commissions and committees from
office in accordance with the procedures and subject to the limitations set forth in
Section 20 if this policy. The Town Council finds and determines that the ethics and
standards of conduct contained in this Handbook are necessary and appropriate in
order to serve the legitimate goal of orderly governance, integrity and public confidence
in government.
20. Procedure for Enforcement
Upon good faith belief that a Town official has violated any term or provision of this
Handbook for Elected and Appointed Officials, a party having such good faith belief that
a violation has occurred and wishing to initiate a formal review of the alleged violation
shall file a written complaint with the Town Secretary. The written complaint shall
contain 1) the name of the complaining party (hereinafter “Complainant”); 2) the name
of the party against whom the complaint is being filed (hereinafter “Respondent”); 3) the
specific sections of this Handbook allegedly violated; 4) Specific dates, approximate
time of day, locations and other facts evidencing the alleged violations; and 5) any
documentation evidencing that a violation of the Handbook occurred.
Upon receipt of a written complaint meeting all of the requirements set forth in the
preceding paragraph, the Town Secretary shall place the complaint on the next
available regular Council meeting agenda for which posting requirements may legally
and procedurally be met. Alternatively, if the complaint does not meet all of the
requirements set forth in the preceding paragraph, the Town Secretary shall notify the
Complainant in writing of the nature of the deficiency and no further action by the Town
Secretary or Council shall be necessary, until such time the Town Secretary can
determine that the complaint meets the requirements of this section. Once placed upon
the Council agenda, the scope of the Council review shall be limited to a determination
of whether the complaint on its face presents a violation of this Handbook for which
sanctions, such as reprimand, formal censure, or loss of appointment would be
appropriate in order to serve the legitimate goal of orderly governance, integrity, and
public confidence in government. Upon a majority vote of Council that the complaint
merits further review and investigation, an item shall be placed on the next available
regular Council meeting agenda for which posting requirements may be legally and
procedurally met. Additionally, upon majority vote, the Town Council may specify any
and all individual items of grievance from the Complaint that merit such review and
investigation and that will be considered by the Council at a subsequent hearing on the
matter. At least seven (7) days prior to the hearing date, the Town Secretary shall notify
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the Respondent in writing of the date, time and place at which the Council will conduct a
hearing on the merits of the alleged complaint, and if Council has by majority vote
specified individual items for review and investigation at the hearing, such notice shall
advise the Respondent of the scope of the hearing. Alternatively, if upon review of the
complaint on its face a majority vote of Council determines that further review and
investigation is not warranted, then the Complainant shall be notified in writing of such
vote, the written complaint shall be returned to the Complainant, and no further action
shall be required by the Town Secretary or Town Council.
At the subsequent Council hearing, the Complainant and Respondent may present
testimonial and or documentary evidence regarding the allegations contained within the
Complaint. If Council determines that substantial evidence has been presented to
support the allegation that a violation of the Handbook has occurred and that the
violation is detrimental to orderly governance, integrity, and public confidence in the
Town government, then Council may by majority vote impose sanctions, such as
reprimand, formal censure, or loss of appointment, as determined appropriate to serve
the legitimate goals of this policy.
All procedural rules of the Council shall apply to proceedings conducted pursuant to this
Section. The complaint procedure specified in this Section shall only be applicable to
those Town officials who are appointed and for the conduct of such official that occurs
during the official’s term of office on a Town board, commission, committee or advisory
group. Notwithstanding the foregoing, this Section shall not apply to officials who are
appointed to fill vacancies on the Town Council or to Town Council members.
Sanctioning of elected officials shall only be allowed in accordance with Town Charter
and state law.
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STATEMENT OF COMMITMENT
As a member of the Town of Trophy Club Town Council or of a Town of Trophy Club
town board, commission or committee, I agree to uphold the Code of Ethics and
Conduct myself by the following model of behavior.
I will:
• Recognize the worth of individual Town officials and appreciate their
individual talents, perspectives and contributions;
• Help create an atmosphere of respect and civility where individual Town
officials, Town staff and the public are free to express their ideas and work
to their full potential;
• Conduct my personal and public affairs with honesty, integrity, fairness
and respect for others;
• Respect the dignity and privacy of individuals and organizations;
• Keep the common good as my highest purpose and focus on achieving
constructive solutions for public benefit;
• Avoid and discourage conduct which is divisive or harmful to the best
interests of the Town of Trophy Club;
• Treat all people with whom I come in contact in a manner I wish to be
treated;
• Before I speak or act I will ask myself the following questions:
1. Is it the truth?
2. Is it fair to all concerned?
3. Will it build goodwill and better relationships?
4. Will it be beneficial to all concerned?
I affirm that I have read and that I understand, accept and support the Town of Trophy
Club Code of Ethics and Conduct.
_____________________________________________
Elected or Appointed Official Printed Name
_____________________________________________
Position
_________________________________ _______________
Signature Date
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COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 7-23-2007
Subject: Agenda Item No.B.9
Items for Future Agenda.
EXPLANATION:
RECOMMENDATION:
ACTION BY COUNCIL:
Items for Future Agendas
1. Discuss and consider an Ordinance requiring bicycle helmets and bicycle laws.
2. Review of the Property Maintenance Ordinance.
3. Discussion about storm water discharge from pools.
4. Discussion of drainage ditch that runs between Village Trail and Lakeshore Drive and consideration
of improvements for area to create a linear park.
5. Discuss and take appropriate action to repeal Ordinance 1987-07 and approve an Ordinance
establishing the Town's Emergency Management System
6. Research grant possibilities regarding phase two street calming/sidewalks.
7. Discuss and take appropriate regarding using the Trophy Club Times as the Town’s newsletter.
8. Discuss and provide input regarding amendments to Section 4.05(B)(2) of Article IV, Chapter 5 of the
Code of Ordinances relating to number, size and placement of political signs.
9. Discuss and take appropriate action regarding the authorization levels on
procurement purchases.
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COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 7-23-2007
Subject: Agenda Item No.B.10
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 Manager Report on the Charter Review Committee meeting.
b) Report from EDC 4B Liaison, Council member Sterling.
c) Town Manager's Report.
Attachments: 1. None
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COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 7-23-2007
Subject: Agenda Item No.C.1
Discuss and review preliminary FY 2007-08 Budget.
EXPLANATION:
RECOMMENDATION:
ACTION BY COUNCIL:
Attachments: 1. None
105
COUNCIL MEMORANDUM
From: The Office of the Town Manager Date: 7-23-2007
Subject: Agenda Item No.D.1
Adjourn.
106