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04.13.2026 TC Agenda Packet TOWN OF TROPHY CLUB TOWN COUNCIL WORK SESSION AND REGULAR MEETING AGENDA April 13, 2026 6:00 PM Council Chambers 1 Trophy Wood Drive Trophy Club, Texas 76262 CALL WORK SESSION TO ORDER AND ANNOUNCE A QUORUM WORK SESSION ITEM 1. Presentation and discussion of updates on the gateway, water tower, and wayfinding signage design project. (Tamara Smith, Assistant Town Manager) ADJOURN WORK SESSION CALL REGULAR MEETING TO ORDER (immediately following Work Session or 7:00 p.m., whichever is later) INVOCATION led by Pastor Barry Clingan, The Church at Trophy Lakes PLEDGES led by Council Member Pledge of Allegiance to the American Flag Pledge of Allegiance to the Texas Flag PUBLIC COMMENT(S) This is an opportunity for citizens to address the Council on any matter pursuant to Texas Government Code 551.007. The Council is not permitted to discuss or take action on any presentations made concerning matters that are not listed on the agenda. Presentations are limited to matters over which the Council has authority. Speakers have up to three (3) minutes or the time limit determined by the Presiding Officer. Each speaker is requested to complete the Speaker’s Form prior to speaking or may email mayorandcouncil@trophyclub.org COMMUNITY SPOTLIGHT 2. Proclamation - Arbor Day 3. Texas Glammas 4. Working for You... Trophy Club a) Update from Town Council Members Page 1 of 90 b) Update from Town Manager (Brandon Wright, Town Manager) c) Quick Civic Tip (Dean Roggia, Town Attorney) CONSENT AGENDA This part of the agenda consists of non-controversial, or "housekeeping" items required by law. Items may be removed from Consent by any council member by making such request prior to a motion and vote. 5. Consider approval of the March 23, 2026 Town Council special meeting minutes. (Tammy Dixon, Town Secretary) 6. Consider a resolution adopting the Town of Trophy Club Investment Policy for Fiscal Year 2025-2026. (April Duvall, Director of Finance) 7. Consider a resolution adopting a Purchasing Policy and Procedure Manual. (April Duvall, Director of Finance) 8. Consider an ordinance amending Division 2, "Records Management," of Article 1.07, "Records," of Chapter 1, "General Provisions," of the Trophy Club Code of Ordinances in its entirety to provide for an updated Records Management Program. (Tammy Dixon, Town Secretary). 9. Consider authorizing the Town Manager to negotiate and execute a purchase agreement with Resort Contract Furnishings, Inc. for pool furniture in the amount of $54,420. (Chase Ellis, Director of Parks & Recreation) INDIVIDUAL ITEMS 10. Consider a resolution providing for the appointment of a member to serve on the Crime Control & Prevention District Board. (Jeannette Tiffany, Mayor) ADJOURN The Town Council may convene into executive session to discuss posted items as allowed by Texas Government Code Sections 551.071 through 551.076 and Section 551.087. I do hereby certify that the notice of meeting was posted on the bulletin board at the Town Hall for the Town of Trophy Club, Texas, in a place convenient and readily accessible to the general public at all times on the following date and time: April 7, 2026, at 2:45 p.m., and said Notice of Meeting was also posted concurrently on the Town’s website in accordance with Texas Government Code Ch. 551. Tammy Dixon, Town Secretary • In accordance with section 551.127 of the Texas Government Code (Open Meeting Act) this meeting will be an in-person meeting with either a member of Town Council, staff, or consultant, participating by video conference. The public meeting location will be Trophy Club Town Hall, 1 Trophy Wood Drive, Texas. The Mayor, as presiding officer of Town Council, and a quorum of the Town Council will be physically present at this location. The location where the Mayor is physically present shall be open to the public during the open portions of the meeting. • BUDGET STATEMENT: Pursuant to Section 551.043, Government Code, the following taxpayer impact statement must be on the Town Council meeting agenda at which the Town Council will discuss or adopt a budget for the Town of Trophy Club: For an average-valued homestead property ($714,324.00), the Town’s portion of the property tax bill in dollars for the current fiscal year (FY2025) is $2,967.79, the Town’s portion of the property tax bill for the upcoming fiscal year (FY2026) for the same property if the proposed budget is adopted is estimated to be $2,949.19, and the Town’s portion of the property tax bill in dollars for the upcoming fiscal year (FY2026) for the same property if a budget funded at the no-new-revenue rate under Chapter 26, Tax Code, is adopted is estimated to be $2,809.82. • If you plan to attend this public meeting and have a disability that requires special needs, please contact the Town Secretary’s Office at 6822372900, 48 hours in advance, and reasonable accommodations will be made to assist you. Page 2 of 90 TOWN COUNCIL COMMUNICATION MEETING DATE: April 13, 2026 FROM: Tamara Smith, MSL, Assistant Town Manager AGENDA ITEM: Presentation and discussion of updates on the gateway, water tower, and wayfinding signage design project. (Tamara Smith, Assistant Town Manager) BACKGROUND/SUMMARY: The Town of Trophy Club’s Strategic Plan focus area, “Promote Quality of Life,” includes a FY 2026 initiative to develop a wayfinding and directional signage package that enhances the Town’s brand image, monumentation, and street signage. During the Council Workshop, the Town Council will discuss Task Two: collaborating with the consultant to design concepts that reflect the Town’s brand identity. The scope of this project includes assessing existing signage, creating cohesive designs, specifying durable materials, planning installation, ensuring long-term maintenance, and collaborating with stakeholders. The project will be completed in two phases. Phase One includes the current scope of work, while Phase Two will focus on implementation and construction, with costs allocated annually through the Capital Improvement Plan. Ultimately, this project will deliver a comprehensive gateway, water tower, and wayfinding signage package. The Town issued a request for proposals (RFP) in June 2025. The review team selected Olsson Inc. as the firm that best aligns with the project’s requirements and objectives. Olsson’s team combines creativity, technical expertise, and strong project management to deliver memorable and functional spaces. The Town Council approved the professional services agreement with Olsson on September 22, 2025, in an amount not to exceed $111,300. To date, Olsson and the Town have completed Phase 100 (Discovery and Assessment) and Phase 200 (Design Generation and Engagement). During Phase 200, Olsson provided two opportunities for resident engagement. The first was a three-day charrette that explored design concepts, developed conceptual sketches, and gathered stakeholder feedback. This process resulted in two design concepts incorporating materials appropriate for the project site. The second engagement opportunity involved presenting these two concepts, along with material options, through a community survey to gather broader input. The charrette included eight participants: four representing local businesses and four representing Town boards and commissions. The subsequent survey generated 460 responses and included three questions: • Which design do you prefer overall (monument, wayfinding, and gateway)? Page 3 of 90 • From Option A and Option B, which material base do you prefer? • Would you like to keep the street signs green, or would you prefer a different color? Survey results indicated that 47.28% of respondents preferred Option A, while 40.52% preferred Option B. Option A: Option B: When asked about construction materials, 47.15% of respondents favored a combination of brick and Austin stone. Additionally, 44.74% of respondents preferred to keep the street signs green, with the second-highest response being “No Preference” at 17.54%. Page 4 of 90 This workshop will provide an update on the project to date, seek direction on the current renderings, and outline next steps. Following the workshop, staff will collaborate with Olsson to present a final project for approval in June 2026. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: The professional services agreement with Olsson for wayfinding signage design is in an amount not to exceed $111,300, with funding budgeted in the FY 2026 Budget within the Hotel Occupancy Tax Fund. Project construction costs will be distributed over multiple years and incorporated into the Capital Improvement Program, with funding allocated to the appropriate funds based on project components. LEGAL REVIEW: N/A ATTACHMENTS: 1. Presentation 2. Concept A 3. Concept B 4. Survey Responses ACTIONS/OPTIONS: This agenda item is being presented for discussion purposes only. No action will be taken by the Town Council during the workshop. Page 5 of 90 © 2026 OlssonGateway & Wayfinding Monumentation Town Council MeetingApril 13, 2026Page 6 of 90 © 2026 OlssonPURPOSETo develop a cohesive wayfinding and signage design that welcomes visitors, builds community character, recognizes its designation as a Texas Town of Patriotism, and improves user experience throughout the Town of Trophy Club.Gateway & Wayfinding Monumentation Page 7 of 90 © 2026 OlssonONE THINGCreate Community Pride, Consistent, Clear Communication, Conservative, Reduce Clutter, CohesiveDESCRIPTORSTraditional, Family Oriented, Patriotic, Safe, Upscale, Friendly, Welcoming, Community, Beautiful, Golf CommunityWAYFINDING ELEMENTSTown HallSchoolsByron Nelson High SchoolMedlin Middle SchoolParksIndependence ParkHarmony ParkVeterans ParkFreedom ParkDog ParkFire DepartmentMATERIALSBrickQuality MetalStoneMasonryLandscape - TreesLimestoneStuccoAustin StoneCobblestoneGateway & Wayfinding Monumentation Page 8 of 90 © 2026 OlssonGateway & Wayfinding Monumentation Bobcat BlvdMarshall CreekTrophy Lake DriveTrophy Club DriveTrophy Wood DriveTown Entrance SignageRound-a-bout SignageWayfinding SignagePage 9 of 90 © 2026 OlssonGateway & Wayfinding Monumentation Trophy Club DriveABPage 10 of 90 © 2026 OlssonGateway & Wayfinding Monumentation Trophy Lake DriveABPage 11 of 90 © 2026 OlssonGateway & Wayfinding Monumentation Trophy Wood DriveABPage 12 of 90 © 2026 OlssonGateway & Wayfinding Monumentation Bobcat BoulevardABPage 13 of 90 © 2026 OlssonGateway & Wayfinding Monumentation WayfindingABPage 14 of 90 © 2026 OlssonGateway & Wayfinding Monumentation Community Survey ResultsCommunity Survey Results (non-scientific):• Which design do you prefer overall? Option A: 47.28%Option B: 40.52%No Preference: 1.53%Neither: 11.55%• Which material base do you prefer?Brick: 15.13%Austin Stone: 26.75%Mix of Brick and Austin Stone: 47.15%No Preference: 4.61%None: 6.36%*459 ResponsesPage 15 of 90 Page 16 of 90 Page 17 of 90 Page 18 of 90 Page 19 of 90 Page 20 of 90 Page 21 of 90 Gateway, M onument, and Wayfinding Projec t D esign Survey 1 / 3 Q1 Which design do you prefer overall (for monument + wayfinding + gateway)? Answered: 459 Sk ipped: 1 Option A Option B No Preference Neither 0%1 0%20%30%40%50%60%70%80%90%1 0… Answer Choices Percentage Responses O ptio n A 47.28%217 O ptio n B 40.52%186 No Preference 1.53%7 Neither 11.55%53 Total 463 Page 22 of 90 Gateway, M onument, and Wayfinding Projec t D esign Survey 2 / 3 Q2 From Option A and Option B, which material base do you prefer? Answered: 456 Sk ipped: 4 Brick Austin Stone Mix of Brick and Austin Stone No Preference N one 0%1 0%20%30%40%50%60%70%80%90%1 0… Answer Choices Percentage Responses Brick 15.13%69 Austin Stone 26.75%122 Mix of Brick and Austin Sto ne 47.15%215 No Preference 4.61%21 None 6.36%29 Total 456 Page 23 of 90 Gateway, M onument, and Wayfinding Projec t D esign Survey 3 / 3 Q3 Would you like to keep the street signs green, or would you prefer to change the color? Answered: 456 Sk ipped: 4 Keep Green Change to Blue Change to Red Change to White No preference Other color preference 0%1 0%20%30%40%50%60%70%80%90%1 0… Answer Choices Percentage R esponses Keep Green 44.74%204 Change to Blue 15.35%70 Change to Red 0.88%4 Change to White 12.72%58 No preference 17.54%80 O ther co lor preference Sho w responses 8.77%40 Total 456 Page 24 of 90 Office of the Mayor Proclamation WHEREAS: in 1872, J. Sterling Morton proposed to the Nebraska Board of Agriculture that a special day be set aside for the planting of trees; and WHEREAS: this holiday, called Arbor Day, was first observed with the planting of more than a million trees in Nebraska; and WHEREAS: Arbor Day is now observed throughout the nation and the world; and WHEREAS: trees can reduce the erosion of our precious topsoil by wind and water, cut heating and cooling costs, moderate the temperature, clean the air, produce life-giving oxygen, and provide habitat for wildlife; and WHEREAS: trees are a renewable resource giving us paper, wood for our homes, fuel for our fires and countless other wood products; and WHEREAS: trees in our Town increase property values, enhance the economic vitality of business areas, and beautify our community; and WHEREAS: trees, wherever they are planted, are a source of joy and spiritual renewal. NOW, THEREFORE, I, Jeannette Tiffany, Mayor of the Town of Trophy Club, Texas, and on behalf of the Trophy Club Town Council do hereby proclaim April 24, 2026, as “ARBOR DAY” in the Town of Trophy Club and urge all citizens to support efforts to protect our trees and woodlands by planting more trees to promote the well-being of our generation and future generations. ________________________________________ Jeannette Tiffany, MAYOR Page 25 of 90 TOWN COUNCIL COMMUNICATION MEETING DATE: April 13, 2026 FROM: Tammy Dixon, Town Secretary AGENDA ITEM: Consider approval of the March 23, 2026 Town Council special meeting minutes. (Tammy Dixon, Town Secretary) BACKGROUND/SUMMARY: The Town Council held a special meeting on March 23, 2026. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: There is no financial impact associated with this agenda item. LEGAL REVIEW: N/A ATTACHMENTS: 1. Meeting Minutes ACTIONS/OPTIONS: Move to approve the March 23, 2026 Town Council special meeting minutes. Page 26 of 90 Town of Trophy Club Town Council Special Meeting Meeting Minutes – March 23, 2026, 6:00 p.m. 1 Trophy Wood Drive, Trophy Club, Texas 76262 CALL SPECIAL MEETING TO ORDER Mayor Tiffany called the special meeting to order at 6:00 p.m. COUNCIL MEMBERS PRESENT Jeannette Tiffany, Mayor Stacey Bauer, Council Member Place 1 Jeff Beach, Council Member Place 2 Dennis Sheridan, Council Member Place 3 Garry Ash, Council Member Place 5 Steve Flynn, Council Member Place 6 COUNCIL MEMBERS ABSENT Rhylan Rowe, Mayor Pro Tem STAFF MEMBERS PRESENT Brandon Wright, Town Manager Maggie McCormick-Krukowski, Records Coordinator/Asst. Town Secretary Dean Roggia, Town Attorney Matt Cox, Director of Community Development PUBLIC COMMENTS There were none. CONSENT AGENDA 1. Consider approval of the March 9, 2026, Town Council work session and regular meeting minutes. (Tammy Dixon, Town Secretary) Council Member Flynn moved to approve the Consent Agenda. Council Member Beach seconded the motion. Page 27 of 90 Town Council Special Meeting Minutes – March 23, 2026 Page 2 VOTE ON MOTION AYES: Bauer, Beach, Tiffany, Sheridan, Ash, Flynn NAYES: None ABSENT: Rowe VOTE: 6-0-1 INDIVIDUAL ITEMS 2. CASE FP-26-001 The Trails (Final Plat) Consider a final plat request for "The Trails", an 18-lot single-family residential subdivision on approximately 7.603 acres, generally located north of Macquarie Street and Milson's Point Drive, situated within the Thomas J. Allen Survey, Abstract No. 7, and the JS Kenley Survey, Abstract No. 1641, Town of Trophy Club, Denton County, Texas. (Matt Cox, Director of Community Development) Council Member Sheridan moved to approve the final plat for "The Trails", an 18- lot single-family residential subdivision on approximately 7.603 acres, generally located north of Macquarie Street and Milson's Point Drive, situated within the Thomas J. Allen Survey, Abstract No. 7, and the JS Kenley Survey, Abstract No. 1641, Town of Trophy Club, Denton County, Texas, as amended and presented at the dais, with the wellheads identified. Council Member Ash seconded the motion. VOTE ON MOTION AYES: Bauer, Beach, Tiffany, Sheridan, Ash, Flynn NAYES: None ABSENT: Rowe VOTE: 6-0-1 Mayor Tiffany adjourned the special meeting at 6:02 p.m. ____________________________ Jeannette Tiffany, Mayor Attest: _______________________________ Tammy Dixon, Town Secretary Page 28 of 90 TOWN COUNCIL COMMUNICATION MEETING DATE: April 13, 2026 FROM: April Duvall, Director of Finance AGENDA ITEM: Consider a resolution adopting the Town of Trophy Club Investment Policy for Fiscal Year 2025-2026. (April Duvall, Director of Finance) BACKGROUND/SUMMARY: In accordance with the Public Funds Investment Act, the Trophy Club Town Council is required to annually review the Town’s Investment Policy and investment strategies and adopt a resolution affirming that review, along with approval of any recommended changes. Valley View Consulting serves as the Town’s investment advisor and provides technical guidance to ensure the policy remains aligned with state law and current investment best practices. Following this year’s review, no changes to the Town’s Investment Policy or investment strategies are recommended. Per the Investment Policy, the Town Manager designates the Finance Director and the Chief Financial Analyst as the Town’s Investment Officers. The policy continues to be guided by four primary objectives: preservation of principal and safety, maintenance of sufficient liquidity to meet operational needs, prudent investment practices that uphold public trust, and optimization of investment earnings. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: Investment earnings provide an important revenue source for the Town of Trophy Club, helping reduce reliance on property taxes and other funding sources. For the most recent reporting period ending September 30, 2025, the Town earned $443,123 in investment income for the quarter. LEGAL REVIEW: Town Attorney, Dean Roggia, has reviewed the resolution as to form and legality. ATTACHMENTS: 1. Resolution 2. Exhibit A Page 29 of 90 ACTIONS/OPTIONS: Staff recommends that the Town Council move to approve the resolution adopting the Town of Trophy Club Investment Policy for Fiscal Year 2025-2026. Page 30 of 90 TOWN OF TROPHY CLUB RESOLUTION NO. 2026-XX A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, ADOPTING AN INVESTMENT POLICY FOR FISCAL YEAR 2025-2026 FOR FUNDS FOR THE TOWN OF TROPHY CLUB, AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town of Trophy Club (the “Town”) is a home rule municipality acting under its charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS, the Town’s Investment Policy is reviewed annually as part of the budget preparation process; and WHEREAS, the Texas Public Funds Investment Act (“PFIA”) requires the Town Council to annually review the Town’s Investment Policy; and WHEREAS, the Town’s staff has developed the Town’s Investment Policy to comply with all aspects of the PFIA; and WHEREAS, the Town Council hereby finds and determines it to be in the interests of the public health, safety, and welfare of the Town’s residents and the general welfare to adopt Exhibit “A,” as the Town’s Investment Policy. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, THAT: SECTION 1. The facts and recitals set forth in the preamble of this Resolution are hereby found to be true and correct and are incorporated into this resolution as if fully set forth herein. SECTION 2. The Town of Trophy Club Investment Policy, attached hereto and incorporated herein by reference as Exhibit “A,” having been reviewed by the Town Council of the Town of Trophy Club, Texas, and found to be acceptable and in the best interest of the Town and its citizens, is hereby in all things approved. The Town Manager and staff shall implement and execute the procedures and policies adopted therein. SECTION 3. A true and correct copy of the Town of Trophy Club Investment Policy, as adopted herein, shall be maintained by the Town Secretary’s Office. SECTION 4. This Resolution shall take effect immediately upon its passage and approval. PASSED and APPROVED by the Town Council of the Town of Trophy Club, Texas on this the 13th day of April, 2026. Jeannette Tiffany, Mayor Page 31 of 90 ATTEST: [SEAL] Tammy Dixon, Town Secretary APPROVED TO AS FORM: Dean Roggia, Town Attorney Page 32 of 90 EXHIBIT “A” Page 33 of 90 TOWN OF TROPHY CLUB INVESTMENT POLICY I. POLICY It is the policy of the Town of Trophy Club that after allowing for the anticipated cash flow requirements of the Town of Trophy Club and giving due consideration to the safety and risk of investment, all available funds shall be invested in conformance with these legal and administrative guidelines, seeking to optimize interest earnings to the maximum extent possible. Effective cash management is recognized as essential to good fiscal management. Investment interest is a source of revenue to Trophy Club funds. Trophy Club’s investment portfolio shall be designed and managed in a manner to maximize this revenue source, to be responsive to public trust, and to be in compliance with legal requirements and limitations. Investments shall be made with the primary objectives of: ∗ Safety and preservation of principal ∗ Maintenance of sufficient liquidity to meet operating needs ∗ Public trust from prudent investment activities ∗ Optimization of interest earnings on the portfolio II. PURPOSE The purpose of this Investment Policy is to comply with Chapter 2256 of the Government Code (“Public Funds Investment Act” or “PFIA”), which requires the Town of Trophy Club to adopt a written investment policy regarding the investment of its funds and funds under its control. The Investment Policy addresses the methods, procedures and practices that must be exercised to ensure effective and judicious fiscal management of Trophy Club’s funds. III. SCOPE This Investment Policy shall govern the investment of all financial assets of the Town of Trophy Club. These funds are accounted for in the Town of Trophy Club’s Annual Comprehensive Financial Report (ACFR) and include: • General Fund • Special Revenue Funds • Capital Projects Funds • Proprietary Funds • Debt Service Funds, including reserves and sinking funds, to the extent not required by law or existing contract to be kept segregated and managed separately • Any new fund created by the Town of Trophy Club, unless specifically exempted from this Policy by the Town Council or by law The Town of Trophy Club consolidates fund cash balances to maximize investment earnings. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles. This Investment Policy shall apply to all transactions involving the financial assets and related activity for all the foregoing funds. However, this Policy does not apply to the assets administered for the benefit of the Town of Trophy Club by outside agencies under deferred compensation programs. Page 34 of 90 2 IV. INVESTMENT OBJECTIVES The Town of Trophy Club shall manage and invest its cash with four primary objectives, listed in order of priority: safety, liquidity, public trust, and yield, expressed as optimization of interest earnings. The safety of the principal invested always remains the primary objective. All investments shall be designed and managed in a manner responsive to the public trust and consistent with state and local law. The Town of Trophy Club shall maintain a comprehensive cash management program, which includes collection of accounts receivable, vendor payments in accordance with the Town’s purchasing policies, and prudent investment of available cash. Cash management is defined as the process of managing monies in order to ensure maximum cash availability and maximum earnings on short-term investment of idle cash. Safety [PFIA 2256.005(b)(2)] Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit and interest rate risk.  Credit Risk and Concentration of Credit Risk – The Town of Trophy Club will minimize credit risk, the risk of loss due to the failure of the issuer or backer of the investment, and concentration of credit risk, the risk of loss attributed to the magnitude of investment in a single issuer, by: • Limiting investments to the safest types of investments. • Pre-qualifying the financial institutions and broker/dealers with which the Town of Trophy Club will do business. • Diversifying the investment portfolio so that potential losses on individual issuers will be minimized.  Interest Rate Risk – the Town of Trophy Club will manage the risk that the interest earnings and the market value of investments in the portfolio will fall due to changes in general interest rates by limiting the maximum weighted average maturity of the investment portfolio to 365 days. The Town of Trophy Club will, in addition: • Structure the investment portfolio so that investments mature to meet cash requirements for ongoing operations, thereby avoiding the need to liquidate investments prior to maturity. • Invest operating funds primarily in financial institution deposits, shorter-term securities, money market mutual funds, or local government investment pools functioning as money market mutual funds. • Diversify maturities and stagger purchase dates to minimize the impact of market movements over time. Liquidity [PFIA 2256.005(b)(2)] The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that investments mature concurrent with cash needs to meet anticipated demands. Because all possible cash demands cannot be anticipated, a portion of the portfolio will be invested in shares of money market mutual funds, local government investment pools, or other cash equivalents that offer same-day liquidity. Public Trust All participants in the Town of Trophy Club’s investment process shall seek to act responsibly as custodians of the public trust. The Investment Officers shall avoid any transaction that might impair public confidence in the Town of Trophy Club’s ability to govern effectively. Yield (Optimization of Interest Earnings) [PFIA 2256.005(b)(3)] Page 35 of 90 3 The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. V. INVESTMENT STRATEGY STATEMENTS The Town of Trophy Club portfolio will be structured to benefit from anticipated market conditions and to achieve a reasonable return. Relative value among asset groups shall be analyzed and pursued as part of the investment program within the restrictions set forth by the Investment Policy. The Town of Trophy Club maintains portfolios which utilize four specific investment strategy considerations designed to address the unique characteristics of the fund groups represented in the portfolios. Operating Funds Suitability - All investments authorized in the Investment Policy are suitable for Operating Funds. Preservation and Safety of Principal - All investments shall be of high quality with no perceived default risk. Liquidity - Investment strategies for the Operating Funds have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. The dollar-weighted average maturity of operating funds, based on the stated final maturity date of each investment, will be calculated and limited to one year or less. Constant $1.0000 net asset value investment pools and money market mutual funds, and other cash equivalents shall be integral components to maintaining daily liquidity. Investments for these funds shall not exceed a 24-month period from date of purchase. Marketability - Securities with active and efficient secondary markets will be purchased in the event of an unanticipated cash requirement. Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows based on anticipated needs. Investment risks will be reduced through diversification among authorized investments. Yield - The Town’s objective is to attain a competitive market yield for comparable securities and portfolio constraints. The benchmark for Operating Funds shall be the rolling three-month Treasury yield. Reserve and Deposit Funds Suitability - All investments authorized in the Investment Policy are suitable for Reserve and Deposit Funds. Preservation and Safety of Principal - All investments shall be of high quality with no perceived default risk. Liquidity - Investment strategies for Reserve and Deposit Funds shall have as the primary objective the ability to generate a dependable revenue stream to the appropriate reserve fund from investments with a low degree of volatility. Except as may be required by the bond ordinance specific to an individual issue, investments should be of high quality, with short-to-intermediate-term maturities. The dollar-weighted average maturity of Reserve and Deposit Funds, based on the stated final maturity date of each investment, will be calculated and limited to two years or less. Marketability - Securities with active and efficient secondary markets will be purchased in the event of an unanticipated cash requirement. Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows based on anticipated needs. Investment risks will be reduced through diversification among authorized investments. Yield - The Town’s objective is to attain a competitive market yield for comparable securities and portfolio Page 36 of 90 4 constraints. The benchmark for Reserve and Deposit Funds shall be the rolling three-month Treasury yield. Bond and Certificate Capital Project Funds and Special Purpose Funds Suitability - All investments authorized in the Investment Policy are suitable for Bond and Certificate Capital Project Funds and Special Purpose Funds. Preservation and Safety of Principal - All investments shall be of high quality with no perceived default risk. Liquidity - Investment strategies for Bond and Certificate Capital Project Funds and Special Purpose Funds portfolios will have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. The stated final maturity dates of investments held should not exceed the estimated project completion date or a maturity of no greater than three years. The dollar-weighted average maturity of Bond and Certificate Capital Project Funds and Special Purpose Funds, based on the stated final maturity date of each investment, will be calculated and limited to two years or less. Marketability - Securities with active and efficient secondary markets will be purchased in the event of an unanticipated cash requirement. Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows based on anticipated needs. Investment risks will be reduced through diversification among authorized investments. Yield - The Town’s objective is to attain a competitive market yield for comparable securities and portfolio constraints. The benchmark for Bond and Certificate Capital Project Funds and Special Purpose Funds shall be the rolling three-month Treasury yield. A secondary objective of these funds is to achieve a yield equal to or greater than the arbitrage yield of the applicable bond or certificate, when reasonable considering safety and liquidity objectives. Debt Service Funds Suitability - All investments authorized in the Investment Policy are suitable for Debt Service Funds. Preservation and Safety of Principal - All investments shall be of high quality with no perceived default risk. Liquidity - Investment strategies for Debt Service Funds shall have as the primary objective the assurance of investment liquidity adequate to cover the debt service obligation on the required payment date. Investments shall not have a stated final maturity date which exceeds the next unfunded debt service payment date. The dollar-weighted average maturity of Debt Service Funds, based on the stated final maturity date of each investment, will be calculated and limited to one year or less. Marketability - Securities with active and efficient secondary markets will be purchased in the event of an unanticipated cash requirement. Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows based on anticipated needs. Investment risks will be reduced through diversification among authorized investments. Yield - The Town’s objective is to attain a competitive market yield for comparable securities and portfolio constraints. The benchmark for Debt Service Funds shall be the rolling three-month Treasury yield. VI. RESPONSIBILITY AND CONTROL Delegation of Authority [PFIA 2256.005(f)] In accordance with the Town of Trophy Club and the Public Funds Investment Act, the Town Council designates the Town Manager's designee and/or Finance Director and the Chief Financial Analyst as the Town of Trophy Club’s Investment Officers. The Town Manager's designee and/or Finance Director is responsible for the overall management of the Town’s investment program and may direct the other Page 37 of 90 5 Investment Officer in his/her duties. The Investment Officers are authorized to deposit, withdraw, invest, transfer, execute documentation, and otherwise manage funds on behalf of the Town of Trophy Club according to this Policy. Unless authorized by law, no other person may deposit, withdraw, transfer or manage in any other manner the Town of Trophy Club funds. The investment authority granted to the Investment Officers is effective until rescinded. Quality and Capability of Investment Management [PFIA 2256.005(b)(3)] The Town of Trophy Club shall provide periodic training in investments for the designated Investment Officers and other investment personnel through courses and seminars offered by professional organizations, associations, and other independent sources in order to ensure the quality and capability of investment management in compliance with the Public Funds Investment Act. Training Requirement [PFIA 2256.008 – Local Governments] In accordance with the Town of Trophy Club and the Public Funds Investment Act, designated Investment Officers shall attend investment training no less often than once every two years and shall accumulate not less than 8 hours of instruction relating to investment responsibilities. A newly appointed Investment Officer must attend training accumulating at least 10 hours of instruction within twelve months of the date the Officer took office or assumed the Officer’s duties. The investment training sessions shall be provided by independent sources approved by the Investment Committee, and must include education in investment controls, security risks, strategy risks, market risks, diversification of investment portfolio, and compliance with the PFIA. Internal Controls (Best Practice) The Investment Officers are responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Town of Trophy Club are protected from loss, theft, or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Accordingly, the Investment Officers shall establish a process for annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points. • Avoidance of collusion. • Separation of transactions authority from accounting and recordkeeping. • Custodial safekeeping. • Avoidance of physical delivery securities. • Clear delegation of authority to subordinate staff members. • Written confirmation for telephone (voice) transactions for investments and wire transfers. • Development of a wire transfer agreement with the depository bank or third-party custodian. Investment Policy Certification [PFIA 2256.005(k-l)] A qualified representative, as defined by PFIA section 2256.002(10), of all business organizations, as defined by PFIA section 2256.005(k) as local government investment pools and discretionary investment management firms, must sign a certification acknowledging that the organization has received and reviewed the Town of Trophy Club’s Investment Policy and that reasonable procedures and controls have been implemented to preclude investment transactions that are not authorized by the Town of Trophy Club’s Policy except to the extent that the authorization is dependent on an analysis of the makeup of the Town's entire portfolio, requires an interpretation of subjective investment standards, or relates to investment transactions of the Town that are not made through accounts or other contractual arrangements over which the business organization has accepted discretionary investment authority. The Town shall not enter into an investment transaction with a business organization prior to receiving the signed certification. Page 38 of 90 6 Prudence [PFIA 2256.006] The standard of care to be applied by the Investment Officers shall be the “prudent person” rule. This rule states that “Investments shall be made with judgment and care, under prevailing circumstances, that a person of prudence, discretion and intelligence would exercise in the management of the person’s own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived.” In determining whether an Investment Officer has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration: • The investment of all funds, or funds under the Town of Trophy Club’s control, over which the Officer had responsibility rather than a consideration as to the prudence of a single investment. • Whether the investment decision was consistent with the written, approved Investment Policy of the Town of Trophy Club. Indemnification The Investment Officers, acting in accordance with written procedures and exercising due diligence, shall not be held personally responsible for a specific investment’s credit risk or market price changes, provided that these deviations are reported immediately and the appropriate action is taken to control adverse developments. Ethics and Conflicts of Interest [PFIA 2256.005(i)] Officers and employees involved in the investment process shall refrain from personal business activity that would conflict with the proper execution and management of the investment program, or that would impair their ability to make impartial decisions. Investment Committee members shall refrain from undertaking personal investment transactions with the same individual with which business is conducted on behalf of the Town of Trophy Club. An Investment Officer of the Town of Trophy Club who has a personal business relationship with an organization seeking to sell an investment to the Town of Trophy Club shall file a statement disclosing that personal business interest. An Investment Officer who is related within the second degree by affinity or consanguinity to an individual seeking to sell an investment to the Town of Trophy Club shall file a statement disclosing that relationship. A statement required under this subsection must be filed with the Texas Ethics Commission and the Town Council. VII. SUITABLE AND AUTHORIZED INVESTMENTS Portfolio Management The Town of Trophy Club currently has a “buy and hold” portfolio strategy. Maturity dates are matched with cash flow requirements and investments are purchased with the intent to be held until maturity. However, investments may be liquidated prior to maturity for the following reasons: • An investment with declining credit maybe liquidated early to minimize loss of principal. • Cash flow needs of the Town of Trophy Club require that the investment be liquidated. Investments [PFIA 2256.005(b)(4)(A)] Trophy Club funds governed by this Policy may be invested in the instruments described below, all of which are authorized by the Public Funds Investment Act. Investment of Town of Trophy Club funds in any instrument or security not authorized for investment under the Act is prohibited. The Town of Trophy Club will not be required to liquidate an investment that becomes unauthorized subsequent to its purchase. Page 39 of 90 7 I. Authorized 1. Obligations, including letters of credit, of the United States, its agencies and instrumentalities, including the Federal Home Loan Banks. 2. Direct obligations of the State of Texas, its agencies and instrumentalities or obligations of agencies, counties, cities, and other political subdivisions of this State rated as to investment quality by a nationally recognized investment rating firm of not less than “A” or its equivalent. 3. Other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, the State of Texas or the United States or their respective agencies and instrumentalities, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States. 4. Certificates of Deposit and other forms of deposit issued by a depository institution that has its main office or a branch office in Texas. The deposit must be guaranteed or insured by the Federal Deposit Insurance Corporation (“FDIC”) or its successor, or the National Credit Union Share Insurance Fund (“NCUSIF”) or its successor, or secured by obligations in a manner and amount as provided by law. In addition, deposits obtained through a depository institution that has its main office or a branch office in Texas and that contractually agrees to place the funds in federally insured depository institutions in accordance with the conditions prescribed in Section 2256.010(b) of the Public Funds Investment Act are authorized investments. Funds may also be invested by the Town through a broker that has a main office or branch office in Texas and is selected from a list approved by the Town as required by section 2656.025 of the Public Funds Investment Act or a depository institution that has a main office or branch office in Texas and is selected by the Town are authorized investments if the following conditions are met: a. the broker or depository institution selected by the Town as specified above arranges for the deposit of the funds in one or more federally insured depository institutions, wherever located, for the account of the Town; b. the full amount of the principal and accrued interest of each deposit is insured by the United States or an instrumentality of the United States; and c. the Town appoints a depository bank or a clearing broker registered with the Securities and Exchange Commission Rule 15c-3 (17CFR, Section 240 15c3-3) as custodian for the Town with respect to the deposit issued for account to the Town. 5. Fully collateralized direct repurchase agreements with a defined termination date secured by obligations of the United States or its agencies and instrumentalities. These shall be pledged to the Town of Trophy Club, held in an account in the Town of Trophy Club’s name, and deposited at the time the investment is made with the Town of Trophy Club or with a third-party selected and approved by the Town of Trophy Club. Repurchase agreements must be purchased through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in Texas. A Master Repurchase Agreement, or similar agreement, must be signed prior to investment in a repurchase agreement. Securities received for repurchase agreements must have a market value greater than or equal to 102 percent at the time funds are disbursed. (This section pertains to Sweep Accounts and/or Bond Proceeds) 6. No-Load Money Market Mutual funds that: 1) are registered and regulated by the Securities and Exchange Commission and provide a prospectus and other information required by the Securities and Exchange Act of 1934 (15 U.S.C. Section 78a) or the Investment Company Act of 1940 (15 U.S.C. Section 80a-1), and 2) seek to maintain a stable net asset value of $1.0000 per share. 7. Local government investment pools, which 1) meet the requirements of Chapter 2256.016 of the Public Funds Investment Act, 2) are rated no lower than AAA or an equivalent rating by at least one nationally recognized rating service, and 3) are authorized by resolution or ordinance by the Town Council. In addition, a local government investment pool created to function as a money market mutual fund must mark its portfolio to the market daily and, to the extent reasonably possible, stabilize at a $1.0000 net asset value. Page 40 of 90 8 If an investment in the Town’s portfolio becomes an unauthorized investment due to changes in the Investment Policy or the Public Funds Investment Act, or an authorized investment is rated in a way that causes it to become an unauthorized investment, the Investment Committee of the Town shall review the investment and determine whether it would be more prudent to hold the investment until its maturity, or to redeem the investment. The Investment Committee shall consider the time remaining until maturity of the investment, the quality of the investment, and the quality and amounts of any collateral which may be securing the investment in determining the appropriate steps to take. [PFIA 2256.021]. II. Not Authorized [PFIA 2256.009(b)(1-4)] Investments including interest-only or principal-only strips of obligations with underlying mortgage-backed security collateral, collateralized mortgage obligations with an inverse floating interest rate or a maturity date of over 10 years are strictly prohibited. VIII. INVESTMENT PARAMETERS Maximum Maturities [PFIA 2256.005(b)(4)(B)] The longer the maturity of investments, the greater their potential price volatility. Therefore, it is the Town of Trophy Club’s policy to concentrate its investment portfolio in shorter-term investments in order to limit principal risk caused by changes in interest rates. The Town of Trophy Club attempts to match its investments with anticipated cash flow requirements. The Town of Trophy Club will not directly invest for more than three years from the date of purchase; however, the above described obligations, certificates, or agreements may be collateralized using longer dated investments. Because no secondary market exists for repurchase agreements, the maximum maturity shall be 120 days except in the case of a flexible repurchase agreement for bond proceeds. The maximum maturity for such an investment shall be determined in accordance with project cash flow projections and the requirements of the governing bond ordinance. The composite portfolio will have a weighted average maturity of 365 days or less. The dollar-weighted average maturity will be calculated using the stated final maturity dates of each security. [PFIA 2256.005(b)(4)(C)]. Diversification [PFIA 2256.005(b)(3)] The Town of Trophy Club recognizes that investment risks can result from issuer defaults, market price changes or various technical complications leading to temporary illiquidity. Risk is managed through portfolio diversification that shall be achieved by the following general guidelines: • Limiting investments to avoid overconcentration in investments from a specific issuer or business sector (excluding U.S. Treasury securities and financial institution deposits that are fully insured and collateralized in accordance with state and federal law), • Limiting investments that have higher credit risk, • Utilizing investments with varying maturities, and • Continuously investing a portion of the portfolio in readily available funds such as local government investment pools (LGIPs), money market accounts, money market funds, or overnight repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations. IX. SELECTION OF BANKS AND DEALERS Depository At least every five years a Depository shall be selected through the Town of Trophy Club’s banking services Page 41 of 90 9 procurement process, which shall include a formal request for application (RFA). The selection of a depository will be determined by competitive application and evaluation of applications will be based on the most advantageous terms and conditions for the handling of Town funds. Authorized Brokers/Dealers [PFIA 2256.025] The Town of Trophy Club Investment Committee (see Section XIII) shall, at least annually, review, revise, and approve a list of qualified broker/dealers authorized to engage in securities transactions with the Town of Trophy Club. Authorized firms may include primary dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule). Competitive Environment It is the policy of the Town of Trophy Club to provide a competitive environment for all investment activities. The Investment Officers shall develop and maintain procedures for ensuring competition in the investment of the Town of Trophy Club’s funds and are authorized to solicit bids for investments orally, in writing, electronically, or in any combination of these methods. Delivery vs. Payment [PFIA 2256.005(b)(4)(E)] Securities shall be purchased using the delivery vs. payment method. Funds will be released after notification that the purchased security has been received. X. SAFEKEEPING AND CUSTODY Safekeeping and Custodial Agreements The Town of Trophy Club shall contract with a bank or banks for the safekeeping of securities either owned by the Town of Trophy Club as part of its investment portfolio or held as collateral to secure financial institution deposits. Securities owned by the Town of Trophy Club shall be held in an account in the Town of Trophy Club’s name as evidenced by safekeeping receipts of the institution holding the securities. Original safekeeping receipts shall be obtained and held by the Town. Collateral for deposits will be held by a third-party custodian designated by the Town of Trophy Club and pledged to the Town of Trophy Club as evidenced by pledge receipts of the institution with which the collateral is deposited. Collateral may be held by the depository bank’s trust department, a Federal Reserve Bank or branch of a Federal Reserve Bank, a Federal Home Loan Bank, or a third-party bank approved by the Town of Trophy Club. Collateral Policy [PFCA 2257.023] Consistent with the requirements of the Public Funds Collateral Act, it is the policy of the Town of Trophy Club to require full collateralization of all non-insured Town of Trophy Club funds on deposit with a financial institution and a written depository agreement acceptable to the Town. The market value of the securities collateralizing the deposit of funds shall be at least equal to 102% of the principal and accrued interest on the deposits less an amount insured by the FDIC or NCUSIF. Collateral in the form of letters of credit issued by the Federal Home Loan Bank must be equal to 100% of the principal and anticipated interest of deposits less the applicable level of FDIC insurance. At its discretion, the Town of Trophy Club may require a higher level of collateralization for certain investment securities held as collateral. Securities pledged as collateral shall be held by an independent third-party with whom the Town of Trophy Club has a current custodial agreement. The Investment Officers are responsible for entering into collateralization agreements with third-party custodians in compliance with this Policy. The agreements are to specify the acceptable investment securities for collateral, including provisions relating to possession of the collateral, the substitution or release of investment securities, ownership of securities, and the method of valuation of securities. A clearly marked evidence of pledge must be supplied to the Town of Trophy Club and retained. Collateral shall be reviewed at least monthly to assure that the market value of the pledged securities are Page 42 of 90 10 adequate. The custodial portion of the depository agreement shall define the Town’s rights to the collateral in case of default, bankruptcy or closing and shall establish a perfected security interest in compliance with Federal and State regulations, including: • The Agreement must be in writing; • The Agreement must be executed by the depository and the Town contemporaneously with the acquisition of the asset; • The Agreement must be approved by the board of directors or the loan committee of the depository and a copy of the meeting minutes must be delivered to the Town; and • The Agreement must be part of the depository’s “official record” continuously since its execution. Collateral Defined The Town of Trophy Club shall accept only the following types of collateral: • Obligations of the United States or its agencies and instrumentalities • Direct obligations of the State of Texas or its agencies and instrumentalities • Collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States • Obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized rating firm not less than A or its equivalent with a remaining maturity of ten (10) years or less • A surety bond issued by an insurance company rated as to investment quality by a nationally recognized rating firm not less than A • A letter of credit issued by the Federal Home Loan Bank Subject to Audit All collateral shall be subject to inspection and audit by the Investment Officers or their designee, Including the Town of Trophy Club’s independent auditors. XI. PERFORMANCE Performance Standards The Town of Trophy Club’s investment portfolio will be managed in accordance with the parameters specified within this Policy. The portfolio shall be designed with the objective of obtaining a market rate of return through budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow requirements of the Town of Trophy Club. Performance Benchmark It is the policy of the Town of Trophy Club to purchase investments with maturity dates coinciding with cash flow needs. Through this strategy, the Town of Trophy Club shall seek to optimize interest earnings utilizing allowable investments available in the market at that time. The Town of Trophy Club’s portfolio shall be designed with the objective of regularly meeting or exceeding the benchmark(s) as appropriate per the investment strategy statements. Weighted Average Yield to Maturity shall be the standard for calculating portfolio rate of return. XII. REPORTING [PFIA 2256.023] Methods Page 43 of 90 11 The Investment Officers shall prepare a written investment report on a quarterly basis that summarizes investment strategies employed in the most recent quarter and describes the portfolio in terms of investment securities, maturities, and shall explain the total investment return for the quarter. The quarterly investment report shall include a summary statement of investment activity prepared in compliance with the PFIA. This summary will be prepared in a manner that will allow the Town of Trophy Club to ascertain whether investment activities during the reporting period have conformed to the Investment Policy. The report will be provided to the Town Council and signed by the Investment Officers. The report will include the following: • A listing of individual investments held at the end of the reporting period. • Unrealized gains or losses resulting from appreciation or depreciation by listing the beginning and ending book and market value of investments for the period. • Additions and changes to the market value during the period. • Average weighted yield to maturity of portfolio as compared to applicable benchmarks. • Listing of investments by maturity date. • Fully accrued interest for the reporting period. • The percentage of the total portfolio that each type of investment represents. • Statement of compliance of the Town of Trophy Club’s investment portfolio with state law and the investment strategy and policy approved by the Town Council. An independent auditor will perform a formal annual review of the quarterly reports with the results reported to the Town Council [PFIA 2256.023(d)]. Monitoring Market Value [PFIA 2256.005(b)(4)(D)] Market value of all securities in the portfolio will be determined at least on a quarterly basis. These values will be obtained from a reputable and independent source and disclosed to the Town Council quarterly in a written report. XIII. INVESTMENT COMMITTEE Members An Investment Committee, consisting of the Town Manager and the Investment Officers, shall review the Town’s investment strategies and monitor the results of the investment program periodically. This review can be done by reviewing the quarterly written reports and by holding committee meetings as necessary. The committee will be authorized to invite other advisors to attend meetings as needed. Scope The Investment Committee shall include in its deliberations such topics as economic outlook, investment strategies, portfolio diversification, maturity structure, potential risk to the Town’s funds, evaluation and authorization of broker/dealers, acceptable training sources, rate of return on the investment portfolio, and review of compliance with the Investment Policy. The Investment Committee will also advise the Town Council of any future amendments to the Investment Policy that are deemed necessary or recommended. Procedures The Investment Policy shall require the Investment Committee to provide minutes of investment information discussed at any meetings held. The committee shall meet at least quarterly to discuss the investment program and policy. XIV. INVESTMENT POLICY ADOPTION [PFIA 2256.005(e)] The Town of Trophy Club’s Investment Policy shall be adopted by resolution of the Town Council. It is the Page 44 of 90 12 Town of Trophy Club’s intent to comply with state laws and regulations. The Town of Trophy Club’s Investment Policy shall be subject to revisions consistent with changing laws, regulations, and needs of the Town of Trophy Club. The Town Council shall adopt a resolution stating that it has reviewed the policy and investment strategies not less than annually, approving any changes or modifications. Page 45 of 90 TOWN OF TROPHY CLUB LIST OF AUTHORIZED BROKER/DEALERS FHN Financial Main Contact: John “Buddy” Saragusa Buddy.saragusa@fhnfinancial.com 920 Memorial City Way, 11th Floor Houston, TX 77024 (713) 435-4375 Multi-Bank Securities Main Contact: Carol Mackoff cmackoff@mbssecurities.com 20 North Wacker Drive, Suite 1829 Chicago, IL 60606 (888) 857-4740 Stifel Fixed Income Capital Markets Main Contact: Darlyne Haba habad@stifel.com 775 Ridge Lake Blvd, Suite 200 Memphis, TN 38120 (800) 786-1268 Wells Fargo Securities Main Contact: Chuck Landry Chuck.landry@wellsfargo.com 1445 Ross Avenue, Suite 420 Dallas, TX 75202 (214) 777-4018 Town is approving firm name. Individual representative data for informational purposes only. Page 46 of 90 TOWN OF TROPHY CLUB APPROVED INDEPENDENT TRAINING SOURCES American Institute of Certified Public Accountants Council of Governments International City/County Management Association Government Finance Officers Association Government Finance Officers Association of Texas Government Treasurers’ Organization of Texas Texas City Management Association Texas Municipal Clerks Association Texas Municipal League University of North Texas Center for Public Management Page 47 of 90 TOWN COUNCIL COMMUNICATION MEETING DATE: April 13, 2026 FROM: April Duvall, Director of Finance AGENDA ITEM: Consider a resolution adopting a Purchasing Policy and Procedure Manual. (April Duvall, Director of Finance) BACKGROUND/SUMMARY: Staff has prepared a revised version of the Town’s Purchasing Policy and Procedure Manual to incorporate minor updates, clarifications, and statutory changes, while maintaining compliance with applicable state law. The revised policy has been reviewed by legal counsel and determined to remain in full compliance with Texas Government Code Chapter 252. Key updates to the policy include: Adjustment to Competitive Bidding Thresholds: In accordance with recently enacted Senate Bill 1173, the competitive bidding threshold has been increased from $50,000 to $100,000. The policy has been updated to reflect this change across: • Purchasing and bidding requirements • Town Council approval thresholds • Town Manager purchasing and emergency authorization limits General Updates and Clarifications: Additional minor revisions improve clarity, consistency, and alignment with current procurement practices and procedures. These updates are consistent with the Town’s existing purchasing framework, which emphasizes internal controls, fiscal responsibility, and transparency in procurement processes. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: There is no financial impact associated with this agenda item. LEGAL REVIEW: Town Attorney, Dean Roggia, has reviewed the resolution as to form and legality. ATTACHMENTS: Page 48 of 90 1. Resolution 2. Exhibit A ACTIONS/OPTIONS: Staff recommends that the Town Council move to approve the resolution adopting a Purchasing Policy and Procedure Manual. Page 49 of 90 TOWN OF TROPHY CLUB RESOLUTION NO. 2026-XX A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, ADOPTING A PURCHASING POLICY AND PROCEDURE MANUAL, ATTACHED HERETO AND INCORPORATED HEREIN AS EXHIBIT “A”; AUTHORIZING THE TOWN MANAGER TO MAKE MINISTERIAL REVISIONS TO THE PURCHASING POLICY AND PROCEDURE MANUAL; REPEALING PRIOR INCONSISTENT POLICIES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, pursuant to the Town Charter, the Town Council is designated as the approving authority for all municipal policies, including those governing purchasing; and WHEREAS, the Town Council desires to establish sound purchasing policies and procedures for the Town; and WHEREAS, the Purchasing Policy and Procedure Manual (the “Manual”) establishes the internal process to be utilized to ensure that proper procurement methods are followed and comply with the Town Charter, state, and federal laws, and good practices for local government; and WHEREAS, these procedures and processes promote efficiency, effectiveness, equity, and fairness in public purchasing; and WHEREAS, upon consideration, the Town Council finds and determines it to be in the best interest of health, safety, and welfare of the Town and its residents to adopt the Manual, which is attached to this Resolution as Exhibit “A”. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, THAT: Section 1. The facts and recitals set forth in the preamble of this Resolution are hereby found to be true and correct. Section 2. The Town Council has reviewed the attached Purchasing Policy and Procedure Manual (the “Manual”), and hereby adopts the Manual and the policies set forth therein as provided in Exhibit “A”, which is attached hereto and incorporated herein in its entirety. Section 3. The Town Council hereby authorizes the Town Manager to make ministerial revisions to the Purchasing Policy and Procedures Manual from time to time, subject to written approval by the Town Attorney. Page 50 of 90 RESOLUTION NO. 2026-xx PAGE 2 - Section 4. Upon the Effective Date of this Resolution, all purchasing policies, procedures, and manuals previously adopted by the Town that are inconsistent with the Manual adopted as “Exhibit A”, are hereby repealed to the extent of any such inconsistency. Section 5. For purposes of Texas Gov’t Code Ch. 2269, the Town hereby delegates its authority for an action authorized by Chapter 2269 to the Town Manager, and determines that the construction contract methods authorized by Chapter 2269 provide the best value for the Town, and the Town Manager is authorized to utilize any construction contract method authorized Chapter 2269 prior to advertising. Section 6. This Resolution shall take effect immediately upon its passage and approval. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, on this 13th day of April 2026. Jannette Tiffany, Mayor ATTEST: Tammy Dixon, Town Secretary APPROVED TO AS FORM: Dean Roggia, Town Attorney Page 51 of 90 RESOLUTION NO. 2026-xx PAGE 3 - EXHIBIT “A” PURCHASING POLICY AND PROCEDURE MANUAL Page 52 of 90 Town of Trophy Club Purchasing Policy & Procedure Manual Page 53 of 90 PURCHASING POLICY Town Council Policy Policy Number: TC-300 Implementation Date: DRAFT Last Revised Date: Policy Contact: Finance Director Approved by: 1. PURPOSE This Purchasing Policy and Procedure Manual (the “Manual”) establishes standardized procedures to implement the Town of Trophy Club purchasing policy. This Manual is intended to ensure consistent application of policy, legal compliance with Texas Local Government Code Chapters 252 and 271, Texas Government Code Chapter 2269, the Town Charter, and all other applicable state and federal laws, internal controls, fiscal responsibility, and efficient procurement operations. 2. ROLES AND RESPONSIBILITIES Roles To ensure accountability, segregation of duties, and strong internal controls, the following purchasing process shall be followed: I. Requisition Submission Departments initiate purchases by submitting a requisition or request to Finance with justification, budget verification, and required quotes or documentation. II. Approval Purchasing requests are reviewed and approved, where appropriate, based on delegated authority and applicable thresholds. III. Purchase Execution Upon approval, purchases are executed through an approved purchase order, contract, cooperative agreement, or authorized credit card. Page 54 of 90 IV. Receiving Departments promptly verify that goods and services are received in acceptable condition and in accordance with the purchase order or contract. V. Invoice Submission and Review Vendors submit invoices to Finance, which then forwards a copy to the applicable Department(s). Departments review invoices for accuracy and approve them for payment. VI. Payment Finance processes payment only after receipt confirmation, approvals, and required documentation are complete. Responsibilities Town Council • Approves purchases, contracts, and amendments meeting or exceeding policy thresholds • Adopts purchasing policy and major procurement direction Town Manager • Approves purchases and contracts within delegated authority • Ensures compliance with policy and state law • May delegate purchasing authority in writing Finance Department • Administers the purchasing function • Provides guidance and training to departments • Reviews procurement documentation for compliance • Issues purchase orders and exemption certificates • Maintains procurement records Departments • Identify purchasing needs Page 55 of 90 • Prepare specifications, scopes of work, and justifications • Obtain required quotes and documentation • Verify receipt of goods and services 3. PURCHASING AUTHORITY AND APPROVALS Purchase Amount Approval Authority Under $5,000 Department Director $5,000 – $24,999 Town Manager or Designee $25,000 and above Town Council Departments shall not commit the Town to a purchase or contract without proper approval. 4. PROCUREMENT METHODS 4.1 Purchases Under $3,000 • Competitive quotes are not required, but are encouraged when practical • Departments should seek best value, and may consider the factors enumerated in Texas Local Government Code Section 252.043 including but not limited to, the price, reputation of the bidder and any past relationships between the bidder and Town, quality of bidder’s goods or services and the extent to which they meet the Town’s needs. • Documentation should support reasonableness of price 4.2 Purchases $3,000 to $99,999 When cooperative purchasing options are not available: • Obtain a minimum of three (3) quotes • At least two quotes must be solicited from VetHUB vendors when available within the county • If VetHUB vendors are unavailable, document attempts at finding and soliciting such vendors. Page 56 of 90 • Acceptable quote formats include email, written, or documented phone quotes 4.3 Purchases $100,000 and Above When cooperative purchasing options are not available: • Utilize Competitive Sealed Bid (IFB) or Competitive Sealed Proposal (RFP), or another method authorized under Texas Local Government Code Ch. 252 or Texas Government Code Ch. 2269 • Finance coordinates solicitation process • Evaluation committees may be appointed as needed • Awards require Town Council approval 5. COOPERATIVE AND INTERLOCAL PURCHASING Departments may utilize cooperative purchasing agreements, interlocal agreements, and state contracts when: • The contract complies with Texas law • The contract provides best value or is awarded to a vendor under a cooperative purchasing agreement as the lowest responsible bidder • Documentation supports use of the cooperative Finance must review and approve use of cooperative contracts. 6. PROFESSIONAL SERVICES PROCEDURES Professional services shall be procured in accordance with Texas Government Code Chapter 2254. Professional services may not be selected on the basis of competitive bids, but shall be made on the basis of demonstrated competence and qualifications to perform the service(s) for a fair and reasonable price. Town staff may, but are not required to, utilize the process identified below to determine competence and qualifications of professional services providers. Process: 1. Department prepares scope of services 2. RFQ or RFP may be issued Page 57 of 90 3. Firms or providers evaluated based on qualifications 4. Most qualified firm or provider selected 5. Fee negotiated after selection 6. Contract submitted for approval Price shall not be used as a selection criterion prior to ranking firms or providers. 7. SOLE SOURCE PURCHASES Sole source procurement requires: • Completed justification form from department • Sole source letter from vendor • Finance review and approval Sole source justification must demonstrate compliance with Texas Local Government Code § 252.022. 8. EMERGENCY PURCHASES The processes provided above may be bypassed in an emergency, pursuant to Texas Local Government Code § 252.022 when such emergency requires immediate action to: • Protect public health or safety • Address a public calamity • Prevent or repair unforeseen damage to Town property Procedure: • Department documents emergency justification • The Town Manager and Finance are notified as soon as practical • Purchase executed to address emergency • Documentation retained for audit • Town Manager seeks ratification by the Town Council as soon as possible Page 58 of 90 9. PURCHASE ORDERS AND CONTRACTS • Purchase orders are required for purchases over $3,000 • Contracts must be reviewed prior to execution • Departments may not sign contracts on behalf of the Town unless authorized by the Town Manager Contract Amendments • Amendments up to $25,000 or 25% of the original contract price (whichever is less) may be approved by the Town Manager • Amendments above $25,000 or more than 25% of the original contract price require Town Council approval • If the original contract price exceeds $100,000 and is subject to Texas Local Government Code Chapter 252 or Texas Government Code Chapter 2269, any amendment or combination of amendments shall not exceed 25% of the original contract price 10. RECEIVING AND PAYMENT PROCESSING Departments shall: • Verify goods and services were received • Confirm compliance with specifications • Approve invoices for payment Finance processes payment only after receipt verification. Credit Card (P-Card) Purchases The Town may utilize purchasing cards (P-Cards) or other authorized credit cards to facilitate low-dollar (Under $3,000 unless approved by the Town Manager), routine, or time-sensitive purchases. Credit card use shall: • Comply with all Town purchasing policies, procedures, and P-Card program requirements • Adhere to the same approval thresholds and procurement rules outlined in this Manual • Be supported by itemized receipts and proper documentation Page 59 of 90 Departments and cardholders are responsible for: • Ensuring purchases are for legitimate Town business purposes • Confirming the Town’s tax-exempt status is honored • Submitting receipts and documentation to Finance in a timely manner Unauthorized or personal purchases may result in disciplinary action, revocation of card privileges, and reimbursement to the Town. 11. VENDOR SETUP AND REQUIREMENTS Prior to payment, vendors must submit Trophy Club vendor packet, as well as: • W-9 • Certificate of Insurance (if applicable) • Conflict of Interest Disclosure Form Finance verifies vendor compliance before processing payment. 12. PROHIBITED PRACTICES The following are prohibited: • Purchase splitting to avoid thresholds • Unauthorized commitments • Personal purchases using Town funds Violations may result in disciplinary action up to and including termination. 13. SURPLUS PROPERTY PROCEDURES • Departments notify the Community Development Department of surplus or obsolete supplies, materials, equipment, and other personal property items (collectively “Surplus Property”) • Surplus Property is evaluated by the Community Development Department to determine the value of the Surplus Property and recommend the reuse, transfer, public auction, resale, or disposal to the Town Manager Page 60 of 90 • Community Development Department provides written evaluation to the Town Manager, or his designee with recommendation for reuse, transfer, public auction, resale, or disposal of the Surplus Property • Town Manager, or his designee, may authorize the reuse, transfer, public auction, resale, or disposal for any Surplus Property determined to have a value of less than $10,000.00 • For any Surplus Property valued at more than $10,000.00, the Town Manager, or his designee, shall seek approval from the Town Council for the reuse, transfer, public auction, resale, or disposal for that Surplus Property, unless the asset is being traded in toward the purchase of a replacement asset. • Records maintained for audit 14. RECORD RETENTION Procurement records shall be retained in accordance with the Town’s records retention schedule and state law. 15. TRAINING AND COMPLIANCE The Finance Department shall provide training and guidance to departments as needed. Questions regarding purchasing procedures should be directed to the Finance Director. Page 61 of 90 TOWN COUNCIL COMMUNICATION MEETING DATE: April 13, 2026 FROM: Tammy Dixon, Town Secretary AGENDA ITEM: Consider an ordinance amending Division 2, "Records Management," of Article 1.07, "Records," of Chapter 1, "General Provisions," of the Trophy Club Code of Ordinances in its entirety to provide for an updated Records Management Program. (Tammy Dixon, Town Secretary). BACKGROUND/SUMMARY: The Town’s current Records Management Ordinance was adopted in 2006, with minor amendments in 2013, and requires updates to align with current records management practices and organizational needs. The proposed ordinance repeals and replaces the existing division in its entirety, formally adopts a Records Management Program by ordinance as required by the Texas Local Government Records Act, and authorizes the development of a separate Records Management Plan, allowing operational procedures to be updated administratively. The proposed ordinance also modernizes language to reflect current records management standards, including electronic and digital records, and incorporates evolving technology practices. Additionally, it adopts the Texas State Library and Archives Commission (TSLAC) retention schedules by reference, ensuring ongoing compliance with state requirements and automatic updates. Definitions have also been updated and expanded to include digital records, social media, and other modern record formats. A draft Records Management Plan, as referenced in Section 1.07.036, is attached. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: There is no financial impact associated with this agenda item. LEGAL REVIEW: Town Attorney, Dean Roggia, has reviewed the ordinance as to form and legality. ATTACHMENTS: 1. Ordinance 2. Draft Records Management Plan (Sample) Page 62 of 90 ACTIONS/OPTIONS: Staff recommends that the Town Council move to approve the ordinance amending Division 2, "Records Management," of Article 1.07, "Records," of Chapter 1, "General Provisions," of the Trophy Club Code of Ordinances in its entirety to provide for an updated Records Management Program. Page 63 of 90 TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 2026-XX AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS, AMENDING DIVISION 2, “RECORDS MANAGEMENT,” OF ARTICLE 1.07, “RECORDS,” OF CHAPTER 1, “GENERAL PROVISIONS,” OF THE CODE OF ORDINANCES, TOWN OF TROPHY CLUB, TEXAS, IN ITS ENTIRETY TO PROVIDE FOR AN UPDATED RECORDS MANAGEMENT PROGRAM; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF ALL ORDINANCES; PROVIDING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY FOR VIOLATIONS; PROVIDING FOR PUBLICATION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town of Trophy Club, Texas (the “Town”) is a home rule municipality acting under its charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS, Chapters 201 through 205 of the Texas Local Government Code, the Local Government Records Act, provides that a municipal government must establish by ordinance an active and continuing Records Management Program to be administered by a Records Management Officer; and WHEREAS, the Town Council of the Town has previously adopted a Records Management Program and prescribed policies and procedures consistent with the Local Government Records Act; and WHEREAS, the Town Council now finds it appropriate to update the policies and procedures governing its Records Management Program in the interests of efficient recordkeeping. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, THAT: SECTION 1. The above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. SECTION 2. Division 2, “Records Management,” of Article 1.07, “Records,” of Chapter 1, “General Provisions,” of the Code of Ordinances, Town of Trophy Club, Texas, is hereby amended in its entirety to read as follows: “Division 2 Records Management Page 64 of 90 ORDINANCE NO.2026-XX PAGE 2 § 1.07.031 Definitions. Act. The Texas Local Government Records Act. Department. A town department, or the functional equivalent of a department, that performs specific responsibilities for town operations. Digital record. Information, documents, or data created, stored, and accessed in a machine-readable, electronic format rather than on paper. Director. The officer or employee who oversees a town department. Essential record. Any town record necessary to the resumption or continuation of operations in an emergency or disaster, to the re-creation of the legal and financial status of the town, or to the protection and fulfillment of the town’s obligations. Director and librarian. The executive and administrative officer of the Texas State Library and Archives Commission. Permanent record. A record identified on the records control schedule that has a retention period of permanent. Record. Any document, paper, letter, book, map, photograph, sound or video recording, microfilm, magnetic tape, electronic medium, digital record, social media post, or other information-recording medium, regardless of physical form or characteristic and regardless of whether public access to it is open or restricted under the laws of the state, created or received by the town or any of its officers or employees pursuant to applicable law, including an ordinance, or in the transaction of public business, whether created or maintained on Town-issued or personal devices or accounts. Records control schedule. A document prepared by or under the authority of the records management officer listing the records maintained by the town, their retention periods, and other records disposition information that the records management program may require. Records custodian. Any town officer, elected or appointed official, or employee. Records liaison. An appointed staff member within a specific department responsible for coordinating, managing, and maintaining records in compliance with town policies and legal standards. Records management. The application of management techniques providing for efficient, economical, and effective control over the creation, distribution, organization, use, maintenance, retention, disposition, training, and preservation of records. The term includes: (a) The development of records control schedules. Page 65 of 90 ORDINANCE NO.2026-XX PAGE 3 (b) The management of manual, micrographic, electronic, and other records storage and information retrieval systems. (c) The protection of essential and permanent records. (d) The economical and space-effective storage of inactive records. (e) The control over the creation and distribution of records. (f) The management, preservation, security, and accessibility of electronic records, including records created, stored, or transmitted using digital systems or technologies. Records management officer or RMO. The person designated in Section 1.07.035. of this Ordinance and under Local Government Code Section 203.025. Records management plan or plan. The records management plan referenced in Section 1.07.036. Records management program or program. The records management program adopted by the town council pursuant to this division. Retention period. The minimum time that must pass after the creation, recording, or receipt of a record, or the fulfillment of certain actions associated with a record, before it is eligible for destruction. Social media. Internet-based platforms, tools, and technologies that facilitate user- generated content, collaboration, and interactive information sharing , including, but not limited to, Facebook, Twitter, Instagram, LinkedIn, and blogs. TSLAC. Texas State Library and Archives Commission. Town. The Town of Trophy Club, Texas. § 1.07.032 Records management program. (a) Pursuant to the act, the town is required to establish by ordinance an active and continuing records management program to be administered by the records management officer. (b) The records management program is hereby established by this ordinance. (c) This program is designed to enable the records management officer to carry out the duties prescribed by state law, administrative rules of TSLAC, and this ordinance. (d) Upon adoption of this ordinance, the records management program shall be binding on all offices, departments, divisions, boards, commissions, committees, and other similar entities of the town. All town records shall be created, maintained, Page 66 of 90 ORDINANCE NO.2026-XX PAGE 4 stored, imaged, retained, and disposed of in accordance with this program and applicable state law. § 1.07.033 Town records declared public property. All town records as defined in this division are property of the town. No town official or employee has, by virtue of their position, any personal or property right to such records, even though they may have created or compiled them. Records shall not be destroyed or removed without authorization and may only be destroyed or removed in accordance with the program and the plan. § 1.07.034 Policy. It is the policy of the town to provide for efficient, economical, and effective controls over the creation, distribution, organization, maintenance, use , and disposition of all records through a comprehensive records management system that is consistent with the requirements of the act, TSLAC, and accepted records management practices. This policy applies to all town officials, employees, agents, independent contractors, and volunteers of the town. § 1.07.035 Designation of records management officer (RMO). The town secretary shall serve as records management officer (RMO) for the town. As provided by state law, each successive holder of the office shall file the name of the RMO with the director and librarian of the TSLAC within thirty (30) days of the initial designation or of assuming the office, as applicable. § 1.07.036 Records management plan (plan); establishment and authority of plan. (a) Pursuant to the act, the RMO shall develop and maintain a records management plan (plan) for town records. The plan shall be submitted to the town manager for approval and must contain policies and procedures designed to effectively and efficiently manage town records, including the preservation of records with permanent and historical value. The plan shall be designed to allow the RMO to perform the duties prescribed by state law and this ordinance. (b) State law relating to the duties, responsibilities, or recordkeeping requirements of a director or other official does not exempt that department or its records from compliance with this records management plan and may not be used as a basis for refusal to participate in the town’s records management program. (c) The plan shall apply to all offices, departments, boards, commissions, committees, or similar entities of the town, and records shall be created, maintained, stored, scanned, or disposed of in accordance with the plan. § 1.07.037 Duties of records management officer (RMO). The RMO shall perform those duties assigned in this ordinance and all duties assigned by state law, including but not limited to the following: Page 67 of 90 ORDINANCE NO.2026-XX PAGE 5 (a) Administer the plan and provide advice and assistance to directors and records liaisons in its implementation. (b) Plan, formulate, and prescribe records disposition policies, systems, standards, and procedures. (c) In cooperation with directors and records liaisons, identify essential records and establish a records recovery plan for each department to ensure maximum availability of the records in order to re-establish operations quickly and with minimum disruption and expense. (d) Develop procedures to ensure the permanent preservation of the historically valuable records of the town. (e) Provide the resources necessary for the management of town records to all employees, including uniform standards and efficient controls over the creation, identification, appraisal, maintenance, protection, preservation, transfer, retention, and disposition of town records, including recordkeeping systems, filing and storage methods, equipment, supplies, and all applicable forms. (f) Assist records liaisons and other personnel in the conduct of records audits or inventories as warranted. (g) Monitor retention schedules and administrative rules issued by the TSLAC to ensure the plan remains compliant with state regulations and disseminate information concerning state laws and administrative rules related to town records to directors and records liaisons. (h) Ensure that the maintenance, preservation, scanning, destruction, or other disposition of the records of the town is carried out in accordance with the policies and procedures of the plan, the TSLAC, and the requirements of state law. (i) Create policies to address records requirements and needs as technology evolves. (j) Maintain confidentiality of information in records to which access is restricted by law. (k) Inform the town manager of noncompliance by directors or other personnel with the requirements, policies, and procedures of the plan, the TSLAC, or state law. § 1.07.038 Duties and responsibilities of directors. In addition to other duties assigned in this ordinance and by state law, every director shall: (a) Cooperate with the RMO in carrying out the policies and procedures established in the plan and this ordinance in a way that is both efficient and economical for management of records. (b) Designate a records liaison(s) within their offices and provide the RMO the name(s) of such designee(s). Persons designated as records liaisons must report Page 68 of 90 ORDINANCE NO.2026-XX PAGE 6 directly to the director on matters relating to the plan and should have full access to all files in their department. (c) Document the transaction of government business and the services, programs, and duties for which the directors and their staff are responsible. (d) Maintain the records in their department and be responsible for records transfers and dispositions, as well as other activities within their areas of responsibility, in coordination with the designated records liaison(s), and in accordance with the plan and this ordinance. § 1.07.039 Duties and responsibilities of records liaisons. The records liaison(s) in each department are responsible for coordinating with the RMO, or their designee, to ensure that provisions of the plan are complied with. This responsibility shall include: (a) Assisting in the identification and inventory of departmental records for the development and maintenance of records control schedules. (b) Overseeing the application of approved records control schedules within the department. (c) Coordinating with the RMO, or the RMO’s designee, regarding proper records handling procedures, including the filing and disposition of records and use of applicable records management forms. (d) Performing such other duties as may be required by law or assigned under the plan. § 1.07.040 Duties and responsibilities of records custodians. All town officers and employees are custodians over the records subject to their care, custody, and control in the regular course of their duties. All records custodians shall: (a) Be responsible for properly managing records that were created or received during the course of daily operations for which they serve as the custodian. (b) Utilize available resources and coordinate with their department’s records liaison or the RMO for instructions regarding the proper care of town records. (c) Notify the RMO immediately should they observe or suspect actual or potential damage to town records (d) Cooperate with the RMO in carrying out the policies and procedures established by the town for the efficient and economical management of records. (e) Adequately document the transaction of town business and the services, Page 69 of 90 ORDINANCE NO.2026-XX PAGE 7 programs, and duties for which the records custodian is responsible. § 1.07.041 Records control schedules. (a) The TSLAC records retention and disposition schedules, as may be amended, shall serve as the town’s official record control schedule. Any destruction of town records will be in accordance with the adopted schedules, the act, and state law. These schedules constitute full authority for the RMO to destroy, transfer, image, microphotograph, or take other actions noted therein with regard to the retention and disposition of town records. (b) The RMO will file with the TSLAC a written certification of compliance that the town has adopted all applicable records control schedules, as updated and amended by the TSLAC. § 1.07.042 Implementation of records control schedules; destruction of records under schedule. (a) A records control schedule that has been approved under this division shall be implemented by directors and records liaisons according to the policies and procedures of the plan. (b) Prior to the destruction of a record under an approved records control schedule, authorization for the destruction must be obtained from the director responsible for the record and approved by the RMO. (c) A record whose retention period has expired on a records control schedule shall be destroyed unless an open records request is pending on the record, the subject matter of the record is pertinent to a pending law suit, or the director provides, in writing, a request to the RMO with an acceptable explanation as to why the record should be retained for an additional period. § 1.07.043 Litigation support policy. In the event the town or a department is implicated in a court action, any records which may be involved must be retained and safeguarded from destruction or tampering regardless of the retention period specified in the town’s records control schedule. § 1.07.044 Destruction of unscheduled records. Prior to the destruction of a record not listed in the approved records control schedule, authorization must be obtained by the RMO from the director responsible for the record. § 1.07.045 Method of destruction. Except when otherwise restricted or directed by state law, a town record may be destroyed by burning, shredding, pulping, burial in a landfill, or recycling. § 1.07.046 Personal liability. Page 70 of 90 ORDINANCE NO.2026-XX PAGE 8 The RMO, directors, or other officers or employees of the town may not be held personally liable for the destruction of a town record if the destruction is in compliance with this ordinance and state law. § 1.07.047 Penalty: destruction or alienation of a record. An officer or employee of the town commits an offense if the officer or employee knowingly or intentionally violates this ordinance, state law, or rules adopted under it by destroying or alienating a town record, or by intentionally failing to deliver records to a successor in office. Any person violating any of the provisions of this ordinance shall be deemed guilty of a misdemeanor, and upon conviction, will be fined a sum not to exceed Two Hundred Dollars ($200.00) for each offense, and a separate offense shall be deemed committed for each day thereafter in which a violation occurs or continues. § 1.07.048 Requests for public information. Requests for information by members of the public shall be processed in accordance with the Texas Public Information Act, Chapter 552 of the Texas Government Code, as amended.” SECTION 3. This Ordinance shall be cumulative of all other provisions of ordinances of the Town, except where the provisions of this Ordinance are in direct conflict with the provisions of such ordinances, in which event the conflicting provisions of such ordinances are hereby repealed. SECTION 4. All rights and remedies of the Town are expressly saved as to any and all violations of the provisions of any other ordinance affecting the subject matter of this Ordinance within the Town which have accrued at the time of the effective date of this Ordinance; and, as to such accrued violations and all pending litigation, both civil and criminal, whether pending in court or not, under such ordinances same shall not be affecte d by this Ordinance, but may be prosecuted until final disposition by the courts. SECTION 5. It is hereby declared to be the intention of the Town Council that the phrases, clauses, sentences, paragraphs, and sections of this Ordinance are severable, and if any phrase, clause, sentence, paragraph, or section of this Ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs, and sections of this Ordinance, since the same would have been enacted by Page 71 of 90 ORDINANCE NO.2026-XX PAGE 9 the Town Council without the incorporation in this Ordinance of any such unconstitutional phrase, clause, sentence, paragraph, or section. SECTION 6. It shall be unlawful for any person to violate any provision of this Ordinance, and any person violating or failing to comply with any provision hereof shall be fined, upon conviction, a sum not to exceed Two Hundred Dollars ($200.00), for each offense and a separate offense shall be deemed committed for each day thereafter in which a violation occurs or continues. SECTION 7. The Town Secretary of the Town is hereby directed to publish the caption and penalty clause of this Ordinance as required by Section 3.16 of Article III of the Town’s Charter. SECTION 8. This Ordinance shall become effective from and after its date of adoption and publication as provided by law, and it is so ordained. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this __ day of ____________, 2026. Jeannette Tiffany, Mayor ATTEST: Tammy Dixon, Town Secretary APPROVED AS TO FORM: Dean Roggia, Town Attorney Page 72 of 90 Records Management Plan Town Manager Policy Policy Number Use Numbering Convention List Implementation Date: Last Revised Date: Policy Contact: Town Secretary/Records Management Officer Approved By: Town Manager/Town Attorney 1. PURPOSE AND OVERVIEW The Town of Trophy Club, Texas (the “Town”) maintains a Records Management Program to ensure that Town Records are created, maintained, retained, and disposed of in accordance with state law and accepted records management practices. This Records Management Plan (“Plan”) provides a clear, practical framework for managing records throughout their lifecycle, from creation to final disposition. Proper records management protects the Town’s legal and financial interests, promotes transparency and public trust, reduces operational risk, supports efficient government operations, and preserves records of long-term historical value. A well-managed records program also reduces unnecessary storage costs and helps employees quickly locate accurate information when needed. Pursuant to the Texas Local Government Records Act, the Records Management Officer (“RMO”) develops, administers, and maintains the Plan to support efficient operations, legal compliance, transparency, and the preservation of historically valuable records. This Plan is an administrative document and applies to all Town departments, offices, boards, commissions, employees, and officials. This Plan is intended to help employees and elected or appointed officials understand: • What constitutes a Town Record; • Individual and departmental responsibilities for records management; • How records move through their lifecycle; and • The basic requirements for retention and lawful destruction of records. Detailed procedures for Records Liaisons are maintained separately in the Records Liaison Manual. Page 73 of 90 2. DEFINITIONS For purposes of this Plan, the following terms are provided in plain language to assist employees in understanding their records management responsibilities. These descriptions are intended for guidance and do not replace the official definitions contained in the Town’s Records Management Ordinance or applicable state law. Elected or Appointed Official. Any elected official, appointed official, or member of any Town board or commission. Essential record. A record necessary to resume or continue Town operations during or after an emergency or disaster, or to protect the Town’s legal and financial interests. Historical or archival record. A record with permanent value due to its legal, administrative, or historical significance and preserved for long-term access. Non-record. Materials that do not document Town business or decisions, such as convenience copies, drafts kept only for reference, personal notes, blank forms, duplicate publications, or materials of purely personal nature. Records coordinator. The staff member who administers the records management program on a day-to-day basis under the direction of the RMO. Records custodian. Any town officer, elected or appointed official, or employee. Records liaison. The employee designated by a Director to serve as the primary point of contact for records management matters within a department. Records management officer (RMO). The Town official designated by ordinance to administer and oversee the Records Management Program and ensure compliance with state law. Records management plan (Plan). This administrative document, developed and maintained by the Records Management Officer, that provides policies, procedures, and guidance for implementing the Records Management Program on a day-to-day basis. Records management program. The Town-wide records management program established by ordinance that governs the creation, maintenance, retention, and disposition of Town Records. Town record. Any recorded information, regardless of format or medium, that is created or received by the Town or its employees in the transaction of public business. The content of the information, not the format, determines whether it is a Town Record. Page 74 of 90 Retention period. The minimum amount of time a record must be kept before it is eligible for lawful destruction or permanent preservation. 3. AUTHORITY AND APPLICABILITY The Town’s Records Management Program is established by ordinance and codified in Division 2, “Records Management,” of Article 1.07, “Records,” of Chapter 1, “General Provisions,” of the Code of Ordinances Town of Trophy Club, Texas in accordance with the Texas Local Government Records Act and rules promulgated by the Texas State Library and Archives Commission (TSLAC). This Plan implements that ordinance and provides operational guidance for day-to-day records management activities. This Plan applies to all records created or received by the Town, Town officers, employees, and elected or appointed officials, as well as boards, commissions, and similar entities of the Town, in the transaction of Town business, regardless of format or medium, including paper records, electronic records, email, text messages, and other digital content, whether created or maintained on Town - issued or personal devices or accounts. Records created or received in the conduct of Town business remain Town property, even if maintained on personal devices or personal email accounts. 4. PROGRAM IMPLEMENTATION AND SUPPORTING PROCEDURES This Records Management Plan establishes the policies and program framework for the management of Town records. To support implementation of this Plan, the Records Management Officer may develop and maintain supporting procedures, manuals, training materials, and administrative guidance, including the Records Liaison Manual. These supporting materials provide operational instructions to assist in complying with records retention schedules, state law, and the Town’s Records Management Ordinance. 5. ROLES AND RESPONSIBILITIES Town Manager: The Town Manager supports and promotes compliance with the Records Management Program and ensures that departments participate in and adhere to records management requirements established by ordinance and implemented through this Plan. Records Management Officer (RMO): The Records Management Officer oversees the Town’s Records Management Program and ensures compliance with applicable state laws and regulations. The RMO provides guidance, direction, and oversight for records management activities Town-wide. Records Coordinator: The Records Coordinator administers the Records Management Program on a day-to-day basis under the direction of the RMO. Page 75 of 90 Responsibilities include assisting departments with records-related questions and processes, providing training and guidance, monitoring records retention and destruction in accordance with adopted records control schedules and approved procedures, coordinating records-related activities across the organization, and identifying, preserving, and providing access to records of historical or archival value. Directors: Directors are responsible for ensuring that departmental records are properly documented, retained, protected, and disposed of in accordance with the Records Management Program, this Plan, and applicable records retention schedules. Department Directors designate Records Liaisons and support compliance within their departments and the boards and/or commissions they oversee. Records Liaisons: Records Liaisons serve as the primary point of contact within each department for records management matters. Records Liaisons coordinate with the Records Coordinator and follow procedures outlined in this Plan and the Records Liaison Manual to ensure consistent and compliant records practices within their departments. Employees and Elected or Appointed Officials: All Town employees and elected or appointed officials share responsibility for records management. Employees and elected or appointed officials are responsible for properly, managing, and protecting records they create or receive in the course of Town business and for following this Plan, applicable retention schedules, and guidance provided by Records staff. Employees and elected or appointed officials must not destroy, delete, alter, or remove Town Records, including any records created or received in the conduct of Town business on personal devices or personal email accounts, except in accordance with approved retention schedules and authorized destruction procedures. 6. WHAT IS A TOWN RECORD A Town Record is any recorded information, regardless of format, created or received by the Town or its employees in the transaction of public business. The content of a record, not its format, determines how it must be managed. If a communication discusses Town business, decisions, policies, operations, finances, or services, it is likely a Town Record. When in doubt, employees and elected or appointed officials should treat the information as a record and consult their Records Liaison or the Records Coordinator. Page 76 of 90 Examples of Non-Records are described in the Definitions section of this Plan. 6. LIFECYCLE OF A RECORD Creation or Receipt: Whenever information is created or received in the course of conducting Town business, a Town Record is created. Records document the activities, decisions, and operations of the Town. Active Use: Records in active use are those that are regularly referenced and used by staff in the course of daily operations. Inactive Use: Records become inactive when they are no longer needed for daily operations but must still be retained to meet legal, fiscal, or administrative , or historical requirements. Final Disposition: Once a record has met its retention requirements and served its operational purpose, it is eligible for final disposition. Final disposition means that records are either: • Lawfully destroyed after meeting the authorized minimum retention period; or • Preserved permanently due to historical or archival value. Records Lifecycle at a Glance Creation/Receipt → Active Use → Inactive Retention → Final Disposition (Destroy or Archive) Records designated for permanent retention must be stored under appropriate conditions to ensure their long-term preservation 7. RETENTION AND DESTRUCTION OF RECORDS Records must be retained for the minimum period required by approved records retention schedules. Records may not be destroyed if they are subject to a pending public information request, audit, or litigation hold. All destruction of records must be authorized, documented, and carried out in accordance with this Plan and applicable procedures. Records may NOT be: • Destroyed outside approved procedures; • Deleted if subject to a public information request, audit, investigation, or litigation hold; • Altered to avoid disclosure; • Removed from Town custody without authorization. Unauthorized destruction of Town records may result in disciplinary action and may subject individuals to penalties under state law. Page 77 of 90 8. ELECTRONIC RECORDS AND EMAIL Electronic records, including email and other digital communications, are subject to the same retention and management requirements as paper records. Retention is based on content, not format or location. Employees and elected or appointed officials are responsible for managing email and electronic records, including records maintained on personal devices or accounts, in accordance with retention requirements. Deleting an email does not eliminate the Town’s obligation to retain records that meet retention requirements. 9. ESSENTIAL AND HISTORICAL RECORDS Certain records are essential for the continuation of Town operations or the protection of legal and financial interests. Other records may have long -term historical value and are preserved in coordination with the Records Coordinator. Departments shall identify records that are vital to operations during emergencies and coordinate with the Records Coordinator to ensure appropriate protection and preservation. 10. TRAINING AND SUPPORT The Town provides records management training and guidance to employees , elected or appointed officials, and Records Liaisons. The Record Management staff are available to assist departments with questions related to compliance, retention, and best practices. Page 78 of 90 TOWN COUNCIL COMMUNICATION MEETING DATE: April 13, 2026 FROM: Chase Ellis, Director of Parks & Recreation AGENDA ITEM: Consider authorizing the Town Manager to negotiate and execute a purchase agreement with Resort Contract Furnishings, Inc. for pool furniture in the amount of $54,420. (Chase Ellis, Director of Parks & Recreation) BACKGROUND/SUMMARY: The Community Pool renovation project includes the installation of new outdoor furniture, with Resort Contract Furnishings, Inc. selected as the vendor. This vendor has provided furniture for the project that meets the Town’s standards for quality, durability, and overall aesthetic consistency. This purchase will provide additional furniture, including loungers and dining chairs, to replace outdated and damaged items and to fully furnish the Community Pool facility. Utilizing the same vendor ensures that all furniture matches in style, materials, and color, maintaining a cohesive and professional appearance throughout the pool area. One of the quotes received was lower than that provided by Resort Contract Furnishings; however, the equipment quoted by the lowest bidder does not meet the project’s color requirements and is not an exact match to the furniture already installed. Resort Contract Furnishings has demonstrated reliability, high product quality, and responsive service throughout the renovation process, making them the most appropriate and recommended vendor for this purchase. Approval of this item will support the completion of the Community Pool renovation by ensuring uniformity in furniture across the facility and enhancing the overall appearance, functionality, and user experience for residents and visitors. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: This item was budgeted in the FY 2026 Budget within the Parks & Recreation Equipment Replacement Fund in the amount of $80,000. LEGAL REVIEW: N/A ATTACHMENTS: 1. Furnishing Quotes Page 79 of 90 ACTIONS/OPTIONS: Staff recommends that the Town Council move to authorize the Town Manager to negotiate and execute a purchase agreement with Resort Contract Furnishings, Inc. for pool furniture in the amount of $54,420. Page 80 of 90 Page 81 of 90 Page 82 of 90 Page 83 of 90 Page 84 of 90 Page 85 of 90 Page 86 of 90 Page 87 of 90 Page 88 of 90 TOWN COUNCIL COMMUNICATION MEETING DATE: April 13, 2026 FROM: Tammy Dixon, Town Secretary AGENDA ITEM: Consider a resolution providing for the appointment of a member to serve on the Crime Control & Prevention District Board. (Jeannette Tiffany, Mayor) BACKGROUND/SUMMARY: The Town Council Appointments Committee (“Committee”) interviewed two qualified candidates on March 20, 2026, to fill the current mid-year vacancy for Place 6 on the Crime Control & Prevention District Board. Following the interviews, one candidate advised that he would be out of town for approximately three months and would be unavailable to fulfill the duties of a board member. After considering the candidates’ qualifications and availability, the Committee recommends the appointment of Kyle Oehring to fill the vacancy for the term expiring August 31, 2027. BOARD REVIEW/CITIZEN FEEDBACK: The Town Council Appointments Committee unanimously concurred in recommending Mr. Oehring’s appointment to the Crime Control & Prevention District Board. FISCAL IMPACT: There is no financial impact associated with this agenda item. LEGAL REVIEW: Town Attorney, Dean Roggia, has reviewed the resolution as to form and legality. ATTACHMENTS: 1. Resolution ACTIONS/OPTIONS: Staff recommends that the Town Council move to approve the resolution appointing Kyle Oehring to the Crime Control & Prevention District Board to fill a current vacancy for a term expiring August 31, 2027. Page 89 of 90 TOWN OF TROPHY CLUB, TEXAS RESOLUTION NO. 2026-XX A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, PROVIDING FOR THE APPOINTMENT OF A MEMBER TO SERVE ON THE CRIME CONTROL AND PREVENTION DISTRICT; DESIGNATING TERMS OF SERVICE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town of Trophy Club, Texas, benefits by having its citizens involved in local government through service on boards, commissions, and corporations; and WHEREAS, there is currently a vacancy on the Trophy Club Crime Control and Prevention District Board; and WHEREAS, the Town Council Appointments Committee interviewed applicants for the current vacancy on March 20, 2026, and, after consideration, has recommended the appointment of Kyle Oehring to the Trophy Club Crime Control and Prevention District Board; and WHEREAS, the Trophy Club Town Council is responsible for making appointments to the boards, commissions, and corporations serving the Town; and NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, THAT: SECTION 1. The facts and recitals set forth in the preamble of this resolution are hereby found to be true and correct. SECTION 2. The Town Council of Trophy Club, Texas, hereby appoints the following individual to serve on the Trophy Club Crime Control and Prevention District as specified below: Name Place Term Ending Date Kyle Oehring Place 6 08/31/2027 SECTION 3. This resolution shall become effective from and after its date of passage. PASSED AND APPROVED THIS THE 13th DAY OF APRIL 2026. ______________________________ Jeannette Tiffany, Mayor ATTEST: ___________________________ Tammy Dixon, Town Secretary APPROVED AS TO FORM: ____________________________ Dean Roggia, Town Attorney Page 90 of 90