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Agenda Packet TC 07/06/2009Town of Trophy Club Town Council Regular Meeting Agenda 100 Municipal Drive Trophy Club, Texas 76262 Monday, July 6, 2009 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, one 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. You may speak up to three (3) minutes or the time limit determined by the Mayor or presiding officer. To speak during this item you must complete the Speaker's form that includes the topic(s) of your statement. Topics of presentation should be limited to matters over which the Council has authority. B.1 Consent Agenda: Discuss and take appropriate action ratifying a previously approved Ordinance abandoning all interest in an approximate 5,625 square foot tract of land located near the Medlin Middle School in Trophy Club, Denton County, Texas and designated as a site for the location of a water tower, and providing a legal description for the abandoned Medlin Site. B.2 Consent Agenda: Discuss and take appropriate action regarding an Ordinance repealing Section 6.01 "Rules of Procedure" of Article VI "Town Council Rules of Procedure", of Chapter 1 "Administration", of the Code of Ordinances and adopting a new Section 6.01 "Rules of Procedure" of Article VI, of Chapter 1, of the Code of Ordinances of the Town. C.1 Discuss and take appropriate action to approve financials and variance report dated: a. May 2009 C.2 Update regarding Charter Amendments and three noted variances; discussion of same. 1 C.3 Discuss and take appropriate action regarding the schedule and format of the Saturday, July 18, 2009 Budget workshop. C.4 Discuss and take appropriate action regarding a Resolution amending Resolution No. 2008-23 appointing Council member liaisons to EDC-4A and the Parks and Recreation Board in order to fill vacancies in those positions resulting from the May, 2009 election. C.5 Discuss and take appropriate action regarding the implementation of pre-Council meeting workshops. C.6 Discuss and take appropriate action regarding an Agreement between Travelers Casualty, the surety company providing bonding for portions of the Highlands development, High Trophy Development, the developer, and the Town as a result of a contractor default, providing for the takeover and completion of certain improvements by a new contractor, and providing performance, payment and maintenance bonds as required by the Town's regulations. C.7 Items for Future Agenda. D.1 Adjourn. 2 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 7-6-2009 Subject: Agenda Item No.A.1 Call to order and announce a quorum. 3 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 7-6-2009 Subject: Agenda Item No.A.2 Invocation. Mayor Pro Tem Sterling will offer the Invocation. 4 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 7-6-2009 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, one and indivisible." Council member Strother will lead the Pledges. 5 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 7-6-2009 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. You may speak up to three (3) minutes or the time limit determined by the Mayor or presiding officer. To speak during this item you must complete the Speaker's form that includes the topic(s) of your statement. Topics of presentation should be limited to matters over which the Council has authority. 6 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 7-6-2009 Subject: Agenda Item No.B.1 Consent Agenda: Discuss and take appropriate action ratifying a previously approved Ordinance abandoning all interest in an approximate 5,625 square foot tract of land located near the Medlin Middle School in Trophy Club, Denton County, Texas and designated as a site for the location of a water tower, and providing a legal description for the abandoned Medlin Site. EXPLANATION: The Council approved this Ordinance at the June 22, 2009 Council meeting with the request to have this Item brought back on the Consent Agenda once Staff received the legal description. The Ordinance was approved using a Site Plan to describe the boundaries of the Medlin Site. The Site Plan has been replaced with a legal description of the parcel, and Staff is requesting that Council ratify the Ordinance with the legal description. RECOMMENDATION: Staff recommends approval. ACTION BY COUNCIL: Approve the Ordinance, including the Legal Description, abandoning all interest in an approximate 5,625 square foot tract of land located near the Medlin Middle School. (paa) Attachments: 1. Insert from Minutes dated June 22, 2009 2. Ordinance 2009-15 and Legal Description (Legal Description also provided as hardcopy in Council’s packet. 7 C.7 Discuss and take appropriate action regarding an Ordinance abandoning all interest in an approximate 5,625 square foot tract of land located near the Medlin Middle School in Trophy Club, Denton County, Texas and designated as a site for the location of a water tower; and providing an effective date. Town Manger Emmons stated this is the continuation of the contract approved on June 22, 2009 and the transfer of property has to be in the form of an Ordinance. Once the Ordinance is approved, Staff will coordinate a closing date with the title company. Town Attorney Adams explained the Ordinance handed out includes language specifying that a survey is being conducted in order to provide a Legal Description. Adams suggested the Council include the provisions of receipt of the Legal Description in their motion. Motion made by Edstrom, seconded by Rose approving an Ordinance abandoning all interest in an approximate 5,625 square foot tract of land located near the Medlin Middle School in Trophy Club, Denton County, Texas and designated as a site for the location of a water tower; and that the final Legal Description be provided to Council upon receiving. Motion passed unanimously without any discussion. 8 9 10 11 12 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 7-6-2009 Subject: Agenda Item No.B.2 Consent Agenda: Discuss and take appropriate action regarding an Ordinance repealing Section 6.01 "Rules of Procedure" of Article VI "Town Council Rules of Procedure", of Chapter 1 "Administration", of the Code of Ordinances and adopting a new Section 6.01 "Rules of Procedure" of Article VI, of Chapter 1, of the Code of Ordinances of the Town. EXPLANATION: This item was discussed at the June 22nd Council meeting. Based upon comments made at that Council meeting, three sections were revised. The revised sections are highlighted in yellow. RECOMMENDATION: Staff recommends approval. ACTION BY COUNCIL: (paa) Attachments: 1. Insert from Minutes dated June 22, 2009 2. Ordinance 13 C.9 Discuss and take appropriate action regarding an Ordinance repealing Section 6.01 "Rules of Procedure" of Article VI "Town Council Rules of Procedure", of Chapter 1 "Administration", of the Code of Ordinances and adopting a new Section 6.01 "Rules of Procedure" of Article VI, of Chapter 1, of the Code of Ordinances of the Town. Town Attorney Adams stated that certain sections of Section 6.01 had to be amended based on the Charter Amendment Election results. Council member Rose suggested public under Section B. 1 be changed to in compliance with the Texas Open Meetings Act, and that the Town Manager be added to Section B.8. Council member Rose requested that the rules regarding attendance, outlined in Section B.3 be implemented in order to always ensure a quorum. Council discussed the proposed amendments suggested by Council member Rose and Section E.3, Agenda Deadline. Council requested the Town Attorney make the revisions discussed and bring the final revision back at the July 6, 2009 meeting. 14 TOWN OF TROPHY CLUB, TEXAS ORDINANCE 2009- AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS REPEALING SECTION 6.01 ENTITLED “RULES OF PROCEDURE”, OF ARTICLE VI, ENTITLED “TOWN COUNCIL RULES OF PROCEDURE” OF CHAPTER 1 “ADMINISTRATION” OF THE CODE OF ORDINANCES AND ADOPTING A NEW SECTION 6.01 ENTITLED “RULES OF PROCEDURE”, OF ARTICLE VI, ENTITLED “TOWN COUNCIL RULES OF PROCEDURE” OF CHAPTER 1 “ADMINISTRATION” OF THE CODE OF ORDINANCES TO PROVIDE CONSISTENCY WITH RECENTLY ADOPTED CHARTER AMENDMENTS, TO MAKE PROCEDURAL CHANGES, AND TO MAKE CLERICAL CORRECTIONS; PROVIDING A SAVINGS AND REPEALER CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town Council establishes rules and procedures to ensure that its meetings are conducted in an orderly manner; and WHEREAS, as a result of the May, 2009 election, amendments to the Town’s Home Rule Charter have been enacted; and WHEREAS, the recently adopted Charter Amendments require changes to quorum requirements, voting, and other procedural requirements currently contained in the Rules of Procedure governing the Town Council; and WHEREAS, the Town Council has the authority to generally review and make changes to its procedural rules as it determines appropriate for the orderly conduct of its meetings; and WHEREAS, having reviewed the existing procedures and considering the changes mandated by the recently adopted amendments to the Town’s Home Rule Charter, the Town Council hereby finds that the amendment of various subsections in Section 6.01 of Article VI of the Code of Ordinances is in order; and WHEREAS, due to the extensive nature of the revisions to Section 6.01, the Council has determined it to be beneficial to repeal Section 6.01 in its entirety and adopt a new Section 6.01 of Article VI of Chapter I of the Code of Ordinances of the Town; and WHEREAS, having considered each and every one of the revisions proposed herein, the Council finds that the adoption of the newly proposed Section 6.01 as set forth herein serves the best interests of the Town. 15 NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: SECTION 1. INCORPORATION OF PREMISES That the above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. SECTION 2. AMENDMENT 16 17 18 19 20 21 22 23 24 25 SECTION 6. EFFECTIVE DATE This Ordinance shall become effective from and after its date of passage and publication as required by law. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this 6th day of July, 2009. Mayor, Connie White Town of Trophy Club, Texas [SEAL] ATTEST: Lisa Hennek, Town Secretary Town of Trophy Club, Texas APPROVED TO AS FORM: Patricia A. Adams, Town Attorney Town of Trophy Club, Texas 26 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 7-6-2009 Subject: Agenda Item No.C.1 Discuss and take appropriate action to approve financials and variance report dated: a. May 2009 EXPLANATION: The May, 2009 monthly financial report is presented in a format that provides the comparison of monthly and year to date actual amounts to the current fiscal year budget. The accompanying variance report provides an explanation of actual fiscal year to date revenues and departmental expenditures which vary more than 10% from the percent of the fiscal year lapsed. RECOMMENDATION: Staff recommends approval of the May Financial and Variance Report. Attachments: 1. Variance Report 27 28 29 30 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 7-6-2009 Subject: Agenda Item No.C.2 Update regarding Charter Amendments and three noted variances; discussion of same. EXPLANATION: The amendments to the Charter are complete. Based upon the election results, the following are three variances in Charter language: 3.06 (Prop. # 9 and 19) 5.01 Sub-section (e) (Prop. # 4 and 13) 6.01(Prop. # 4 and 14) The election order included language to resolve the conflict that would have resulted if competing propositions were approved by the voters by providing that the proposition receiving the greatest number of votes would be enacted. The method of resolution in the election order was authorized by the Charter and by state law. That type of option was not legally available to resolve variations between language in the same Charter sections that occurred due the passage of different propositions. Some of the language approved was language submitted via citizen petition and all of the language was included in an ordinance notifying the public of the impact of the passage of each of the Charter propositions. As such, the Town does not have the authority to alter that language outside of the electorate process. The variations appear to be only minor and most foreseeable conflict can be resolved through the rules of statutory construction that govern Texas laws. The amended Charter will be forwarded to the SOS as soon as the review is final. RECOMMENDATION: ACTION BY COUNCIL: Attachments: 1. Charter with May 9, 2009 Amendments 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 7-6-2009 Subject: Agenda Item No.C.3 Discuss and take appropriate action regarding the schedule and format of the Saturday, July 18, 2009 Budget workshop. EXPLANATION: RECOMMENDATION: ACTION BY COUNCIL: (bse) Attachments: 1. Insert from Minutes dated June 22, 2009 80 C.5 Update from staff regarding the Fiscal Year 2009-2010 Budget and basic assumptions; setting goals and objectives and discussion of the same. Town Manager Emmons presented the budget timeline and explained that the recent Charter changes require that by the end of January of the current fiscal year, the Town Manager assist the Council in developing goals and strategies for budget preparation for the next fiscal period. In order to expeditiously incorporate the Council's priorities in the development of the 2009-2010 proposed budget, Staff created a "Council Priority Questionnaire". The Charter also requires that the Town Manager submit to the Council a proposed budget before the first day of August of each year. During this transition year, the results of the questionnaire will assist the Management Team as they work together with the Town Manager in preparing the proposed budget. Town Manager Emmons asked the Council to return the completed questionnaire by this Friday. Council member Edstrom suggested that the Saturday workshop not be a full day workshop and that Council members visit with Town Manager Emmons or Finance Director Kathy DuBose prior to the workshop to discuss their questions. Finance Director Kathy DuBose advised that Staff has been meeting on a weekly basis and discussing assumptions. Staff is looking at the current service areas and is actively researching grant funding. Mayor White asked about the performance measures listed in last year’s budget. Town Manager Emmons responded that typically results are seen over a period of two to three years. The results will be included in this year’s budget. Council member Rose added that eventually the Mission Plan will need to be revised. Mayor White said that the workshop may need to last all day in order to discuss strategy and numbers. Council members Edstrom and Strother agreed that Council and Staff’s attention to detail begins to falter after about four hours in budget sessions. Council needs to decide beforehand which topic they want to discuss. No action taken, discussion only. 81 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 7-6-2009 Subject: Agenda Item No.C.4 Discuss and take appropriate action regarding a Resolution amending Resolution No. 2008-23 appointing Council member liaisons to EDC-4A and the Parks and Recreation Board in order to fill vacancies in those positions resulting from the May, 2009 election. EXPLANATION: New Council liaisons need to be appointed to replace former Council member Jim Moss on the EDC4A and Parks and Recreation Board. The following is from Resolution 2008-23: Economic Development Corporation A -Jim Moss (Council Liaison) Economic Development Corporation B – Glenn Strother ( Council Liaison) Parks and Recreation Board – Jim Moss (Primary Council Liaison) Susan Edstrom (Secondary Council Liaison) RECOMMENDATION: ACTION BY COUNCIL: () Attachments: 1. Resolution 82 TOWN OF TROPHY CLUB, TEXAS RESOLUTION NO. 2009- A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, AMENDING RESOLUTION NO. 2008-23, BY APPOINTING ONE (1) COUNCIL MEMBER LIAISON TO SERVE ECONOMIC DEVELOPMENT CORPORATION 4A AND (1) COUNCIL MEMBER LIAISON TO SERVE THE PARKS AND RECREATION BOARD; PROVIDING THAT THE REMAINDER OF RESOLUTION NO. 2008-23 SHALL CONTINUE IN FULL FORCE AND EFFECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, since the adoption of Resolution No. 2008-23 and as a result of the May, 2009 election, a position for Council member Liaison to Economic Development Corporation 4A and a position for Council member Liaison to the Parks and Recreation Board has become available; and WHEREAS, the Town Council has determined it to be appropriate to appoint a new Council member Liaison for Economic Development Corporation 4A and for the Parks and Recreation Board as set forth below. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: Section 1. That Section 2 of Resolution No. 2008-23 is hereby amended to reflect the appointment of a new Council member Liaison for Economic Development Corporation 4A and a new Council member Liaison for the Parks and Recreation Board as specified below: Economic Development Corporation 4A 1. Council Liaison – _______ Parks and Recreation Board 1. Council Liaison – _______ 2. Secondary Council Liaison – Susan Edstrom Section 2. That all of the other terms and provisions of Resolution No. 2008- 23 not in conflict with the terms of this Resolution shall continue in full force and effect and specifically that all appointments not affected by this Amendment shall remain in full force and effect. Section 3. That this Resolution shall become effective from and after its date of passage in accordance with law. 83 PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this 6th day of July 2009. ___________________________ Connie White, Mayor Town of Trophy Club, Texas ATTEST: ___________________________________ Town Secretary Town of Trophy Club, Texas [Seal] APPROVED AS TO FORM: ____________________________________ Town Attorney Town of Trophy Club, Texas 84 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 7-6-2009 Subject: Agenda Item No.C.5 Discuss and take appropriate action regarding the implementation of pre- Council meeting workshops. EXPLANATION: The Town Council has previously used workshops sessions to receive information prior to the regular Council meeting. The intent of a workshop is to ask questions, receive information, and discuss items on the agenda without the constraints of parliamentary procedure. RECOMMENDATION: ACTION BY COUNCIL: (Mayor White) Attachments: 1. None 85 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 7-6-2009 Subject: Agenda Item No.C.6 Discuss and take appropriate action regarding an Agreement between Travelers Casualty, the surety company providing bonding for portions of the Highlands development, High Trophy Development, the developer, and the Town as a result of a contractor default, providing for the takeover and completion of certain improvements by a new contractor, and providing performance, payment and maintenance bonds as required by the Town's regulations. EXPLANATION: In April 2009, Four D Construction notified High Trophy Development LP that it would not be able to complete the contract for portions of the Highland at Trophy Club Development. The Surety has agreed to enter into contract negotiations with E.L. Burns Inc. to complete the unfinished portions of the development contract. All bonds currently in place will remain in full force. RECOMMENDATION: Approval of this Agreement is recommended. ACTION BY COUNCIL: (bse) Attachments: 1.Takeover Agreement 86 TAKE OVER AGREEMENT This Take Over Agreement, (“Agreement”), is made and entered into on the date of the last party approving or signing this Agreement, by TRAVELERS CASUALTY AND SURETY COMPANY, (“Surety”), and the TOWN OF TROPHY CLUB (“Obligee”), and HIGH TROPHY DEVELOPMENT, LLC, (“Developer”) (the Obligee and the Developer shall collectively be referred to as “Owners”). W I T N E S S E T H: WHEREAS, the Developer and Four D Construction, Inc., (“Principal”) entered into a contract (the “Original Contract”) for the completion of the project known as the Highlands of Trophy Club NH-1, Phases 1C-1 and 1C-2; NH-2, Phases 1A and 1B; and NH-5, Phases 1D-1 and 1D-2 (“Project”); and WHEREAS, Travelers Casualty & Surety Company as Surety issued a Performance Bond, a Payment Bond and a Maintenance Bond, each numbered 105036447 and each in the penal sum of $3,668,353.00, (“Bonds”) on behalf of the Principal in relation to the Original Contract and/or Project; and WHEREAS, after Four D stated to Developer that it would not complete the contract and perform further work on the Project, the Developer defaulted the Principal on April 22, 2009 and subsequently made demand upon the Performance Bond. Further, on April 15, 2009, the Principal voluntarily defaulted on the Original Contract and directed that all remaining contract balances be paid directly to the Surety. WHEREAS, the Owners have furnished to the Surety two proposals; from E.L. Burns, Inc. and C.W. Young Construction, L.P., to complete the Original Contract. WHEREAS, Developer is holding funds under the contract in the amount of $103,790.98 (“Remaining Contract Balance”). WHEREAS, the Surety has agreed with Owners to complete the Project and has agreed to negotiate and contract with E.L.Burns as replacement contractor (“Replacement Contractor”) for Principal to complete the work and correct deficiencies on the Project and to pay for same; and further, Surety will receive any payments due and owing, whether consisting of progress payments, retainages, change order work, or other contractual amounts, after all offsets and credits allowable under the Original Contract or by applicable law, that would have otherwise been received by Principal. NOW, THEREFORE, in consideration of the foregoing, the Surety and the Owners agree as follows: 1. Settlement: The Surety agrees with Owners to complete the Project, and has agreed to negotiate and contract with E.L. Burns, Inc. as the Replacement Contractor for Principal to complete the work and correct 87 deficiencies on the Project and Surety shall be responsible to pay E.L. Burns, Inc. for their work in completing the Project and correcting deficiencies in an amount not to exceed $68,570.00 (the “Completion Contractor Price”), pursuant to a bid in possession of Surety. In the event the Surety is unable to come to a final agreement with E.L. Burns, Inc. for the completion of the work on the Project, it will engage another contractor suitable to the Owners as Replacement Contractor. The work of the Replacement Contractor shall begin no later than ten days after the last signature of any Party to this Agreement. The Completion Contractor Price shall be subject to an increase or decrease depending on work required to complete the Project and correct any deficiencies therein, as may be required under applicable law and the Original Contract or otherwise agreed to in writing. Developer shall pay the Remaining Contract Balance to Surety in the manner provided in the Original Contract, minus any lawful damages, expenses, offsets and credits, as required under the Original Contract or by applicable law or otherwise agreed to in writing. 2. Payment Bond: It is agreed by the parties that the Payment Bond issued by the Surety on behalf of the Principal remains in full force and effect as originally issued; it being understand that any and all payments made by the Surety in discharging its Payment Bond obligations shall serve to reduce the penal sum of the Payment Bond. Further, nothing in this Agreement, contract, project, etc. shall cause the penal sum of the Payment Bond to be increased except as required by law or terms of the original bond. Any work by or contractual obligations of any Replacement Contractor(s) shall also be covered and guaranteed by Surety pursuant to Paragraph 5 of this Agreement. 3. Performance Bond: It is agreed by the parties that the Performance Bond issued by the Surety on behalf of the Principal remains in full force and effect as originally issued; it being understand that any and all payments made by the Surety in discharging its Performance Bond obligations shall serve to reduce the penal sum of the Performance Bond. Further, nothing in this Agreement, contract, project, etc. shall cause the penal sum of the Performance Bond to be increased except as required by law or terms of the original bond. Any work or other contractual obligations by any Replacement Contractor shall also be covered and guaranteed by Surety pursuant to Paragraph 5 of this Agreement.. 4. Maintenance Bond: It is agreed by the parties that the Maintenance Bond issued by the Surety on behalf of the Principal remains in full force and effect as originally issued; it being understood that any and all payments made by the Surety in discharging its Maintenance Bond obligations shall serve to reduce the penal sum of the Maintenance Bond. Further, nothing in this Agreement, contract, project, etc. shall cause the penal sum of the Maintenance Bond to be increased except as required by 88 5. Continuing Obligation of Surety: The Surety shall be responsible for the completion of the remaining work and obligations under the Original Contract by E.L. Burns, Inc. (or other Replacement Contractors) on the Project, with any amounts expended by Surety to Completion Contractor that are not reimbursed or paid by Developer to Surety, these expended amounts shall serve as a dollar for dollar credit to reduce the penal limit of the Performance Bond, Payment Bond, or Maintenance Bond as may be applicable. In addition, while the parties recognize that the original bonds were intended to cover the performance, payment, maintenance and other contractual obligations of the work performed or to be performed by the Principal, Surety is completing the work of the Principal as though Principal never defaulted, and as such, the obligations of any Replacement Contractor, as well as the obligations of Surety regarding the work and other contractual obligations of any Replacement Contractor, shall be guaranteed pursuant to the terms of the original Bonds (and those terms are expressly incorporated by reference herein to this Agreement as set out verbatim) as though the Replacement Contractor(s) had been formally named along Principal on all bonds originally issued for this Project, but nothing in this Agreement shall mean that new Bonds have been created or that the Penal sums appearing on the face of the Bonds in the amount of $3,668,353.00, has been increased. Further, Surety shall defend (at Surety’s expense, using its counsel), indemnify and hold harmless Owners against claims of unpaid subcontractors and suppliers of E.L. Burns, Inc. (or other Replacement Contractors) against the Owners for work under the Original Contract, and Surety’s defense and indemnity obligations to the Owners shall be limited to the penal amount of the Payment Bond with any amounts expended serving as a dollar for dollar credit to reduce the penal limit of the Payment Bond. 6. Cooperation of the Parties: The parties agree to cooperate fully and to execute any and all other documents that may be necessary or appropriate to effectuate the terms and intent of this Agreement. 7. Reservation of Rights: The parties agree that all parties to this Agreement reserve all their rights, whether in their own standing or through assignment and/or subrogation from the Principal or any other party and nothing in this Agreement shall constitute a release, waiver, or discharge of any right, claim, or defense of any of the parties to this Agreement may have under any applicable agreement or law. 89 8. Severability of Provisions of this Agreement: The enforceability or invalidity of any provision of this Agreement shall not affect the enforceability or the validity of any other provision herein, and the invalidity or enforceability of any provision of this Agreement as to any person, entity, or circumstance shall not affect the enforceability or validity as such provision as it may apply to other persons, entities, or circumstances. 9. Counterparts: This agreement may be executed by the parties independently in any number of counterparts, all of which together will constitute but one and the same instrument, which is valid and effective as if all parties had executed the same counterpart. 10. Governing Law: This Agreement, and any rights, remedies, or obligations provided for hereunder shall be interpreted and enforced in accordance with the laws of the State of Texas, enforceable only in the district courts of the State of Texas and venue shall be in Tarrant County. 11. Attorney Fees: Any party to this Agreement who prevails in attempting to enforce this Agreement shall be entitled reasonable and necessary attorney fees and court costs. . IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day and date last written below. TRAVELERS CASUALTY AND SURETY COMPANY By: Kathleen Maloney Its: Claim Executive STATE OF PENNSYLVANIA COUNTY OF _______________ Personally appeared before me, the undersigned, a Notary Public in and for said county and state, Kathleen Maloney, with whom I am personally acquainted, and who acknowledged under oath that she executed this instrument in her capacity as an authorized agent of Travelers Casualty and Surety Company, for the purposes therein contained. Witness my hand at ___________, this the _____ day of ______________, 2009. Notary Public 90 HIGH TROPHY DEVELOPMENT, LLC By:___________________________ Its: STATE OF TEXAS COUNTY OF ________________ Personally appeared before me, the undersigned, a Notary Public in and for said County and state, ________________, with whom I am personally acquainted, and who acknowledged that he/she executed this instrument in his/her capacity as an authorized agent of Harris County, for the purposes therein contained. Witness my hand at ___________, this the _____ day of ______________, 2009. Notary Public TOWN OF TROPHY CLUB By:___________________________ Its: STATE OF TEXAS COUNTY OF ________________ Personally appeared before me, the undersigned, a Notary Public in and for said County and state, ________________, with whom I am personally acquainted, and who acknowledged that he/she executed this instrument in his/her capacity as an authorized agent of Town of Trophy Club, for the purposes therein contained. Witness my hand at ___________, this the _____ day of ______________, 2009. Notary Public 91 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 7-6-2009 Subject: Agenda Item No.C.7 Items for Future Agenda. LIST: 1. Town Manager Emmons to report on the sound barrier issues on the east side and conversations with TXDOT, and discussion of same. (Wilson) 2. Establish and implement a process for Hotel inspections. (Edstrom added on 1/21/08) 3. Discuss and consider options to approve the upkeep of rental property, with or without creating a Building Standard Commission. (Edstrom – 4/21/08) 4. Discuss and receive an update on the Comprehensive Land Plan. (Edstrom – 10/20/08) 5. Discuss and take appropriate action regarding a Library Focus Group or other plan for exploring options and compiling data for a future library. (Wilson) 6. Discuss and take appropriate action regarding culvert issues on Skyline Park. (Wilson added on 4/6/09) 7. Discuss and take appropriate action regarding an update/celebration for the opening of the new Bryon Nelson High School. (Edstrom added April 20, 2009) 8. Item to receive a report to alleviate the congestion of games/practices on the baseball and the parking issues. (Wilson added May 6, 2009) 9. Discuss and take appropriate action regarding Code of Ethics (Mayor White – 6/1/2009) 10. Discuss and take appropriate action regarding Charter Amendment Proposition 19 – Budget (6/1/2009) 11. Discuss and take appropriate action regarding Board/Commission Handbook Amendments – (6/1/2009) 12. Discuss and take appropriate action regarding Open Record Requests (Mayor White – 6/1/2009) 13. Discuss and take appropriate action regarding a survey sponsorship. (Wilson – 6/1/2009) 92 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 7-6-2009 Subject: Agenda Item No.D.1 Adjourn. 93