Minutes TC 07/24/2018 - Joint and Regular Session TOWN OF TROPHY CLUB
TOWN COUNCIL JOINT AND REGULAR SESSION MINUTES
TUESDAY,JULY 24,2018,6:30 P.M.
LOCATION:100 MUNICIPAL DRIVE,TROPHY CLUB,TEXAS
SVORE MUNICIPAL BUILDING BOARDROOM
The Town Council of the Town of Trophy Club,Texas, met in a Joint and Regular Session on Tuesday,July 24,2018.
The meeting was held within the boundaries of the Town and was open to the public.
TOWN COUNCIL MEMBERS PRESENT:
C. Nick Sanders Mayor
Philip Shoffner Mayor Pro Tem, Place 6
Alicia L.Fleury Council Member, Place 1
Eric Jensen Council Member, Place 2
Rhylan Rowe Council Member, Place 3
Tim Kurtz Council Member, Place 4
Greg Lamont Council Member, Place 5
TROPHY CLUB MUNICIPAL UTILITY DISTRICT (TCMUD) NO. 1 BOARD MEMBERS PRESENT DURING THE JOINT
SESSION:
Gregory Wilson President
Bill Rose Vice President
Steve Flynn Secretary/Treasurer
Kelly Castonguay Director
Mark Chapman Director
TCMUD NO.1 STAFF PRESENT DURING THE JOINT SESSION:
John Carman General Manager
Laurie Slaght District Secretary
Steven Krolczyk Finance Manager
STAFF PRESENT:
Tom Class Town Manager Lisa Payne Town Planner
David Dodd Town Attorney Jonathan Phillips Director of Administrative Services
Holly Fimbres Town Secretary/RMO Tommy Uzee Director of Community Development
Patrick Arata Police Chief Steve Woodard Police Captain
Wade Carroll Fire Chief John Zagurski Budget Manager
Tony Jaramillo Director of Parks and Recreation Steve Zieverink Information Technology Specialist
Mike Pastor Information Technology Manager
Mayor Sanders announced the date of Tuesday, July 24, 2018, called the Town Council Joint Session meeting to
order and announced a quorum at 6:30 p.m.
JOINT SESSION
1. Consider and take appropriate action regarding the Fire Protection Services Fiscal Year 2019 Budget.
Fire Chief Carroll presented the Fire Protection Services Fiscal Year 2019 Budget that included outstanding debt for
the Fire Station and T681. The estimated revenue to be generated from Fire Department fees was $195,000,
specifically from PD 30 construction. Personnel expenses equated to$993,982 that included the creation of a part-
time Fire Inspector position to oversee the PD 25 and PD 30 developments, as well as all new construction
inspections and plan review. Additional items that contributed to the increase in personnel expenses were: a full
year's salary for the Fire Chief; shared expense of an Administrative Assistant; and change in holiday pay from
overtime to straight time within the pay cycle in which it was incurred. He explained that overtime was being
restructured due to the Fair Labor Standards Act (FLSA) mandating that six hours of overtime be compensated to
fire personnel per pay period since they averaged 56 hours per week.
Other factors that caused an increase in personnel expenses were:
• Medical insurance;
• Pre-employment physicals and annual testing for cancer screening;and
• Tuition reimbursement.
Service and Supply expenses equated to $379,192, which included an Exhaust Reclamation System for the
apparatus bay and half a set of extrication tools with the other half expected to be purchased in Fiscal Year 2020.
He went into detail that there was a need for the new Exhaust Reclamation System because there was an issue of
fire personnel being exposed to fumes while doing their morning checks that could ultimately cause cancer after
being exposed over an extended period of time. Additional factors for the increase to Services and Supplies were
the truing up software and support; increased training and associated travel expenses; vehicle and equipment
maintenance;and dispatching fee increase due to increase in call volume.
Fire Chief Carroll briefly discussed future expenses planned for subsequent fiscal years that included:
• Adding a sixth man per shift during Fiscal Years 2019-2021;
• Creating an Assistant or Deputy Chief position in Fiscal Year 2020-2021;
• Replacing E681 with a Quint in Fiscal Year 2022 for approximately$1.3 to$1.4 million;
• Technology replacement scheduled in Fiscal Year 2020 for$10,000 and$19,000 in Fiscal Year 2025;
• Self-contained breathing apparatus(SCBA)replacement in Fiscal Year 2025 for$120,000;
• Extrication equipment in Fiscal Year 2025 for$35,000;and
• Radio replacement to begin in Fiscal Year 2025 in 4 consecutive years for$20,000.
Future planning included:a shared Emergency Manager with Roanoke,Westlake,and Trophy Club;possible shared
station with Roanoke;best practices accreditation;and reduction in the Insurance Services Office(ISO)rating.
Mayor Sanders clarified that the Council Finance Subcommittee had not seen this presentation prior to the Joint
Session meeting.
Council Member Jensen asked what the current ISO rating was. Fire Chief Carroll believed that the current rating
was 4.
Council Member Jensen inquired if it would be beneficial to incorporate the hiring of emergency medical
technicians (EMT's) instead of only hiring paramedics based on the calls that the Fire Department responded to.
Fire Chief Carroll responded that only paramedics were hired because the majority of the calls required paramedic
intervention. Despite there being four paramedics on shift, it would be difficult to ensure an adequate ratio of
EMT's and paramedics based on scheduling.
Council Member Jensen questioned why the TCMUD No. 1 handout showed $65,000 in revenue related to fire
permits/sprinkler and plan review for PD 30, when the Town had not been including PD 30 in their projections.
Budget Manager Zagurski responded that the Town's initial standpoint was to be conservative but due to the large
increase to expenditures the PD 30 source of revenue needed to be shown, which could begin to be realized in
October 2018. He stated that following the Joint Session,Town Staff would begin forecasting PD 30 revenue in the
Fiscal Year 2019 Budget.
Council Member Jensen pointed out that the TCMUD No. 1 handout had an incorrect number of $85,723 for
medical insurance in Fiscal Year 2018 that should reflect the Town's handout in the amount of $62,650.
Additionally, he asked where funding would come from if medical insurance exceeded the projected increase of 15
percent. Director of Administrative Services Phillips responded that 15 percent was a highly conservative estimate
and that the actual percentage should be lower.
Council Member Jensen inquired about the large increase in building maintenance. Fire Chief Carroll responded
that the increase was due to the Exhaust Reclamation System for the apparatus bay in the amount of$75,000.
Town Council Joint and Regular Session Minutes July 24,2018 Page 2 of 12
Council Member Jensen questioned the decrease for the budgeted amount for water in Fiscal Year 2019 because
rates had increased. Budget Manager Zagurski responded that a decrease would be realized based on the actual
usage and that he had been conservative with a 20 percent estimate.
Council Member Jensen asked how the fuel line item remained flat when the Town projected fuel to be increased.
Budget Manager Zagurski advised that this was determined based on monthly fuel usage reports.
Mayor Sanders commented that there was a recent incident where the Town had issues with their radios not being
compatible with a responding city's radio. He inquired if the future requested radios would assist in alleviating
that incident from occurring again. Fire Chief Carroll advised that the new radios would offer better reception and
would be dual band to help with communications with other cities. Additionally, with recent radio programming,
new channels have been added for any Texas municipality to move to one of the interoperable channels.
Council Member Lamont asked if the Fire Department was requesting a second ladder truck in 2022 because there
had seemed to be an issue with the current ladder truck navigating down certain streets. Fire Chief Carroll
responded that they would propose to replace E681 with a Quint in 2022. This would be a single axle Quint
meaning it would be shorter in length and there would be no issue navigating it down streets, unless the street
was double parked.
Mayor Pro Tern Shoffner noted that the current ISO rating was actually a 3 rating. He inquired why there were no
funds earmarked in the Fiscal Year 2019 Budget for radios although approximately $1,500 was spent for radios
according to the Town's financial and variance report for May. Fire Chief Carroll responded that the$1,500 would
be recoded to a different line item, equipment maintenance, because there was not a radio line item within the
TCMUD No. 1 Budget.
Mayor Pro Tern Shoffner mentioned that$9,419 was budgeted for flags and repair in Fiscal Year 2019 but no funds
were shown for out years. Fire Chief Carroll responded that the $9,419 would cover three years under their new
contract.
Council Member Kurtz inquired what would be a decent ISO rating and the timeframe to obtain such a rating. Fire
Chief Carroll commented that he preferred to have an ISO rating of 2, which could possibly be obtained in
approximately three to four years.
Council Member Rowe asked if the mentioned future expenses would begin to be programmed in the Town's
Capital Replacement Fund. Budget Manager Zagurski stated that those items could start to be programmed into
that fund.
Council Member Rowe inquired if it would be beneficial to stagger the SCBA replacement as opposed to a full
replacement in 2025. Fire Chief Carroll responded that most of them were purchased at the same time and would
have to be removed from service during the same year and therefore would need to be replaced at the same time,
but there was a possibility to stagger the purchase.
Fire Chief Carroll responded to questions asked by the TCMUD No. 1 Board of Directors specific to mandatory
FLSA;expected revenues;annual true-ups at the end of each year;and the projected Fire tax rate.
Motion:
Motion made by Council Member Lamont, seconded by Mayor Pro Tern Shoffner, to approve the proposed Fire
Protection Services Fiscal Year 2019 Budget as presented at the dais.
Motion passed unanimously 7-0-0.
TCMUD No. 1 Board of Directors discussed a potential funding source for the Exhaust Reclamation System for the
apparatus bay and the rollback Fire tax rate. The proposed budget was approved by the TCMUD No. 1 Board of
Directors.
JOINT SESSION ADJOURNED AT 7:35 P.M.AND COUNCIL CONVENED INTO REGULAR SESSION AT 7:45 P.M.
Town Council Joint and Regular Session Minutes July 24,2018 Page 3 of 12
The Invocation was offered by Director of Parks and Recreation Jaramillo.
The Pledges to the American Flag and Texas Flag were led by Council Member Rowe.
CITIZEN PRESENTATIONS
This is an opportunity for citizens to address the Council on any matter whether or not it is posted on the agenda.
The Council is not permitted to take action on or discuss any presentations made to the Council at this time
concerning an item not listed on the agenda. The Council will hear presentations on specific agenda items prior to
the Council addressing those items. You may speak up to four (4) minutes or the time limit determined by the
Mayor or presiding officer. To speak during this item you must complete the Speaker's form that includes the
topic(s)of your statement. Topics of presentation should be limited to matters over which the Council has authority.
There were no citizen presentations.
ANNOUNCEMENTS AND REPORTS
2. Receive Town Manager Class'update and provide input regarding the following(T.Class):
• July 4th Celebration — Successful event with 488 participants registered for the 5K/Fun Run, 49 float
participants,and an estimated 4,500 were in attendance at Independence Park East for the evening event
and fireworks. He thanked the Council, Stars and Stripes Committee, and Staff for their hard work and
dedication.
• PD 30 — Broke ground June 4th, infrastructure continues with the sanitary sewer system, drainage and
storm sewer,and fire lanes. Staff was working with the developer's engineer to resolve a conflict with the
proposed access points along State Highway 114 due to power line poles that were not originally
accounted for in the original plans. On June 27th,the retaining walls,contained in the retail section,were
submitted for structural review, then sent to the Planning Department for material verification, and on
July 6th a permit was issued for construction. On July 3rd, plans were received for the five retail shell
buildings,totaling 47,456 square feet,and the review process was anticipated to be completed by the end
of the week.
Council Member Jensen commented that he was pleased with the success of the July 4th Celebration.
Mayor Sanders mentioned that the best vantage point at the Country Club for viewers to watch the fireworks was
their patio.
Council Member Fleury commended the volunteers and Staff for their hard work and efforts because there was an
overwhelming positive response from residents and guests.
Mayor Pro Tern Shoffner thanked Communications and Marketing Manager Lind for the response that she sent out
regarding the delay in the fireworks display.
Regarding PD 30, Mayor Sanders remarked that no plans had been submitted for the northeast corner of Trophy
Club Drive and State Highway 114.
Mayor Pro Tern Shoffner inquired if Beck Boulevard would extend to Indian Creek Drive. Town Planner Payne
confirmed that it would go to Indian Creek Drive.
Council Member Rowe mentioned that this was the first time he had seen an office designation in Block A,in terms
of the use,and that it appeared that the building foot prints may be in different places.
Town Council Joint and Regular Session Minutes July 24,2018 Page 4 of 12
3. Receive Town Council Liaison update;discussion of same(H.Fimbres):
*Parks and Recreation Board,July 16,2018
Council Liaison-Council Member Alicia L.Fleury
Council Member Fleury advised that a citizen expressed their appreciation for the accessible items in the toddler
area at Harmony Park. The Board discussed replacing the existing large playground equipment with accessible
playground equipment and to install a unitary surface. Potential sites were reviewed for a new football flag league
in the Fall. The large blue shade structure that was damaged by a storm in June would be replaced with a tan tarp
and hunter green metal poles. Future planning included repurposing the smaller structure's blue tarp to the
Community Pool and replace the blue tarp at Harmony Park with a tan tarp and hunter green metal poles. Lastly,
the Board examined ideas for the Trophy Club Park Master Plan such as a floating fishing dock, kayak lessons, and
tent camping.
Mayor Pro Tem Shoffner requested to have an item come before the Council to discuss options for the Trophy Club
Park Master Plan.
CONSENT AGENDA
All matters listed as Consent Agenda are considered to be routine by the Town Council and will be enacted by one
motion. There will not be a separate discussion of these items. If discussion is desired, that item will be removed
from the consent agenda and will be considered separately.
4. Consider and take appropriate action regarding the Town Council Regular Session Minutes dated June 26,
2018(H.Fimbres). (Town Secretary Note:Approved as presented in the Town Council agenda packet)
5. Consider and take appropriate action regarding the financial and variance report dated May 2018 (J.
Phillips).
6. Consider and take appropriate action regarding an Interlocal Agreement for Ad Valorem Tax Collection
between the Town and Denton County for Tax Year 2018; and authorizing the Mayor or his designee to
execute all necessary documents(J.Phillips).
7. Consider and take appropriate action regarding an Interlocal Agreement for Assessment Collection between
the Town and Denton County for the Trophy Club Public Improvement District No. 1 for 2018(Infrastructure
Assessment);and authorizing the Mayor or his designee to execute all necessary documents(J.Phillips).
8. Consider and take appropriate action regarding an Interlocal Agreement for Assessment Collection between
the Town and Denton County for the Trophy Club Public Improvement District No. 1 for 2018 (Emergency
Services Assessment - Fire Service); and authorizing the Mayor or his designee to execute all necessary
documents(J.Phillips).
9. Consider and take appropriate action regarding an Interlocal Cooperation Agreement between the Town
and Denton County for Public Safety Application Support and Maintenance for the Police Department;and
authorizing the Mayor or his designee to execute all necessary documents(P.Arata).
10. Consider and take appropriate action regarding an Interlocal Cooperation Agreement between the Town
and Denton County for Public Safety Application Support and Maintenance for the Fire Department; and
authorizing the Mayor or his designee to execute all necessary documents(W.Carroll).
11. Consider and take appropriate action regarding the 2017 Consumer Confidence Report for the Public
Improvement District(T.Uzee).
12. Consider and take appropriate action regarding a Requisition Request for procurement of various street
panels for the Town of Trophy Club; and authorizing the Mayor or his designee to execute all necessary
documents(T.Uzee).
Mayor Pro Tem Shoffner requested to remove Agenda Item No.5 from the Consent Agenda.
Town Council Joint and Regular Session Minutes July 24,2018 Page 5 of 12
Motion:
Motion made by Council Member Rowe, seconded by Council Member Jensen, to approve the Consent Agenda
Items 4 and 6 through 12.
Motion passed unanimously 7-0-0.
REGULAR SESSION
5. Consider and take appropriate action regarding the financial and variance report dated May 2018 (J.
Phillips).
Mayor Pro Tern Shoffner requested that Staff begin notating items within a Staff Report in order to easily identify
items that had been recoded.
Motion:
Motion made by Mayor Pro Tern Shoffner, seconded by Council Member Jensen, to approve the financial and
variance report dated May 2018.
Motion passed unanimously 7-0-0.
13. Case PD-AMD-18-001(BNHS Addition Ph 1)
A) Conduct a public hearing regarding a request to amend Ordinance No. 2007-22 P&Z, Planned
Development District No. 28, in order to provide a site plan package and revised language in the
Development Standards for a proposed field house that will also serve as a storm shelter, and a
proposed parking lot addition,at Byron Nelson High School,within the Northwest Independent School
District boundaries, on a property containing approximately 93 acres of land and generally located
northeast of the intersection of Bobcat Boulevard and Marshall Creek Road,within Trophy Club's town
limits(L.Payne).
Mayor Sanders opened the public hearing at 8:03 p.m.
Town Attorney Dodd advised that typically Site Plans were approved administratively by Staff but in this particular
development, PD 28's development standards specifically required a change in the Site Plan to go before the
Planning and Zoning(P&Z)Commission and Town Council. The proposed ordinance change was presented in order
to include the revised Site Plan.
Town Planner Payne remarked that the P&Z Commission considered this item at their July 5, 2018 meeting and
recommended approval with conditions as listed in the Staff Report.
Mayor Sanders closed the public hearing at 8:05 p.m.
B) Consider and take appropriate action regarding a request to amend Ordinance No. 2007-22 P&Z,
Planned Development District No. 28, in order to provide a site plan package and revised language in
the Development Standards for a proposed field house that will also serve as a storm shelter, and a
proposed parking lot addition,at Byron Nelson High School,within the Northwest Independent School
District boundaries, on a property containing approximately 93 acres of land and generally located
northeast of the intersection of Bobcat Boulevard and Marshall Creek Road,within Trophy Club's town
limits(L.Payne).
P&Z Commissioner Beach was present to address any questions.
Mayor Pro Tern Shoffner inquired if the public hearing was necessary based on the fact that Northwest
Independent School District(NISD) could have built a building that was two stories or more without changing the
PD. Town Attorney Dodd responded that what was being proposed met the ordinance requirements and that no
text amendments were required.
Town Council Joint and Regular Session Minutes July 24,2018 Page 6 of 12
Motion:
Motion made by Council Member Rowe, seconded by Council Member Fleury,to approve Ordinance No. 2018-13
P&Z, amending Ordinance No. 2007-22 P&Z, Planned Development District No. 28, in order to provide a site plan
package for a proposed field house that will also serve as a storm shelter, and a proposed parking lot addition, at
Byron Nelson High School, within the NISD boundaries, on a property containing approximately 93 acres of land
and generally located northeast of the intersection of Bobcat Boulevard and Marshall Creek Road, within Trophy
Club's town limits.
Mayor Pro Tern Shoffner inquired if the Council needed to accept the changes to the Site Plan that had been
included in the agenda packet, specific to the removal of the ramp and box jumps, since the P&Z Commission did
not consider those changes. Town Planner Payne responded that no special action was necessary because it was a
minor change.
A brief discussion took place that despite conversation that the P&Z Commission had regarding the appearance;
the Site Plan met the zoning and building standards.
Council Member Kurtz asked when the project was expected to be completed. Patrick Glenn, Principal with Glenn
Partners,responded that the intent was to open in the Fall of 2019.
Mayor Pro Tern Shoffner asked if the P&Z Commission had an issue with the south elevation that would face
Bobcat Boulevard. Town Planner Payne confirmed that the P&Z Commission felt that the southern elevation was
plain and they suggested adding more trees or signage and NISD decided to add more trees.
The vote was taken.
Motion passed unanimously 7-0-0.
14. Case TUP-18-008(BNHS Construction Trailer)
Consider and take appropriate action regarding a Resolution approving a request for a Temporary Use
Permit to allow a construction trailer at Byron Nelson High School, generally located northeast of the
intersection of Bobcat Boulevard and Marshall Creek Road,within Trophy Club's town limits(L.Payne).
Town Planner Payne advised that on behalf of NISD, Northstar Builders submitted a Temporary Use Permit request
for a construction trailer. The application proposed a six feet(6')tall chain link fence that would be covered by a
black wind screen. Storage boxes were planned to be located inside the construction fencing and temporary
toilets would be located near each phase of construction.
Motion:
Motion made by Council Member Jensen, seconded by Mayor Pro Tem Shoffner, to approve Case TUP-18-008
(BNHS Construction Trailer), a Resolution approving a request for a Temporary Use Permit to allow a construction
trailer at Byron Nelson High School, generally located northeast of the intersection of Bobcat Boulevard and
Marshall Creek Road,within Trophy Club's town limits.
Motion passed unanimously 7-0-0.
15. Consider and take appropriate action regarding the award of bid for parking lot improvements to serve
Trophy Wood Business Center; and authorizing the Mayor or his designee to execute all necessary bid
documents.(T.Uzee).
Director of Community Development Uzee stated that a total of ten contractors provided bids on the project. A
comprehensive review of the bid packages revealed that Reyes Group met all of the requirements, and submitted
the lowest qualified bid of $413,560.25; which was based on specific qualifications that included application
completeness,similar project experience,calendar days to complete,references,and price.
Council Member Jensen inquired what the appropriate action would be since Staff's recommendation was to fund
the full amount through the Economic Development Corporation(EDC)4B Fiscal Year 2019 Budget. Town Attorney
Dodd recommended awarding the bid and funding to be contingent upon approval of the EDC 4B.
Town Council Joint and Regular Session Minutes July 24,2018 Page 7 of 12
Motion:
Motion made by Council Member Jensen,seconded by Council Member Fleury,to award the bid to Reyes Group in
an amount not to exceed the qualifying bid amount of$413,560.25, contingent upon funding through the EDC 4B
Fiscal Year 2019 Budget.
Mayor Pro Tem Shoffner inquired what the original estimate had been. Philip Varughese, with Teague Nall &
Perkins,responded that the original estimate was$525,000.
Council Member Rowe appreciated the criteria base for the evaluation system used as opposed to just
recommending an award based on the lowest bid.
The vote was taken.
Motion passed unanimously 7-0-0.
16. Consider and take appropriate action regarding acceptance of the budget adopted by the Crime Control and
Prevention District and ordering a public hearing August 14, 2018 on the budget to be held in accordance
with state law(J.Phillips).
Police Chief Arata stated that the Crime Control Prevention District(CCPD)approved the proposed budget at their
July 23, 2018 meeting,which included a transfer of$100,000 from the Town's General Fund to CCPD's Budget. To
maintain a level debt model, Staff decreased the CCPD debt service payment for two years until the Town issued
new debt for street improvements.
Mayor Sanders asked if the transfer of $100,000 was being treated as income. Budget Manager Zagurski
responded that the transfer was to assist in reducing the debt service payment for the next two years. It should
not cause a spike in taxation when those expenditures would be reintroduced into the General Fund in two years.
Council Member Jensen noted that services/supplies and capital had been increased. Budget Manager Zagurski
commented those line items had increased because CCPD would be using those funds.
Council Member Jensen asked if there were any funds forecasted from CCPD to assist with the proposed Capital
Replacement Fund. Budget Manager Zagurski responded that$43,000 was budgeted in Fiscal Year 2019 but not in
out years.
Council Member Rowe commented that part of the discussion that the Council Finance Subcommittee had with
Staff was that they wanted to be able to evaluate options each year to help build up the Capital Replacement
Fund.
Mayor Pro Tem Shoffner remarked that he preferred to have the CCPD Budget presented to the Council earlier in
the year because there seemed not to be adequate time for review and comments since they were under time
constraints to accept and approve the budget.
Discussion took place that due to the growth in new properties for the past two years,the$0.11/$100 interest and
sinking(I&S)tax rate has generated enough revenue to grow the Debt Services Fund balance each year.
Council Member Lamont recommended adding another page to the CCPD Budget that broke out expenditures.
Motion:
Motion made by Mayor Pro Tem Shoffner, seconded by Council Member Lamont, to accept the Fiscal Year 2019
budget adopted by the CCPD and order a public hearing on August 14, 2018 for the budget to be held in
accordance with State law.
Motion passed unanimously 7-0-0.
Town Council Joint and Regular Session Minutes July 24,2018 Page 8 of 12
17. Consider and take appropriate action regarding All Other Funds for the Fiscal Year 2019 Budget;discussion
of same(J.Phillips).
Director of Administrative Services Phillips introduced the item and commented that the presentation included
other funds and options for a Capital Replacement Fund.
Budget Manager Zagurski provided a presentation related to other funds and reviewed budget strategies that were
presented at the June 26, 2018 Council meeting. Capital expenditures increased due to the start of three new
projects:Trophy Club Drive, Meadowbrook Lane, and Sundance Court. Debt Service Fund expenditures increased
by approximately $100,000 due to decreasing CCPD's debt service contribution by the same amount. The Court
Security Fund was expected to have an increase in revenue and the Court Technology Fund had an increase in
expenditures due to the one-time purchase of a new recording device for court proceedings. CCPD Fund would
have a reduction in Debt Service by$100,000 for two years and Operational Expenditures were moved to CCPD to
provide property tax relief to the General Fund, and a replacement vehicle was budgeted in Fiscal Year 2019. The
EDC 4B Fund balance continues to grow and funding for the temporary parking lot for HG Sply Co has been
included.
Revenue has increased in the Hotel Occupancy Fund with the opening of the Holiday Inn; projections did not
include the hotel planned within the PD 30 development. Personnel and the July 4th Celebration were removed
for two years to build the fund balance for the Phase III parking garage. Approximately$50,000 was budgeted for
Entryway Monumentation and Wayfinding signage.
Areas of change for the Street Maintenance Fund included personnel costs shifted from the General Fund to
provide property tax relief and$75,000 was allocated for street maintenance/panel replacement.
Mayor Pro Tem Shoffner was in favor of budgeting closer to $125,000 for street panel replacement since panel
replacement increased the life span by approximately five to ten years. This would also assist in saving additional
funds by not having to repair an entire street such as Creekmere Drive.
Budget Manager Zagurski discussed the TIRZ No.1 Fund that would realize a decrease in fund balance due to
$300,000 paid for incentives in Fiscal Year 2018. Future incentives would be paid out based on 35 percent of
incremental revenue plus interest accrued on developers note. The TIRZ No. 1 Fund was projected to break-even
in Fiscal Year 2026.
The Recreational Program Fund was intentionally designed as a wash fund for recreational programs that were
designed to recuperate their full costs. The Parkland Dedication Fund has two projects budgeted in Fiscal Year
2019 for Harmony Park accessible playground equipment and Musco lighting at Harmony Park. Trophy Club Park's
Fund balance was no longer negative and the fund will have two years' worth of operating revenues in fund
balance by Fiscal Year 2026.
Mayor Pro Tem Shoffner preferred to have a dedicated Trophy Club Park Fund balance in order to identify
specifically what that fund balance was intended for. He was interested in hearing from the Parks and Recreation
Department what their estimate would be to get Trophy Club Park fully operational after flooding occurred in
order to avoid having to wait for assistance from the Federal Emergency Management Agency. He suggested that
Staff meet with the Parks Subcommittee because their Board discussed ideas for the Trophy Club Park Master Plan
that potentially would be large expenditures. Additionally, he recommended that Staff evaluate having a portion
of the July 4th Celebration,such as the 5K/Fun Run,go through Trophy Club Park so the fund could assist with the
event.
Council Member Lamont pointed out that the term "net increase" should not be used because in the lease
agreement the government had the right to take profit.
Budget Manager Zagurski continued the presentation related to the Storm Drainage Utility Fund. The primary
expenditures for this fund were mosquito prevention and fogging, storm water plan and permitting, cat tail and
beaver dam removal from drainage areas,and street sweeping.
Town Council Joint and Regular Session Minutes July 24,2018 Page 9 of 12
Mayor Sanders remarked that Plaza Drive would need to be extended to accomplish the parking required in that
area. He recommended Staff review forecasting an item within this fund for possible drainage issues to extend
Plaza Drive,which was currently a private road.
Mayor Pro Tem Shoffner requested that funding be included to have Freese and Nichols update their Storm Water
Master Plan.
Budget Manager Zagurski discussed the creation of a Capital Replacement Fund that would provide a stable
funding source for equipment replacement, accurately forecast replacements based on replacement program
parameters,and create a long-term outlook for capital needs outside of Capital Projects. The fund would be based
on two components,which were percent funded and annual depreciation. The General Fund would fund this item
but the depreciation could be based on individual departments or the fund as a whole for items that had up to a 20
year useful life. Percent funded would be zero and total funding costs as of October 1, 2017 was$2,878,341. The
current annual depreciation was$433,244. He explained the possibility to use a fund stabilization option through
a seven to 10 year tax note but that would offer a high debt service payment. He recommended a true-up system
using either a useful life cycle of 10 years or 20 years. Funding sources could include utilizing the Sales Tax Fund,
CCPD Fund,budget savings,and budget scrubs.
Council Member Rowe commented that it was important to program assets with a 20 year useful life and for those
assets to be part of the long term financial goal to be included in the fund. He encouraged Staff to review as many
potential funding options as possible for this year's budget and subsequent years. He expected that each year
would present different opportunities and as the process evolved, the budget process should have some leverage
to allow for flexibility before a tax rate would be adopted.
Mayor Sanders inquired if big ticket maintenance items for the Pool/Splash Pad area would be included,such as re-
plastering the pool. Budget Manager Zagurski responded that re-plastering the pool would fit into the criteria
being used based on the useful life cycle.
Mayor Pro Tern Shoffner asked how Staff was accounting for useful life cycle. Budget Manager Zagurski responded
that accounting was based on inflation,accumulated depreciation,and economy of scales.
Mayor Pro Tern Shoffner suggested that Staff proceed with a departmental approach similar to what the City of
Addison implemented that listed what each department was putting into the fund and the projection for out years.
Budget Manager Zagurski commented that the City of Addison's fund was based on a fully funded model and that
the Town could replicate their model when the Capital Replacement Fund was fully funded.
Discussion took place that the Town had a fixed asset list that was broken out by department.
No action was taken on this item.
18. Discussion of items for Future Agendas to include agenda items for consideration on the August 14, 2018
Council agenda and items from the Town Council Future Agenda Items list(H.Fimbres).
This item allows Council to request the placement of items on upcoming agendas when the topic of discussion
requires research and review that cannot be accomplished in the time frame between regular Council meetings.
However, a Council Member may request that an item be placed on the next regularly scheduled meeting without
first placing that item on the Future Agenda Items list. All requests for agenda items must comply with Charter
requirements.
Town Council Joint and Regular Session Minutes July 24,2018 Page 10 of 12
A) Item No. 2 from Future Agenda Items list - Discussion of Green Ribbon grants for the beautification
along the sound wall on State Highway 114. (Sanders 3/8/2016) (1-June 14, 2016) (2-September 13,
2016) (3-December 13,2016) (4-March 14,2017) (5-September 12,2017) (6-April 10,2018) (7-July 24,
2018)
Mayor Sanders provided an update and advised that Metroport Cities Partnership was in the process of pursuing a
Regional Green Ribbon Grant through the Texas Department of Transportation, which could take up to a year for
the grant to be awarded.
Council Member Lamont requested to add the following item to the Town Council Future Agenda Items list:
Discussion of and take appropriate action regarding amending the Town's sign ordinance.
Mayor Pro Tem Shoffner requested to add the following item to the Town Council Future Agenda Items list:
Discussion of and take appropriate action regarding the Trophy Club Park Master Plan.
Mayor Sanders requested to add the following item to the Town Council Future Agenda Items list: Discussion of
and possible action between the Town and EDC 4B regarding long range planning to use the parcel between Bread
Winners and Trophy Club Town Hall.
EXECUTIVE SESSION
19. Pursuant to the following designated section of the Texas Government Code, Annotated, Chapter 551
(Texas Open Meetings Act),the Council will convene into executive session to discuss the following:
A) Section 551.071 Consultation with Attorney under Subsection(2)to consult with the Town Attorney on
a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules
of Professional Conduct of the State Bar of Texas clearly conflicts with the Texas Open Meetings Act,
specifically:
1. Breach of Contract Issues,Procedures,and Claims(D.Dodd)
2. Procedures for PID Assessment(D.Dodd)
B) Section 551.072 Deliberation regarding Real Property to discuss or deliberate the purchase, exchange,
lease,or value of real property if deliberation in an open meeting would have a detrimental effect on
the position of the governmental body in negotiations with a third person:
North of State Highway 114, east of Trophy Club Drive and west of Town limits (Mayor Pro Tem
Shoffner and Council Member Kurtz)
C) Section 551.074 Personnel Matters under Subsection (1) to discuss or deliberate the appointment,
evaluation and duties of a public officer or employee:
1. Quarterly Goals and Objectives for Council Appointed Employees(Town Council)
2. Contract Review of Town Manager(Mayor Sanders)
3. Denco Area 9-1-1 District Board of Managers(H.Fimbres)
CONVENED INTO EXECUTIVE SESSION-START TIME—9:17 P.M.
RECONVENED INTO REGULAR SESSION-START TIME—10:52 P.M.
Town Council Joint and Regular Session Minutes July 24,2018 Page 11 of 12
RECONVENED INTO REGULAR SESSION
20. Consider and take appropriate action regarding a Resolution of the Town Council voting for one(1)nominee
to be appointed to the Board of Managers of the Denco Area 9-1-1 District;and providing an effective date
(H.Fimbres).
Motion:
Motion made by Council Member Lamont, seconded by Council Member Rowe, to approve Resolution No. 2018-
11,voting for Jim Carter to be appointed to the Board of Managers of the Denco Area 9-1-1 District; and providing
an effective date of July 24,2018.
Motion passed unanimously 7-0-0.
21. Consider and take appropriate action regarding the Executive Session(H.Fimbres).
No action was taken on this item.
ADJOURN
Mayor Sanders adjourned the meeting at 10:57 p.m.
Holly Fimbr s,Town Secretary 7 y� C. Nick Sanders,Mayor
Town of Trophy Club,Texas lamG�1 Town of Trophy Club,Texas
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Town Council Joint and Regular Session Minutes July 24,2018 Page 12 of 12