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Agenda Packet 12.11.2023Town of Trophy Club Meeting Agenda Packet Town Council 1 Trophy Wood Drive Trophy Club, Texas 76262 December 11, 2023 6:00 PM Council Chambers CALL WORK SESSION TO ORDER AND ANNOUNCE QUORUM WORK SESSION ITEM Discussion on the Town of Trophy Club Intersection Traffic Study and traffic issues within the Town of Trophy Club. (Mayor Tiffany) ADJOURN WORK SESSION CALL REGULAR MEETING TO ORDER (IMMEDIATELY FOLLOWING WORK SESSION OR 7:00 P.M. WHICHEVER IS LATER) INVOCATION 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 Sec. 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 four (4) minutes or the time limit determined by the Presiding Officer. Each speaker must have submitted their request to speak by completing the Speaker’s Form or may email mayorandcouncil@trophyclub.org PRESENTATIONS 1. Administer Oath of Office to new Town Manager Brandon Wright. (Mayor Tiffany) 2. Badge Pinning Ceremony – Police Department. (Patric Arata, Police Chief) COMMUNITY SPOTLIGHT 1.Vicki Hardy, Lakeview Elementary 40Year Anniversary Update 2.Working for You...Trophy Club a) Trophy Club Meet and Greet Open House (Mayor Tiffany) b) Update from Town Council Members c) Update from Town Manager (Brandon Wright, Town Manager) d) Quick Civic Tip (Dean Roggia, Town Attorney) CONSENT AGENDA 3.Consider approval of the November 13, 2023, Town Council Work Session and Regular Meeting Minutes. (Tammy Dixon, Town Secretary) 4.Consider approval of an agreement with SHI Government Solutions, Inc. for Microsoft Office 365 licenses in the amount of $54,807.24; and authorization for the Town Manager to execute same on behalf of the Town. INDIVIDUAL ITEMS 5.Case SUP23003 Hutchins BBQ Alcohol OnPremises Conduct a Public Hearing and consider approval of an ordinance for a request made by Hutchins BBQ Restaurant for a Specific Use Permit for alcoholic beverage sales for onpremises consumption in conjunction with a restaurant use, located at 3000 E. Highway 114, Trophy Club, Texas (Matt Cox, Director of Community Development). 6.Case RP23001 Replat NISD High School No. 2, for Block 1, Lot 2R Conduct a Public Hearing and consider a request made by the Town of Trophy Club for a replat for Block 1, Lot 2R, NISD High School No. 2, to accommodate rightofway and access on a lot legally described as Block 1, Lot 2, NISD High School No. 2, approximately 1.725 acres. The property is generally located east of Bobcat Boulevard and south of Middleton Drive, in the Town of Trophy Club, Denton County, Texas (Matt Cox, Director of Community Development). 7.Case FP23005 Bobcat Village Phase 1 Final Plat, formerly Well Site 1H Discuss, consider and take action on a Final Plat for Bobcat Village Phase 1 (formerly Well Site 1H) containing ±2.7886 acres of land located east of Bobcat Boulevard, south and east of Halifax Street, and north of Byron Nelson High School. (Matt Cox, Director of Community Development) 8.Case FP23006 Bobcat Village Phase 2 Final Plat, formerly Well Site 1HB Discuss, consider and take action on a Final Plat for Bobcat Village Phase 2 (formerly Well Site 1HB) containing ±2.106 acres of land located east of Bobcat Boulevard, east of Halifax Street, and north of Byron Nelson High School. (Matt Cox, Director of Community Development) 9.Presentation of MUD Feasibility Study by Chris Ekrut of NewGen; and discussion and consideration of same. (Brandon Wright, Town Manager) 10.Discuss and consider approval of a public drainage easement agreement with the Homeowners Association of Hogan’s Glen, Inc.; and authorization for the Mayor to execute same on behalf of the Town. (Dean Roggia, Town Attorney) 11.Discussion on Town Council Retreat to be held in January 2024. (Brandon Wright, Town Manager) 12.Discuss and consider approval of the 2024 Town Council meeting dates. (Brandon Wright, Town Manager) 13.Future Agenda Items EXECUTIVE SESSION 14.Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551 (Texas Open Meetings Act), the Town will recess into executive session to discuss the following: a. Section 551.071, Consultation with Town Attorney to seek legal advice regarding the parking agreement with HG SPLY Trophy Club, a Texas Corporation. b. Section 551.071, Consultation with Town Attorney to seek legal advice regarding Article 1.09 “Special Events” of the Town Code of Ordinances. RECONVENE INTO REGULAR SESSION ADJOURN The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on December 8, 2023, by 5:00 p.m. in accordance with Chapter 551, Texas Government Code. /s/ Tammy Dixon Tammy Dixon, Town Secretary 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. 1 Town of Trophy ClubMeeting Agenda PacketTown Council 1 Trophy Wood DriveTrophy Club, Texas76262December 11, 2023 6:00 PM Council ChambersCALL WORK SESSION TO ORDER AND ANNOUNCE QUORUMWORK SESSION ITEMDiscussion on the Town of Trophy Club Intersection Traffic Study and traffic issues withinthe Town of Trophy Club. (Mayor Tiffany)ADJOURN WORK SESSIONCALL REGULAR MEETING TO ORDER (IMMEDIATELY FOLLOWING WORKSESSION OR 7:00 P.M. WHICHEVER IS LATER)INVOCATION PLEDGES led by Council MemberPledge of Allegiance to the American FlagPledge of Allegiance to the Texas FlagPUBLIC COMMENT(S)This is an opportunity for citizens to address the Council on any matter pursuant to TexasGovernment Code Sec. 551.007. The Council is not permitted to discuss or take action on anypresentations 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 four (4) minutes or the time limit determined by the Presiding Officer. Each speaker must have submitted their request to speak by completing the Speaker’s Form or may email mayorandcouncil@trophyclub.org PRESENTATIONS 1. Administer Oath of Office to new Town Manager Brandon Wright. (Mayor Tiffany) 2. Badge Pinning Ceremony – Police Department. (Patric Arata, Police Chief) COMMUNITY SPOTLIGHT 1.Vicki Hardy, Lakeview Elementary 40Year Anniversary Update 2.Working for You...Trophy Club a) Trophy Club Meet and Greet Open House (Mayor Tiffany) b) Update from Town Council Members c) Update from Town Manager (Brandon Wright, Town Manager) d) Quick Civic Tip (Dean Roggia, Town Attorney) CONSENT AGENDA 3.Consider approval of the November 13, 2023, Town Council Work Session and Regular Meeting Minutes. (Tammy Dixon, Town Secretary) 4.Consider approval of an agreement with SHI Government Solutions, Inc. for Microsoft Office 365 licenses in the amount of $54,807.24; and authorization for the Town Manager to execute same on behalf of the Town. INDIVIDUAL ITEMS 5.Case SUP23003 Hutchins BBQ Alcohol OnPremises Conduct a Public Hearing and consider approval of an ordinance for a request made by Hutchins BBQ Restaurant for a Specific Use Permit for alcoholic beverage sales for onpremises consumption in conjunction with a restaurant use, located at 3000 E. Highway 114, Trophy Club, Texas (Matt Cox, Director of Community Development). 6.Case RP23001 Replat NISD High School No. 2, for Block 1, Lot 2R Conduct a Public Hearing and consider a request made by the Town of Trophy Club for a replat for Block 1, Lot 2R, NISD High School No. 2, to accommodate rightofway and access on a lot legally described as Block 1, Lot 2, NISD High School No. 2, approximately 1.725 acres. The property is generally located east of Bobcat Boulevard and south of Middleton Drive, in the Town of Trophy Club, Denton County, Texas (Matt Cox, Director of Community Development). 7.Case FP23005 Bobcat Village Phase 1 Final Plat, formerly Well Site 1H Discuss, consider and take action on a Final Plat for Bobcat Village Phase 1 (formerly Well Site 1H) containing ±2.7886 acres of land located east of Bobcat Boulevard, south and east of Halifax Street, and north of Byron Nelson High School. (Matt Cox, Director of Community Development) 8.Case FP23006 Bobcat Village Phase 2 Final Plat, formerly Well Site 1HB Discuss, consider and take action on a Final Plat for Bobcat Village Phase 2 (formerly Well Site 1HB) containing ±2.106 acres of land located east of Bobcat Boulevard, east of Halifax Street, and north of Byron Nelson High School. (Matt Cox, Director of Community Development) 9.Presentation of MUD Feasibility Study by Chris Ekrut of NewGen; and discussion and consideration of same. (Brandon Wright, Town Manager) 10.Discuss and consider approval of a public drainage easement agreement with the Homeowners Association of Hogan’s Glen, Inc.; and authorization for the Mayor to execute same on behalf of the Town. (Dean Roggia, Town Attorney) 11.Discussion on Town Council Retreat to be held in January 2024. (Brandon Wright, Town Manager) 12.Discuss and consider approval of the 2024 Town Council meeting dates. (Brandon Wright, Town Manager) 13.Future Agenda Items EXECUTIVE SESSION 14.Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551 (Texas Open Meetings Act), the Town will recess into executive session to discuss the following: a. Section 551.071, Consultation with Town Attorney to seek legal advice regarding the parking agreement with HG SPLY Trophy Club, a Texas Corporation. b. Section 551.071, Consultation with Town Attorney to seek legal advice regarding Article 1.09 “Special Events” of the Town Code of Ordinances. RECONVENE INTO REGULAR SESSION ADJOURN The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on December 8, 2023, by 5:00 p.m. in accordance with Chapter 551, Texas Government Code. /s/ Tammy Dixon Tammy Dixon, Town Secretary 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. 2 Town of Trophy ClubMeeting Agenda PacketTown Council 1 Trophy Wood DriveTrophy Club, Texas76262December 11, 2023 6:00 PM Council ChambersCALL WORK SESSION TO ORDER AND ANNOUNCE QUORUMWORK SESSION ITEMDiscussion on the Town of Trophy Club Intersection Traffic Study and traffic issues withinthe Town of Trophy Club. (Mayor Tiffany)ADJOURN WORK SESSIONCALL REGULAR MEETING TO ORDER (IMMEDIATELY FOLLOWING WORKSESSION OR 7:00 P.M. WHICHEVER IS LATER)INVOCATION PLEDGES led by Council MemberPledge of Allegiance to the American FlagPledge of Allegiance to the Texas FlagPUBLIC COMMENT(S)This is an opportunity for citizens to address the Council on any matter pursuant to TexasGovernment Code Sec. 551.007. The Council is not permitted to discuss or take action on anypresentations made concerning matters that are not listed on the agenda. Presentations arelimited to matters over which the Council has authority. Speakers have up to four (4) minutesor the time limit determined by the Presiding Officer. Each speaker must have submitted theirrequest to speak by completing the Speaker’s Form or may emailmayorandcouncil@trophyclub.orgPRESENTATIONS1. Administer Oath of Office to new Town Manager Brandon Wright. (Mayor Tiffany)2. Badge Pinning Ceremony – Police Department. (Patric Arata, Police Chief)COMMUNITY SPOTLIGHT1.Vicki Hardy, Lakeview Elementary 40Year Anniversary Update2.Working for You...Trophy Cluba) Trophy Club Meet and Greet Open House (Mayor Tiffany)b) Update from Town Council Membersc) Update from Town Manager (Brandon Wright, Town Manager)d) Quick Civic Tip (Dean Roggia, Town Attorney)CONSENT AGENDA3.Consider approval of the November 13, 2023, Town Council Work Session andRegular Meeting Minutes. (Tammy Dixon, Town Secretary)4.Consider approval of an agreement with SHI Government Solutions, Inc. forMicrosoft Office 365 licenses in the amount of $54,807.24; and authorization forthe Town Manager to execute same on behalf of the Town.INDIVIDUAL ITEMS5.Case SUP23003 Hutchins BBQ Alcohol OnPremisesConduct a Public Hearing and consider approval of an ordinance for a requestmade by Hutchins BBQ Restaurant for a Specific Use Permit for alcoholicbeverage sales for onpremises consumption in conjunction with a restaurantuse, located at 3000 E. Highway 114, Trophy Club, Texas (Matt Cox, Director ofCommunity Development). 6.Case RP23001 Replat NISD High School No. 2, for Block 1, Lot 2RConduct a Public Hearing and consider a request made by the Town of TrophyClub for a replat for Block 1, Lot 2R, NISD High School No. 2, to accommodaterightofway and access on a lot legally described as Block 1, Lot 2, NISD HighSchool No. 2, approximately 1.725 acres. The property is generally located eastof Bobcat Boulevard and south of Middleton Drive, in the Town of Trophy Club, Denton County, Texas (Matt Cox, Director of Community Development). 7.Case FP23005 Bobcat Village Phase 1 Final Plat, formerly Well Site 1H Discuss, consider and take action on a Final Plat for Bobcat Village Phase 1 (formerly Well Site 1H) containing ±2.7886 acres of land located east of Bobcat Boulevard, south and east of Halifax Street, and north of Byron Nelson High School. (Matt Cox, Director of Community Development) 8.Case FP23006 Bobcat Village Phase 2 Final Plat, formerly Well Site 1HB Discuss, consider and take action on a Final Plat for Bobcat Village Phase 2 (formerly Well Site 1HB) containing ±2.106 acres of land located east of Bobcat Boulevard, east of Halifax Street, and north of Byron Nelson High School. (Matt Cox, Director of Community Development) 9.Presentation of MUD Feasibility Study by Chris Ekrut of NewGen; and discussion and consideration of same. (Brandon Wright, Town Manager) 10.Discuss and consider approval of a public drainage easement agreement with the Homeowners Association of Hogan’s Glen, Inc.; and authorization for the Mayor to execute same on behalf of the Town. (Dean Roggia, Town Attorney) 11.Discussion on Town Council Retreat to be held in January 2024. (Brandon Wright, Town Manager) 12.Discuss and consider approval of the 2024 Town Council meeting dates. (Brandon Wright, Town Manager) 13.Future Agenda Items EXECUTIVE SESSION 14.Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551 (Texas Open Meetings Act), the Town will recess into executive session to discuss the following: a. Section 551.071, Consultation with Town Attorney to seek legal advice regarding the parking agreement with HG SPLY Trophy Club, a Texas Corporation. b. Section 551.071, Consultation with Town Attorney to seek legal advice regarding Article 1.09 “Special Events” of the Town Code of Ordinances. RECONVENE INTO REGULAR SESSION ADJOURN The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on December 8, 2023, by 5:00 p.m. in accordance with Chapter 551, Texas Government Code. /s/ Tammy Dixon Tammy Dixon, Town Secretary 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. 3 Town of Trophy ClubMeeting Agenda PacketTown Council 1 Trophy Wood DriveTrophy Club, Texas76262December 11, 2023 6:00 PM Council ChambersCALL WORK SESSION TO ORDER AND ANNOUNCE QUORUMWORK SESSION ITEMDiscussion on the Town of Trophy Club Intersection Traffic Study and traffic issues withinthe Town of Trophy Club. (Mayor Tiffany)ADJOURN WORK SESSIONCALL REGULAR MEETING TO ORDER (IMMEDIATELY FOLLOWING WORKSESSION OR 7:00 P.M. WHICHEVER IS LATER)INVOCATION PLEDGES led by Council MemberPledge of Allegiance to the American FlagPledge of Allegiance to the Texas FlagPUBLIC COMMENT(S)This is an opportunity for citizens to address the Council on any matter pursuant to TexasGovernment Code Sec. 551.007. The Council is not permitted to discuss or take action on anypresentations made concerning matters that are not listed on the agenda. Presentations arelimited to matters over which the Council has authority. Speakers have up to four (4) minutesor the time limit determined by the Presiding Officer. Each speaker must have submitted theirrequest to speak by completing the Speaker’s Form or may emailmayorandcouncil@trophyclub.orgPRESENTATIONS1. Administer Oath of Office to new Town Manager Brandon Wright. (Mayor Tiffany)2. Badge Pinning Ceremony – Police Department. (Patric Arata, Police Chief)COMMUNITY SPOTLIGHT1.Vicki Hardy, Lakeview Elementary 40Year Anniversary Update2.Working for You...Trophy Cluba) Trophy Club Meet and Greet Open House (Mayor Tiffany)b) Update from Town Council Membersc) Update from Town Manager (Brandon Wright, Town Manager)d) Quick Civic Tip (Dean Roggia, Town Attorney)CONSENT AGENDA3.Consider approval of the November 13, 2023, Town Council Work Session andRegular Meeting Minutes. (Tammy Dixon, Town Secretary)4.Consider approval of an agreement with SHI Government Solutions, Inc. forMicrosoft Office 365 licenses in the amount of $54,807.24; and authorization forthe Town Manager to execute same on behalf of the Town.INDIVIDUAL ITEMS5.Case SUP23003 Hutchins BBQ Alcohol OnPremisesConduct a Public Hearing and consider approval of an ordinance for a requestmade by Hutchins BBQ Restaurant for a Specific Use Permit for alcoholicbeverage sales for onpremises consumption in conjunction with a restaurantuse, located at 3000 E. Highway 114, Trophy Club, Texas (Matt Cox, Director ofCommunity Development). 6.Case RP23001 Replat NISD High School No. 2, for Block 1, Lot 2RConduct a Public Hearing and consider a request made by the Town of TrophyClub for a replat for Block 1, Lot 2R, NISD High School No. 2, to accommodaterightofway and access on a lot legally described as Block 1, Lot 2, NISD HighSchool No. 2, approximately 1.725 acres. The property is generally located eastof Bobcat Boulevard and south of Middleton Drive, in the Town of Trophy Club,Denton County, Texas (Matt Cox, Director of Community Development). 7.Case FP23005 Bobcat Village Phase 1 Final Plat, formerly Well Site 1HDiscuss, consider and take action on a Final Plat for Bobcat Village Phase 1(formerly Well Site 1H) containing ±2.7886 acres of land located east of BobcatBoulevard, south and east of Halifax Street, and north of Byron Nelson HighSchool. (Matt Cox, Director of Community Development)8.Case FP23006 Bobcat Village Phase 2 Final Plat, formerly Well Site 1HBDiscuss, consider and take action on a Final Plat for Bobcat Village Phase 2(formerly Well Site 1HB) containing ±2.106 acres of land located east of BobcatBoulevard, east of Halifax Street, and north of Byron Nelson High School. (MattCox, Director of Community Development)9.Presentation of MUD Feasibility Study by Chris Ekrut of NewGen;and discussion and consideration of same. (Brandon Wright, Town Manager)10.Discuss and consider approval of a public drainage easement agreement withthe Homeowners Association of Hogan’s Glen, Inc.; and authorization for theMayor to execute same on behalf of the Town. (Dean Roggia, Town Attorney)11.Discussion on Town Council Retreat to be held in January 2024. (BrandonWright, Town Manager)12.Discuss and consider approval of the 2024 Town Council meeting dates.(Brandon Wright, Town Manager)13.Future Agenda ItemsEXECUTIVE SESSION14.Pursuant to the following designated sections of the Texas Government Code,Annotated, Chapter 551 (Texas Open Meetings Act), the Town will recess intoexecutive session to discuss the following:a. Section 551.071, Consultation with Town Attorney to seek legal adviceregarding the parking agreement with HG SPLY Trophy Club, a TexasCorporation. b. Section 551.071, Consultation with Town Attorney to seek legal advice regarding Article 1.09 “Special Events” of the Town Code of Ordinances. RECONVENE INTO REGULAR SESSION ADJOURN The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the bulletin board at Trophy Club Town Hall, 1 Trophy Wood Drive, Trophy Club, Texas, on December 8, 2023, by 5:00 p.m. in accordance with Chapter 551, Texas Government Code. /s/ Tammy Dixon Tammy Dixon, Town Secretary 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. 4 TOWN COUNCIL COMMUNICATION MEETING DATE: December 11, 2023 FROM: Tammy Dixon, Town Secretary AGENDA ITEM: Consider approval of the November 13, 2023, work session and regular meeting minutes. BACKGROUND/SUMMARY: The Town Council held a work session and regular meeting on November 13, 2023. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: N/A LEGAL REVIEW: N/A ATTACHMENTS: Draft Meeting Minutes – November 13, 2023, Town Council Work Session and Regular Meeting ACTION/OPTIONS: Move to approve the November 13, 2023, Town Council work session and regular meeting minutes. 5 Town of Trophy Club Work Session and Regular Meeting Minutes November 13, 2023 The Trophy Club Town Council met in a Work Session and Regular Meeting on November 13, 2023, at 6:00 p.m. The meeting was held at Town Hall, 1 Trophy Wood Dr, Trophy Club, TX 76262. CALL WORK SESSION TO ORDER AND ANNOUNCE A QUORUM Mayor Tiffany called the Town Council work session to order at 6:00 p.m. with the following members present: Jeannette Tiffany, Mayor Dennis Sheridan, Mayor Pro Tem Stacey Bauer, Councilmember Place 1 Steve Flynn, Councilmember Place 6 LuAnne Oldham, Councilmember Place 5 Jeff Beach, Councilmember Place 2 Karl Monger, Councilmember Place 4 with the following members absent: constituting a quorum with the following members of the Town Staff participating: Tammy Dixon, Town Secretary Dean Roggia, Town Attorney Jason Wise, Fire Chief Bobby Tillman, Interim Police Chief Matt Cox, Community Development Director April Duvall, Finance Director Denise Deprato, Human Resources Director Jill Lind, Communications and Marketing Director Tamara Smith, Assistant to the Town Manager WORK SESSION ITEMS PUBLIC COMMENTS Mayor Tiffany invited the audience to participate in Public Participation on the Work Session Items. The following individuals spoke in reference to Agenda Item #1: Mark Williams, 2516 Trophy Club Drive Marci Miller, 2514 Trophy Club Drive 6 Town Council Regular Meeting Minutes-November 13, 2023 Page 2 1. Discussion on the Town of Trophy Club Intersection Traffic Study and traffic issues within the Town of Trophy Club. (Patrick Arata, Interim Town Manager) Interim Town Manager Arata stated the traffic issues surrounding the intersections of the schools have improved since Northwest ISD established time gaps between the school starting times. He also spoke about the County approved funding for the roundabouts which would be included in bonds to be sold in the next couple of years. Tom Rutledge, with Teague, Nall, and Perkins, gave a presentation on the intersection improvements at Trophy Club Drive/Bobcat Boulevard & Bobcat Boulevard/Parkview Driving noting or identifying: • Proposed Options Evaluated with the pros and cons and costs of each o Option 1: No Improvements to the Intersections o Option 2: Traffic Signals o Option 3: Roundabouts A discussion ensued regarding the costs associated with traffic signals and roundabouts. Councilmember Bauer suggested since the funding from the County was projected out up to two years, the Town should obtain feedback from the community prior to committing to an option. Mayor Tiffany suggested the Town Council consider establishing a committee to obtain community input on this topic as well as waiting for the new Town Manager to begin. She stated the Town Council Strategic Session would be held in January which would include discussions on capital improvements. Mayor Pro Tem Sheridan expressed his disappointment as he had expected to get the details of this item worked out during this meeting. He stated he was not in favor of a subcommittee and wanted to discuss the actual costs of the proposed projects and funding sources. Councilmember Monger stated other projects including SH 114 needed to be completed prior to addressing this issue to evaluate any additional impact. Councilmember Beach referenced the 2021 Community Survey rating for the services in the Town and stated Traffic and Safety was not a priority as it rated number 10 with 52% of the respondents. Mayor Tiffany stated traffic was an issue within the Town and would be be discussed during the Town Council Retreat. 7 Town Council Regular Meeting Minutes-November 13, 2023 Page 3 2. Discussion on Code of Ethics and Conduct. (Dean Roggia, Town Attorney) Dean Roggia, Town Attorney, gave a presentation on Code of Ethics and Conduct noting and identifying sections of State Law, the Town’s Charter, and the Town’s Code of Ordinances. 3. Discussion on Town Council Retreat to be held in January 2024. (Tamara Smith, Assistant to the Town Manager) Tamar Smith, Assistant to the Town Manager, reviewed the proposed dates for the retreat. Following discussion, the consensus of the Town Council was to hold the retreat on Friday, January 19 and Saturday, January 20. ADJOURN WORK SESSION AND CALL REGULAR MEETING TO ORDER Mayor Tiffany adjourned the work session at 7:05 p.m. Mayor Tiffany called the regular meeting to order at 7:13 p.m. INVOCATION Jeff Brooks, Senior Minister, Lake Cities Church of Christ, led the invocation. PLEDGES Councilmember Monger led the Pledge of Allegiances to the American and Texas Flags. PUBLIC COMMENTS Larry Hoover, 1118 Berkshire Court, spoke in reference to Code Enforcement relating to the fence behind his property. COMMUNITY SPOTLIGHT 1. Presentation by Medlin Middle School Students – Care of the Air The Medlin Students gave a presentation on their project "Care for the Air” that centers around planting trees to combat air pollution. 2. Working for You . . . Trophy Club a) Update from Town Council Members 8 Town Council Regular Meeting Minutes-November 13, 2023 Page 4 Mayor Pro Tem Sheridan expressed his appreciation to everyone who planned, volunteered, and attended the annual Veterans Day Celebration. Council Member Monger also expressed his appreciation to Parks & Recreation Board Member and longtime Trophy Club resident Patrick Schrein, who was commissioned into the U.S. Navy. Council Member Bauer congratulated the Byron Nelson High School Bobcat Varsity Football team in the Texas High School Football 6A Division II playoffs, winning their first game against Crowley. Mayor Tiffany stated she recently met with Westlake’s Mayor Kilbride and Town Manager, Wade Carroll and noted she plans to continue to meet with regional area mayors to further discuss partnerships between our communities. b) Update from Interim Town Manager Interim Town Manager Arata echoed the words from Council, thanking the community for the wonderful support and showing at the annual Veterans Day Celebration. He also stated information would be coming soon regarding the annual Toys 4 Tots drive and reminded everyone of the Thanksgiving Holiday closures. CONSENT AGENDA Councilmember Beach requested item 6 be pulled from Consent. 3. Consider approval of the October 23, 2023, Town Council Meeting Minutes. (Tammy Dixon, Town Secretary) 4. Consider approval of a purchase order to Delta Fire & Safety, Inc. for the purchase of several Personal Protective Equipment (PPE) ensembles. (Jason Wise, Fire Chief) 5. Consider approval of an ordinance amending subsection i, annual capital improvement and maintenance charge, of Section A1.014, Water and Wastewater fees for Public Improvement District No.1, within Appendix A, Fee Schedule, of the Trophy Club Code of Ordinances, to adopt a monthly surcharge for PID residents; providing for severability; providing a penalty; and providing an effective date. (April Duvall, Director of Finance). The caption of the ordinance reads as follows: 9 Town Council Regular Meeting Minutes-November 13, 2023 Page 5 ORDINANCE NO. 2023-20 AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS AMENDING SUBSECTION (i), “ANNUAL CAPITAL IMPROVEMENTS AND MAINTENANCE CHARGE,” OF SECTION A1.014, “WATER AND WASTEWATER FEES FOR PUBLIC IMPROVEMENT DISTRICT NO. 1,” WITHIN APPENDIX A, “FEE SCHEDULE,” OF THE CODE OF ORDINANCES, TOWN OF TROPHY CLUB, TEXAS, TO ADOPT A MONTHLY SURCHARGE APPLICABLE TO CONNECTIONS IN THE TROPHY CLUB PUBLIC IMPROVEMENT DISTRICT NO. 1 IN ORDER TO PAY THE PID PORTION OF MUD1 OPERATIONS AND MAINTENANCE BUDGET AND DEBT FOR CALENDAR YEAR 2024; PROVIDING A SAVINGS AND REPEALER CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; PROVIDING A PENALTY NOT TO EXCEED THE SUM OF FIVE HUNDRED DOLLARS ($500.00) FOR EACH OFFENSE AND A SEPARATE OFFENSE SHALL BE DEEMED COMMITTED EACH DAY DURING OR ON WHICH A VIOLATION OCCURS OR CONTINUES; PROVIDING FOR PUBLICATION; AND PROVIDING AN EFFECTIVE DATE. 6. Consider approval of an ordinance amending Division 3, “Open Records” of Chapter 1, “General Provisions” by repealing subsection 1.07.061, “Thirty -Six Hour Time Limit”; and amending Section A1.013 of Appendix A, Fee Schedule by repealing subsection 15 entitled “Personnel charges in excess of 36 hours.” (Tammy Dixon, Town Secretary) Pulled from Consent. Councilmember Beach moved to approve consent agenda items 3 - 5. Councilmember Monger seconded the motion. VOTE ON THE MOTION AYES: Bauer, Flynn, Sheridan, Tiffany, Beach, Monger, Oldham NAYES: None VOTE: 7-0 INDIVIDUAL ITEMS 6. Consider approval of an ordinance amending Division 3, “Open Records” of Chapter 1, “General Provisions” by repealing subsection 1.07.061, “Thirty-Six Hour Time Limit”; and amending Section A1.013 of Appendix A, Fee Schedule by repealing subsection 15 entitled “Personnel charges in excess of 36 hours.” (Tammy Dixon, Town Secretary). Councilmember Beach asked if the correct section number being repealed was 1.07.062 not 1.047.061 as listed on the agenda. Town Attorney, Dean Roggia, confirmed that 1.07.062 was correct. 10 Town Council Regular Meeting Minutes-November 13, 2023 Page 6 Councilmember Beach moved to approve Ordinance No. 2023-21 amending Division 3, “Open Records” of Chapter 1, “General Provisions” by repealing subsection 1.07.062, “Thirty-Six Hour Time Limit”; and amending Section A1.013 of Appendix A, Fee Schedule by repealing subsection 15 entitled “Personnel charges in excess of 36 hours.”. Councilmember Flynn seconded the motion. The caption of the ordinance reads as follows: ORDINANCE NO. 2023-21 AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS, AMENDING DIVISION 3, “OPEN RECORDS“ OF CHAPTER 1, “GENERAL PROVISIONS” BY REPEALING SUBSECTION 1.071.062, “THIRTY-SIX HOUR TIME LIMIT”; AND AMENDING APPENDIX A “FEE SCHEDULE” ARTICLE A1.000 “GENERAL PROVISIONS” SECTION A1.013 “ADMINISTRATIVE FEES” BY REPEALING SUBSECTION 15 ENTITLED “PERSONNEL CHARGES IN EXCESS OF 36 HOURS”; PROVIDING FOR SEVERABILITY; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; PROVIDING FOR PUBLICATION; AND PROVIDING AN EFFECTIVE DATE. VOTE ON THE MOTION AYES: Bauer, Flynn, Sheridan, Tiffany, Beach, Monger, Oldham NAYES: None VOTE: 7-0 7. Discuss, consider, and take action on the Trophy Club Community Pool Project, Phase II. (Ronnie Angel, Interim Director of Parks and Recreation) Interim Parks and Recreation Director, Ronnie Angel provided a history summary of the Pool Project. David McCaskill of Halff & Associates gave a presentation on the Community Pool and Splash Pad Renovation Phase 2 project noting or identifying: • The Site Plan • Schedule • Budget • Proposed Improvements A discussion ensued regarding the size of the party room, projected cost, access to the restrooms, possible expansion of the party room to serve as a multi-purpose room/community center; and regarding moving the slide back 20 – 30’. Interim Town Manager Arata suggested removing the party room at this time for further consideration of options. 11 Town Council Regular Meeting Minutes-November 13, 2023 Page 7 Mayor Pro Tem Sheridan moved to approve Phase II to include the slide with the location moved out and to separate the party room for later discussion. Councilmember Monger seconded the motion. VOTE ON THE MOTION AYES: Bauer, Flynn, Sheridan, Tiffany, Beach, Monger, Oldham NAYES: None VOTE: 7-0 8. Discuss and consider approval of a resolution providing for the appointment of a member to serve on the Trophy Club Economic Development Corporation. (Tammy Dixon, Town Secretary) Councilmember Oldham explained there was a conflict between the Town Charter and the Economic Development Corporation (EDC) Articles of Incorporation pertaining to Town Council membership on the EDC, therefore when the appointments were made in October, one position was left vacant. She stated the Town Attorney advised that the Town Charter prevails, which prevents the appointment of a Town Council member to the EDC. She stated James Callaway was being recommended to the position due to his background with the understanding that if he was appointed, he would then resign from the Zoning Board of Adjustment. Councilmember Oldham moved to approve Resolution No. 2023-10 providing for the appointment of James Callaway to serve on the Trophy Club Economic Development Corporation. Councilmember Bauer seconded the motion. The caption of the resolution reads as follows: RESOLUTION NO. 2023-10 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, PROVIDING FOR THE APPOINTMENT OF A MEMBER TO SERVE ON THE ECONOMIC DEVELOMENT CORPORATION; DESIGNATING TERMS OF SERVICE; AND PROVIDING AN EFFECTIVE DATE. VOTE ON THE MOTION AYES: Bauer, Flynn, Sheridan, Tiffany, Beach, Monger, Oldham NAYES: None VOTE: 7-0 ADJOURN 9. Future Agenda Items List Interim Town Manager Arata reviewed the future agenda items list with the Town Council. 12 Town Council Regular Meeting Minutes-November 13, 2023 Page 8 Following discussion, it was determined that all items were either completed or allocated to be considered at the December meeting. EXECUTIVE SESSION/REGULAR SESSION Pursuant to the Open Meetings Act, Chapter 551, the Town Council convened into a Closed Executive Session at 8:06 p.m. and reconvened into Regular Session at 8:52 p.m. in accordance with the Texas Government Code regarding: Section 551.071, Consultation with Town Attorney to seek legal advice regarding the Trophy Club Community Pool Project. No Action Taken. Section 551.074 Personnel Matters to deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee, to wit: Interim Town Manager/Chief of Police. No Action Taken. Mayor Tiffany adjourned the Town Council meeting at 8:52 p.m. ____________________________ Jeannette Tiffany, Mayor Attest: _______________________________ Tammy Dixon, Town Secretary 13 TOWN COUNCIL COMMUNICATION MEETING DATE: December 11, 2023 FROM: April Duvall, Director of Finance AGENDA ITEM:Consider approval of an agreement with SHI Government Solutions, Inc. for Microsoft Office 365 licenses in the amount of $54,807.24; and authorization for the Town Manager to execute same on behalf of the Town. BACKGROUND/SUMMARY: Review and authorize the contract with SHI Government Solutions, Inc. for the yearly extension of Microsoft Office 365 licenses for the Town of Trophy Club, totaling $54,807.24. This ongoing service is the communication & collaboration platform for the town. It encompasses email, real time chats through teams, secure cloud file sharing and allows 3rd party applications an identity verification for our end users (eg. Police body/dash cameras). This agreement has been endorsed by the Town’s third-party IT service provider, NetGenius, Inc, and is set to continue for one additional year. This purchase is being made through a cooperative purchasing agreement with DIR. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: The annual expenditure of $54,807.24 for Microsoft Office 365 was accounted for and is available in the Fiscal Year 2023-24 Approved Budget. LEGAL REVIEW: Town Attorney, Dean Roggia, has reviewed the contract as to form and legality. ATTACHMENTS: •SHI Agreement ACTION/OPTIONS: Consider approval of the Microsoft Office 365 renewal with SHI as presented. 14 Page 1 of 4 VENDER/MEMBER AGREEMENT TOWN OF TROPHY CLUB, TEXAS This Vender/Member Agreement (the “Agreement”) is hereby entered into by and between SHI Government Solutions, Inc., a Value-Added Reseller (the “VAR”) for the Texas Department of Information Resources (“DIR”), and the Town of Trophy Club, a Texas home-rule municipality (the “Town”), for the purchase of Microsoft software products and related services. RECITALS WHEREAS, the VAR submitted Contract No. DIR-TSO-4092 to DIR, which is a government purchasing cooperative; and WHEREAS, the VAR and DIR have entered into agreements, whereby the VAR has agreed to sell to DIR and its members certain goods and services of a nature and quality as represented in the specifications and proposals, and at a specified price; and WHEREAS, the Town has entered into an agreement with DIR to be a member and may purchase specified goods and services at the prices listed pursuant to the DIR agreements; and WHEREAS, the Town is authorized pursuant to Texas Local Gov’t Code Ch. 271, and Texas Gov’t Code Ch. 791, to enter into cooperative purchasing agreements and is deemed thereby to satisfy state laws requiring competitive bidding; and WHEREAS, the purchase of goods or services under this Agreement is authorized by the Town Council and the Town desires to purchase, and VAR desires to sell and provide, certain goods and services under the DIR agreement referenced above; and WHEREAS, the Town and VAR desire to enter into this legally enforceable Agreement to clarify and make explicit the rights, duties, and responsibilities between the parties, and in case of any conflicts between this Agreement and the provisions of the DIR agreement, the terms of this Agreement shall prevail; and WHEREAS, the Town and VAR recognize and agree that this Agreement does not amend or alter the rights, duties, and obligations between VAR and DIR, or between the Town and DIR under their respective contracts with DIR; NOW, THEREFORE, the Town and VAR agree that the recitals above are true and correct, and further agree mutually agree as follows: 1. VAR agrees to furnish and deliver to the Town, the goods or services requested by the Town as further detailed on the quote attached to this Agreement as Exhibit A. The Town agrees to pay VAR for the goods or services at the prices shown on Exhibit A, which are incorporated into this Agreement by reference as if fully set forth herein. 2. If applicable, the Town shall make payment for goods or services in accordance with the Texas Prompt Payment Act, Chapter 2251, Texas Government Code. The date of any payment, whether net or gross, shall be determined by calculating the number of days after receipt of invoices from VAR. 3. This Agreement is made and shall be construed according to the laws of the State of Texas, without regard for conflicts of law principles. Venue of any court action brought directly or indirectly by reason of this Agreement shall be in Denton County, Texas. This Agreement is made and is to be performed in Denton County, Texas.15 Page 2 of 4 4. All written notices shall be deemed to have been duly served if delivered in person to an individual, officer, legal representative, or member of the party for whom it is intended, or if delivered at or sent by registered mail to the last business address known to the person giving the notice. 5. The waiver or failure of either party to exercise in any respect any right provided for in this agreement shall not be deemed a waiver of any further right under this agreement. 6. If any provision of this agreement is invalid, illegal, or unenforceable under any applicable statute, court decision, or rule of law, it is to that extent to be deemed omitted. The remainder of the agreement shall be valid and enforceable to the maximum extent possible. 7. Insurance. VAR shall obtain and shall continue to maintain, in full force and effect during the term of this Agreement, insurance policies with companies licensed to do business in the State of Texas and rated not less than “A” in the current Best Key Rating Guide, which shall include commercial general liability, automobile liability and worker’s compensation coverage, in accordance with any Town ordinance or directive. The minimum limits for this coverage shall be $1,000,000.00 per occurrence / $2,000,000 aggregate for general liability, $1,000,000 combined single limit for automobile liability and Texas statutory limits for workers’ compensation, unless modified in accordance with any ordinance or directive. VAR shall also maintain cyber liability (or equivalent) insurance providing limits of no less than $1,000,000 per occurrence (inclusive of any amounts provided by an umbrella or excess policy). Insurance obtained by VAR shall be primary and noncontributory, and Town shall be named as an additional insured under the general liability and automobile policies. The Town shall be given at least thirty (30) days prior notice of any material change in coverage or of cancellation of such policies, and VAR shall provide the Town with a copy of any such notice of material change in coverage or cancellation of any such policies, within three (3) business days of its receipt of such a notice. For purposes of this section, a material change in coverage includes, but is not limited to, a reduction in coverage below the amounts required under this agreement. VAR shall provide a waiver of subrogation in favor of the Town on all coverages where available and represents that it has taken all actions necessary under the policy or policies for the Town to have the status of additional insured and to effectuate any required waiver of subrogation. VAR shall furnish the Town with original copies of the policies or certificates evidencing such coverage prior to delivery of the goods or services under this Agreement. 8. INDEMNIFICATION. THE VAR (THE “INDEMNIFYING PARTY”), SHALL INDEMNIFY, DEFEND, AND HOLD HARMLESS THE TOWN (THE “TOWN INDEMNIFIED PARTY”), FROM AND AGAINST ANY AND ALL DAMAGES, LIABILITIES, DEMANDS, CAUSES OF ACTION, CLAIMS, JUDGMENTS, SUITS, COSTS AND EXPENSES (INCLUDING REASONABLE ATTORNEYS’ FEES) MADE BY ANY THIRD-PARTY, TO THE EXTENT ARISING FROM OR RELATED TO THE GOODS OR SERVICES PROVIDED BY THE VAR PURSUANT TO THIS AGREEMENT (COLLECTIVELY, “INDEMNIFIED CLAIMS”), REGARDLESS OF THE LEGAL THEORY ASSERTED BY ANY THIRD PARTIES AND REGARDLESS OF WHETHER THE DAMAGES OR CLAIMS OF THIRD-PARTIES ARE KNOWN OR FULLY APPRECIATED AT THIS TIME BY VAR OR THE TOWN. VAR SHALL GIVE TO THE TOWN REASONABLE NOTICE OF ANY SUCH CLAIMS OR ACTIONS. VAR SHALL USE LEGAL COUNSEL REASONABLY ACCEPTABLE TO THE TOWN IN CARRYING OUT ITS OBLIGATIONS HEREUNDER. THE PROVISIONS OF THIS SECTION SHALL SURVIVE THE EXPIRATION OR EARLY TERMINATION OF THIS AGREEMENT. THIS INDEMNIFICATION IS NOT INTENDED TO APPLY TO CLAIMS MADE AGAINST THE TOWN INDEMNIFIED PARTIES RESULTING FROM THE WRONGFUL ACT OR OMISSION OR NEGLIGENCE OF TOWN EMPLOYEES COVERED UNDER SECTION 101.021 OF THE TEXAS CIVIL PRACTICE AND REMEDIES CODE. 9. Governmental Functions/Immunities. The parties hereby acknowledge and agree that Town is entering this Agreement pursuant to its governmental functions and that nothing contained in this Agreement 16 Page 3 of 4 shall be construed as constituting a waiver of the Town’s governmental immunity from suit or liability, which is expressly reserved to the extent allowed by law. Notwithstanding anything to the contrary herein, the parties hereby acknowledge and agree that to the extent this is subject to the provisions of Subchapter I of Chapter 271, TEXAS LOCAL GOVERNMENT CODE, as amended, the Town’s immunity from suit is waived only as set forth in Subchapter I of Chapter 271, TEXAS LOCAL GOVERNMENT CODE. Further, the parties agree that this Agreement is made subject to all applicable provisions of the Texas Civil Practice and Remedies Code, including, but not limited to all defenses, limitations, and exceptions to the limited waiver of immunity from liability provided in Chapter 101 and Chapter 75. 10. Warranty: All products’ and manufacture’s, and any other DIR agreement, or Microsoft, guarantees or warranties shall be assigned to the Town upon acceptance of delivery. MISCELLANEOUS 1. The terms and conditions of any exculpatory or indemnity provisions in the Agreement shall construed in favor of the party being protected and shall survive the termination and completion of the Agreement. The judicial doctrine that provides that documents or exculpatory provisions are to be construed against the drafter or provider of such documents or provisions does not apply to this Agreement, as each party has had a reasonable opportunity to obtain and consult with their own legal counsel regarding this Agreement. 2. VAR shall perform its obligations under this Agreement as an independent contractor and shall not be considered an employee of the Town for any purpose whatsoever, including, but not limited to, entitlement to Town employee benefits. VAR hereby expressly waives any claim or entitlement to such benefits. Furthermore, this Agreement is not intended to create, nor should it be construed as creating, a partnership, association, joint venture, or trust. 3. The waiver or failure of either party to exercise, in any respect, any right provided for in this Agreement shall not be deemed a waiver of any further right under this Agreement. 4. If any provision of this Agreement is invalid, illegal, or unenforceable under any applicable statute, court decision, or rule of law, it is to that extent to be deemed omitted. The remainder of the Agreement shall be valid and enforceable to the maximum extent possible. 5. No right or remedy granted herein or reserved to either party is exclusive of any other right or remedy provided or permitted by law or equity, but each shall be cumulative of every other right or remedy given hereunder. The waiver or failure of either party to exercise, in any respect, any right provided for in this Agreement shall not be deemed a waiver of any further right under this Agreement. 6. This Agreement is subject to the appropriation of public funds by the Town in its budget adopted for any fiscal year for the specific purpose of making payments pursuant to this Agreement for that fiscal year. The obligation of the Town pursuant to this Agreement in any fiscal year for which this Agreement is in effect shall constitute a current expense of the Town for that fiscal year only, and shall not constitute an indebtedness of the Town of any monies other than those lawfully appropriated in any fiscal year. In the event of non- appropriation of funds in any fiscal year to make payments pursuant to this Agreement, this Agreement may be terminated without any liability to either party. 7. To the extent required by Texas law, the VAR verifies that: (1) It does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association, as defined in Texas Government Code § 2274.001, and that it will not during the term of the Agreement discriminate against a firearm entity or firearm trade association; (2) It does not “boycott Israel” as that term is defined in Texas Government Code § 808.001 and 2271.001, and it will not boycott Israel during the term of the Agreement; (3) It does not “boycott energy companies,” as those terms are defined in Texas Government Code §§ 809.001 and 2276.001, and it will not boycott energy companies during the term of the Agreement; (4) It does not engage in scrutinized business 17 Page 4 of 4 operations with Sudan, Iran, or designated foreign terrorist organization as defined in Texas Government Code, Chapter 2270; and (5) It is not owned by or the majority of its stock or other ownership interest is held or controlled by i) individuals who are citizens of China, Iran, North Korea, Russia, or a designated country as defined by Texas Government Code § 2275.0101; or ii) a company or other entity, including a governmental entity, that is owned or controlled by citizens of or is directly controlled by the government of China, Iran, North Korea, Russia, or a designated country; nor is it headquartered in China, Iran, North Korea, Russia, or a designated country. 8. Waiver of Attorney’s Fees. The parties expressly covenant and agree that in the event of any litigation arising between the parties to this Agreement, each party shall be solely responsible for payment of its attorneys and that in no event shall either party be responsible for the other party’s attorneys’ fees regardless of the outcome of the litigation. 9. This Agreement may be executed in counterparts, each of which shall be deemed an original and constitute one and the same instrument. 10. This Agreement, together with all exhibits referenced herein and the Microsoft terms and conditions and other service terms of the Microsoft products purchased pursuant to this Agreement, embody the complete agreement of the parties hereto, superseding all oral or written previous and contemporary agreements between the parties and relating to matters in this Agreement. IN WITNESS WHEREOF, the Parties hereto have accepted the terms of this Agreement and caused this Agreement, including the exhibits attached hereto and incorporated herein by reference for all purposes, to be executed as of the dates set forth below. TOWN OF TROPHY CLUB, TEXAS By: __________________________ Brandon Wright, Town Manager ATTEST: ____________________________ Tammy Dixon, Town Secretary APPROVED AS TO FORM: _____________________________ Dean Roggia, Town Attorney SHI Government Solutions, Inc. (THE “VAR”): By:__________________________ Name:________________________ Title:_________________________ Date:_________________________ 18 Pricing Proposal Quotation #: 24224543 Created On: 11/29/2023 Valid Until: 11/30/2023 TX-Town of Trophy Club Inside Account Manager April Duvall 1 Trophy Wood Drive Trophy Club, TX 76262 United States Phone: 682.237.2914 Fax: Email:aduvall@trophyclub.org Jeidys Noboa 290 Davidson Ave Somerset, NJ, 08873 Phone: | Toll Free: 888-394-5232 ext.: 6524741 Fax:888-394-5322 Email:Jeidys_Noboa@SHI.com All Prices are in US Dollar (USD) Product Qty Your Price Total 1 Office 365 E1GCC User Microsoft - Part#: AAA-11646 Contract Name: Microsoft Software VAR Contract #: DIR-TSO-4092 Note: 12 month pricing 29 $105.12 $3,048.48 2 Office 365 E3GCC User Microsoft - Part#: AAA-11650 Contract Name: Microsoft Software VAR Contract #: DIR-TSO-4092 Note: 12 month pricing 98 $240.72 $23,590.56 3 Defender 365P1 GCC User Microsoft - Part#: AAA-19790 Contract Name: Microsoft Software VAR Contract #: DIR-TSO-4092 Note: 12 month pricing 177 $20.28 $3,589.56 4 AADP P1 GCC Per User Microsoft - Part#: AAA-11592 Contract Name: Microsoft Software VAR Contract #: DIR-TSO-4092 Note: 12 month pricing 177 $60.96 $10,789.92 5 ExchOnline AEOG User Microsoft - Part#: AAA-11618 Contract Name: Microsoft Software VAR Contract #: DIR-TSO-4092 Note: 12 month pricing 79 $30.48 $2,407.92 6 Exchange Online P1 GCC Microsoft - Part#: AAA-11624 Contract Name: Microsoft Software VAR Contract #: DIR-TSO-4092 Note: 12 month pricing 53 $41.28 $2,187.84 7 Win Server Datcr Core 2 SftSA 24 $383.04 $9,192.96 EXHIBIT A 19 Microsoft - Part#: AAA-30385 Contract Name: Microsoft Software VAR Contract #: DIR-TSO-4092 Note: 36 month pricing Subtotal $54,807.24 Shipping $0.00 Total $54,807.24 Additional Comments Please note, if Emergency Connectivity Funds (ECF) will be used to pay for all or part of this quote, please let us know as we will need to ensure compliance with the funding program. Hardware items on this quote may be updated to reflect changes due to industry wide constraints and fluctuations. The products offered under this proposal are resold in accordance with the terms and conditions of the Contract referenced under that applicable line item. 20 TOWN COUNCIL COMMUNICATION MEETING DATE: December 11, 2023 FROM: Matt Cox, Director of Community Development AGENDA ITEM:Case SUP-23-003 Hutchins BBQ Alcohol On-Premises Conduct a Public Hearing and consider approval of an ordinance for a request made by Hutchins BBQ Restaurant for a Specific Use Permit for alcoholic beverage sales for on-premises consumption in conjunction with a restaurant use, located at 3000 E. Highway 114, Trophy Club, Texas. BACKGROUND/SUMMARY: Hutchins BBQ Restaurant is requesting approval of a Specific Use Permit (SUP) for alcoholic beverage sales for on-premises consumption in conjunction with a restaurant use according to Section 14.02.252 of the Town’s Code of Ordinances. The property’s zoning of Planned Development District-25 (PD-25) does not restrict the sales of alcoholic beverages beyond the regulations of Town Code and State Law. As shown in Exhibit A, Hutchins National, LLC is applying to the Texas Alcoholic Beverage Commission (TABC) to obtain a Mixed Beverage Restaurant Permit (RM) which will allow for the sale and consumption of wine, beer, and liquor on the premises. The Town Code does not restrict hours of operation beyond TABC’s regulations. Section 14.02.252(b) of the Code of Ordinances states that no alcoholic beverages may be sold within 300 feet of a church, public school or private school, or public hospital. Subsection (g) describes the methods of measurement as front door to front door and along street front property lines when measuring to churches and public hospitals, and in a direct line from nearest property line to property line when measuring to public schools and private schools. Hutchins Restaurant complies with Town and State requirements, as the closest church (Lake Cities Church of Christ) is approximately 4,000 feet away, and the closest public or private school (Walnut Grove Elementary School) is approximately 5808 feet away. The nearby Baylor Scott & White Medical Center – Trophy Club is a private hospital so there are no separation requirements. Parking needs have been addressed by the required on-site parking spaces. The Chief of Police has reviewed this application, as required by Code, and does not have any objections. Notice of a public hearing was distributed as required by the Town’s Zoning Ordinance and State Law. No letters in support or opposition were received at the time of agenda packet publication. BOARD REVIEW/CITIZEN FEEDBACK: The Planning and Zoning Commission recommended approval of the SUP application at its November 16, 2023 meeting by a vote of 5 to 0. 21 FISCAL IMPACT: N/A LEGAL REVIEW: Town Attorney, Dean Roggia, has reviewed the ordinance as to form and legality. ATTACHMENTS: •Exhibit A – Application •Exhibit B – Location Map •Draft Ordinance ACTION/OPTIONS: Conduct a public hearing and consider the Planning and Zoning Commission’s recommendation and act on an ordinance for the Hutchins National, LLC, SUP application to: •Approve the SUP ordinance; •Approve the SUP ordinance with conditions; or •Deny the SUP ordinance. 22 23 24 25 TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 2023-XX AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS APPROVING A SPECIFIC USE PERMIT FOR ALCOHOLIC BEVERAGE SALES FOR ON-PREMISES CONSUMPTION IN CONJUNCTION WITH A RESTAURANT USE OPERATED BY THE ORIGINAL ROY HUTCHINS BBQ, LOCATED ON LOT 2R2, BLOCK B OF TROPHY WOOD BUSINESS CENTER, WITHIN PD PLANNED DEVELOPMENT NO. 25; PROVIDING FOR INCORPORATION OF PREMISES; PROVIDING APPLICABLE REGULATIONS, DISCONTINUATION, & REVOCATION; PROVIDING A SAVINGS AND REPEALER CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY NOT TO EXCEED THE SUM OF TWO THOUSAND DOLLARS ($2,000.00) FOR EACH OFFENSE AND A SEPARATE OFFENSE SHALL BE DEEMED COMMITTED EACH DAY DURING OR ON WHICH A VIOLATION OCCURS OR CONTINUES; PROVIDING FOR PUBLICATION; 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 Council of the Town of Trophy Club, Texas (the “Town Council”), is authorized and empowered by law, in accordance with Chapter 211 of the Texas Local Government Code, to regulate land use, and property development within the Town for the public health, safety, and general welfare; and WHEREAS, the applicant seeks to sell alcoholic beverages, including beer and wine, for on-premises consumption in conjunction with a restaurant use operated by The Original Roy Hutchins BBQ, located on Lot 2R2, Block B of Trophy Wood Business Center (the “Land”); and WHEREAS, all legal requirements and conditions were complied with, the case for a specific use permit for alcoholic beverage sales for on-premises consumption came before the Planning and Zoning Commission; and WHEREAS, after public notices were given in compliance with State law and public hearings were conducted, and after considering the information submitted at those public hearings and all other relevant information and materials, the Planning & Zoning Commission of the Town has recommended to the Town Council the adoption of this Ordinance; and WHEREAS, after complying with all legal notices, requirements, and conditions, a public hearing was held before Town Council at which the Town Council considered, among other things, the character of the land and its suitability for particular uses, with a 26 ORDINANCE NO.2023-XX PAGE 2 view of encouraging the most appropriate use of land in the Town, and does hereby find that the specific use permit approved hereby accomplishes such objectives. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, THAT: SECTION 1. INCORPORATION OF PREMISES The above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. SECTION 2. APPLICABLE REGULATIONS, DISCONTINUATION, & REVOCATION In all respects the Land shall be subject to the applicable regulations contained in the Comprehensive Zoning Ordinance and all other applicable and pertinent ordinances and regulations of the Town, including without limitation regulations governing PD Planned Development No. 25 and all amendments thereto. The Specific Use Permit granted by this Ordinance shall control in cases of conflict between this Ordinance and/or PD Planned Development No. 25 and/or the Comprehensive Zoning Ordinance. The Specific Use Permit granted hereby shall discontinue if the use for which this Specific Use Permit is granted ceases to be operated at the permitted location for a minimum period of six (6) continuous months. Further, this Specific Use Permit shall be subject to revocation in accordance with the Code of Ordinances of the Town of Trophy Club, Texas. SECTION 3. CUMULATIVE 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. SAVINGS 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 affected by this Ordinance but may be prosecuted until final disposition by the courts. 27 ORDINANCE NO.2023-XX PAGE 3 SECTION 5. SEVERABILITY The sections, paragraphs, sentences, phrases, clauses and words of this Ordinance are severable, and if any section, paragraph, sentence, phrase, clause or word in this Ordinance or application thereof to any person or circumstance is held invalid or unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance, and the Town Council hereby declares that it would have passed such remaining portions of this Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 6. PENALTY It shall be unlawful for any person to violate any provision of this Ordinance, and any person violating or failing to comply with any provision hereof shall be fined, upon conviction, in an amount not less than One Dollar ($1.00) nor more than Two Thousand Dollars ($2,000.00), and a separate offense shall be deemed committed each day during or on which a violation occurs or continues. SECTION 7. PUBLICATION The Town Secretary of the Town of Trophy Club is hereby directed to publish the Caption and Penalty Clause of this Ordinance as required by Section 3.16 of the Town’s Charter. SECTION 8. EFFECTIVE DATE This Ordinance shall become effective from and after its date of adoption and publication as provided by law, and it is so ordained. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this 11th day of December 2023. Jeannette Tiffany, Mayor ATTEST: Tammy Dixon, Town Secretary 28 ORDINANCE NO.2023-XX PAGE 4 APPROVED AS TO FORM: Dean Roggia, Town Attorney 29 TOWN COUNCIL COMMUNICATION MEETING DATE: December 11, 2023 FROM: Matt Cox, Director of Community Development AGENDA ITEM:Case RP-23-001 Replat NISD High School No. 2, for Block 1, Lot 2R Conduct a Public Hearing and consider a request made by the Town of Trophy Club for a replat for Block 1, Lot 2R, NISD High School No. 2, to accommodate right-of-way and access on a lot legally described as Block 1, Lot 2, NISD High School No. 2, approximately 1.725 acres. The property is generally located east of Bobcat Boulevard and south of Middleton Drive, in the Town of Trophy Club, Denton County, Texas. BACKGROUND/SUMMARY: The purpose of the replat is to provide right-of-way access to the Bobcat Village Phases 1 and 2 subdivisions. The subject property is the location of a water tower and the access point to the proposed Bobcat Village Phases 1 and 2. A 60-foot right-of-way for Maddox Drive is being dedicated to the eastern boundary of the water tower lot. There is an existing drive serving the water tower site and the roadway (Maddox Drive) on Lot 2R will be improved to Town standards by the developer during construction of the subdivision. The Town Engineer has reviewed and approved the construction plans for Maddox Drive. SUBJECT PROPERTY 30 Notice of the public hearing was distributed as required by The Town of Trophy Club Zoning Ordinance and State Law. At the time of agenda packet publication Staff had not received any letters in support or in opposition to the replat request. BOARD REVIEW/CITIZEN FEEDBACK: The Planning and Zoning Commission recommend approval at its November 16, 2023 meeting by a vote of 5 to 0. FISCAL IMPACT: N/A LEGAL REVIEW: Town Attorney, Dean Roggia, has reviewed the Replat as to form and legality. ATTACHMENTS: •Replat NISD High School No. 2, Block 1, Lot 2R •Aerial Overlay of Replat and existing conditions •Maddox Drive Engineering Plan •Vehicle turning radius exhibit at Maddox Drive and Bobcat Village Phase 1 ACTION/OPTIONS: Consider and act on recommendation by the Planning and Zoning Commission to: •Approve the Replat; •Approve the Replat with conditions; or •Deny the Replat. 31 32 33 34 NOTES:1) The surveyor has made no investigation or independent search for easements or encumbrances.2) The Town or the MUD (Municipal Utility District), as applicable, shall issue no permit until the completion of alldedicated improvements, and acceptance of such improvements associated with the subdivision, are approved by the Town. OWNER'S DECLARATIONSITE3) (Entity) shall be responsible for the operation and maintenance of any commonly held property and releases the Townof Trophy Club from such responsibility. Should the entity responsible for maintenance of common held property fail toperform the function, the Town has the authority to provide appropriate maintenance and repair and collect appropriate feesand reimbursements. STATE OF TEXASCOUNTY OF DENTON § § 4) Selling a portion of this addition by metes and bounds is a violation of Town ordinance and State law and is subject tofines and withholding of utilities and building permits.WHEREAS, the Town of Trophy Club, acting by and through the undersigned, its duly authorized agent,is the owner of Lot 2, Block 1, NISD High School No. 2, an addition to the Town of Trophy Club,Denton County, Texas, according to the plat filed in Cabinet Y, Slide 46, Plat Records of Denton County,Texas (P.R.D.C.T.), also being all of that certain tract land described in deed to the Town of Trophy Club,as filed in Instrument #2010-19592, Deed Records of Denton County, Texas (D.R.D.C.T.), and beingmore particularly described by metes and bounds as follows; 5) This plat does not amend or remove existing covenants or restrictions, if any, on this property.6) No portion of the subject property appears to lie within Zone A of the Special Flood Hazard Areas (SFHAs) subject toinundation by the 1% annual chance flood (100-year flood), but does appear to lie within Zone X (areas determined to beoutside the 0.2% annual chance floodplain), according to Denton County, FIRM map No. 48121C0515G, and depictedfrom Town of Trophy Club, Texas, Community Map and Panel No. 481606 0515 G, Map Revised, April 18, 2011. 7) Vision Triangle - An area of visibility on a street corner, including within the right-of-way, allowing for safe operationof vehicles, pedestrians and cyclists in the proximity of intersecting streets, sidewalks and bicycle paths BEGINNING at a 1/2 inch iron rod with red cap, found at the southeast corner of said Lot 2, also beingin the most westerly north line of Lot 1, of said Block 1, NISD High School No. 2, and also being thesouthwest corner of a tract land described in the deed to C Oil Investments, Ltd., as filed in Instrument#2005-56135, D.R.D.C.T., from which a 5/8 inch iron rod with cap stamped “BGE”, found at thesoutheast corner of said C Oil Investments tract (Inst. #2005-56135), also being a re-entrant corner of saidLot 1, bears N 89°35'47” E, a distance of 410.67 feet; THENCE N 89°42'22” W, along the south line of said Lot 2, and along the most westerly north line ofsaid Lot 1, a distance of 257.18 feet to a 5/8 inch iron rod with cap stamped “TNP”, set at the southwestcorner of said Lot 2, also being the most westerly northwest corner of said Lot 1, and also being in theeast Right-of-Way (R-O-W) line of Bobcat Boulevard (110' in width); THENCE N 00°15'49” E, along the west line of said Lot 2, and along the east R-O-W line of said BobcatBoulevard, a distance of 292.34 feet to a 1/2 inch iron rod found at the northwest corner of said Lot 2;THENCE N 89°34'09” E, along the north line of said Lot 2, a distance of 253.95 feet to the northeastcorner of said Lot 2, also being the northwest corner of a tract land described in the deed to C OilInvestments, Ltd., as filed in Instrument #2003-205037, D.R.D.C.T., from which an “X” found cut inconcrete, bears N 00°21'58” W, a distance of 0.79 feet;THENCE S 00°21'58” E, along the east line of said Lot 2, and along the west line of said C OilInvestments tract (Inst. #2003-205037), also passing along the most westerly line of said C OilInvestments tract (Inst. #2005-56135), a distance of 295.57 feet to the POINT OF BEGINNING andcontaining 75,122 square feet or 1.725 acres of land.NOW, THEREFORE KNOW ALL MEN BY THESE PRESENTS:That we, the Town of Trophy Club, acting by and through the undersigned, its duly authorized agent, dohereby adopt this plat designating the herein above described real property as:LOT 2R, BLOCK 1NISD HIGH SCHOOL NO. 2An addition to the Town of Trophy Club, Denton County, Texas and do hereby declare to the public's usethe streets and easements shown thereon.WITNESS my hand on this the _____ day of _____________2023. By: ______________________________________Signature of Owner LOT 2R, BLK. 159,865 S.F. or 1.374 Ac.STATE OF TEXASCOUNTY OF ___________________Before me, the undersigned authority, on this day personally appeared __________________________of the Town of Trophy Club, known to me to be the person whose name is subscribed to the above andforegoing instrument and acknowledged to me that he/she executed the same for the purpose andconsideration therein expressed, and in the capacity therein stated. P.O.B.Given under my hand and seal of office this the ______ day of ________________, 2023. __________________________________Notary Public in and for the State of Texas__________________________________Printed NameMy Commission expires ______________ SURVEYOR'S CERTIFICATIONThe plat shown hereon is an accurate representation of an on the ground survey as performed on October 23, 2023.The corners are marked as shown hereon.LEGEND PRELIMINARY - THIS DOCUMENT SHALL NOT BE RECORDED FOR ANY PURPOSE AND SHALL NOT BEUSED OR VIEWED OR RELIED UPON AS A FINAL SURVEY DOCUMENT - RELEASE DATE NOV. 15, 2023________________________________________Theron W. Sims, R.P.L.S., No. 5887 Date: Nov. 15, 2023 STATE OF TEXASCOUNTY OF TARRANTBefore me, the undersigned authority, on this day personally appeared Theron W. Sims, known to me to be theperson whose name is subscribed to the above and foregoing instrument and acknowledged to me that he executedthe same for the purpose and consideration therein expressed, and in the capacity therein stated.Given under my hand and seal of office this the ______ day of ________________, 2023 __________________________________Notary Public in and for the State of Texas__________________________________Printed Name The purpose of this replat is to dedicate a new R-O-W toservice property to the east. My Commission expires ______________ An addition to the Town of Trophy Club, Denton County, Texas, being a "Replat" of Lot 2, Block 1, NISD HighSchool No. 2, an addition to the Town of Trophy Club, Denton County, Texas, according to the plat filed inCabinet Y, Slide 46, Plat Records of Denton County, Texas, and containing 1.725 acres of land total. Bearings of lines shown hereon refer to Grid North of the Texas Coordinate System of 1983(North Central Zone; NAD83(CORS96) Epoch 2002.00) as derived locally from WesternData Systems Continuously Operating Reference Stations (CORS) via Real Time Kinematic(RTK) methods. An average Combination Factor of 1.00015545 was used to scale gridcoordinates and distances to surface. All coordinates shown are surface. OWNER:_____________Town of Trophy Club1 Trophy Wood DrTrophy Club, Texas 76262(682) 237-2900 5237 N. Riverside Drive, Suite 100Fort Worth, Texas 76137817.336.5773 ph 817.332.7756 fx www.tnpinc.com / TBPELS Registration No. 100116-00 TRO 23006 35 0+00 1+00 2+00 3+00 4+00 FFF F F F F FFFF BEGIN CL STA. 0+55.35 SAW CUT AND TIE INTO EXISTING PAVEMENT END CL STA. 3+18.49 SAW CUT AND TIE INTO EXISTING PAVEMENT 10'4'26'26'25.14' R10' R187' R5' CONNECT TO EXISTING SIDEWALK PROPOSED 4' SIDEWALK PER TOWN STANDARDS PROPOSED LANDSCAPE ISLAND AND GATE CALL BOX PC STA. 0+91.29, 18.45' RT TP=589.47 PC STA. 2+98.35, 27.00' RT TP=580.89 PC STA. 1+50.31, 13.00' LT TP=586.30 PC STA. 3+18.49, 13.00' RT TP=580.08 PT STA. 1+30.31, 13.00' RT TP=587.24 PT STA. 2+46.93, 13.00' LT TP=582.51 PT STA. 3+07.54, 23.19' RT TP=580.48 PT STA. 3+15.56, 13.00' RT TP=580.14 PCC STA. 1+98.94 TC=584.65 PT STA. 3+18.49, 13.00' LT TP=580.08 N89° 46' 58"E 94.97 L 4 8.6 3 ' R200 ' L 4 7.9 9' R 2 0 0' N89°35'58"E 71.56' A R10.5'R10.2' N: 7057938.5195 E: 2365381.9178 6.5'4'R213'PT STA. 1+98.94, 13.00' RT TP=584.39 R30'R30'PT STA. 2+40.00, 18.36' RT TP=582.78 PT STA. 2+63.45, 27.00' RT TP=582.29 PC STA. 1+50.31, 13.00' RT TP=586.30 PT STA. 0+55.28, 13.00' LT TP=592.50 PT STA. 0+59.13, 22.84' RT TP=591.58 BOBCAT BLVD.MADDOX DRIVE (70' ROW) PROPOSED HEADWALL A 570 575 580 585 590 595 570 575 580 585 590 595 0+00 1+00 2+00 3+00 4+000+00 1+00 2+00 3+00 4+00GRADE BREAKSTA. 0+55.35ELEV = 592.21-6. 5 0 % -3.9 1 %LP EL. 579.93LP STA. 3+58.44BVC STA. 2+80.51EVC STA. 3+80.51BVC EL. 581.46EVC EL. 580.06LVC = 100.00 PVI STA. 3+30.51 PVI ELEV. 579.50 K = 19.92BVC STA. 1+05.37EVC STA. 1+55.37BVC EL. 588.96EVC EL. 586.36LVC = 50.00 PVI STA. 1+30.37 PVI ELEV. 587.33 K = 19.32 PROFILE SCALE EXISTING GRADE PROPOSED GRADE @ CENTER LINE OF STREET (4" CROWN) FILL TO BE COMPACTED TO 95% STD PROCTOR DENSITY PER TOWN OF TROPHY CLUB STANDARDS PUBLIC STREET PRIVATE STREET OFFSITE STREETEXTENSIONC-2.2 SHEET NO. 777 Main St., Suite 1900 BGE, Inc. Fort Worth, TX 76102 TBPE Registration No. F-1046 Tel: 972-887-6130 ●www.bgeinc.com Copyright 2021 Contact:David Greer Tel: 817-872-6005 TROPHY CLUB - 1H & 1HB4.89 ACRESTOWN OF TROPHY CLUBDENTON COUNTY, TEXASBEING 4.89 ACRES OUT OFTHE T. CALLOWAY SURVEY, ABSTRACT NO. 272T. KELLY SURVEY, ABSTRACT NO. 74DEVELOPER R (@ least 48 hours prior to digging) Call before you dig. Know what's below.BGE, INC.13101 Preston Rd., Ste 510 BECK VENTURES Contact:Yochoua Arrouas Director of Operations & Development Tel: 214-556-4620 (Office) Tel: 979-574-5523 (Cell) Dallas, Texas 75240 SCALE: 1" = 40' 200 40 80 PROPOSED SIDEWALK 4" - 3,000 PSI CONCRETE REINFORCED W/ #3 BARS @ 24" O.C.E.W. ON 6" COMPACTED SUBGRADE PAVING LEGEND PROPOSED STREET PAVEMENT 6" - 4,000 PSI CONCRETE REINFORCED W/ #3 BARS @ 18" O.C.E.W. ON 6" LIME STABILIZED SUBGRADE (7% MIN. BY DRY SOIL WEIGHT) NOTES: 1.CONTRACTOR TO NOTIFY ENGINEER IF EXISTING CONDITIONS VARY FROM THOSE SHOWN. 2.ALL WORK AND MATERIALS SHALL COMPLY WITH TOWN AND COUNTY REGULATIONS AS WELL AS O.S.H.A STANDARDS. 3.ALL DIMENSIONS ARE TO THE FACE OR CURB UNLESS OTHERWISE NOTED. 4.ALL FIRE LANE RADII ARE 28-FEET MINIMUM. 5.ALL FIRE LANES ARE 26-FEET WIDE MINIMUM. 6.HANDICAP PARKING AND MARKING SHALL BE IN ACCORDANCE WITH ADA STANDARDS. 7.REFER TO TOWN OF TROPHY CLUB CONSTRUCTION DETAILS AND SPECIFICATIONS. 8.ALL SCREENING SHALL BE IN ACCORDANCE WITH TOWN OF TROPHY CLUB REQUIREMENTS. 9.CONTRACTOR TO COORDINATE WITH TOWN TRAFFIC ENGINEER PRIOR TO INSTALLING ROAD SIGNS OR PAVEMENT MARKINGS. 10.REFER TO LANDSCAPE PLANS FOR FINAL SIDEWALK LAYOUT. 11.CONTRACTOR TO COORDINATE WITH RESPECTIVE COMPANY FOR ANY RELOCATIONS, INCLUDING POWER POLES, LIGHT POLES, AND ELECTRICAL BOXES 12.REFERENCE GEOTECHNICAL REPORT FOR BUILDING PAD AND PAVING SUBGRADE PREPARATION. KEY TYP TYPICAL BFR BARRIER FREE RAMP FH FIRE HYDRANT SSMH SEWER MANHOLE LP LIGHT POLE PP POWER POLE ESMT EASEMENT NUMBER OF PARKING SPACES STMH STORM MANHOLE WYE WYE INLET FDC FIRE DEPARTMENT CONNECTIONCICURB INLET LEGEND PROPERTY LINE EXISTING SANITARY SEWER MANHOLE EXISTING FIRE HYDRANT EASEMENT LINE BARRIER FREE RAMP POWER POLE FIRE LANE STRIPINGF SAWCUT LINE EXISTING CURB PROPOSED CURB DENOTES BLUE PLACARD ADA STALLS ADA ROUTE 36 F F F F FFFFFFFFFFFFF F FFFFFFFP - Passenger Car BOBCAT BLVD.19 3 11 P - Passenger Car Overall Length 19.000ft Overall Width 7.000ft Overall Body Height 4.300ft Min Body Ground Clearance 1.115ft Track Width 6.000ft Lock-to-lock time 4.00s Max Steering Angle (Virtual)31.60°777 Main Street, Suite 1900BGE, Inc.Fort Worth, TX 76102TBPE Registration No. F-1046Tel: 817-887-6130●www.bgeinc.comTown of Trophy Club, Denton County, TexasPUBLIC ENTRANCE AUTOTURN EXHIBITNOVEMBER 20230 10'20'40' SCALE: 1" = 20' 37 TOWN COUNCIL COMMUNICATION MEETING DATE: December 11, 2023 FROM: Matt Cox, Director of Community Development AGENDA ITEM:Case FP-23-005 Bobcat Village Phase 1 Final Plat, formerly Well Site 1H Discuss, consider and take action on a Final Plat for Bobcat Village Phase 1 (formerly Well Site 1H) containing ±2.7886 acres of land located east of Bobcat Boulevard, south and east of Halifax Street, and north of Byron Nelson High School. BACKGROUND/SUMMARY: The Planning and Zoning Commission recommended, and the Town Council approved the Planned Development (PD-37) zoning for the subject property in December of 2021. The Planning and Zoning Commission and Town Council approved the Preliminary Plat in July of 2022. The subject property was formerly a gas well site known as 1H. The property owner has applied for a Final Plat to facilitate development of the parcel. 1. The plat consists of 21 residential lots and two (2) open space/private street lots and one (1) open space lot. 2. The lots meet or exceed the minimum standards in the adopted PD regulations. 3. The development is proposed as private streets that will be built as 26-foot-wide mutual access/fire lane easement. 4. A homeowners’ association (HOA) will be created with the filing of the final plat that will own and maintain any common elements. The applicant shall submit the HOA documents for review by the Town Attorney prior to Town Council consideration of the Final Plat. The Final Plat will not be filed without approved HOA documents. 5. Prior to filing the Final Plat, the subdivider will also be required to pay a fee-in-lieu of parkland dedication and pay any impact fees. 6. The applicant is responsible for verifying that the location of the capped well is not within the buildable area of any lot. The capped well is located in Lot24X, an open space lot to be owned and maintained by the Bobcat Village Phase 1 HOA. The applicant has identified the well head by ID number on the engineering plans as recommended by the P&Z Commission. 7. The Planned Development zoning for the development requires a three (3) foot Landscape Buffer Zone with evergreen shrubs along the southern boundary adjacent to High School to the South. The applicant’s engineer has stated the completion of the buffer will occur at the time of building permit. 8. The civil engineering construction plans are a part of the Final Plat submission and the applicant has updated the plans to reflect a 60 foot right-of-way (Maddox Lane) dedication to serve the site to Bobcat Boulevard through the Town’s lot where a water tower and accessories are located. The Town Engineer has approved the project construction plans for this phase. BOARD REVIEW/CITIZEN FEEDBACK: The Planning and Zoning Commission recommend approval at its October 5, 2023 meeting by a vote of 7 to 0.38 STAFF REVIEW: Staff has reviewed the Final Plat and is recommending approval. FISCAL IMPACT: N/A LEGAL REVIEW: N/A ATTACHMENTS: •Final Plat Bobcat Village Phase 1 at Trophy Club (formerly well site 1H) ACTION/OPTIONS: Consider and act on recommendation by the Planning and Zoning Commission to: •Approve the Final Plat; •Approve the Final Plat with conditions; or •Deny the Final Plat. 39 Tho mas Kelly Survey, Abstract N O. 704 Tho mas H. Calla way Survey, Abstract N O. 272 MADDOX DRIVE WALLY ROAD RED LYNX ROADFUNK ROADP.O.B.G:\TXN\Projects\Scott Beck\8483-01-Trophy_Club_Site_1H & 1HB\SV\04_CAD\8483-01_1H & 1HB_FPLT.dwg 2023-12-08-09:07 rsilvas4020100 SCALE: 1" = 20' GENERAL NOTES: 1.Bearing system for this survey is based on the Texas State Plane Coordinate System, Texas North Central Zone 4202, North American Datum of 1983, adjustment realization 2011. 2.The floodplain boundaries are not shown hereon. The subject tract lies with Zone X as delineated on Flood Insurance Rate Map for Denton County, Texas and Incorporated Areas, Map Number 48121C0515G with Map Revised April 18, 2011. Zone X - Areas determined to be outside the 0.2% annual chance floodplain 3.The Town or the Trophy Club Municipal Utility District NO. 1, as applicable, shall issue no permit until the completion of all dedicated improvements, and acceptance of such improvements associated with the subdivision, are approved by the Town. 4.Bobcat Village Phase 1 H.O.A. shall be established and shall be responsible for the operation and maintenance of any commonly held property and releases the Town of Trophy Club from such responsibility. Should the entity responsible for maintenance of common held property fail to perform the function, the Town has the authority to provide appropriate maintenance and repair and collect appropriate fees and reimbursements. 5.Selling a portion of this addition by metes and bounds is a violation of Town ordinance and State law and is subject to fines and withholding of utilities and building permits. 6.This plat does not alter or remove existing deed restrictions, if any, on this property. 7.Minimum finished floor elevations are at least 18 inches above the 100 year flood plain. 8.All X Lots be shall owned and maintained by Bobcat Village Phase 1 H.O.A. 9.Streets will be constructed to Town standards and maintained by Bobcat Village Phase 1 H.O.A. 777 Main Street, Suite 1900, Fort Worth, TX 76102 BGE, Inc. TBPELS Registration No. 10194416 Tel: 817-887-6130 • www.bgeinc.com Copyright 2023 Contact: René Silvas, R.P.L.S. Telephone: 817-752-4183 —Email: rsilvas@bgeinc.com SURVEYOR FINAL PLAT BOBCAT VILLAGE PHASE 1 24 TOTAL LOTS 21 RESIDENTIAL LOTS LOTS 1-21, BLOCK A 2 OPEN SPACE/PRIVATE STREET LOTS LOTS 22X AND 23X, BLOCK A 1 OPEN SPACE LOT LOT 24X, BLOCK A BEING 2.788 ACRES OUT OF THE THOMAS H. CALLAWAY SURVEY, ABSTRACT NO. 272 AND THE THOMAS KELLY SURVEY, ABSTRACT NO. 704 TOWN OF TROPHY CLUB, DENTON COUNTY, TEXAS AUGUST 2023 SHEET 1 OF 2 VICINITY MAP (NOT TO SCALE) OWNER C OIL INVESTMENTS, LTD. 13101 Preston Road, Suite 510 Dallas, TX 75240 LEGEND Cabinet_________, Page_______ CIRS 5/8" IRON ROD SET WITH "BGE" CAP XS "X" CUT IN CONCRETE SET /M.R.D MONUMENT OF RECORD DIGNITY P.O.B.POINT OF BEGINNING CAB.CABINET PG.PAGE DOC. NO.DOCUMENT NUMBER O.R.D.C.T.OFFICIAL RECORDS DENTON COUNTY, TEXAS P.R.D.C.T.PLAT RECORDS DENTON COUNTY, TEXAS R.O.W.RIGHT-OF-WAY SQ. FT.SQUARE FEET ABSTRACT LINE EASEMENT LINE SET BACK LINE LOT LINE PROPERTY LINE 40 G:\TXN\Projects\Scott Beck\8483-01-Trophy_Club_Site_1H & 1HB\SV\04_CAD\8483-01_1H & 1HB_FPLT.dwg 2023-12-08-09:08 rsilvasMETES & BOUNDS DESCRIPTION BEING, all of that 2.788 acre (121,457 square foot) tract of land situated in the Thomas Kelly Survey, Abstract NO. 704 and the Thomas H. Callaway Survey, Abstract NO. 272, in the Town of Trophy Club, Denton County, Texas; being all of that called 1.500 acre tract of land described in General Warranty Deed to C Oil Investments, LTD as recorded in Document No. 2003-205037 of the Official Records of Denton County, Texas; and being part of that called 1.287 acre tract of land described in General Warranty Deed to C Oil Investments, LTD as recorded in Document No. 2005-56135 of said Official Records; said 2.788 acre tract of land being more particularly described by metes and bounds as follows: BEGINNING, at a 1/2-iron rod with cap found at the southwest corner of said 1.287 acre tract; said point being the southeast corner of Lot 2, Block 1 and in the north line of Lot 1, Block 1, NISD High School NO. 2, an addition to the Town of Trophy Club; as recorded in Cabinet Y, Page 46 of the Plat Records of Denton County, Texas; THENCE, North 00 degrees 24 minutes 26 seconds West, departing the north line of said Lot 1, and along the east line of said Lot 2, a distance of 296.33 feet to a "X" cut in concrete set at the northwest corner of said 1.500 acre tract; said point being in the south line of Block B, Highlands Glen, an addition to the City of Roanoke, as recorded in Document NO. 2013-51 of said Plat Records; THENCE, North 89 degrees 46 minutes 58 seconds East, along the north line of said 1.500 tract and the south line of said Highlands Glen, a distance of 255.67 feet to a 5/8-inch iron rod with "BGE" cap set for corner; said point being a salient corner in a west line of said Lot 1; THENCE, North 89 degrees 33 minutes 31 seconds East, along the north line of said 1.287 acre tract, a distance of 154.98 feet to a 5/8-inch iron rod with "BGE" cap set at the northeast corner of said 1.287 acre tract; said point being a reentrant corner in the west line of said Lot 1; THENCE, South 00 degrees 24 minutes 02 seconds East, along the east line of said 1.287 acre tract and a west line of said Lot 1, a distance of 295.62 feet to a 5/8-inch iron rod with "BGE" cap set at the southeast corner of said 1.287 acre tract; said point being a reentrant corner in a north line of said Lot 1; THENCE, South 89 degrees 35 minutes 58 seconds West, along the south line of said 1.287 acre tract and a north line of said Lot 1, a distance of 410.61 feet to the POINT OF BEGINNING and containing an area of 2.788 acres or 121,457 square feet of land, more or less. OWNER C OIL INVESTMENTS, LTD. 13101 Preston Road, Suite 510 Dallas, TX 75240 777 Main Street, Suite 1900, Fort Worth, TX 76102 BGE, Inc. TBPELS Registration No. 10194416 Tel: 817-887-6130 • www.bgeinc.com Copyright 2023 Contact: René Silvas, R.P.L.S. Telephone: 817-752-4183 —Email: rsilvas@bgeinc.com SURVEYOR FINAL PLAT BOBCAT VILLAGE PHASE 1 24 TOTAL LOTS 21 RESIDENTIAL LOTS LOTS 1-21, BLOCK A 2 OPEN SPACE/PRIVATE STREET LOTS LOTS 22X AND 23X, BLOCK A 1 OPEN SPACE LOT LOT 24X, BLOCK A BEING 2.788 ACRES OUT OF THE THOMAS H. CALLAWAY SURVEY, ABSTRACT NO. 272 AND THE THOMAS KELLY SURVEY, ABSTRACT NO. 704 TOWN OF TROPHY CLUB, DENTON COUNTY, TEXAS AUGUST 2023 SHEET 2 OF 2 Cabinet_________, Page_______ OWNER'S DEDICATION That, C OIL INVESTMENTS, LTD. does hereby adopt this plat designating the hereabove described real property as BOBCAT VILLAGE PHASE 1, an addition to the Town of Trophy Club, Denton County, Texas, and do hereby dedicate to the public's use forever the streets and easements shown thereon. WITNESS, my hand this the _____ Day of ___________________ , 2023. BY: _______________________________ NAME: TITLE: STATE OF TEXAS § COUNTY OF ____________________ § BEFORE ME, the undersigned, a Notary Public in and for The State of Texas, on this day personally appeared _______________________________, known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that he/she executed the same for the purpose and considerations therein expressed and in the capacity therein stated, GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the _____ day of ___________________ , 2023. ______________________________________________ Notary Public, The State of Texas My Commission Expires _____________________________ TOWN COUNCIL & PLANNING AND ZONING COMMISSION APPROVAL APPROVED: _____________________________________ TOWN OF TROPHY CLUB DENTON COUNTY, TEXAS BY: , MAYOR ATTEST: , TOWN SECRETARY ATTEST: , PLANNING AND ZONING COMMISSION CHAIRMAN DATE: . SURVEYOR'S CERTIFICATE That I, René Silvas, do hereby certify that I prepared this plat from an actual and accurate survey of the land and that the corner monuments shown therein were properly placed under my supervision in accordance with the subdivision regulations of the Town of Trophy Club. Dated this the _____ Day of ___________________ , 2023. _______________________________________ René Silvas RPLS No. 5921 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned, a Notary Public in and for The State of Texas, on this day personally appeared René Silvas, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purpose and considerations therein expressed and in the capacity therein stated, GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ____ Day of ___________________ , 2023. ____________________________________________ Notary Public, The State of Texas My Commission Expires _____________________________ Preliminary,this document shall not be recorded for any purpose and shall not be used or viewed or relied upon as a final survey document. 41 TOWN COUNCIL COMMUNICATION MEETING DATE: December 11, 2023 FROM: Matt Cox, Director of Community Development AGENDA ITEM:Case FP-23-006 Bobcat Village Phase 2 Final Plat, formerly Well Site 1HB Discuss, consider and take action on a Final Plat for Bobcat Village Phase 2 (formerly Well Site 1HB) containing ±2.106 acres of land located east of Bobcat Boulevard, east of Halifax Street, and north of Byron Nelson High School. BACKGROUND/SUMMARY: The Planning and Zoning Commission recommended and the Town Council approved the Planned Development (PD-37) zoning for the subject property in December of 2021. The Planning and Zoning Commission and Town Council approved the Preliminary Plat in July of 2022. The subject property was formerly a gas well site known as 1H. The property owner has applied for a Final Plat to facilitate development of the parcel. 1. The plat consists of 14 residential lots and two (2) open space/private street lots. 2. The lots meet or exceed the minimum standards in the adopted PD regulations. 3. The development is proposed as private streets that will be built as 26-foot-wide mutual access/fire lane easement. 4. A homeowners’ association (HOA) will be created with the filing of the final plat that will own and maintain any common elements. The applicant shall submit the HOA documents for review by the Town Attorney prior to Town Council consideration of the Final Plat. The Final Plat will not be filed without approved HOA documents. 5. Prior to filing the Final Plat, the subdivider will also be required to pay a fee-in-lieu of parkland dedication and pay any impact fees. 6. This well site was never completed. Therefore, identifying a capped well head on the engineering construction plans is not required. 7. The civil engineering construction plans are a part of the Final Plat submission and the applicant has updated the plans to reflect a 60 foot right-of-way (Maddox Lane) dedication to serve the site to Bobcat Boulevard through the Town’s lot where a water tower and accessories are located. The Town Engineer has approved the project construction plans for this phase. BOARD REVIEW/CITIZEN FEEDBACK: The Planning and Zoning Commission recommend approval at its October 5, 2023 meeting by a vote of 7 to 0. STAFF REVIEW: Staff has reviewed the Final Plat and is recommending approval. FISCAL IMPACT: N/A 42 LEGAL REVIEW: N/A ATTACHMENTS: •Final Plat Bobcat Village Phase 2 at Trophy Club (formerly well site 1HB) ACTION/OPTIONS: Consider and act on recommendation by the Planning and Zoning Commission to: •Approve the Final Plat; •Approve the Final Plat with conditions; or •Deny the Final Plat. 43 Tho mas H. Calla way Survey, Abstract N O. 272 Tho mas Kelly Survey, Abstract N O. 704HALIFAX STREETSTANHOUSE DRIVEVALE RI E R O A D MISS O U RI R O A D P.O.B.LOGGINS DR IVE G:\TXN\Projects\Scott Beck\8483-01-Trophy_Club_Site_1H & 1HB\SV\04_CAD\8483-01_1H & 1HB_FPLT.dwg 2023-09-28-08:57 jhorn777 Main Street, Suite 1900, Fort Worth, TX 76102 BGE, Inc. TBPELS Registration No. 10194416 Tel: 817-887-6130 • www.bgeinc.com Copyright 2023 Contact: René Silvas, R.P.L.S. Telephone: 817-752-4183 —Email: rsilvas@bgeinc.com SURVEYOR VICINITY MAP (NOT TO SCALE) OWNER C OIL INVESTMENTS, LTD. 13101 Preston Road, Suite 510 Dallas, TX 75240 FINAL PLAT BOBCAT VILLAGE PHASE 2 16 TOTAL LOTS 14 RESIDENTIAL LOTS LOTS 1-14, BLOCK B 2 OPEN SPACE/PRIVATE STREET LOTS LOTS 15X AND 16X, BLOCK B BEING 2.106 ACRES OUT OF THE THOMAS H. CALLAWAY SURVEY, ABSTRACT NO. 272 TOWN OF TROPHY CLUB, DENTON COUNTY, TEXAS AUGUST 2023 SHEET 1 OF 2 Cabinet_________, Page_______ 4020100 SCALE: 1" = 20' GENERAL NOTES: 1.Bearing system for this survey is based on the Texas State Plane Coordinate System, Texas North Central Zone 4202, North American Datum of 1983, adjustment realization 2011. 2.The floodplain boundaries are not shown hereon. The subject tract lies with Zone X as delineated on Flood Insurance Rate Map for Denton County, Texas and Incorporated Areas, Map Number 48121C0515G with Map Revised April 18, 2011. Zone X - Areas determined to be outside the 0.2% annual chance floodplain 3.The Town or the Trophy Club Municipal Utility District NO. 1, as applicable, shall issue no permit until the completion of all dedicated improvements, and acceptance of such improvements associated with the subdivision, are approved by the Town. 4.Bobcat Village Phase 2 H.O.A. shall be established and shall be responsible for the operation and maintenance of any commonly held property and releases the Town of Trophy Club from such responsibility. Should the entity responsible for maintenance of common held property fail to perform the function, the Town has the authority to provide appropriate maintenance and repair and collect appropriate fees and reimbursements. 5.Selling a portion of this addition by metes and bounds is a violation of Town ordinance and State law and is subject to fines and withholding of utilities and building permits. 6.This plat does not alter or remove existing deed restrictions, if any, on this property. 7.Minimum finished floor elevations are at least 18 inches above the 100 year flood plain. 8.All X Lots shall be owned and maintained by Bobcat Village Phase 2 H.O.A. 9.Streets will be constructed to Town standards and maintained by Bobcat Village Phase 2 H.O.A. LEGEND CIRS 5/8" IRON ROD SET WITH "BGE" CAP XS "X" CUT IN CONCRETE SET /M.R.D MONUMENT OF RECORD DIGNITY P.O.B.POINT OF BEGINNING CAB.CABINET PG.PAGE DOC. NO.DOCUMENT NUMBER O.R.D.C.T.OFFICIAL RECORDS DENTON COUNTY, TEXAS P.R.D.C.T.PLAT RECORDS DENTON COUNTY, TEXAS R.O.W.RIGHT-OF-WAY SQ. FT.SQUARE FEET ABSTRACT LINE EASEMENT LINE SET BACK LINE LOT LINE PROPERTY LINE 44 G:\TXN\Projects\Scott Beck\8483-01-Trophy_Club_Site_1H & 1HB\SV\04_CAD\8483-01_1H & 1HB_FPLT.dwg 2023-09-28-08:57 jhornMETES & BOUNDS DESCRIPTION BEING, all of that 2.106 acre (91,746 square foot) tract of land situated in the Thomas H. Callaway Survey, Abstract NO. 272, in the Town of Trophy Club, Denton County, Texas; being all of that called 2.099 acre tract of land described in General Warranty Deed to C Oil Investments, LTD. as recorded in Document NO. 2003-205035 of the Official Public Records of Denton County, Texas; said 2.106 acre tract of land being more particularly described by metes and bounds as follows: BEGINNING, at the southwest corner of said 2.099 acre tract; said point being in the east line of Block B, Highlands Glen, an addition to the City of Roanoke as recorded in Document NO. 2013-51 of the Plat Records of Denton County, Texas; said point being a salient corner in the west line of Lot 1, Block 1, NISD High School NO. 2, an addition to the Town of Trophy Club as recorded in Cabinet Y, Page 46 of the Plat Records of Denton County, Texas; THENCE, North 00 degrees 16 minutes 57 seconds West, along the west line of said 2.099 acre tract and the east line of said Highlands Glen, a distance of 412.71 feet to a point for corner; said point being a salient corner in the west line of said Lot 1; THENCE, South 89 degrees 26 minutes 29 seconds East, departing the east line of said Highlands Glen, along the north line of said 2.099 acre tract, a distance of 136.03 feet to a 60D nail found for corner; said point being in a west line of said Lot 1; THENCE, South 44 degrees 58 minutes 37 seconds East, along the northeast line of said 2.099 acre tract and a southwest line of said Lot 1, a distance of 298.00 feet to a 5/8-inch iron rod with “BGE” cap set for corner; THENCE, South 43 degrees 25 minutes 34 seconds West, along a southeast line of said 2.099 acre tract and a northeast line of said Lot 1, a distance of 110.89 feet to a 60D nail found for corner; THENCE, South 65 degrees 54 minutes 10 seconds West, continuing along a southeast line of said 2.099 acre tract and a northeast line of said Lot 1, a distance of 294.01 feet to the POINT OF BEGINNING and containing an area of 2.106 acres or 91,746 square feet of land, more or less OWNER C OIL INVESTMENTS, LTD. 13101 Preston Road, Suite 510 Dallas, TX 75240 777 Main Street, Suite 1900, Fort Worth, TX 76102 BGE, Inc. TBPELS Registration No. 10194416 Tel: 817-887-6130 • www.bgeinc.com Copyright 2023 Contact: René Silvas, R.P.L.S. Telephone: 817-752-4183 —Email: rsilvas@bgeinc.com SURVEYOR FINAL PLAT BOBCAT VILLAGE PHASE 2 16 TOTAL LOTS 14 RESIDENTIAL LOTS LOTS 1-14, BLOCK B 2 OPEN SPACE/PRIVATE STREET LOTS LOTS 15X AND 16X, BLOCK B BEING 2.106 ACRES OUT OF THE THOMAS H. CALLAWAY SURVEY, ABSTRACT NO. 272 TOWN OF TROPHY CLUB, DENTON COUNTY, TEXAS AUGUST 2023 SHEET 2 OF 2 Cabinet_________, Page_______ OWNER'S DEDICATION That, C OIL INVESTMENTS, LTD. does hereby adopt this plat designating the hereabove described real property as BOBCAT VILLAGE PHASE 2, an addition to the Town of Trophy Club, Denton County, Texas, and do hereby dedicate to the public's use forever the streets and easements shown thereon. WITNESS, my hand this the _____ Day of ___________________ , 2023. BY: _______________________________ NAME: TITLE: STATE OF TEXAS § COUNTY OF ____________________ § BEFORE ME, the undersigned, a Notary Public in and for The State of Texas, on this day personally appeared _______________________________, known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that he/she executed the same for the purpose and considerations therein expressed and in the capacity therein stated, GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the _____ day of ___________________ , 2023. ______________________________________________ Notary Public, The State of Texas My Commission Expires _____________________________ TOWN COUNCIL & PLANNING AND ZONING COMMISSION APPROVAL APPROVED: _____________________________________ TOWN OF TROPHY CLUB DENTON COUNTY, TEXAS BY: , MAYOR ATTEST: , TOWN SECRETARY ATTEST: , PLANNING AND ZONING COMMISSION CHAIRMAN DATE: . SURVEYOR'S CERTIFICATE That I, René Silvas, do hereby certify that I prepared this plat from an actual and accurate survey of the land and that the corner monuments shown therein were properly placed under my supervision in accordance with the subdivision regulations of the Town of Trophy Club. Dated this the _____ Day of ___________________ , 2023. _______________________________________ René Silvas RPLS No. 5921 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned, a Notary Public in and for The State of Texas, on this day personally appeared René Silvas, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purpose and considerations therein expressed and in the capacity therein stated, GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ____ Day of ___________________ , 2023. ____________________________________________ Notary Public, The State of Texas My Commission Expires _____________________________ Preliminary,this document shall not be recorded for any purpose and shall not be used or viewed or relied upon as a final survey document. 45 TOWN COUNCIL COMMUNICATION REGULAR MEETING MEETING DATE: December 11, 2023 FROM: Tamara Smith, Assistant to the Town Manager AGENDA ITEM: Discuss and Consider the MUD Feasibility Study Final Report BACKGROUND/SUMMARY: Town staff received letters of engagement in January of 2023 for a feasibility assessment specific to the infrastructure and service area acquisition and dissolution of Trophy Club Municipal Utility District (MUD) No. 1. On January 25, 2023, staff selected NewGen Strategies and Solutions as the firm approved for the project, and a final proposal was provided. Staff reached out to the MUD and Westlake to see if they wanted to participate in the feasibility study and share in the cost. Westlake agreed to participate, and on March 22, 2023, the MUD voted to participate, but not share in the cost of the feasibility study. On March 28, 2023, the Town Manager signed the NewGen contract. The purpose of the feasibility study was to prove financial and legal feasibility. NewGen’s project team worked with a group of key stakeholders to outline scenarios for consideration and to define and agree on a methodology and assumptions specific to the analysis to be performed. If it is in the best interest of the Town, then the Town could potentially assume the relevant assets and liabilities of the District and would become the retail service provider for both existing and future customers in the defined service area. The Scope of work consisted of task one a kick-off meeting and workshop, which discussed goals and objective of the project and review what is known or yet to be determined relative to the legal constraints and possibilities. Task two consisted of data gathering and review, which included requesting information from the Town and District to aid in gathering of documents needed for due diligence and the feasibility assessments. The third task was financial and engineering feasibility, which documented all assets and their current state, plus proper recognition of needed capital improvements on the District’s system and the planned method for funding improvements. The Fourth task was legal feasibility. All tasks have been completed and a formal report is available from NewGen. Assumptions for the feasibility study are: •Study excludes the Fire Department and cost of Fire Services – Only considers water and wastewater service, •Analysis treats the MUD as a true enterprise – All expenditures paid via utility revenues and no tax monies or payment in lieu of taxes are assumed, 46 •MUD debt responsibility is allocated between Trophy Club and Westlake reflective of current repayment methods, •If dissolution occurs, it is assumed that Westlake customers will not be asked to pay for embedded infrastructure – Infrastructure has already been paid for by ratepayers; •Only capital investment included in the analysis is reflective of current debt. The study encompassed three scenarios. Scenario one represented the base case, maintaining the current Municipal Utility District (MUD) without any changes. In scenario two, Trophy Club and Westlake were completely dissolved, leading to the establishment of independent water and sewer services for each. In scenario three, Trophy Club and Westlake were dissolved, resulting in both municipalities managing their water services independently. However, in this scenario, Trophy Club continued to provide wholesale sewer treatment services to Westlake. Findings and Conclusions: •The analysis performed is based on assumptions and recent cost trends, any change in assumptions will result in a change to the analysis, •It is the Project Team’s opinion that dissolution will likely lead to higher costs to customers, •While some operational cost savings may be realized, savings are likely not significant, •Overall, cost differentials for Trophy Club customers are fairly small and potential qualitative benefits may, from a policy standpoint, outweigh the impacts of these increases, •As growth occurs over time, Westlake’s per unit cost of service will more closely align with the unit costs experienced by the MUD; however, in the near-term service to Westlake customers will be more expensive; •This is particularly true if wastewater is treated through TRA as opposed to the MUD or Trophy Club. FISCAL IMPACT: The feasibility study cost was not to exceed $46,300. The total cost for the Town was not to exceed $23,150. Per the purchasing policy, anything between $10,000 and $24,999 would only need the Town Manager’s approval. The total cost to date paid to NewGen from the Town is $15,513.28. Services total $14,266.87, and expenses total $1,246.41. The savings from the original projected amount of $23,150 is $7,636.72. ATTACHMENTS: Feasibility Study Signed Proposal TCMUD Presentation Feasibility Study ACTION/OPTIONS: Provide direction to staff.47 48 49 50 51 52 53 54 55 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TROPHY CLUB MUD FEASIBILITY STUDY EXECUTIVE SUMMARY July 2023 56 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC INTRODUCTION •NewGen Strategies and Solutions was jointly engaged by the Town of Trophy Club, the Town of Westlake, and the Trophy Club Municipal Utility District to evaluate the impacts and feasibility of dissolving the District, with future service to be provided by the respective Towns •The NewGen Project Team worked with a group of Key Stakeholders to outline scenarios for consideration and to define and agree on a methodology and assumptions specific to the analysis to be performed. •The stakeholder group met three times and provided substantial information and input to the Project Team, resulting in the analysis contained herein. 2 57 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC STAKEHOLDER GROUP MEMBERS •Town of Westlake ̶Sean Kilbride ̶Wade Carroll 3 •Town of Trophy Club ̶Steve Flynn ̶Jeffrey Beach ̶Patrick Arata •Trophy Club Municipal Utility District ̶Kevin Carr ̶Doug Harper ̶Alan Fourmentin •Consulting Project Team ̶NewGen - Chris Ekrut, Becky Schafer ̶Kimley-Horn & Associates – Chris Connolly 58 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC STUDY METHODOLOGY •Impact of various scenarios were examined over a 10-year timeframe •A “base case” was established to determine anticipated per meter equivalent and per 1,000 gallon of service cost to customers assuming no change in operations / continuation of the Municipal Utility District ̶For simplicity, results are presented on per meter equivalent analysis •Scenarios were then prepared accounting for cost changes under alternative governance / operational parameters which were then compared back to the base case •Analysis is heavily dependent on assumptions – in the event assumptions do not reflect actual circumstances, then modifications to analysis may be required 4 59 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC FOUNDATIONAL ASSUMPTIONS •Study excludes the Fire Department and cost of Fire Services – Only considers water and wastewater service •Analysis treats the MUD as a true enterprise – All expenditures paid via utility revenues and no tax monies or payment in lieu of taxes are assumed •MUD debt responsibility is allocated between Trophy Club and Westlake reflective of current repayment methods •If dissolution occurs, it is assumed that Westlake customers will not be asked to pay for embedded infrastructure – Infrastructure has already been paid for by ratepayers •Only capital investment included in the analysis is reflective of current debt 5 60 6© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC SCENARIO SUMMARY 6 Scenario Number Scenario Name Scenario Description 1 Base Case Status Quo – Continue TCMUD as is with no changes 2 Complete Dissolution TCMUD divided between Trophy Club and Westlake – Westlake provides own water and sewer service 3 Dissolution with Continuing Wholesale Sewer Service TCMUD divided between Trophy Club and Westlake – Westlake provides own water but contracts with Trophy Club for wholesale sewer treatment service 61 SCENARIO 1 RESULTS Base Case / Status Quo 62 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC SCENARIO 1 – BASE CASE (COST PER METER EQUIVALENT) 8 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 Water $42.93 $44.84 $46.80 $48.89 $51.13 $53.52 $56.06 $58.70 $61.48 $64.37 Sewer $34.59 $36.53 $38.68 $41.11 $44.30 $47.90 $51.88 $56.39 $61.38 $67.01 $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 Base Case Cost per Meter Equivalent 63 SCENARIO 2 RESULTS Complete Dissolution Westlake Provides its Own Water/Wastewater Service 64 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TROPHY CLUB - SCENARIO 1 VS SCENARIO 2 COST PER METER EQUIVALENT 10 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 Scenario 2 $76.64 $81.13 $85.97 $91.31 $97.08 $103.46 $110.41 $118.06 $126.39 $135.55 $(10.00) $10.00 $30.00 $50.00 $70.00 $90.00 $110.00 $130.00 $150.00 •While some limited savings to water customers may be realized, higher sewer costs lead to slightly higher long-term cost increases to customers 65 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WESTLAKE - SCENARIO 1 VS SCENARIO 2 COST PER METER EQUIVALENT 11 •Higher cost is a direct result of higher Westlake per unit cost of service and wastewater treatment cost from TRA 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 Scenario 2 $223.71 $218.81 $206.04 $189.24 $177.65 $183.23 $188.97 $194.99 $201.08 $207.45 $- $50.00 $100.00 $150.00 $200.00 $250.00 66 SCENARIO 3 Dissolution with Continuing Wholesale Sewer Service to Westlake from Trophy Club 67 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TROPHY CLUB - SCENARIO 1 VS SCENARIO 3 COST PER METER EQUIVALENT 13 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 Scenario 3 $76.66 $80.64 $84.90 $89.59 $95.14 $101.28 $107.95 $115.28 $123.26 $132.03 $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 68 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WESTLAKE - SCENARIO 1 VS SCENARIO 3 COST PER METER EQUIVALENT 14 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 Scenario 3 $109.16 $110.06 $112.10 $115.13 $121.11 $127.71 $134.85 $142.62 $151.02 $160.19 $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00 $180.00 69 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC FINDINGS AND CONCLUSIONS •The analysis performed is based on assumptions and recent cost trends, any change in assumptions will result in a change to the analysis •It is the Project Team’s opinion that dissolution will likely lead to higher costs to customers ̶While some operational cost savings may be realized, savings are likely not significant •Overall, cost differentials for Trophy Club customers are fairly small and potential qualitative benefits may, from a policy standpoint, outweigh the impacts of these increases •As growth occurs over time, Westlake’s per unit cost of service will more closely align with the unit costs experienced by the MUD; however, in the near-term service to Westlake customers will be more expensive ̶This is particularly true if wastewater is treated through TRA as opposed to the MUD or Trophy Club 15 70 16© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC POTENTIAL QUALITATIVE IMPACTS OF DISSOLUTION •Less confusion for Residents and Business •Single point of contact for service and communication •Potentially streamlined planning •Representation and voice for PID residents •Potential personnel gains •Limited, but potential, economies of scale ̶Trophy Club isn’t currently making utility related purchases •Revenue source enhancement through transfers / other payments 16 71 CHRIS EKRUT, PARTNER AND CFO (972) 232-2234CEKRUT@NEWGENSTRATEGIES.NET PROJECT TEAM CONTACT: 72 OCTOBER 2023www.newgenstrategies.net REPORT TROPHY CLUB MUD FEASIBILITY STUDY FINDINGS SUMMARY STATUS REPORT © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC Prepared for: Town of Trophy Club, Texas Town of Westlake, Texas With participation from: Trophy Club MUD 73 Economics | Strategy | Stakeholders | Sustainability Table of Contents List of Attachments .............................................................................................................. i List of Tables ....................................................................................................................... ii List of Figures ...................................................................................................................... ii Section 1 Introduction ..................................................................................................... 1-1 Engagement .................................................................................................................. 1-1 Background.................................................................................................................... 1-2 Phase 1 Project Approach ............................................................................................. 1-2 Project Meetings ........................................................................................................... 1-3 First Meeting with Work Group – April 21, 2023................................................ 1-3 Second Meeting with Workgroup – June 1, 2023............................................... 1-3 Third Meeting with Workgroup – June 30, 2023 ................................................ 1-4 Section 2 Feasibility Analysis ............................................................................................ 2-1 Foundational Assumptions ............................................................................................ 2-1 General Study Methodology ......................................................................................... 2-2 Growth in Service Units (Customers and Water Consumption / Sewer Flow) ................................................................................................................... 2-3 Water and Wastewater Operations and Maintenance Expense ........................ 2-4 Allocation of Water and Wastewater Debt ........................................................ 2-5 Wholesale Water and Wastewater Treatment Cost .......................................... 2-6 Administrative Cost / Non-Departmental Expense / General Fund Transfers ............................................................................................................. 2-7 Scenario Analysis and Results ....................................................................................... 2-8 Scenario 1 – Base Case ........................................................................................ 2-8 Scenario 2 – Complete Dissolution ................................................................... 2-10 Scenario 3 – Complete Dissolution but Continuing Wholesale Wastewater Service to Westlake ...................................................................... 2-12 Section 3 Key Findings and Recommendations ................................................................. 3-1 Cost Versus Rates .......................................................................................................... 3-1 General Findings ............................................................................................................ 3-2 Conclusion ..................................................................................................................... 3-4 List of Attachments A First Meeting Agenda and Talking Points Memorandum B Second Meeting Talking Points Memorandum and Presentation C Third Meeting Talking Points Memorandum and Presentation D Executive Summary Presentation E Schedules 1–13 74 Table of Contents ii List of Tables Table 2-1. Applicable Scenarios ............................................................................................... 2-2 Table 2-2. Base Unit Cost of Service Methodology Example ................................................... 2-3 Table 2-3. Assumed Single Family Equivalent Connections ..................................................... 2-4 Table 2-4. Outstanding Debt Allocation Factors ...................................................................... 2-6 List of Figures Figure 2-1. TRA Wholesale Cost per 1,000 Gallons .................................................................. 2-7 Figure 2-2. Scenario 1 Base Case Cost Per Meter Equivalent .................................................. 2-9 Figure 2-3. Scenario 1 Base Case Cost Per 1,000 Gallons ........................................................ 2-9 Figure 2-4. Trophy Club Cost Per Meter Equivalent, Scenario 1 vs. Scenario 2 ..................... 2-10 Figure 2-5. Trophy Club Cost Per 1,000 Gallons, Scenario 1 vs. Scenario 2 ........................... 2-11 Figure 2-6. Westlake Cost Per Meter Equivalent, Scenario 1 vs. Scenario 2 ......................... 2-11 Figure 2-7. Westlake Cost Per 1,000 Gallons, Scenario 1 vs. Scenario 2 ............................... 2-12 Figure 2-8. Trophy Club Cost Per Meter Equivalent, Scenario 1 vs. Scenario 3 ..................... 2-13 Figure 2-9. Trophy Club Cost Per 1,000 Gallons, Scenario 1 vs. Scenario 3 ........................... 2-13 Figure 2-10. Westlake Cost Per Meter Equivalent, Scenario 1 vs. Scenario 3 ....................... 2-14 Figure 2-11. Westlake Cost Per 1,000 Gallons, Scenario 1 vs. Scenario 3 ............................. 2-14 75 Economics | Strategy | Stakeholders | Sustainability EXECUTIVE SUMMARY The Town of Trophy Club, TX (Trophy Club) and the Town of Westlake, TX (Westlake) jointly retained NewGen Strategies and Solutions, LLC (NewGen) to conduct a Feasibility Assessment Specific to Infrastructure and Service Area Acquisition/Dissolution of the Trophy Club Municipal Utility District No. 1 (District). The purpose of this Summary Status report (Report) is to provide an overview of the engagement from the initial kick off meeting (which took place on April 21, 2023) through the end of July 2023, as well as some of the history leading up to the endeavor. In early 2023, the Trophy Club entered preliminary discussions with the District regarding a potential acquisition/dissolution (Transaction) by Trophy Club of the District’s assets serving both Trophy Club and portions of Solana in Westlake, with the ultimate anticipated dissolution of the District. NewGen and their subcontractor, Kimley-Horn and Associates, Inc. (Kimley-Horn) (collectively, Project Team) were engaged to conduct an analysis to aid in the assessment of whether a transaction would be financially and legally feasible, and if said transaction was determined to be in the best interests of the ratepayers of the two communities and the District. A Working Group with representatives from Trophy Club, Westlake, and the District was established and assembled to meet with the Project Team at key milestones during the conduct of the Study. This engagement represents the latest iteration of on ongoing studies and discussions between Trophy Club, Westlake, and the District on this issue. Phase 1 of the current Study was designed to embrace three areas of assessment: financial feasibility, engineering feasibility, and legal feasibility. A Financial Feasibility Model was developed to assess the impacts of various scenarios, and meetings were held with key Project Stakeholders to define and refine assumptions and to discuss the results of the analysis. The analysis conducted by the Project Team is predicated on a number of key assumptions. A thorough understanding of these assumptions is critical to understanding the context of the analysis that has been prepared. A number of foundational assumptions were discussed and agreed on by the Study Working Group at the outset of the engagement. These included:  The Feasibility Study excluded Fire Services.  The Study treated Water and Sewer Services by the District as an Enterprise.  Outstanding debt of the District is to be allocated based on current repayment methods.  If Dissolution is to occur, customers in Westlake will not be asked to pay additional monies for embedded infrastructure.  Wholesale costs between the District and Westlake are assumed to be the same on a per-unit basis.  Capital Investment is only included to the extent it is reflective of currently outstanding debt. To perform the requested Feasibility Study, the Project Team examined the cost of retail water and sewer service provision under several different governance and operational scenarios over a ten (10) year time period. This included a “base case” scenario, in which service would continue to be provided by the District as it is today. Of the scenarios considered, the working group ultimately determined that the three most applicable scenarios were as follows: 76 Section 1 1-2 Table ES 1-1. Applicable Scenarios Scenario Number Scenario Name Scenario Description 1 Base Case Status Quo – Continue the District as is with no changes. 2 Complete Dissolution District dissolved between Trophy Club and Westlake. Westlake provides own water and sewer service. 3 Dissolution with Continuing Wholesale Sewer Service District dissolved between Trophy Club and Westlake. Westlake provides own water service but contracts with Trophy Club for wholesale sewer treatment service. The cost of providing service per meter equivalent and per 1,000 gallons of service was calculated for each scenario. Then the per-unit cost of service under each scenario involving dissolution was compared back to the unit cost of service under the base case scenario to determine whether the overall cost of service was higher or lower than the cost of current service provision. In the event service provision is more cost effective than the base case, it could be concluded that the chosen scenario is feasible, as it is projected to achieve the aim of financial benefit to customers. From the analysis, the Project Team concluded as follows:  Dissolution at this time is likely not in the best interest of customers.  Potential cost savings are likely de minimus.  Future growth will benefit Westlake from a cost of service basis.  Monetary transfers from the enterprise impact the analysis.  Other qualitative factors should be considered. In the end, the Project Team believes that the financial analysis, and numbers produced therein, cannot and will not be wholly useful in resolving this issue, which has been under consideration by the parties for well over a decade. No study or numerical analysis will provide the definitive answer to what is an issue of governance and policy. The Project Team is of the opinion that there will certainly not be unanimous agreement with the assumptions and methodologies employed herein; however, we also do not believe disagreement invalidates the results of this analysis or the recommendations made herein. Based on our review of past studies, our findings are consistent with the findings of prior efforts. We strongly believe that only civil discourse between the parties, and consideration of the long-term impacts of action or inaction, will be useful to addressing the issue at hand. We encourage the parties to examine the collective long-term goals and objectives which they all share in common—ensuring the efficient and cost- effective provision of public services—and take action as necessary to achieve those ends which are in the public interest. 77 Economics | Strategy | Stakeholders | Sustainability Section 1 INTRODUCTION The Town of Trophy Club, TX (Trophy Club) and the Town of Westlake, TX (Westlake) jointly retained NewGen Strategies and Solutions, LLC (NewGen) to conduct a Feasibility Assessment Specific to Infrastructure and Service Area Acquisition/Dissolution of the Trophy Club Municipal Utility District No. 1 (District). The purpose of this Summary Status report (Report) is to provide an overview of the engagement from the initial kick off meeting (which took place on April 21, 2023) through the end of July 2023, as well as some of the history leading up to the endeavor. This Report will identify the objectives of the study, the meetings and presentations conducted with stakeholders, the analysis and methodology used in the study, and the findings and conclusions made to- date. Engagement In early 2023, the Trophy Club entered preliminary discussions with the District regarding a potential acquisition/dissolution (Transaction) by Trophy Club of the District’s assets serving both Trophy Club and portions of Solana in Westlake, with the ultimate anticipated dissolution of the District. NewGen and their subcontractor, Kimley-Horn and Associates, Inc. (Kimley-Horn) (collectively, Project Team) were engaged to conduct an analysis to aid in the assessment of whether a transaction would be financially and legally feasible, and if said transaction was determined to be in the best interests of the ratepayers of the two communities and the District. A Working Group with representatives from Trophy Club, Westlake, and the District was established and assembled to meet with the Project Team at key milestones during the conduct of the Study. The Members of the Working Group were as follows: Clients:  District: Mr. Alan Fourmentin, Mr. Kevin Carr, Mr. Doug Harper  Trophy Club: Mr. Jeffrey Beach, Mr. Steven Flynn, Mr. Patrick Arata  Westlake: Mr. Sean Kilbride, Mr. Wade Carroll Consulting Project Team:  NewGen: Mr. Chris Ekrut, Ms. Rebecca Schafer  Kimley-Horn: Mr. Chris Connolly Many of the Working Group members have been involved in previous discussions on this topic, serving in various capacities as part of prior working groups and committees to consider this issue. The Project Team wishes to express its sincere appreciation to all of the members of the working group for their time and participation in this endeavor. It is our opinion that the open and honest dialogue held by this group was insightful, instructive, and essential to the final findings and conclusions made by the Project Team and summarized herein. 78 Section 1 1-2 Background This engagement represents the latest iteration of on ongoing studies and discussions between Trophy Club, Westlake, and the District on this issue. As noted in the press release issued on May 24, 2023 by the Town of Trophy Club,1 there are several questions that have spurred the parties to consider dissolution in the past and present, including: Is there a duplication of efforts? Are there redundancies in service? Is there a way to merge forces to operate in a more effective way, possibly saving our taxpayers money? Is a merger of the two government entities in the best interest of the community? As a part of our preliminary data gathering and assessment process, we reviewed several reports from prior inquiries on this topic. These included the following sources: November 13, 2008, Report “Letter” by Lewis F. McLain, Jr. President, CityBase.Net, Inc. “Trophy Club Entities – Reliance on Arithmetic to Resolve a Fractured Governance Issue” Town of Trophy Club 2013 “Blue Ribbon Panel Final Report” February 2014 Trophy Club MUD “Citizens Advisory Committee Final Report” In effort to conduct the engagement in the most cost-effective manner, the Project Team proposed completing the engagement in phases. This report details the conduct of Phase I. To the extent the parties determine that sufficient interest exists in moving forward, Phase II will be conducted and documented through separate deliverables. Phase 1 Project Approach Phase 1 was designed to embrace three areas of assessment: financial feasibility, engineering feasibility, and legal feasibility. As stated in the initial proposal, if at any point in this assessment, if one or more of the three feasibility assessments results in a “No Go” decision due to the realization that the potential transaction would not be in the best interests of the respective Town(s), District, or is otherwise unacceptable, then the process would be concluded at that point. The first step in Phase I involved extensive data gathering required to perform the necessary due diligence and feasibility analysis of the potential transaction. The Towns and the District provided the data requested for the analysis, and this was followed by numerous discussions to verify and clarify data, to assess legal, engineering, and financial implications of the transaction, and to ensure that the governing bodies of each organization clearly understand the implications of moving forward. A Financial Feasibility Model was developed which incorporates current and forecasted expenses under various operation conditions, current and forecast ratepayers for each of the involved entities, and 1 Trophy Club, Texas Press Release Office, March 24, 2023, “Trophy Club Texas – Town and TCMUD No 1 Seek Feasibility of Merger” 79 Feasibility Analysis 1-3 projected impacts of the transaction on the per unit cost of service applicable to the separate customer groups. Project Meetings NewGen held three (3) meetings with the Working Group members during the study. In these meetings, potential scenario outcomes of dissolution versus maintaining the status quo were developed to provide a basis for comparative analysis. In all meetings, the objective was to allow all members to speak freely, ask questions, participate in discussions, and achieve consensus on the many assumptions required for the analysis and to determine the appropriate next steps. Following each meeting, a concise talking point summary and applicable deliverables were distributed to all Work Group members. A brief overview of each meeting is provided below: First Meeting with Work Group – April 21, 2023 The kickoff meeting was a lengthy interactive discussion enabling all participants to share their thoughts on potential issues, concerns, and desired outcomes. By the end of the meeting, consensus on the potential outcome scenarios to model in the feasibility assessment were agreed upon. The talking points memorandum as well as the agenda from this first meeting are included herein as Attachment A. Second Meeting with Workgroup – June 1, 2023 The second meeting was also an interactive discussion focused on clarifying and coming to consensus agreement on the many assumptions to be incorporated into the analyses and scenarios to be developed and presented at the end of June. These discussions included:  Basis for Regional Bill comparisons for average service levels.  Growth projections for the various service areas and Equivalent Residential Unit (ERU) methodology and forecasts.  District water and wastewater remaining principal and interest debt and explanation of application of Local Government Code (LGC) to the treatment of outstanding debt in scenario forecasts.  Identification and discussion of key issues for determining value and allocation of values (including assets and debt).  Explanation, discussion, and consensus on allocation factors and related key assumptions to be used in analysis.  Assessment and review of potential avoided costs.  Fort Worth water purchases – review of wholesale costs and breakdown of wholesale costs for Fort Worth water purchases based on the Effective Cost per 1,000 gallons and consensus to assume the same unit cost of water for each entity. 80 Section 1 1-4  Denton Creek Regional Wastewater System – projection of forecasted costs per thousand gallons and consensus for this wholesale treatment cost to be used in scenario development where applicable from the Trinity River Authority (TRA).  Presentation and discussion of Operations and Maintenance (O&M) expense development and methodology to be used in scenario development.  Preliminary observations and discussion of next steps. The PowerPoint presentation utilized in this second meeting, along with the talking points memorandum, are included herein as Attachment B. Third Meeting with Workgroup – June 30, 2023 The third meeting included NewGen’s presentation of the methodology, assumptions, findings, and conclusions from the feasibility modeling of five key scenarios. At the conclusion of the meeting, there was a consensus that the next step should be a joint presentation by NewGen to the governing bodies of all three participating entities to ensure that everyone received the same information at the same time and could pose questions that would be beneficial to all participants. To date, the parties have amended their positions and determined that no joint presentation is called for at this time; however, they have requested this report and formal documentation of efforts to-date. The PowerPoint presentation utilized in the third meeting, along with the talking points memorandum, are included herein as Attachment C. The Executive Summary PowerPoint requested after the third meeting is included herein as Attachment D. 81 Economics | Strategy | Stakeholders | Sustainability Section 2 FEASIBILITY ANALYSIS The analysis conducted by the Project Team is predicated on a number of key assumptions. A thorough understanding of these assumptions is critical to understanding the context of the analysis that has been prepared. The following section of the report discusses those foundational assumptions and describes the tenets of the methodology employed by the Project Team. Foundational Assumptions To provide an appropriate framework for the context of the Study, the following foundational assumptions were discussed and agreed on by the Study Working Group at the outset of the engagement. To the extent any of these foundational assumptions prove inaccurate, then the analysis performed by the Project Team may merit revision. 1. The Feasibility Study excluded Fire Services. At the outset of the engagement, the Project Team confirmed with the working group that the cost and impact of Fire Service provided by the District was to be excluded from the Study effort. In other words, only the provision of water and sewer service was to be considered. The Project Team understands that separate discussions are ongoing between Trophy Club and the District specific to the future of fire service. 2. The Study treated Water and Sewer Services by the District as an Enterprise. Water and Sewer service provided by a municipality is traditionally accounted for in what is referred to as an enterprise or proprietary fund. These governmental fund types are reserved for “business- type” activities of government and are meant to be funded through user rates and fees, not taxes. To that end, in treating the District as an enterprise, the Feasibility Analysis assumes the use of user rates and fees to fund water and sewer operations, not taxes. 3. Outstanding debt of the District is to be allocated based on current repayment methods. Were dissolution of the District to occur, the Project Team understands that the provisions of LGC § 43.076 would apply. Under this statute, any dissolution agreement must provide for the distribution among the two Towns of the assets and liabilities of the District. The distribution must be based on a determination of property value, which can include an original cost basis, a reproduction cost basis, a fair market value basis, or any other valuation method agreed on by the parties. As will be discussed later in the methodology section of this report, the working group agreed that this distribution should be based on how that debt is currently funded by the various customer groups of the District so as to not significantly deviate from current cost allocation and repayment responsibility. 4. If Dissolution is to occur, customers in Westlake will not be asked to pay additional monies for embedded infrastructure. The Project Team understands that at times during past consideration of dissolution, consideration was given to have customers from Westlake pay for the value of the assets currently physically located within the municipal limits of Westlake. The Project Team discussed this consideration with the working group, and it was agreed that the customers in Westlake have already paid the cost of these 82 Section 2 2-2 embedded assets through rates. As such, no additional compensation or payment of assets was considered as part of this Study effort. 5. Wholesale costs between the District and Westlake are assumed to be the same on a per-unit basis. Both the Westlake and the District take wholesale treated water service from the City of Ft. Worth. Payments to Ft. Worth for wholesale treated water are based not only on the total quantity of water taken, but also on the peak daily and hourly demands of each wholesale customer. These peaking demands can drive differences in charges to various wholesale customers. The Project Team reviewed the last four (4) years of charges to both Westlake and the District, and the effective cost of water between the two entities varied by up to approximately $0.11 per 1,000 gallons of service. At times the District experienced a lower effective rate for service, while at others Westlake experienced a lower rate. Given this variation, for the forward-looking analysis, the Project Team has assumed that the cost of wholesale water service provision between the District and Westlake would be the same. 6. Capital Investment is only included to the extent it is reflective of currently outstanding debt. The cost of providing water and wastewater service is heavily dependent on the capital investment required to ensure continuous and adequate service to customers. Capital investment will vary over time between utilities and is dependent on a number of factors, including operational and regulatory requirements, growth in service demands, and historical patterns of repair and maintenance. Given the somewhat unknown nature of future capital requirements, and the potential dynamic nature of such requirements due to ongoing changes in regulatory and growth in service demands, the Project Team has excluded future capital requirements from this analysis. In other words, the only consideration of capital investment included in the Project Teams financial analysis was specific to the payment for embedded investment through outstanding debt. General Study Methodology To perform the requested Feasibility Study, the Project Team examined the cost of retail water and sewer service provision under several different governance and operational scenarios over a ten (10) year time period. This included a “base case” scenario, in which service would continue to be provided by the District as it is today. Of the scenarios considered, the working group ultimately determined that the three most applicable scenarios were as follows: Table 2-1. Applicable Scenarios Scenario Number Scenario Name Scenario Description 1 Base Case Status Quo – Continue the District as is with no changes. 2 Complete Dissolution District dissolved between Trophy Club and Westlake. Westlake provides own water and sewer service. 3 Dissolution with Continuing Wholesale Sewer Service District dissolved between Trophy Club and Westlake. Westlake provides own water service but contracts with Trophy Club for wholesale sewer treatment service. 83 Feasibility Analysis 2-3 The cost of providing service per meter equivalent and per 1,000 gallons of service was calculated for each scenario. Then the per-unit cost of service under each scenario involving dissolution was compared back to the unit cost of service under the base case scenario to determine whether the overall cost of service was higher or lower than the cost of current service provision. In the event service provision is more cost effective than the base case, it could be concluded that the chosen scenario is feasible, as it is projected to achieve the aim of financial benefit to customers. In developing the cost of service under each scenario, the fixed and variable cost of service was considered. This cost was developed by examining the historical cost of service provision by the District as well as by Westlake to their current retail customers. Utilizing this historical data, the Project Team calculated an historic cost of service on a per meter equivalent basis unique to each entity. This established a base unit cost of service for each entity. Specific to fixed cost, this base unit cost of service was escalated as necessary to develop an estimated base unit cost of service as of Fiscal Year (FY) 2024. The base unit cost of service was then multiplied by the assumed number of service units in FY 2024 to derive the total fixed cost of service. This total amount specific to FY 2024 was then escalated annually by an assumed rate of inflation through the remainder of the analysis. This treatment allows for and recognizes that fixed cost can result in a reduction on a per unit basis overtime if the rate of increase in the units of service provision is greater than the rate of increase in overall cost. An example of this methodology is shown in the table below. Table 2-2. Base Unit Cost of Service Methodology Example Base Year 2024 2025 2026 Fixed Cost per Meter Equivalent $ 100 Base Year 2022 Escalation Rate 5% Calculated 2024 Cost $110.25 Assumed Meter Equivalents 100 110 120 Calculated Fixed Cost $ 11,025 $ 11,576 $ 12,155 Fixed Cost per Equivalent $ 110.25 $ 105.24 $ 101.29 Specific to variable cost, a base unit cost of service was developed per 1,000 gallons of service, but the unit cost was escalated annually by an assumed rate of inflation prior to being applied to the assumed number of service units (e.g., water consumption or billed wastewater flow) in each year. Growth in Service Units (Customers and Water Consumption / Sewer Flow) A key assumption impacting this analysis was consideration of future growth in service units, that being both customers and volumes. The Project Team reviewed historical changes in population in the service area as well as future projections of population growth available from the North Central Texas Council of Governments, as well as from planning documents provided by the entities. The Project Team then worked directly with each party to determine an acceptable forecast of future growth in customers. These growth projections were translated into an assumed level of water and sewer single family equivalent connections as shown in the table below. 84 Section 2 2-4 Table 2-3. Assumed Single Family Equivalent Connections Current (Feb 2023) 2024 2025 2026 2027 2028 2029 2030 Trophy Club / District Water Equivalents 10,766 10,766 10,766 10,766 10,766 10,766 10,766 10,766 Sewer Equivalents 8,384 8,384 8,384 8,384 8,384 8,384 8,384 8,384 Westlake Water Equivalents 637 753 869 985 987 987 987 987 Sewer Equivalents 233 349 465 581 583 583 583 583 To estimate future volumes of water consumed and wastewater flow, the Project Team reviewed the most recent twelve (12) months of billed usage at the time of study initiation specific to the customer groups located in Westlake versus those located within the District and the Trophy Club Public Improvement District. Based on this data, an average use of water and wastewater service was determined. This average was then applied to the forecasted meter equivalents in each year of the analysis to develop an estimated use of water and wastewater service. See Schedule 1 in Attachment E for more detail on the development of the average water use for each respective customer group. Schedule 2 (Attachment E) provides more detail on the development of the average wastewater flow for each respective customer group. Water and Wastewater Operations and Maintenance Expense To develop an estimate of required ongoing O&M expense, the Project Team reviewed available historical actual expense from the District as well as from Westlake. The information was isolated between the type of service provided (water versus wastewater) as well as by cost type (fixed versus variable). Finally, cost was also considered based on the function of the cost. For example, costs unique to wholesale service, as well as general and administrative expense, including transfers to other funds, were isolated and considered separate from service specific operations and maintenance. Once costs were appropriately isolated, they were considered over the historical number of service units applicable to each cost type. Fixed costs were considered on a per meter equivalent basis, while variable costs were considered based on water or wastewater volumes. Finally, these unit cost values were considered over the years available, and a historical rate of change was calculated to be used in forecasting cost on a going forward basis. Where the unit cost value decreased overtime, the Project Team relied on an assumed 3.0% inflation factor going forward instead of assuming costs would continue to decrease. Specific to Westlake, the Project Team examined historical transfers to the General Fund as an overall percentage of fixed and variable O&M expense. This percentage was used to estimate future general fund transfers as changes to fixed and variable O&M occurred over the forecasted period. The following schedules (see Attachment E) provide more details regarding the development of the O&M cost factors utilized in this analysis:  Schedule 3 – District Water Related Fixed and Variable O&M  Schedule 4 – District Sewer Related Fixed and Variable O&M 85 Feasibility Analysis 2-5  Schedule 5 – District General Administrative, Board of Directors, and Non-Departmental O&M  Schedule 6 – Westlake Water and Sewer Related Fixed and Variable O&M  Schedule 7 – Westlake Personnel and General Fund Transfers Allocation of Water and Wastewater Debt As previously discussed, LGC § 43.076 requires that on dissolution, the assets and liabilities of the District be allocated between the two municipalities. This includes the outstanding, long-term debt of the District. The Project Team examined a number of methods of allocation, including considering net book value based on original cost investment, reproduction cost of existing investment, as well as how current tax and rate revenue is generated by the various customer groups to support repayment of the debt. In examining the above approaches, a number of issues were discovered. First, the assets located in the Westlake service area were installed in approximately 1981 or earlier. Given the time that has passed since initial investment, these assets carry little to no undepreciated value on the books and records of the District. Given this, it was determined that a net book value basis would be an inappropriate method for ascribing value and allocating assets and liabilities. Another issue that was discovered was related to wastewater treatment plant investment. Specifically, when the wastewater treatment expansion was planned, it was anticipated that approximately 49.5% of the expansion would be needed for the Westlake related service area, and the 50.5% remaining expansion capacity would be needed for the District and Trophy Club related service areas. However, since the expansion occurred, Westlake has provided direct retail wastewater service to customers located in the District’s boundaries and has ultimately not utilized the capacity expansion as intended. These differences between planning assumptions and actual use have resulted in excess capacity of the wastewater treatment facility. As part of the working group discussions, it was considered as to whether this circumstance should be considered in the allocation determination. Ultimately, it was determined that the most equitable manner of allocating assets and liabilities, including the cost of outstanding debt, would be to allocate it between Westlake and Trophy Club based on how that cost is currently repaid by customers. As part of this analysis, it was necessary for the Project Team to examine both generation of rate revenue between the groups, as well as how appraised property values results in the generation of tax revenue to service the General Obligation debt currently serviced through ad valorem tax. The table below illustrates the allocation factors used specific to each of the outstanding debt instruments of the District. For the District’s outstanding revenue bonds, a three-year average of revenue generation between the customers groups was considered to develop the allocation factor. For the District’s outstanding general obligation bonds, which is paid via ad valorem tax revenue, the appraised value as property specific to each group of customers was considered as of Calendar Year 2022. 86 Section 2 2-6 Table 2-4. Outstanding Debt Allocation Factors Trophy Club Westlake Water Revenue Series 2016 90.6% 9.4% Revenue Series 2019 (77%) 90.6% 9.4% Wastewater GO Series 2014 84.4% 15.6% Revenue Series 2015 96.0% 4.0% Revenue Series 2019 (23%) 96.0% 4.0% Note that one limitation of this methodology is that the Project Team has assumed a static allocation of debt over the projected time period. As operational conditions change, allocation percentages will naturally shift; however, this potential shifting was not able to be considered as part of this analysis given the selected methodology. Wholesale Water and Wastewater Treatment Cost To project future expense associated with wholesale water purchased from Ft. Worth, the Project Team relied on the Projected FY 2023 effective per unit cost of service as provided in Ft. Worth’s most recent Wholesale Water Rate Study. This amount is assumed to be a cost per 1,000 gallons of $2.99. To project this expense going forward, the Project Team examined how the cost of service from Ft. Worth has changed over the prior four (4) FY periods. During this period, the average annual rate of change in Ft. Worth cost was approximately 4.4%. This factor was used in the forward-looking analysis to project future expense. Currently, Westlake relies on wholesale wastewater treatment from the Denton Creek Regional Wastewater System maintained by the TRA for its customers not served by the District. To project this future expense, the Project Team obtained rate projections from TRA and utilized those projections as part of this analysis. Note that these projections have only been prepared through FY 2028 and a 3% rate of escalation was assumed for 2029 through 2033. See Figure 2-1 below for the rates utilized as part of this analysis. 87 Feasibility Analysis 2-7 Figure 2-1. TRA Wholesale Cost per 1,000 Gallons Administrative Cost / Non-Departmental Expense / General Fund Transfers Under all scenarios, the cost of general and administrative services was considered. Specific to the District, this included consideration of expenses associated with the Board of Directors as well as Non- Departmental related general expense such as legal services, auditing, etc. Under Scenario 1, the base case, these expenses are included on a cost per meter equivalent basis. Under the scenarios considering dissolution, differing methodologies are utilized to consider general and administrative expenses for Westlake and Trophy Club. Specific to Westlake, historically the town has maintained a transfer out of the Water and Sewer Fund to pay for personnel related expenses, as well as a transfer to the General Fund. To forecast these expenses on a going-forward basis, the Project Team examined the historical personnel cost transfer on a per meter equivalent basis, while the transfer to the General Fund was considered as a percentage of operations and maintenance expenses. See Schedule 7 for the development of this historical information. For Trophy Club, it was assumed the general and administrative expenses would mirror similar expense currently incurred by the District; however, there was assumed to be some duplication of effort which would result in potential cost savings on dissolution. Specifically, it was assumed that no additional non- departmental expense would be incurred as such expenses are already incurred by Trophy Club, nor would Board of Directors related expense be incurred as governance responsibility would be transferred to the City Council. Additionally, there was assumed to be some potential duplication of personnel between what is currently maintained for the administrative staff of the District and the administrative staff of Trophy Club. To account for this duplication, the Project Team examined the fully-loaded cost of the four (4) overhead related positions maintained by the District, specifically, the General Manager, Finance Manager, District Secretary, and Staff Accountant. The comparable cost of these positions was examined for Trophy Club based on the current compensation and classification schedule. After a 35% overhead factor was applied, the cost of these fully-loaded positions for Trophy Club were compared with the comparable District cost. Based on the range of cost maintained in Trophy Club’s compensation and classification schedule, it was determined that a cost reduction could possibly be achieved by eliminating duplication in positions. Such 88 Section 2 2-8 potential reduction varied from a low of 1.5% to a high of 21.1%. As a conservative measure, the Project Team has relied on the mid-point of the compensation schedule and assumed a cost savings in general and administrative personnel of 11.3%. It should be noted that as part of this examination, a comparable cost specific to the position of District Secretary was not available in Trophy Club’s schedule, so the analysis assumed the same cost for Trophy Club as the cost currently maintained by the District. See Schedule 8 for this analysis and development of the assumed cost savings factor. It was further assumed that on dissolution and assumption of operations by Trophy Club, the town would establish a transfer between the utility and its General Fund. As a conservative measure, and based on the Project Team’s experience, we have assumed this General Fund transfer to be equivalent to 5% of total O&M cost. Scenario Analysis and Results The following further discusses the development of each of the three key scenarios considered. Note that all of these scenarios are dependent on the assumptions as defined above and presented in the referenced schedules. Scenario-specific assumptions are also further defined in the discussion below. To the extent any of these assumptions are inaccurate or are revised, then the results of this analysis may also need to be revised. Scenario 1 – Base Case Scenario 1, referred to herein as the “Base Case.” reflects the projected unit cost of service if both water and wastewater service provision continues to be provided by the District. In addition to the assumptions defined above, Scenario 1 also relies on the following:  Specific to Water Production, it is assumed that 20% of total required water will be produced from the wells owned and operated by the District, while 80% of total required water will be purchased from the City of Ft. Worth. Further, it is assumed that of the water produced, 11% of this water will be lost and ultimately not result in revenue to the District. The 11% water loss assumption is based on the District’s 2022 water accountability ratio as contained in its required continuing disclosures specific to the District’s outstanding bonds.  The following cost escalation factors are employed as part of developing the 10-year projection: • Fixed Water O&M Expense – Escalated at 6.7% based on historical cost analysis. • Variable Water and Sewer O&M Expense – Escalated at 3.0%. Historical analysis illustrated a slight reduction in unit variable O&M cost. As a conservative measure, the Project Team has relied on the general 3.0% escalation factor for this cost component. • Fixed Sewer O&M Expense – Escalated at 13.1% based on historical cost analysis. • Admin O&M Expense – Escalated at 4.9% based on historical cost analysis. • Board / Non-Operating O&M Expense – Escalated at 3.0%. Historical analysis illustrated a reduction in unit variable Board / Non-Operating O&M cost. As a conservative measure, the Project Team has relied on the general 3.0% escalation factor for this cost component. 89 Feasibility Analysis 2-9 See Schedule 9 for the complete analysis supporting Scenario 1. The following figures illustrate the cost per meter equivalent and the cost per 1,000 gallons calculated from Scenario 1. Figure 2-2. Scenario 1 Base Case Cost Per Meter Equivalent Figure 2-3. Scenario 1 Base Case Cost Per 1,000 Gallons 90 Section 2 2-10 Scenario 2 – Complete Dissolution Under Scenario 2, it is assumed that the District is dissolved, and the service area of the District is divided between Westlake and Trophy Club in accordance with the provisions of LGC § 43.076. In addition to the assumptions defined above, Scenario 2 also relies on the following:  Specific to the Trophy Club, the unit cost of service is assumed to be the same as the District for water and sewer service assuming Trophy Club takes over the District’s operations. The only variations in the cost of service are due to differences in administrative and general cost and changes due to the assumed general fund transfer as discussed above.  Specific to Westlake, it is assumed that all source water is purchased from Ft. Worth, with an assumed water loss of approximately 8.5% based on a review of Westlake’s historical water loss ratio as calculated from the statistical section of the Annual Comprehensive Financial Reports (AFCR). All wastewater is assumed to be conveyed to TRA, with an infiltration and inflow factor of 8%. This ratio matches the water loss ratio, and is the same ratio as utilized by the District in their annual winter averaging rate calculations.  Historical cost trends varied significantly year to year for Westlake and did not show a definitive trend, either a consistent increase or decrease. Given this, the Project Team has applied a 3.0% inflation factor to all costs specific to the analysis of service from Westlake. See Schedule 10 for the complete analysis supporting Scenario 2 specific to Trophy Club. The following figures provide a comparison between the results for Scenario 1 and Scenario 2 specific to Trophy Club on a total cost per meter equivalent and total cost per 1,000 gallons basis. Figure 2-4. Trophy Club Cost Per Meter Equivalent, Scenario 1 vs. Scenario 2 91 Feasibility Analysis 2-11 Figure 2-5. Trophy Club Cost Per 1,000 Gallons, Scenario 1 vs. Scenario 2 See Schedule 11 for the complete analysis supporting Scenario 2 specific to Westlake. The following figures provide a comparison between the results for Scenario 1 and Scenario 2 specific to Westlake on a total cost per meter equivalent and total cost per 1,000 gallons basis. Figure 2-6. Westlake Cost Per Meter Equivalent, Scenario 1 vs. Scenario 2 92 Section 2 2-12 Figure 2-7. Westlake Cost Per 1,000 Gallons, Scenario 1 vs. Scenario 2 Scenario 3 – Complete Dissolution but Continuing Wholesale Wastewater Service to Westlake Under Scenario 3, it is assumed that the District is dissolved, and the service area of the District is divided between Westlake and Trophy Club in accordance with the provisions of LGC § 43.076. However, unlike Scenario 2, Scenario 3 assumes that Westlake continues to receive wholesale wastewater treatment service from Trophy Club. When compared to treatment service from TRA, wholesale wastewater treatment service supplied by the District or, on dissolution, the Town of Trophy Club, is significantly more cost effective in the near-term. Scenario 3 relies on all of the assumptions as defined above. See Schedule 12 for the complete analysis supporting Scenario 3 specific to Trophy Club. The following figures provide a comparison between the results for Scenario 1 and Scenario 3 specific to Trophy Club on a total cost per meter equivalent and total cost per 1,000 gallons basis. 93 Feasibility Analysis 2-13 Figure 2-8. Trophy Club Cost Per Meter Equivalent, Scenario 1 vs. Scenario 3 Figure 2-9. Trophy Club Cost Per 1,000 Gallons, Scenario 1 vs. Scenario 3 See Schedule 13 for the complete analysis supporting Scenario 3 specific to Westlake. The following figures provide a comparison between the results for Scenario 1 and Scenario 3 specific to Westlake on a total cost per meter equivalent and total cost per 1,000 gallons basis. 94 Section 2 2-14 Figure 2-10. Westlake Cost Per Meter Equivalent, Scenario 1 vs. Scenario 3 Figure 2-11. Westlake Cost Per 1,000 Gallons, Scenario 1 vs. Scenario 3 95 Economics | Strategy | Stakeholders | Sustainability Section 3 KEY FINDINGS AND RECOMMENDATIONS The following section of the report details the Project Teams findings and recommendations from the Study. Prior to the consideration of these findings and recommendations, we believe it important that the reader consider the following quote from a prior study performed by Mr. Lewis McClain on this very issue. In his report titled, “Reliance on Arithmetic to Resolve a Fractured Governance Issue,” and dated November 13, 2008, Mr. McLain states: “I wish there was a way for me to wave a conclusive set of numbers, indisputable to the fourth decimal place that would yield an answer to satisfy everybody. I can’t, and I don’t think anybody can. Numbers can always be challenged and even discredited.” The Project Team concurs with Mr. McLain’s assessment and the same applies to the Study discussed herein. Numbers cannot and will not be wholly useful in resolving this issue, which has been under consideration by the parties for well over a decade. No study or numerical analysis will provide the definitive answer to what is an issue of governance and policy. The Project Team is of the opinion that there will certainly not be unanimous agreement with the assumptions and methodologies employed herein; however, we also do not believe disagreement invalidates the results of this analysis or the recommendations made herein. Based on our review of past studies, our findings are consistent with the findings of prior efforts. We strongly believe that only civil discourse between the parties, and consideration of the long-term impacts of action or inaction, will be useful to addressing the issue at hand. We encourage the parties to examine the collective long-term goals and objectives which they all share in common—ensuring the efficient and cost-effective provision of public services—and take action as necessary to achieve those ends which are in the public interest. Cost Versus Rates The Project Team believes it is also critically important to note that the analysis performed considers the per-unit cost of service to customers between the various scenarios considered. These results can be very different and are not synonymous to rates or monthly charges to customers. The analysis performed assumes that cost is applied equally across service units; however, that may not be the case when cost is translated into a rate charged by a community. For example, some communities may choose to apply a lower per-unit cost of service to lower levels of consumption, and a higher per-unit cost of service to higher levels of consumption in order to discourage the wasteful use of water and encourage water conservation. It is not possible to accurately translate this analysis into the monthly bills potentially experienced by customers as such decisions are made directly by the governing boards and bodies of the entities providing service. It is the Project Team’s opinion that the methodology employed provides the most reasonable basis by which to estimate the impacts of changes in governance and service provision between the various scenarios considered and, while it was requested by the parties, we simply cannot translate this analysis into any meaningful estimate of customer rates or monthly bills to customers. 96 Section 3 3-2 General Findings The following presents the general findings of the Project Team. Note that this reflects the opinions of the Project Team and is not meant to represent any unique positions or viewpoints of the working group members. The Project Team recognizes that each party represented by the working group maintains their own perspectives and overall goals and objectives. These findings are meant to provide a summary of and context to the analysis performed and should not be construed as being representative of the opinions of the members of the working group.  Dissolution at this time is likely not in the best interest of customers. As demonstrated in the figures in Section 2 and based on the analysis conducted and the assumptions underlying that analysis, it is projected that customers will likely see a higher cost of overall service resulting from dissolution. Under Scenario 3, it is possible that customers in Westlake could potentially see a lower cost of service, but this is heavily dependent on growth and reflective of continued wholesale wastewater treatment service provision by Trophy Club. This scenario would require a contractual agreement between the parties, and the terms and conditions of that contract could impact the results of this analysis if it is not reflective of the assumptions employed herein. It should also be noted that while on a pure dollar basis, the various scenarios generally indicate a lower cost of service under continued provision by the District, the variance in the cost of service is, at points, very minor. A minor revision to an assumption could ultimately result in a different result that could indicate benefits from dissolution. Given this, the Project Team is of the opinion that sole reliance on a mathematical quantification to the question of dissolution is insufficient and does not reflect full consideration of the larger policy implications and overall public interest.  Potential cost savings are likely de minimus. One argument that has been made publicly in support of dissolution is that cost savings can be realized by reducing the layers of governance and management. While the Project Team agrees that some cost savings may be realized, these are likely minimal at best and do not represent a significant enough impact to be the sole factor supporting dissolution. Savings that may be realized will likely be related to potentially duplicative personnel between Trophy Club and the District, but reducing personnel duplication carries with it other consequences. The Project Team has worked closely with personnel of the District and finds the District staff to be some of the most capable individuals in the industry relative to the management of a water and wastewater enterprise. Potentially losing these individuals, their knowledge, talents, and abilities in favor of minor cost savings could actually result in longer term cost increases as acquiring or redeveloping this talent could take a significant amount of time, and would likely result in a near-term reduction in the service level to customers.  Future growth will benefit Westlake from a cost of service basis. As noted in the analysis, Trophy Club is effectively built-out and is not anticipated to experience future growth, while Westlake will continue to see the addition of water and wastewater service units in the future. This growth will be to the benefit of Westlake to the extent service units are added at a faster rate than growth in cost. This will ultimately drive down the per unit cost of service experienced by Westlake customers. The same is not true for customers of Trophy Club. As costs increase in the future, these higher levels of costs will be divided over the same level of service units, thereby increasing the cost of service for Trophy Club customers on a per unit basis. Given this, the goals and objectives of the communities are likely different, with Westlake investing in water and wastewater infrastructure in order to promote and support ongoing growth and development, while Trophy Club 97 Key F indings and Recommendations 3-3 will be focused on maintaining the current cost of service and current service levels. The growth assumed for Westlake within this analysis has a significant impact on the results presented herein. As Westlake’s unit cost of service decreases with future growth (assuming growth occurs at a faster overall pace than increases in cost), it is possible that Westlake customers could experience more cost-effective service on a per unit basis than customers within Trophy Club.  Monetary transfers from the enterprise impact the analysis. One advantage to a municipality of maintaining a water and wastewater enterprise is the ability to transfer funds from the enterprise back to the municipality’s general fund. Such transfers generally take three forms. First, the enterprise will likely use services from the City’s General Fund specific to overall administrative management, human resources, information technology, financial services, or other types of general shared services. Transfers will be made from the utility enterprise back to the General Fund to cover the cost of these services. Second, many municipalities treat the utility enterprise the same as other private utilities operating with the municipal limits, requiring the payment of a franchise fee back to the City’s General Fund to cover the use of rights-of-way within the City. Lastly, many municipalities will also require a payment for a return on investment or payment in lieu of tax (PILOT) from the utility enterprise. These transfers can add significantly to the cost of utility service, while resulting in a maintenance or reduction in ad valorem tax liabilities from utility customers. While the Project Team has attempted to make reasonable assumptions and build such transfers into this analysis, any variations in actual required payments by Trophy Club or Westlake from their respective utility enterprises could result in very different outcomes than those presented herein. The Project Team believes it also important to note that in the most recent session of the Texas Legislature, Senate Bill 1110 was filed which would prohibit any type of transfers by a City from the utility enterprise back to the municipality’s general fund. While this bill did not move out of committee, it is clear that the legislature is carefully reviewing such transfers, and future legislative action to limit monetary transfers by a City from the utility enterprise could have significant impacts on this analysis.  Other qualitative factors should be considered. Finally, as has been noted by the Project Team, the results of this quantitative analysis are but one input into the decision-making process concerning potential dissolution. Other qualitative impacts should be considered. These include, but may not be limited to, the following: • Dissolution could result in less confusion for residents and businesses concerning their utility service provision by eliminating multiple points of contact relative to common municipal services. • Dissolution could potentially help streamline planning, reducing the need to coordinate with both the respective Towns and the District for ongoing development. • Currently, residents within the Public Improvement District of Trophy Club receive retail service from the District via contracts between Trophy Club and the District, but these residents do not maintain representation on the District board. Dissolution could give these residents complete representation and a voice through the Town Council which they lack under the current governance arrangement. • As discussed above, there are potential cost savings that may be realized from dissolution. Some such cost savings could be through economies of scale in purchasing; however, given that Trophy 98 Section 3 3-4 Club does not currently make utility related purchases, such economies of scale in purchasing would likely be limited. Further, potential cost savings in personnel have been noted. However, the Project Team believes a greater gain could be realized in maintaining staff and augmenting the staff of Trophy Club. While this would not result in cost savings, it would result in significant benefits in terms of skills, knowledge, and abilities which would be of service to Trophy Club residents. • Relative to the discussion above concerning potential transfers from the utility enterprise to a Town’s general fund, such transfers can result in greater monetary resources for a municipality to be able to make quality of life improvements in a community (e.g., parks and roads), or to invest more heavily in public safety. Such transfers could be of significant benefit to the respective communities as the State Legislature continues to limit what a municipality is able to do relative to ad valorem tax and other revenue sources. Conclusion The Project Team appreciates the opportunity to work with the Town of Trophy Club, the Town of Westlake, and the District on this Study. We appreciate the time and dedication of the working group members and the staff members of the respective organizations which have been instrumental in providing data and input resulting in this final product. We recognize that the determination of a path- forward is not easy nor straight-forward. We stand ready to answer questions or provide further information resulting from this study, or to assist the decision-makers of these organizations as they continue to evaluate an appropriate path-forward. 99 ATTACHMENT A: FIRST MEETING AGENDA AND TALKING POINTS MEMORANDUM TROPHY CLUB MUD FEASIBILITY STUDY FINDINGS SUMMARY STATUS REPORT OCTOBER 2023 100 Feasibility Study Regarding Dissolution of Trophy Club MUD No. 1 Project Kickoff Meeting Date: April 21, 2023 Time: 1:00 pm – 2:30 pm (CDT) Location: Trophy Club Fire Station (Training Room) 295 Trophy Club Dr. Trophy Club, TX 76262 Invitees: NewGen: Chris Ekrut (NewGen), Becky Schafer (NewGen), Chris Connolly (Kimley-Horn) TCMUD No. 1: Alan Fourmentin, Kevin Carr, Doug Harper Trophy Club: Jeffrey Beach, Steven Flynn, Dennis Sheridan, Patrick Arata Westlake: Sean Kilbride, Wade Carroll — Agenda Topics — 1. Introductions and Identification of Key Stakeholders a. NewGen Project Team b. Trophy Club MUD No. 1 c. Town of Trophy Club d. Town of Westlake e. Other Representatives / Stakeholders (Identify Legal, Financial Advisors, Bond Counsel Contacts) 2. Define Goals and Objectives a. Discussion of Study Goals and Objectives b. Identify Key Questions to Be Answered / Rough Outline of Deliverable c. Group Discussion: i. What does success look like? ii. Are there any outcomes that would be considered a failure? iii. Are there perceptions or potential outcomes from the study that could be viewed as negative? iv. Are there perceptions or potential outcomes from the study that could be viewed as positive? v. Based on knowledge and/or perceptions today, what are the negatives and positives of potential dissolution? 3. Define Rules of Engagement a. Discussion of Data Repository Accessible by All Parties b. Communication Protocols / Confidentiality of Discussions and Documentation i. How should draft output from the study be treated by key stakeholders? ii. Protocol for social media / mass media engagement c. Documentation of Assumptions / Key Decisions Matrix 4. Next Steps / Timeline 101 Memorandum Economics | Strategy | Stakeholders | Sustainability www.newgenstrategies.net 275 W Campbell Road Suite 440 Richardson, TX 75080 Phone: (972) 680-2000 To: Trophy Club MUD No. 1: Alan Fourmentin, Kevin Carr, Doug Harper Town of Trophy Club: Jeffrey Beach, Steve Flynn, Patrick Arata Town of Westlake: Sean Kilbride, Wade Carroll From: Chris Ekrut, Partner and CFO, NewGen Strategies and Solutions, LLC Date: May 1, 2023 Re: Trophy Club MUD Feasibility Study Talking Points  On Friday, April 21st, 2023, representatives of the Town of Trophy Club, the Town of Westlake, and Trophy Club Municipal Utility District (MUD) met to officially kickoff a formal study to determine the feasibility and financial impact of potentially merging the MUD with the municipalities.  The study group presented consensus agreement that the purpose of the effort is to determine what path of action results in an equitable and financially justifiable decision. The key question to be answered is: What action is in the best interest of citizens and ratepayers, both now and in the future?  All parties were equally represented and worked together to outline the various scenarios for consideration as the feasibility study is conducted.  The group will meet again on Thursday, June 1st, 2023, to consider any initial results that may be available at that time.  It is anticipated that the initial phase of the feasibility study will be completed within 60 to 90 days. Once completed, the results will be shared with all parties. 102 ATTACHMENT B: SECOND MEETING TALKING POINTS MEMORANDUM AND PRESENTATION TROPHY CLUB MUD FEASIBILITY STUDY FINDINGS SUMMARY STATUS REPORT OCTOBER 2023 103 Feasibility Study Regarding Dissolution of Trophy Club MUD No. 1 June 1, 2023, Project Meeting #2 Talking Points Attendees: Consultants: Chris Ekrut (NewGen), Becky Schafer (NewGen), Chris Connolly (Kimley-Horn) TCMUD No. 1: Alan Fourmentin, Kevin Carr (Not in attendance: Doug Harper) Trophy Club: Jeff Beach, Steve Flynn, Patrick Arata, (Not in attendance: Dennis Sheridan) Westlake: Wade Carroll (Not in attendance: Sean Kilbride) 1. The consultants and members of the working group met on June 1, 2023. 2. The meeting focused on discussion and agreement on assumptions that are crucial to producing the Final Analysis. 3. NewGen is working on the Final Analysis for our next meeting. 4. The working group is scheduled to meet on June 30th to discuss the Final Analysis. 5. After the June 30th meeting and any review and revision by the working group, NewGen will prepare to discuss the results publicly with the governing bodies of each entity. 104 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TROPHY CLUB MUD FEASIBILITY STUDY PROJECT MEETING #2 June 1, 2023 105 2© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC AGENDA 1.Regional Bill Comparisons 2.Growth Projections 3.TCMUD Debt Allocation 4.Avoided Cost 5.Operations and Maintenance Expense 6.Preliminary Observations 7.Next Steps 2 106 3© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC CAVEATS •All information should be considered a work in process. Changes/refinements may be needed. •Numbers in presentation are rounded. •Some information could be considered sensitive/ confidential. Please be respectful and keep this information within the working group until final documentation is released. •If you have suggestions/changes to assumptions, please let the Project Team know as soon as possible. •Scenario analysis will be dependent on assumptions. Group consensus is needed prior to producing the final scenario analysis. 3 107 CURRENT REGIONAL BILL COMPARISONS 108 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC 5 COMMUNITY RATE COMPARISONS •Comparisons between communities are very common but may not tell the whole story. •Each system is unique in geography, age of infrastructure, capital maintenance efforts, and typical usage patterns. 109 66© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC RESIDENTIAL BILL COMPARISON •7,000 Gallons Usage •Winter Average of 7,000 Gallons 6 110 77© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC RESIDENTIAL BILL COMPARISON •13,500 Gallons Usage •Winter Average of 7,000 Gallons 7 $105.72 $108.14 $117.91 $136.92 $139.69 $149.50 $152.68 $159.17 $167.15 $172.07 $197.81 68.12 62.26 81.79 87.60 91.50 104.37 74.75 91.05 97.29 111.24 37.60 45.87 36.12 49.32 58.00 48.31 84.42 76.10 74.78 86.57 87.99 51.70 Denton Fort Worth Colleyville Keller TCMUD Argyle Jus�n Roanoke Northlake Southlake Westlake Water Wastewater 111 8© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC COMMERCIAL BILL COMPARISON •150,000 Gallons Water •150,000 Gallons Wastewater 8 $1,103.88 $1,299.75 $1,455.99 $1,462.20 $1,808.14 $1,976.68 $2,150.87 $2,567.43 $2,702.29 $3,168.41 $3,183.50 1055.57 791.45 701.99 614.40 1106.16 1211.18 1361.62 1355.77 1371.27 1379.50 48.31 508.30 754.00 847.80 701.98 765.50 789.25 1346.52 1797.14 1804.00 1259.78 1307.65 Jus�n Colleyville Denton Fort Worth Southlake Keller Argyle TCMUD Roanoke Westlake Northlake Water Wastewater 112 GROWTH PROJECTIONS 113 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TEXAS WATER DEVELOPMENT BOARD 10 2020 2030 2040 2050 2060 2070 TCMUD Population 12,750 12,750 12,750 12,750 12,750 12,750 Water Demand (Ac/Ft)4,863 4,829 4,811 4,802 4,798 4,797 GPCPD Demand 341 338 337 336 336 336 Westlake (Total) Population 1,541 4,234 6,927 7,750 7,750 7,750 Water Demand (Ac/Ft)1,782 4,884 7,982 8,927 8,925 8,925 GPCPD Demand 1,032 1,030 1,029 1,028 1,028 1,028 Population Annual Growth Rate 10.6%5.0%1.1%0.0%0.0% 114 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS 11 2022 Population Estimates 2020 2021 2022 Trophy Club 13,688 14,290 14,400 Annual Growth 4.4%0.77% Annual Growth 2020 to 2022 2.57% Westlake 1,623 1,780 1,840 Annual Growth 0.13%0.20% Annual Growth 2020 to 2022 0.16% 2045 Demographic Forecast 2015 HH Pop 2030 HH Pop 2045 HH Pop Trophy Club 10,405 11,294 12,310 Annual Growth 2015 to 2030 0.55% Annual Growth 2015 to 2045 0.56% 115 1212© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TCMUD PLANNING 12 116 1313© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TCMUD PLANNING 13 117 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WESTLAKE DEVELOPMENTS IN TCMUD 14 New Development estimated to be on-line by 2025 118 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC INITIAL EQUIVALENT ASSUMPTIONS 15 Current Feb 2023 2024 2025 2026 2027 2028 2029 2030 Trophy Club / TCMUD Water Equivalents 10,766 10,766 10,766 10,766 10,766 10,766 10,766 10,766 Sewer Equivalents 8,384 8,384 8,384 8,384 8,384 8,384 8,384 8,384 Westlake Water Equivalents 637 753 869 985 987 987 987 987 Sewer Equivalents 233 349 465 581 583 583 583 583 Specific to Westlake, 116 equivalents added in 2023, 2025, and 2026; 2 added in 2027 to equal a total of 350 119 TCMUD DEBT ALLOCATION 120 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TCMUD W/S DEBT SUMMARY (AS OF FY 2024) 17 Remaining Principal Remaining Interest Total Remaining Funding Source Payoff Year WWTP Debt GO Series 2014 $ 3,725,000 $ 753,575 $ 4,478,575 Taxes 2034 Rev Series 2015 6,280,000 1,286,963 7,566,963 Rate Revenue 2035 Rev Series 2019 1,518,000 749,199 2,267,199 Rate Revenue 2049 Subtotal $ 11,523,000 $ 2,789,737 $ 14,312,737 Water Line Rev Series 2016 $ 3,145,000 $ 429,907 $ 3,574,907 Rate Revenue 2036 Rev Series 2019 5,082,000 2,508,188 7,590,188 Rate Revenue 2049 Subtotal $ 8,227,000 $ 2,938,095 $ 11,165,095 121 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC REQUIREMENTS OF LGC § 43.076 •The agreement must provide for the distribution among the municipalities of the property and other assets of the district and for the pro rata assumption by the municipalities of all the debts, liabilities, and obligations of the district. •The assumption by each municipality must be based on the ratio that the value of the property and other assets distributed to that municipality bears to the total value of all the property and other assets of the district. •The determination of value may be made on an original cost basis, a reproduction cost basis, a fair market value basis, or by any other valuation method agreed on by the parties that reasonably reflects the value of the property and other assets, debts, liabilities, and obligations of the district. 18 122 19© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC KEY ISSUES FOR DETERMINING VALUE •Customers contribute to debt currently via taxes and rate revenues. ̶For customers to remain whole, value determination must take into account how customers are currently contributing to debt repayment. ̶Referred to herein as “Current State.” •Distribution / Collection Assets in Westlake Area (Solana) were installed in or earlier than 1981. ̶Assets are mostly or fully depreciated, little remaining book value. ̶Using net book value would result in limited value attributable to Westlake. •Based on planning documents for wastewater treatment plant expansion, approximately 49.5% of expansion was needed for anticipated growth in Westlake, 50.5% for Trophy Club. ̶Westlake’s service to customers in District has resulted in excess TCMUD WWTP Capacity. ̶Given difference between planning and actual conditions, how should this be reflected in the allocation process? 19 123 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC VALUE / ALLOCATION FACTORS 20 Factor No.Factor Name Description 1 Revenues Reflects 3-year average of actual rate revenue generation 2 (a)Reproduction Cost Reproduction Cost of Water/Sewer Lines 2 (b)Age Adjusted Reproduction Cost Age Adjusted Reproduction Cost of Water/Sewer Lines 3 Appraised Value Reflects 2022 appraised values 4 WWTP Expansion Planning Planned Capacity Needed for WWTP Expansion PER, Wallace Group, Dated April 203 5 WWTP Equivalent Connections Reflects February 2023 Equivalent Sewer Connections 124 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC FACTOR SUMMARY 21 Factor 1 Revenue Generation Factor 2(a) Reproduction Cost Factor 2(B) Age Adjusted Reproduction Factor 3 Appraised Value Factor 4 WWTP Plan Factor 5 WWTP Equivalents Water Trophy Club / PID 90.6%94.2%98.3%N/A N/A N/A Westlake 9.4%5.8%1.7%N/A N/A N/A Wastewater Trophy Club / PID 96.0%95.6%96.1%84.4%50.5%97.3% Westlake 4.0%4.4%3.9%15.6%49.5%2.7% 125 WATERLINE DEBT 126 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WATERLINE DEBT (CURRENT STATE ALLOCATION) 23 Factor 1 Revenues Total (%) Remaining Principal $ 8,227,000 Allocation % (3 yr avg) Trophy Club / PID 90.6% Westlake 9.4% Allocated $s Trophy Club / PID $ 7,450,371 90.6% Westlake 776,629 9.4% TOTAL $ 8,227,000 100.00% 127 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WATER DEBT (ALLOCATION RANGES) 24 Factor 1 Revenues (Current State) Factor 2(a) Reproduction Cost Factor 2(b) Age Adjusted Reproduction Cost Remaining Principal $ 8,227,000 $ 8,227,000 $ 8,227,000 Allocation Trophy Club / PID 90.6%94.2%98.3% Westlake 9.4%5.8%1.7% Allocated $s Trophy Club / PID $ 7,450,371 $ 7,751,479 $ 8,087,141 Westlake 776,629 475,521 139,859 TOTAL $ 8,227,000 $ 8,227,000 $ 8,227,000128 WWTP DEBT 129 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WWTP DEBT (CURRENT STATE ALLOCATION) 26 Factor 1 Revenues Factor 3 Appraised Value Total ($)Total (%) Remaining Principal $ 7,798,000 $ 3,725,000 $ 11,523,000 Allocation % (3 yr avg) Trophy Club / PID 96.0%84.4% Westlake 4.0%15.6% Allocated $s Trophy Club / PID $ 7,485,300 $ 3,143,528 $ 10,628,828 92.2% Westlake 312,700 581,473 894,173 7.8% TOTAL $ 7,798,000 $ 3,725,000 $ 11,523,000 100.0% 130 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WWTP DEBT (ALLOCATION RANGES) 27 Current State Factor 1 / Factor 2 Factor 3 WWTP Planning Factor 4 WWTP Equivalents Remaining Principal $ 11,523,000 $ 11,523,000 $ 11,523,000 Allocation Trophy Club / PID 92.2%50.5%97.3% Westlake 7.8%49.5%2.7% Allocated $s Trophy Club / PID $ 10,628,828 $ 5,819,115 $ 11,211,879 Westlake 894,173 5,703,885 311,121 TOTAL $ 11,523,000 $ 11,523,000 $ 11,523,000 131 28© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC KEY TAKEAWAYS / DECISION POINTS •Outstanding debt must be allocated between Westlake / Trophy Club in event of dissolution. •Any allocation that deviates substantially from the Current State will shift customer burdens. •Allocation of debt is a key variable in any scenario analysis. •For purposes of analysis, all debt payment going forward is assumed to be revenue supported. 28 132 AVOIDED COST 133 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC AD VALOREM TAX •Ad Valorem Tax is currently used to support a single debt issuance for the WWTP and Non-Departmental Expense (Legal, Audit, Appraisal). •Key assumptions: ̶All debt payment going forward is assumed to be revenue supported. ̶Non-departmental expense is assumed to be replaced with City Support Services if MUD is dissolved ̶If MUD is not dissolved, expense is assumed to remain but be paid via rate revenues as a traditional enterprise fund. 30 134 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC POTENTIAL COST REDUCTIONS FROM DISSOLUTION 31 FY 2019 FY 2020 FY 2021 FY 2022 Board of Directors Expense $ 2,500 $ 1,733 $ 2,680 $ 2,751 Non-Departmental Legal $ 138,579 $ 109,011 $ 42,018 $ 55,890 Auditing 26,460 31,908 21,000 25,375 Appraisal 11,057 11,909 11,122 14,682 Tax Admin Fees 3,653 3,756 3,821 3,874 Subtotal $ 179,748 $ 156,584 $ 77,961 $ 99,721 TOTAL $ 182,248 $ 158,317 $ 80,641 $ 102,472 Water and Sewer Equivalents 18,753 18,916 19,115 19,229 ANNUAL Savings Per Equivalent $ 9.72 $ 8.37 $ 4.22 $ 5.33 135 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC PERSONNEL 32 Operations Customer Billing Administration / Overhead Operations Manager Senior Utility Billing Clerk General Manager Water Supervisor Utility Billing Clerk Finance Manager Water Chief Operator District Secretary Water Operator (2x)Staff Accountant Wastewater Supervisor Wastewater Chief Operator Wastewater Operator (2x) Only existing personnel overlap exists within Administration / Overhead Positions 136 3333© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC CURRENT ESTABLISHED PAY RANGE BY POSITION 33 Low Mid High Director MUD $ 138,756 $ 174,319 $ 209,881 Trophy Club (CD)112,320 131,747 151,174 Westlake (PW)118,000 150,000 170,000 Finance Manager MUD 109,594 137,682 165,770 Trophy Club 117,936 138,341 158,725 Westlake 92,000 105,000 118,000 Town/District Secretary MUD 75,272 94,563 113,856 Trophy Club Not provided Not Provided Not Provided Westlake 92,000 105,000 118,000 Staff Accountant MUD 59,309 74,509 89,710 Trophy Club (Accountant)55,162 64,813 74,464 Westlake (Accountant II)53,366 62,616 71,866 Redacted to maintain privacy and confidentiality of Personnel Data 137 3434© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC KEY TAKEAWAYS / DECISION POINTS •Some limited cost savings may be realized on dissolution ̶Will these be offset by transfers required from new Trophy Club Utility to Trophy Club General Fund? 34 138 WHOLESALE EXPENSE 139 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC FT. WORTH WATER COST 36 Study for FY 2020 2021 2022 2023 TCMUD Projected Revenues $ 2,146,429 $ 1,911,335 $ 2,275,421 $ 2,194,896 TY Volumes (MG)797.26 679.07 754.47 715.90 Effective Cost per 1,000 $ 2.69 $ 2.81 $ 3.02 $ 3.07 Westlake Projected Revenues $ 1,432,341 $ 1,225,439 $ 1,351,543 $ 1,482,783 TY Volumes (MG)510.93 441.35 462.53 468.33 Effective Cost per 1,000 $ 2.80 $ 2.78 $ 2.92 $ 3.17 Variance in Source Cost $ 0.11 ($0.04)($0.09)$0.10 Source: Ft. Worth Wholesale Water Studies 140 37© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC FT. WORTH WATER COST •Charges from Ft. Worth consist of a Volumetric Charge, a Billing Charge, and Fixed Charges reflective of Excess Capacity Use. •Charges vary every year based on efficiency and overall demand of customers. •Proposed assumption: Given the variation year to year, and the fairly minor difference in cost, assume the same unit cost of water between TCMUD and Westlake specific to purchases from Ft. Worth. 37 141 3838© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC DENTON CREEK REGIONAL WASTEWATER SYSTEM Westlake Sewer Provider 38 Year Debt Rate O&M Total Rate 2023 $ 5.268 $ 1.726 $ 6.994 2024 9.519 1.724 11.243 2025 11.183 1.729 12.912 2026 10.821 1.610 12.431 2027 9.483 1.499 10.928 2028 7.659 1.395 9.054 Source: Trinity River Authority, Cost of Service Detail, January 2023 •Scenario Analysis assuming Westlake is responsible for sewer service will need to account for wholesale treatment cost 142 OPERATIONS AND MAINTENANCE EXPENSE 143 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC HISTORICAL WATER VARIABLE O&M VALUES 40 2019 2020 2021 2022 TCMUD Water Variable O&M $ 135,647 $ 153,490 $ 148,759 $ 168,960 Water Produced (kgal)862,486 926,776 906,424 1,101,020 Cost per 1,000 gal $ 0.16 $ 0.17 $ 0.16 $ 0.15 Westlake Water Variable O&M $ 389,639 $ 272,467 $ 244,442 Water Sold (kgal)422,635 492,376 463,536 Cost per 1,000 gal $ 0.92 $ 0.55 $ 0.52 144 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC HISTORICAL WATER FIXED O&M VALUES 41 2019 2020 2021 2022 TCMUD Water Fixed O&M $ 888,625 $ 865,735 $ 907,280 $ 1,169,776 Equivalents 9,782 9,866 9,972 10,613 Cost per Equivalent $ 90.85 $ 87.75 $ 90.98 $ 110.22 Annual Growth Rate 6.7% Westlake Water Fixed O&M $ 398,143 $ 408,204 $ 364,833 Equivalents 2,163 2,249 2,339 Cost per Equivalent $ 184.07 $ 181.50 $ 155.98 145 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC HISTORICAL SEWER VARIABLE O&M VALUES 42 2019 2020 2021 2022 TCMUD Sewer Variable O&M $ 178,920 $ 166,189 $ 174,997 $ 203,419 Sewer Treated (kgal )363,316 353,197 354,313 329,080 Cost per 1,000 gal $ 0.49 $ 0.47 $ 0.49 $ 0.62 Westlake Sewer (Values are de minimus due to Wholesale Treatment) Variable O&M $ 3,945 $ 3,360 $ 3,377 146 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TCMUD HISTORICAL SEWER O&M VALUES 43 2019 2020 2021 2022 TCMUD Sewer Fixed O&M $ 875,423 $ 995,792 $ 1,243,871 $ 1,215,593 Equivalents 8,972 9,050 9,143 8,616 Cost per Equivalent $ 97.58 $ 110.03 $ 136.05 $ 141.09 Annual Growth Rate 13.1% Westlake Sewer Fixed O&M $ 123,141 $ 126,184 $ 66,824 Equivalents 1,146 1,190 1,238 Cost per Equivalent $ 107.45 $ 106.04 $ 53.98 147 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TCMUD HISTORICAL ADMINISTRATIVE O&M VALUES 44 2019 2020 2021 2022 TCMUD Administrative Total Cost $ 1,117,756 $ 1,230,601 $ 1,448,713 $ 1,322,101 Equivalents Water 9,782 9,866 9,972 10,613 Sewer 8,972 9,050 9,153 8,616 Total 18,753 18,916 19,115 19,229 Cost per Equivalent $ 59.60 $ 65.06 $ 75.79 $ 68.76 148 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WESTLAKE HISTORICAL ADMINISTRATIVE O&M VALUES 45 2019 2020 2021 Westlake Transfers Out Total Cost $ 481,992 $ 430,866 $ 553,706 Equivalents Water 2,163 2,249 2,339 Sewer 1,146 1,190 1,238 Total 3,309 3,439 3,577 Cost per Equivalent $ 145.66 $ 125.29 $ 154.80 149 PRELIMINARY OBSERVATIONS 150 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC PRELIMINARY OBSERVATIONS •Existing water and sewer service to Westlake ratepayers is, under current rates, more expensive than service from TCMUD. ̶Allocation of TCMUD debt to Westlake customers will potentially contribute to higher cost to these ratepayers. ̶Any payment sought for the value of embedded assets only drives up cost to customers. •Loss of Westlake ratepayers as contributors to TCMUD Fixed Cost will increase unit cost to Trophy Club ratepayers. ̶Limited potential for fixed cost savings; some offset will potentially occur. ̶Situation will not correct over time due to limited growth in Trophy Club. ̶Requiring Westlake to “make whole” this differential will only contribute to the problem and drive higher costs to ratepayers. 47 151 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC PRELIMINARY OBSERVATIONS •Some avoided cost / cost savings may be realized from dissolution. ̶Non-departmental expense will potentially be avoided assuming no cost increases for Westlake / Trophy Club (e.g., General Fund transfer) ̶Some personnel savings might be realized, but sensitivity of issue must be appreciated. •Represents opportunity for Westlake / Trophy Club to enhance existing staffing or fill vacant positions. •Reconciliation of existing pay differential may result in some limited savings. ̶Cost savings alone are insufficient to support dissolution. 48 152 NEXT STEPS 153 50© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC NEXT STEPS •Finalize Assumptions and Complete Scenario Analysis. ̶Includes determination on capital investment under each scenario. •Present and Discuss Scenario Analysis with Working Group. •Prepare Presentation of Scenario Analysis and Findings / Conclusions for Public Presentation. •Proposed Meeting: June 22nd (Th) or June 23rd (F) 50 154 SUPPORTING INFORMATION 155 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC FACTOR 1 – REVENUE GENERATION-BASED ALLOCATION (% OF OVERALL REVENUE) 52 FY 2020 FY 2021 FY 2022 Weighted Average Water Trophy Club / PID 90.9%90.4%90.3%90.6% Westlake 9.1%9.6%9.7%9.4% Wastewater Trophy Club / PID 95.9%95.9%96.1%96.0% Westlake 4.1%4.1%3.9%4.0% 156 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC FACTOR 2(A) – W/WW LINE VALUE-BASED ALLOCATION (BASED ON ESTIMATED REPRODUCTION COST) 53 Water Sewer Reproduction Cost ($) TCMUD / PID $ 52,830,975 $ 47,306,800 Westlake 3,238,439 2,165,921 Subtotal $ 56,069,414 $ 49,472,721 Reproduction Cost (%) TCMUD / PID 94.2%95.6% Westlake 5.8%4.4% Subtotal 100.00%100.00% 157 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC FACTOR 2(B) – W/WW LINE VALUE-BASED ALLOCATION (BASED ON ESTIMATED RCNLD) 54 Water Sewer Reproduction Cost ($) TCMUD / PID $ 29,986,778 $ 31,006,455 Westlake 517,619 1,249,737 Subtotal $ 30,504,397 $ 32,256,192 Reproduction Cost (%) TCMUD / PID 98.3%96.1% Westlake 1.7%3.9% Subtotal 100.0%100.0% 158 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC FACTOR 3 – APPRAISED VALUE-BASED ALLOCATION (BASED ON FY 2022 VALUES) 55 $s of Valuation % Trophy Club MUD (Excluding Westlake)$ 1,743,158,585 PID 919,078,121 Subtotal $ 2,662,236,706 84.4% Westlake $ 492,506,770 15.6% Total $ 3,154,743,476 100.00% 159 ATTACHMENT C: THIRD MEETING TALKING POINTS MEMORANDUM AND PRESENTATION TROPHY CLUB MUD FEASIBILITY STUDY FINDINGS SUMMARY STATUS REPORT OCTOBER 2023 160 Memorandum Economics | Strategy | Stakeholders | Sustainability www.newgenstrategies.net 275 W. Campbell Road Suite 440 Richardson, TX 75080 Phone: (972) 680-2000 To: High Level Talking Points from June 30, 2023 Workgroup Meeting #3 – Confidential From: Chris Ekrut, Partner and Chief Financial Officer, NewGen Strategies & Solutions, LLC Date: July 12, 2023 Re: Trophy Club MUD Dissolution Feasibility Study Meeting Talking Points: • The consultants met with the workgroup representatives to present the analysis prepared for the 5 scenarios, answer questions and discuss the assumptions and to discuss next steps. The focus for the meeting was to present findings and present/discuss numerous assumptions and elicit feedback/consensus/direction from those in attendance. Confidentiality of the data in the presentation is critical. • There was general agreement that following this workgroup session the next step should be a presentation to both Town Councils and the MUD Board. Consensus was strong that the presentation should be delivered in one session with all present for transparency. • The consultants have provided a preliminary “Executive Summary” version of the presentation to the Town Managers of Westlake and Trophy club and to the General Manager of the MUD for their review and comment. • There will be a revision of cost projections in the next version of the presentation due to the availability of updated Operations and Maintenance costs for Trophy Club MUD. Therefore, all the numbers in the scenarios presented on June 30, 2023, should be viewed as preliminary pending the update of the financial models with the revised O & M cost forecast. • Following the presentation to all governing bodies, if all parties agree, there could be a “Go/No Go” vote on whether to proceed with Phase Two of the process described in the contract with NewGen. • Phase Two is described as the “Development and Execution of a Formal Agreement” which would include the formal documentation to consummate the “transaction” and the procurement of any necessary formal regulatory approval for the proposed transaction. The transaction could be either an acquisition or dissolution of the MUD, or potentially possibly some alternative agreement under one of the alternative scenarios. 161 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TROPHY CLUB MUD FEASIBILITY STUDY PROJECT MEETING #3 June 30, 2023 Confidential Draft 162 2© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC AGENDA 1.Methodology and Assumptions 2.Review of Scenario Analysis 3.Findings and Conclusions 4.Next Steps 2Confidential Draft 163 3© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC CAVEATS •All information should be considered a work in process. Changes/refinements may be needed based on stakeholder group input or additional source documentation •Numbers in presentation are rounded where appropriate •Some information could be considered sensitive/ confidential. Please be respectful and keep this information within the working group until final documentation is released. •If you have suggestions/changes, please let the Project Team know as soon as possible. 3Confidential Draft 164 METHODOLOGY AND ASSUMPTIONS Confidential Draft 165 5© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC FOUNDATIONAL ASSUMPTIONS •Study excludes the Fire Department and cost of Fire Services •Analysis treats the MUD as a true enterprise – all expenditures paid via utility revenues and no tax monies or payment in lieu of taxes assumed •MUD debt responsibility allocated between Trophy Club and Westlake reflective of current repayment methods •If dissolution occurs, Westlake customers will not be asked to pay for embedded infrastructure – it has already been paid for by ratepayers •Ft. Worth wholesale service costs are assumed to be the same, per unit, between the MUD and Westlake •Only capital investment included in analysis is reflective of current debt 5Confidential Draft 166 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC GROWTH ASSUMPTIONS 6 Current Feb 2023 2024 2025 2026 2027 2028 2029 2030 Trophy Club / TCMUD Water Equivalents 10,766 10,766 10,766 10,766 10,766 10,766 10,766 10,766 Sewer Equivalents 8,384 8,384 8,384 8,384 8,384 8,384 8,384 8,384 Westlake Water Equivalents 637 753 869 985 987 987 987 987 Sewer Equivalents 233 349 465 581 583 583 583 583 Specific to Westlake, 116 equivalents added in 2023, 2025, and 2026; 2 added in 2027 to equal a total of 350 Confidential Draft 167 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WATER ERU CALCULATION 7 Meter Size ERU Factor MUD/PID Connections MUD/PID Equivalents Westlake Connections Westlake Equivalents 5/8”1.0 34 34 3/4"1.0 2,471 2,471 2 2 1”2.5 2,335 5,838 1 3 1 ½”5.0 31 155 1 5 2”8.0 91 728 19 152 3”15.0 12 330 20 300 4”25.0 10 250 7 175 6”50.0 16 800 8”80.0 2 160 Subtotal 5,012 10,766 50 637 Confidential Draft 168 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC SEWER ERU CALCULATION 8 Meter Size ERU Factor MUD/PID Connections MUD/PID Equivalents Westlake Connections Westlake Equivalents 5/8”1.0 33 33 3/4"1.0 2,445 2,445 1”2.5 2,083 5,208 1 ½”5.0 17 85 2”8.0 31 248 1 8 3”15.0 11 165 10 150 4”25.0 4 100 3 75 6”50.0 2 100 Subtotal 4,626 8,384 14 233 Confidential Draft 169 9© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC ANALYSIS METHODOLOGY •Impact of various scenarios examined over a 10-year timeframe •“Base case” established to determine anticipated per meter equivalent and per 1,000 gallon of service cost to customers assuming no change in operations / continuation of MUD ̶For simplicity, presentation presents per meter equivalent analysis •Scenarios prepared accounting for cost changes under alternative governance / operational parameters which were then compared back to the “base case” •Analysis is heavily dependent on assumptions – in the event assumptions do not reflect actual circumstances, then modifications to analysis may be required 9Confidential Draft 170 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC ANALYSIS METHODOLOGY •Fixed Cost ̶Calculated historically on a per meter equivalent basis in a “base” year dependent on available information (TCMUD 2022, Westlake 2021) ̶Base year adjusted to 2024 using an historical average annual growth rate or 3% if historical unit cost has decreased ̶Fixed cost then escalated annually using historical average annual growth rate or 3% if historical unit case has decreased – allows for a potential reduction in unit cost based on growth •Variable Cost ̶Calculated historically on a per meter equivalent basis in a “base” year dependent on available information (TCMUD 2022, Westlake 2021) ̶Base year adjusted to 2024 using an historical average annual growth rate or, 3% if historical unit cost has decreased ̶Unit cost in each year multiplied by assumed volumes, which are predicated on historical, per meter equivalent use 10 Confidential Draft 171 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC ANALYSIS METHODOLOGY – FIXED COST EXAMPLE 11 Base Year 2024 2025 2026 Fixed Cost per Meter Equivalent $ 100 Base Year 2022 Escalation Rate 5% Calculated 2024 Cost $110.25 Assumed Meter Equivalents 100 110 120 Calculated Fixed Cost $ 11,025 $ 11,576 $ 12,155 Fixed Cost per Equivalent $ 110.25 $ 105.24 $ 101.29 •Methodology recognizes that, if growth is occurring at a faster rate than the rate of inflation, unit cost (either per meter equivalent or per 1,000 gallons) can decrease •Methodology Limitation: Assumes no new programs or new personnel are added Confidential Draft 172 REVIEW OF SCENARIO ANALYSIS Confidential Draft 173 13© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC SCENARIO SUMMARY 13 Scenario Number Scenario Name Scenario Description 1 Base Case Status Quo – Continue TCMUD as is with no changes 2 Complete Dissolution TCMUD divided between Trophy Club and Westlake – Westlake provides own water and sewer service 3 Dissolution with Continuing Wholesale Sewer Service TCMUD divided between Trophy Club and Westlake – Westlake provides own water but contracts with Trophy Club for wholesale sewer treatment service 4 PID Annexed into MUD / Westlake Separate Service MUD Remains and Annexes PID – Westlake provides own water and sewer service 5 PID Annexed into MUD / Westlake Separate Service (Water Only) MUD Remains and Annexes PID – Westlake provides own water but contracts with Trophy Club for wholesale sewer treatment service Confidential Draft 174 14© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC SCENARIO SUMMARY 14 Scenario Number Service Provider to Trophy Club Service Provider to Westlake 1 Water – TCMUD Sewer – TCMUD Water – TCMUD Sewer – TCMUD 2 Water – Trophy Club Sewer – Trophy Club Water – Westlake Sewer – Westlake 3 Water – Trophy Club Sewer – Trophy Club Water – Westlake Sewer – Trophy Club 4 Water – TCMUD Sewer – TCMUD Water – Westlake Sewer – Westlake 5 Water – TCMUD Sewer – TCMUD Water – Westlake Sewer – TCMUD Confidential Draft 175 SCENARIO 1 Base Case / Status Quo Confidential Draft 176 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC SCENARIO 1 – BASE CASE •Key Assumptions: ̶Base cost values reflect FY 2022 actual cost •Ft. Worth Wholesale Reflects FY 2023 cost ̶Cost escalation factors reflect trend from FY 2019 through FY 2022 ̶If unit cost decreased historically, assumed 3% cost escalation ̶11% water loss based on TCMUD Continuing Disclosures ̶80% of water purchased from Ft. Worth, 20% generated from wells ̶Non-Operating Expense and Debt Expense currently paid via tax assumed to be paid through rate revenues 16 Confidential Draft 177 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC BASE O&M / WHOLESALE COST ASSUMPTIONS 17 Water Sewer Wholesale Cost per 1,000 gallons $ 2.99 N/A Escalation Rate 4.4% Fixed O&M per Meter Equivalent $ 110.22 $ 141.09 Escalation Rate 6.7%13.1% Variable O&M per 1,000 gallons $ 0.15 $ 0.43 Escalation Rate 3.0%3.0% Admin O&M per Meter Equivalent $ 68.76 $ 68.76 Escalation Rate 4.9%4.9% Board / Non-Operating per Meter Equivalent $ 5.33 $ 5.33 Escalation Rate 3.0%3.0% Confidential Draft 178 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC SCENARIO 1 – BASE CASE (COST PER METER EQUIVALENT) 18 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 Water $42.93 $44.84 $46.80 $48.89 $51.13 $53.52 $56.06 $58.70 $61.48 $64.37 Sewer $34.59 $36.53 $38.68 $41.11 $44.30 $47.90 $51.88 $56.39 $61.38 $67.01 $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 Base Case Cost per Meter Equivalent Confidential Draft 179 SCENARIO 2 Complete Dissolution Confidential Draft 180 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC SCENARIO 2 – COMPLETE DISSOLUTION •Key Assumptions: ̶Wholesale Costs •Equivalent value for Ft. Worth wholesale •Projection of TRA Wholesale Sewer Rate to Westlake (8% I/I Factor) ̶O&M Costs •O&M costs for Trophy Club reflective of FY 2022 historical values for TCMUD •O&M Costs for Westlake based on FY 2021 historical values •Non-departmental / Board Expense is completely avoided (~$100K) •Administrative Cost – Assumed Reduction of 11.3% (~$78K) ̶General Fund Transfer •Equivalent to 5% of O&M for Trophy Club •Reflective of historical per equivalent cost for Payroll (PR) Transfer, % of O&M for GF Transfer for Westlake ̶Debt •Allocated to each entity based on current contributions to debt repayment 20 Confidential Draft 181 21© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TRA PROJECTED WHOLESALE COST 21 $11.24 $12.91 $12.43 $10.93 $9.05 $9.33 $9.61 $9.89 $10.19 $10.50 $- $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 TRA Wholesale Cost per 1,000 Gallons •TRA actual projection through 2028, 3% escalation for remainder of forecast •Assumption is a significant driver of overall resultsConfidential Draft Confidential Draft 182 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC ADMIN COST REDUCTION 22 Low Mid High TCMUD Admin Position Cost (Fully Loaded, FY 2023) $ 694,608 $ 694,608 $ 694,608 Trophy Club Comparable Position Cost (Direct)$ 445,841 $ 496,301 $ 546,721 Assumed Overhead Factor 35%35%35% Fully Loaded Comparable Position Cost $ 547,702 $ 615,824 $ 683,890 Reduction ($)($ 146,906)($78,784)($10,718) Reduction (%)(21.1%)(11.3%)(1.5%) •No comparable position for District Secretary, TCMUD equivalent value utilized and overhead factor not applied Confidential Draft 183 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WESTLAKE PR TRANSFER 23 Water Sewer FY 2019 PR Transfer $ 377,594 $ 94,398 Meter Equivalents 2,163 1,146 Cost per Meter Equivalent $ 174.57 $ 82.37 FY 2020 PR Transfer $ 328,693 $ 82,173 Meter Equivalents 2,249 1,190 Cost per Meter Equivalent $ 146.15 $ 69.05 FY 2021 PR Transfer $ 380,565 $ 95,141 Meter Equivalents 2,339 1,238 Cost per Meter Equivalent $ 162.70 $ 76.85 ** Assumption is a significant driver of overall results Confidential Draft 184 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WESTLAKE GF FUND TRANSFER 24 Water Sewer FY 2019 GF Transfer Out $ 163,810 $ 40,953 Fixed and Variable O&M 787,782 127,086 Transfer as % of O&M 20.8%32.2% FY 2020 GF Transfer Out $ 61,726 $ 15,432 Fixed and Variable O&M 680,671 129,544 Transfer as % of O&M 9.1%11.9% FY 2021 GF Transfer Out $ 164,011 $ 41,003 Fixed and Variable O&M 609,275 70,201 Transfer as % of O&M 26.9%58.4% Analysis Assumption Utilized 18.7%29.8% ** Assumption is a significant driver of overall results Confidential Draft 185 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC DEBT ALLOCATIONS 25 Trophy Club Westlake Water Revenue Series 2016 90.6%9.4% Revenue Series 2019 (77%)90.6%9.4% Wastewater GO Series 2014 84.4%15.6% Revenue Series 2015 96.0%4.0% Revenue Series 2019 (23%)96.0%4.0% •Methodology recognizes debt repayment based on current revenue generation (e.g., rates and taxes) •Methodology Limitation: Allocation is static based on current conditions, as operational conditions change, allocation percentages will shift Confidential Draft 186 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC BASE O&M / WHOLESALE COST ASSUMPTIONS (TROPHY CLUB) 26 Water Sewer Wholesale Cost per 1,000 gallons $ 2.99 N/A Escalation Rate 4.4% Fixed O&M per Meter Equivalent $ 113.97 $ 145.01 Escalation Rate 6.7%13.08% Variable O&M per 1,000 gallons $ 0.15 $ 0.43 Escalation Rate 3.0%3.0% Admin O&M per Meter Equivalent $ 62.86 $ 62.86 Escalation Rate 4.9%4.9% Confidential Draft 187 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC BASE O&M / WHOLESALE COST ASSUMPTIONS (WESTLAKE) 27 Water Sewer Wholesale Cost per 1,000 gallons $ 2.99 See Schedule Escalation Rate 4.4% Fixed O&M per Meter Equivalent $ 155.98 $ 53.98 Escalation Rate 3.0%3.0% Variable O&M per 1,000 gallons $ 0.53 N/A (Insignificant Value) Escalation Rate 3.0% Confidential Draft 188 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TROPHY CLUB - SCENARIO 1 VS SCENARIO 2 COST PER METER EQUIVALENT 28 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 Scenario 2 $76.64 $81.13 $85.97 $91.31 $97.08 $103.46 $110.41 $118.06 $126.39 $135.55 $(10.00) $10.00 $30.00 $50.00 $70.00 $90.00 $110.00 $130.00 $150.00 •While some limited savings to water customers may be realized (~$0.80 a month), higher sewer costs lead to cost increase to customers Confidential Draft 189 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WESTLAKE - SCENARIO 1 VS SCENARIO 2 COST PER METER EQUIVALENT 29 •Higher cost is a direct result of transfer assumptions and wastewater treatment cost from TRA 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 Scenario 2 $223.71 $218.81 $206.04 $189.24 $177.65 $183.23 $188.97 $194.99 $201.08 $207.45 $- $50.00 $100.00 $150.00 $200.00 $250.00 Confidential Draft 190 SCENARIO 3 Dissolution with Continuing Wholesale Sewer Service Confidential Draft 191 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC SCENARIO 3 – DISSOLUTION WITH CONTINUING WHOLESALE SEWER SERVICE •Key Assumptions: ̶Water – Same as Scenario 2 for both Trophy Club and Westlake ̶Sewer – Westlake matches Scenario 2 for Trophy Club 31 Confidential Draft 192 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TROPHY CLUB - SCENARIO 1 VS SCENARIO 3 COST PER METER EQUIVALENT 32 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 Scenario 3 $76.66 $80.64 $84.90 $89.59 $95.14 $101.28 $107.95 $115.28 $123.26 $132.03 $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 Confidential Draft 193 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WESTLAKE - SCENARIO 1 VS SCENARIO 3 COST PER METER EQUIVALENT 33 •Higher cost is a direct result of transfer assumptions 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 Scenario 3 $109.16 $110.06 $112.10 $115.13 $121.11 $127.71 $134.85 $142.62 $151.02 $160.19 $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00 $180.00 Confidential Draft 194 SCENARIO 4 PID Annexed into MUD / Westlake Separate Service Confidential Draft 195 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC SCENARIO 4 – PID ANNEXED INTO MUD / WESTLAKE SEPARATE SERVICE •Key Assumptions: ̶Trophy Club •Mirrors Scenario 1 with higher unit cost values •Includes full Admin and Non-Operating / Board Cost ̶Westlake – Same as Scenario 2 35 Confidential Draft 196 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TROPHY CLUB - SCENARIO 1 VS SCENARIO 4 COST PER METER EQUIVALENT 36 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 Scenario 4 $78.35 $82.77 $87.52 $92.77 $98.44 $104.69 $111.49 $118.97 $127.09 $136.02 $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00 Confidential Draft 197 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WESTLAKE - SCENARIO 1 VS SCENARIO 4 COST PER METER EQUIVALENT 37 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 Scenario 4 $223.71 $218.81 $206.04 $189.24 $177.65 $183.23 $188.97 $194.99 $201.08 $207.45 $- $50.00 $100.00 $150.00 $200.00 $250.00 •Higher cost is a direct result of transfer assumptions and wastewater treatment cost from TRA Confidential Draft 198 SCENARIO 5 PID Annexed into MUD / Westlake Separate Service (Water Only) Confidential Draft 199 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC SCENARIO 5 – PID ANNEXED INTO MUD / WESTLAKE SEPARATE WATER SERVICE •Key Assumptions: ̶Trophy Club •Mirrors Scenario 1 with higher unit cost values for water, same unit cost values for sewer •Includes full Admin and Non-Operating / Board Cost ̶Westlake •Mirrors Scenario 2 for Water and Scenario 1 for Sewer 39 Confidential Draft 200 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TROPHY CLUB - SCENARIO 1 VS SCENARIO 5 COST PER METER EQUIVALENT 40 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 Scenario 5 $77.45 $81.37 $85.55 $90.15 $95.59 $101.60 $108.13 $115.30 $123.08 $131.62 $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 Confidential Draft 201 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WESTLAKE - SCENARIO 1 VS SCENARIO 5 COST PER METER EQUIVALENT 41 •Higher cost is a direct result of transfer assumptions 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 Scenario 5 $124.03 $122.94 $123.51 $125.40 $131.58 $138.38 $145.71 $153.67 $162.24 $171.56 $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00 $180.00 $200.00 Confidential Draft 202 FULL SCENARIO COMPARISON Confidential Draft 203 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TROPHY CLUB - ALL SCENARIOS COST PER METER EQUIVALENT 43 $70.00 $80.00 $90.00 $100.00 $110.00 $120.00 $130.00 $140.00 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Confidential Draft 204 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WESTLAKE- ALL SCENARIOS COST PER METER EQUIVALENT 44 $70.00 $90.00 $110.00 $130.00 $150.00 $170.00 $190.00 $210.00 $230.00 $250.00 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 •Scenarios 2/4 are the same and are impacted by TRA Wholesale Treatment Cost Confidential Draft 205 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TROPHY CLUB - ALL SCENARIOS COST PER 1,000 GALLONS 45 $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 $24.00 $26.00 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Confidential Draft 206 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WESTLAKE- ALL SCENARIOS COST PER 1,000 GALLONS 46 •Scenarios 2/4 are the same and are impacted by TRA Wholesale Treatment Cost $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 $24.00 $26.00 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Confidential Draft 207 47© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TRENDS TO NOTE •While Westlake service on a per meter equivalent basis is projected to be more expensive, by the end of the forecast the cost per 1,000 gallon values are in alignment with Trophy Club and, in some cases, more cost effective ̶Westlake’s unit cost decreases over time (growth) ̶Trophy Club’s unit cost increases over time (no growth) •Westlake analysis heavily impacted by number of connections and resulting volumes ̶As Westlake unit cost decreases with growth there is a potential that Westlake customers could experience more cost effective service on a per unit basis than Trophy Club 47Confidential Draft 208 FINDINGS AND CONCLUSIONS Confidential Draft 209 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC “ I wish there was a way for me to wave a conclusive set of numbers, indisputable to the fourth decimal place that would yield an answer to satisfy everybody. I can’t, and I don’t think anybody can. Numbers can always be challenged and even discredited.” -Lewis McClain, Report to Trophy Club Entities “Reliance on Arithmetic to Resolve a Fractured Governance Issue” 49 Confidential Draft 210 50© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC KEY QUESTIONS •Does it make financial sense to combine the Town of Trophy Club and the MUD? Answer: Likely no, but it depends on . . . 1.Can cost savings be realized? •Potentially, but savings are likely not significant •Some savings could be personnel related, which is likely not in the best interest of the entities 2.How much money will be transferred from the Utility back to each entities’ respective General Fund? 3.What weight should be given to Qualitative Factors? 50Confidential Draft 211 51© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC POTENTIAL QUALITATIVE IMPACTS •Less confusion for Residents and Business •Single point of contact for service and communication •Potentially streamlined planning •Representation and voice for PID residents •Potential personnel gains •Limited, but potential, economies of scale ̶Trophy Club isn’t currently making utility related purchases •Revenue source enhancement through transfers / other payments 51Confidential Draft 212 52© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC OPTIONS •Option 1 – MAINTAIN STATUS QUO ̶Some residents of Westlake paying taxes associated with service not received ̶PID residents do not have representation on MUD Board •Option 2 – MOVE FORWARD WITH DISSOLUTION ̶Concerns RE: Personnel Impacts ̶Will likely lead to higher, near-term cost to customers •Option 3 – EVALUATE A LONGER-TERM PATH ̶Dissolution with governance through Board of Trustees (43.076(f)) ̶Would allow for measured and purposeful unwinding 52Confidential Draft 213 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WESTLAKE PAYMENT UNDER OPTION 2 •If Westlake were to “buy-out”, what is the estimate of that value? 53 Water Sewer Total Outstanding Debt Principal Allocable to Westlake $ 776,995 $ 894,047 $ 1,671,042 “Make-Whole” Payment to Trophy Club $ 1,609,565 $ 1,748,851 $ 3,358,416 Total $ 2,386,560 $ 2,642,898 $ 5,029,458 •Methodology assumes payment for principal only as debt can either be defeased or assumes interest earnings on balance would be greater than interest payable •“Make -Whole” payment calculated as follows: •Calculated the difference per monthly meter equivalent between Scenarios 1 and 2 for Trophy Club •Annualize the variance and multiply by Trophy Club Meter Equivalents in each Year •Calculate variance over the 10 year forecast •Calculate present value of the difference utilizing a 5% discount rate Confidential Draft 214 NEXT STEPS Confidential Draft 215 55© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC NEXT STEPS •Refine and Finalize Deliverable for Public Presentation •Work with key contacts to arrange meetings with City Councils of Westlake and Trophy Club and meeting with TCMUD Board 55Confidential Draft 216 QUESTIONS AND DISCUSSION CHRIS EKRUT, PARTNER AND CFO (972) 232-2234CEKRUT@NEWGENSTRATEGIES.NET 217 ATTACHMENT D: EXECUTIVE SUMMARY PRESENTATION TROPHY CLUB MUD FEASIBILITY STUDY FINDINGS SUMMARY STATUS REPORT OCTOBER 2023 218 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TROPHY CLUB MUD FEASIBILITY STUDY EXECUTIVE SUMMARY July 2023 Confidential Draft 219 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC INTRODUCTION •NewGen Strategies and Solutions was jointly engaged by the Town of Trophy Club, the Town of Westlake, and the Trophy Club Municipal Utility District to evaluate the impacts and feasibility of dissolving the District, with future service to be provided by the respective Towns •The NewGen Project Team worked with a group of Key Stakeholders to outline scenarios for consideration and to define and agree on a methodology and assumptions specific to the analysis to be performed. •The stakeholder group met three times and provided substantial information and input to the Project Team, resulting in the analysis contained herein. 2 220 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC STAKEHOLDER GROUP MEMBERS •Town of Westlake ̶Sean Kilbride ̶Wade Carroll 3 •Town of Trophy Club ̶Steve Flynn ̶Jeffrey Beach ̶Patrick Arata •Trophy Club Municipal Utility District ̶Kevin Carr ̶Doug Harper ̶Alan Fourmentin •Consulting Project Team ̶NewGen - Chris Ekrut, Becky Schafer ̶Kimley-Horn & Associates – Chris Connolly 221 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC STUDY METHODOLOGY •Impact of various scenarios were examined over a 10-year timeframe •A “base case” was established to determine anticipated per meter equivalent and per 1,000 gallon of service cost to customers assuming no change in operations / continuation of the Municipal Utility District ̶For simplicity, results are presented on per meter equivalent analysis •Scenarios were then prepared accounting for cost changes under alternative governance / operational parameters which were then compared back to the base case •Analysis is heavily dependent on assumptions – in the event assumptions do not reflect actual circumstances, then modifications to analysis may be required 4 222 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC FOUNDATIONAL ASSUMPTIONS •Study excludes the Fire Department and cost of Fire Services – Only considers water and wastewater service •Analysis treats the MUD as a true enterprise – All expenditures paid via utility revenues and no tax monies or payment in lieu of taxes are assumed •MUD debt responsibility is allocated between Trophy Club and Westlake reflective of current repayment methods •If dissolution occurs, it is assumed that Westlake customers will not be asked to pay for embedded infrastructure – Infrastructure has already been paid for by ratepayers •Only capital investment included in the analysis is reflective of current debt 5 223 6© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC SCENARIO SUMMARY 6 Scenario Number Scenario Name Scenario Description 1 Base Case Status Quo – Continue TCMUD as is with no changes 2 Complete Dissolution TCMUD divided between Trophy Club and Westlake – Westlake provides own water and sewer service 3 Dissolution with Continuing Wholesale Sewer Service TCMUD divided between Trophy Club and Westlake – Westlake provides own water but contracts with Trophy Club for wholesale sewer treatment service Confidential Draft 224 SCENARIO 1 RESULTS Base Case / Status Quo Confidential Draft 225 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC SCENARIO 1 – BASE CASE (COST PER METER EQUIVALENT) 8 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Total $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 Water $42.93 $44.84 $46.80 $48.89 $51.13 $53.52 $56.06 $58.70 $61.48 $64.37 Sewer $34.59 $36.53 $38.68 $41.11 $44.30 $47.90 $51.88 $56.39 $61.38 $67.01 $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 Base Case Cost per Meter Equivalent Confidential Draft 226 SCENARIO 2 RESULTS Complete Dissolution Westlake Provides its Own Water/Wastewater Service Confidential Draft 227 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TROPHY CLUB - SCENARIO 1 VS SCENARIO 2 COST PER METER EQUIVALENT 10 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 Scenario 2 $76.64 $81.13 $85.97 $91.31 $97.08 $103.46 $110.41 $118.06 $126.39 $135.55 $(10.00) $10.00 $30.00 $50.00 $70.00 $90.00 $110.00 $130.00 $150.00 •While some limited savings to water customers may be realized, higher sewer costs lead to slightly higher long-term cost increases to customers Confidential Draft 228 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WESTLAKE - SCENARIO 1 VS SCENARIO 2 COST PER METER EQUIVALENT 11 •Higher cost is a direct result of higher Westlake per unit cost of service and wastewater treatment cost from TRA 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 Scenario 2 $223.71 $218.81 $206.04 $189.24 $177.65 $183.23 $188.97 $194.99 $201.08 $207.45 $- $50.00 $100.00 $150.00 $200.00 $250.00 Confidential Draft 229 SCENARIO 3 Dissolution with Continuing Wholesale Sewer Service to Westlake from Trophy Club Confidential Draft 230 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC TROPHY CLUB - SCENARIO 1 VS SCENARIO 3 COST PER METER EQUIVALENT 13 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 Scenario 3 $76.66 $80.64 $84.90 $89.59 $95.14 $101.28 $107.95 $115.28 $123.26 $132.03 $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 Confidential Draft 231 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC WESTLAKE - SCENARIO 1 VS SCENARIO 3 COST PER METER EQUIVALENT 14 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Scenario 1 $77.52 $81.37 $85.48 $90.00 $95.43 $101.42 $107.94 $115.09 $122.86 $131.38 Scenario 3 $109.16 $110.06 $112.10 $115.13 $121.11 $127.71 $134.85 $142.62 $151.02 $160.19 $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00 $180.00 Confidential Draft 232 © 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC FINDINGS AND CONCLUSIONS •The analysis performed is based on assumptions and recent cost trends, any change in assumptions will result in a change to the analysis •It is the Project Team’s opinion that dissolution will likely lead to higher costs to customers ̶While some operational cost savings may be realized, savings are likely not significant •Overall, cost differentials for Trophy Club customers are fairly small and potential qualitative benefits may, from a policy standpoint, outweigh the impacts of these increases •As growth occurs over time, Westlake’s per unit cost of service will more closely align with the unit costs experienced by the MUD; however, in the near-term service to Westlake customers will be more expensive ̶This is particularly true if wastewater is treated through TRA as opposed to the MUD or Trophy Club 15 233 16© 2023 NEWGEN STRATEGIES AND SOLUTIONS, LLC POTENTIAL QUALITATIVE IMPACTS OF DISSOLUTION •Less confusion for Residents and Business •Single point of contact for service and communication •Potentially streamlined planning •Representation and voice for PID residents •Potential personnel gains •Limited, but potential, economies of scale ̶Trophy Club isn’t currently making utility related purchases •Revenue source enhancement through transfers / other payments 16Confidential Draft 234 CHRIS EKRUT, PARTNER AND CFO (972) 232 -2234CEKRUT@NEWGENSTRATEGIES.NET PROJECT TEAM CONTACT: 235 ATTACHMENT E: SCHEDULES 1–13 TROPHY CLUB MUD FEASIBILITY STUDY FINDINGS SUMMARY STATUS REPORT OCTOBER 2023 236 Schedule 1 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Water Meter Equivalents / Use per Equivalent % of Most Recent Monthly Active Equivalency Meter Equivalent 12 Months Consumption Connections Factor Equivalents Connections Consumption (kgal)per Equivalent (gal) MUD Residential 5/8"34 1.0 34 3/4"2,402 1.0 2,402 1"823 2.5 2,058 1 1/2"2 5.0 10 2"1 8.0 8 Subtotal 3,262 4,512 512,934,000 9,475 MUD Commercial 3/4"65 1.0 65 1"31 2.5 78 1 1/2"25 5.0 125 2"85 8.0 680 3"22 15.0 330 4"10 25.0 250 6"16 50.0 800 8"2 80.0 160 Subtotal 256 2,488 118,027,000 3,954 Trophy Club PID Residential 3/4"4 1.0 4 1"1,481 2.5 3,703 1 1/2"4 5.0 20 2"5 8.0 40 Subtotal 1,494 3,767 264,698,000 5,856 Westlake 3/4"2 1.0 2 1"1 2.5 3 1 1/2"1 5.0 5 2"19 8.0 152 3"20 15.0 300 4"7 25.0 175 Subtotal 50 637 93,310,000 12,217 SUMMARY TCMUD 3,518 6,999 61.38%630,961,000 7,513 Trophy Club PID 1,494 3,767 33.03%264,698,000 5,856 Composite 5,012 10,766 895,659,000 6,933 Westlake 50 637 5.58%93,310,000 12,217 Total 5,062 11,402 988,969,000 Page 1 of 1 237 Schedule 2 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Sewer Meter Equivalents / Flowe per Equivalent % of Most Recent Monthly Active Equivalency Meter Equivalent 12 Months Billed Volume Connections Factor Equivalents Connections Billed Volumes (kgal)per Equivalent (gal) MUD Residential 5/8"33 1.0 33 3/4"2,393 1.0 2,393 1"661 2.5 1,653 1 1/2"5.0 - 2"8.0 - Subtotal 3,087 4,079 268,183,895 5,480 MUD Commercial 3/4"52 1.0 52 1"9 2.5 23 1 1/2"16 5.0 80 2"31 8.0 248 3"11 15.0 165 4"4 25.0 100 6"2 50.0 100 8"80.0 - Subtotal 125 768 62,338,004 6,769 Trophy Club PID Residential 3/4"1.0 - 1"1,413 2.5 3,533 1 1/2"1 5.0 5 2"8.0 - Subtotal 1,414 3,538 132,955,035 3,132 Westlake 3/4"1.0 - 1"2.5 - 1 1/2"5.0 - 2"1 8.0 8 3"10 15.0 150 4"3 25.0 75 Subtotal 14 233 20,231,000 7,236 SUMMARY TCMUD 3,212 4,846 56.24%330,521,899 5,684 Trophy Club PID 1,414 3,538 41.05%132,955,035 3,132 Composite 4,626 8,384 463,476,934 4,607 Westlake 14 233 2.70%20,231,000 7,236 4,640 8,617 483,707,934 Page 1 of 1 238 Schedule 3 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study District Water O&M FY 2019 FY 2020 FY 2021 FY 2022 Account Description Actual Actual Actual Actual Water Fixed O&M 888,625$ 865,735$ 907,280$ 1,169,776$ TCMUD / PID 9,416 9,501 9,607 10,264 Westlake 366 366 366 350 Equivalent Connections (FY End)9,782 9,866 9,972 10,613 Annual Fixed O&M 90.85$ 87.75$ 90.98$ 110.22$ Annual Growth Rate 6.66% TCMUD/PID Equivalents 9,416 9,501 9,607 10,264 Annual Fixed O&M 94.37$ 91.13$ 94.44$ 113.97$ Water Variable O&M 135,647$ 153,490$ 148,759$ 168,960$ Produced Volumes 862,486 926,776 906,424 1,101,020 Cost per 1,000 gal 0.16$ 0.17$ 0.16$ 0.15$ Annual Growth Rate -0.82% Page 1 of 1 239 Schedule 4 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study District Wastewater O&M FY 2019 FY 2020 FY 2021 FY 2022 Actual Actual Actual Actual Wastewater Fixed O&M 875,423$ 995,792$ 1,243,871$ 1,215,593$ TCMUD / PID 8,731 8,809 8,902 8,383 Westlake 241 241 241 233 Equivalent Connections (FY End)8,972 9,050 9,143 8,616 Annual Fixed O&M 97.58$ 110.03$ 136.05$ 141.09$ Annual Growth Rate 13.1% TCMUD/PID Equivalents 8,731 8,809 8,902 8,383 Annual Fixed O&M 100.27$ 113.04$ 139.73$ 145.01$ Annual Growth Rate 13.1% Wastewater Variable O&M 178,920 166,189 174,997 203,419 Billed Volumes 418,237 383,549 420,076 471,820 Cost per 1,000 gal 0.43$ 0.43$ 0.42$ 0.43$ Annual Growth Rate 0.26% Page 1 of 1 240 Schedule 5 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study District Administrative / Non-Departmental Cost FY 2019 FY 2020 FY 2021 FY 2022 Actual Actual Actual Actual Administrative O&M 1,117,756$ 1,230,601$ 1,448,713$ 1,322,101$ Equivalent Connections (FY End) Water TCMUD / PID 9,416 9,501 9,607 10,264 Westlake 366 366 366 350 Sewer TCMUD / PID 8,731 8,809 8,902 8,383 Westlake 241 241 241 233 Subtotal 18,753 18,916 19,115 19,229 Cost per Equivalent 59.60$ 65.06$ 75.79$ 68.76$ Annual Growth Rate 4.9% TCMUD / PID Water 9,416 9,501 9,607 10,264 Sewer 8,731 8,809 8,902 8,383 Subtotal 18,147 18,310 18,509 18,647 Cost per Equivalent 61.60$ 67.21$ 78.27$ 70.90$ Total Board / Non-Departmental 182,248$ 158,317$ 80,641$ 102,472$ Equivalent Connections (FY End) Water TCMUD / PID 9,416 9,501 9,607 10,264 Westlake 366 366 366 350 Sewer TCMUD / PID 8,731 8,809 8,902 8,383 Westlake 241 241 241 233 Subtotal 18,753 18,916 19,115 19,229 Cost per Equivalent 9.72$ 8.37$ 4.22$ 5.33$ Annual Growth Rate -18% TCMUD / PID Water 9,416 9,501 9,607 10,264 Sewer 8,731 8,809 8,902 8,383 Subtotal 18,147 18,310 18,509 18,647 Cost per Equivalent 10.04$ 8.65$ 4.36$ 5.50$ Page 1 of 1 241 Schedule 6 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Westlake Water and Sewer O&M Water O&M Cost Fixed 398,143$ 408,204$ 364,833$ Variable 389,639 272,467 244,442 Wholesale 982,006 989,807 1,076,050 Capital 24,388 44,503 32,925 Transfer Out 385,594 344,692 428,565 Subtotal 2,179,771$ 2,059,673$ 2,146,815$ Fixed O&M Cost 398,143$ 408,204$ 364,833$ Meter Equivalents 2,163 2,249 2,339 Fixed O&M per Meter Equivalent 184.07$ 181.50$ 155.98$ Variable O&M Cost 389,639$ 272,467$ 244,442$ Billed Volumes 422,635 492,376 463,536 Variable O&M per Billable Volumes 0.92$ 0.55$ 0.53$ SEWER O&M Cost Fixed 123,141$ 126,184$ 66,824$ Variable 3,945 3,360 3,377 Wholesale 2,036,256 1,528,703 1,421,957 Capital 328 278 - Transfer Out 96,398 86,173 107,141 Subtotal 2,260,069$ 1,744,699$ 1,599,299$ Fixed O&M Cost 123,141$ 126,184$ 66,824$ Meter Equivalents 1,146 1,190 1,238 Fixed O&M per Meter Equivalent 107.45$ 106.04$ 53.98$ Page 1 of 1 242 Schedule 7 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Westlake Personnel and General Fund Transfer FY 2019 FY 2020 FY 2021 Total / % PR Transfer Out Water 377,594$ 328,693$ 380,565$ 80% Sewer 94,398 82,173 95,141 20% Subtotal 471,992$ 410,866$ 475,706$ Meter Equivalents Water 2,163 2,249 2,339 Sewer 1,146 1,190 1,238 Subtotal 3,309 3,439 3,577 Cost per Meter Equivalent Water 174.57$ 146.15$ 162.70$ Sewer 82.37 69.05 76.85 Subtotal 142.64$ 119.47$ 132.99$ GF Transfer Out Water 163,810$ 61,726$ 164,011$ 389,548$ Sewer 40,953 15,432 41,003 97,387 204,763$ 77,158$ 205,014$ 486,935$ Water Fixed O&M 398,143$ 408,204$ 364,833$ 1,171,180$ Variable O&M 389,639 272,467 244,442 906,548 Subtotal 787,782$ 680,671$ 609,275$ 2,077,728$ Transfer as a %20.8%9.1%26.9%18.7% Sewer Fixed O&M 123,141$ 126,184$ 66,824$ 316,149$ Variable O&M 3,945 3,360 3,377 10,682 Subtotal 127,086$ 129,544$ 70,201$ 326,831$ Transfer as a %32.2%11.9%58.4%29.8% Page 1 of 1 243 Schedule 8 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Outstanding Debt Allocation Revenue Series 2016 Revenue Series 2019 (77%)Subtotal GO Series 2014 Revenue Series 2015 Revenue Series 2019 (23%)Subtotal 2024 273,115$ 291,974$ 565,089$ 402,313$ 610,838$ 87,213$ 1,100,363$ 2025 275,893 291,897 567,790 400,063 617,138 87,190 1,104,390 2026 273,463 291,705 565,167 402,688 617,013 87,133 1,106,833 2027 275,875 291,397 567,272 405,063 620,513 87,041 1,112,616 2028 272,862 290,973 563,835 406,400 623,638 86,914 1,116,952 2029 274,619 290,434 565,053 407,463 630,163 86,753 1,124,378 2030 275,671 293,630 569,301 407,413 631,138 87,708 1,126,258 2031 276,303 292,744 569,047 411,200 635,388 87,443 1,134,031 2032 276,624 291,743 568,367 409,500 639,038 87,144 1,135,682 2033 271,749 290,627 562,375 412,475 642,088 86,811 1,141,373 Subtotal 2,746,172$ 2,917,126$ 5,663,297$ 4,064,575$ 6,266,950$ 871,349$ 11,202,874$ Allocation Factor TCMUD / PID 90.6%90.6%84.4%96.0%96.0% Westlake 9.4%9.4%15.6%4.0%4.0% Subtotal 100.0%100.0%100.0%100.0%100.0% TCMUD / PID 2024 247,320$ 264,399$ 511,719$ 339,505$ 586,358$ 83,718$ 1,009,580$ 2025 249,836 264,329 514,165 337,606 592,405 83,696 1,013,707 2026 247,635 264,155 511,790 339,821 592,285 83,641 1,015,747 2027 249,820 263,876 513,696 341,826 595,645 83,552 1,021,023 2028 247,092 263,493 510,584 342,954 598,645 83,431 1,025,030 2029 248,683 263,004 511,687 343,851 604,908 83,276 1,032,035 2030 249,635 265,898 515,534 343,809 605,844 84,193 1,033,845 2031 250,208 265,096 515,304 347,005 609,924 83,939 1,040,867 2032 250,498 264,190 514,688 345,570 613,427 83,652 1,042,649 2033 246,083 263,179 509,262 348,081 616,355 83,332 1,047,768 Subtotal 2,486,811$ 2,641,619$ 5,128,430$ 3,430,029$ 6,015,795$ 836,429$ 10,282,253$ Westlake 2024 25,794$ 27,575$ 53,370$ 62,808$ 24,480$ 3,495$ 90,783$ 2025 26,057 27,568 53,625 62,456 24,732 3,494 90,683 2026 25,827 27,550 53,377 62,866 24,727 3,492 91,085 2027 26,055 27,521 53,576 63,237 24,868 3,488 91,593 2028 25,770 27,481 53,251 63,446 24,993 3,483 91,922 2029 25,936 27,430 53,366 63,612 25,254 3,477 92,343 2030 26,036 27,732 53,767 63,604 25,294 3,515 92,412 2031 26,095 27,648 53,743 64,195 25,464 3,504 93,163 2032 26,126 27,554 53,679 63,930 25,610 3,492 93,032 2033 25,665 27,448 53,113 64,394 25,732 3,479 93,605 Subtotal 259,361$ 275,507$ 534,868$ 634,546$ 251,155$ 34,920$ 920,621$ Water Sewer Page 1 of 1 244 Schedule 9 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Calculation of Potential Personnel Cost Savings FY 2023 Fully-Loaded Expense Overhead Positions Position 1 242,990$ Position 2 192,083 Position 3 154,807 Position 4 104,728 Subtotal 694,608$ Low Mid High Trophy Club Comp Position Position 1 117,936$ 138,341$ 158,725$ Position 2 117,936 138,341 158,725 Position 3 154,807 154,807 154,807 Position 4 55,162 64,813 74,464 Subtotal 445,841$ 496,301$ 546,721$ Overhead Factor 35% Low Mid High Trophy Club Comp Position Position 1 159,214$ 186,760$ 214,278$ Position 2 159,214 186,760 214,278 Position 3 154,807 154,807 154,807 Position 4 74,468 87,497 100,526 Subtotal 547,702$ 615,824$ 683,890$ $ Reduction (146,906)$ (78,784)$ (10,718)$ % Reduction -21.1%-11.3%-1.5% Direct Only Fully -Loaded Redacted to maintain privacy and confidentiality of Personnel Data Page 1 of 1 245 Schedule 10 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 1 - Base Case Scenario Base Value 2024 2025 2026 2027 2028 2029 WATER Equivalent Connections Trophy Club / TCMUD 10,766 10,766 10,766 10,766 10,766 10,766 10,766 Westlake 637 637 753 869 985 987 987 Subtotal 11,402 11,519 11,635 11,751 11,753 11,753 Consumption per Equivalent / Billed Volumes Trophy Club / TCMUD 6,933 895,659,000 895,700,599 895,700,599 895,700,599 895,700,599 895,700,599 Westlake 12,217 93,310,000 110,388,735 127,394,171 144,399,607 144,692,804 144,692,804 Subtotal 988,969,000 1,006,089,334 1,023,094,770 1,040,100,206 1,040,393,403 1,040,393,403 Produced Volumes Assumed Loss Factor 11% Required Production 1,111,201,124 1,130,437,454 1,149,544,685 1,168,651,917 1,168,981,352 1,168,981,352 Production by Source Wells 20%222,240,225 226,087,491 229,908,937 233,730,383 233,796,270 233,796,270 Ft. Worth 80%888,960,899 904,349,963 919,635,748 934,921,533 935,185,081 935,185,081 Ft. Worth Wholeale Water Cost Base Rate 2.99$ Escalation Factor 4.4% Assumed Rate 3.12$ 3.26$ 3.40$ 3.55$ 3.71$ 3.87$ Purchased Water Cost 2,771,972$ 2,944,813$ 3,127,173$ 3,319,909$ 3,467,876$ 3,621,417$ TCMUD O&M Cost Cost Fixed O&M Cost Per Meter Equivalent 110.22$ Base Year 2022 Escalation Factor 6.7% Escalated per Meter Equivalent Value 125.38$ Fixed Cost Projection 1,429,596$ 1,524,744$ 1,626,226$ 1,734,461$ 1,849,901$ 1,973,023$ Variable O&M Cost per 1,000 gal 0.15$ Base Year 2022 Escalation Factor 3.0% Escalated per 1,000 gal Value 0.16$ 0.17$ 0.17$ 0.18$ 0.18$ 0.19$ Variable Cost Projection 180,907$ 189,560$ 198,547$ 207,902$ 214,200$ 220,626$ Admin O&M Cost per Meter Equivalent 68.76$ Base Year 2022 Escalation Factor 4.9% Escalated per Meter Equivalent Value 75.62$ Fixed Cost Projection 862,271$ 904,317$ 948,414$ 994,662$ 1,043,164$ 1,094,032$ Page 1 of 6 246 Schedule 10 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 1 - Base Case Scenario WATER Equivalent Connections Trophy Club / TCMUD Westlake Subtotal Consumption per Equivalent / Billed Volumes Trophy Club / TCMUD Westlake Subtotal Produced Volumes Assumed Loss Factor Required Production Production by Source Wells Ft. Worth Ft. Worth Wholeale Water Cost Base Rate Escalation Factor Assumed Rate Purchased Water Cost TCMUD O&M Cost Cost Fixed O&M Cost Per Meter Equivalent Base Year Escalation Factor Escalated per Meter Equivalent Value Fixed Cost Projection Variable O&M Cost per 1,000 gal Base Year Escalation Factor Escalated per 1,000 gal Value Variable Cost Projection Admin O&M Cost per Meter Equivalent Base Year Escalation Factor Escalated per Meter Equivalent Value Fixed Cost Projection 2030 2031 2032 2033 10,766 10,766 10,766 10,766 987 987 987 987 11,753 11,753 11,753 11,753 895,700,599 895,700,599 895,700,599 895,700,599 144,692,804 144,692,804 144,692,804 144,692,804 1,040,393,403 1,040,393,403 1,040,393,403 1,040,393,403 1,168,981,352 1,168,981,352 1,168,981,352 1,168,981,352 233,796,270 233,796,270 233,796,270 233,796,270 935,185,081 935,185,081 935,185,081 935,185,081 4.04$ 4.22$ 4.41$ 4.61$ 3,781,756$ 3,949,194$ 4,124,046$ 4,306,639$ 2,104,341$ 2,244,398$ 2,393,777$ 2,553,098$ 0.19$ 0.20$ 0.21$ 0.21$ 227,245$ 234,062$ 241,084$ 248,316$ 1,147,380$ 1,203,329$ 1,262,007$ 1,323,545$ Page 2 of 6 247 Schedule 10 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 1 - Base Case Scenario Base Value 2024 2025 2026 2027 2028 2029 Board / Non-Operating O&M Expense 5.33$ Base Year 2022 Escalation Factor 3.0% Escalated per Meter Equivalent Value 5.65$ Fixed Cost Projection 64,462$ 66,396$ 68,388$ 70,439$ 72,553$ 74,729$ Outstanding Water Debt Revenue Series 2016 273,115$ 275,893$ 273,463$ 275,875$ 272,862$ 274,619$ Revenue Series 2019 (77% Water)291,974 291,897 291,705 291,397 290,973 290,434 Total Outstanding Water Debt 565,089$ 567,790$ 565,167$ 567,272$ 563,835$ 565,053$ TOTAL WATER COST 5,874,296$ 6,197,620$ 6,533,916$ 6,894,646$ 7,211,529$ 7,548,881$ Cost per Meter Equivalent 42.93$ 44.84$ 46.80$ 48.89$ 51.13$ 53.52$ or Cost per 1,000 billed gallons 5.94$ 6.16$ 6.39$ 6.63$ 6.93$ 7.26$ SEWER Equivalent Connections Trophy Club / TCMUD 8,384 8,384 8,384 8,384 8,384 8,384 8,384 Westlake 233 233 349 465 581 583 583 Subtotal 8,617 8,733 8,849 8,965 8,967 8,967 Consumption per Equivalent / Billed Volumes Trophy Club / TCMUD 4,607 463,476,934 463,476,934 463,476,934 463,476,934 463,476,934 463,476,934 Westlake 7,236 20,231,000 30,303,086 40,375,172 50,447,258 50,620,914 50,620,914 Subtotal 483,707,934 493,780,020 503,852,106 513,924,192 514,097,848 514,097,848 TCMUD O&M Cost Cost Fixed O&M Cost Per Meter Equivalent 141.09$ Base Year 2022 Escalation Factor 13.1% Escalated per Meter Equivalent Value 180.40$ Fixed Cost Projection 1,554,413$ 1,757,692$ 1,987,556$ 2,247,480$ 2,541,396$ 2,873,749$ Variable O&M Cost per 1,000 gal 0.43$ Base Year 2022 Escalation Factor 3.0% Escalated per 1,000 gal Value 0.46$ 0.47$ 0.49$ 0.50$ 0.51$ 0.53$ Variable Cost Projection 221,245$ 232,627$ 244,493$ 256,862$ 264,658$ 272,597$ Page 3 of 6 248 Schedule 10 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 1 - Base Case Scenario Board / Non-Operating O&M Expense Base Year Escalation Factor Escalated per Meter Equivalent Value Fixed Cost Projection Outstanding Water Debt Revenue Series 2016 Revenue Series 2019 (77% Water) Total Outstanding Water Debt TOTAL WATER COST Cost per Meter Equivalent or Cost per 1,000 billed gallons SEWER Equivalent Connections Trophy Club / TCMUD Westlake Subtotal Consumption per Equivalent / Billed Volumes Trophy Club / TCMUD Westlake Subtotal TCMUD O&M Cost Cost Fixed O&M Cost Per Meter Equivalent Base Year Escalation Factor Escalated per Meter Equivalent Value Fixed Cost Projection Variable O&M Cost per 1,000 gal Base Year Escalation Factor Escalated per 1,000 gal Value Variable Cost Projection 2030 2031 2032 2033 76,971$ 79,280$ 81,659$ 84,108$ 275,671$ 276,303$ 276,624$ 271,749$ 293,630 292,744 291,743 290,627 569,301$ 569,047$ 568,367$ 562,375$ 7,906,993$ 8,279,311$ 8,670,939$ 9,078,082$ 56.06$ 58.70$ 61.48$ 64.37$ 7.60$ 7.96$ 8.33$ 8.73$ 8,384 8,384 8,384 8,384 583 583 583 583 8,967 8,967 8,967 8,967 463,476,934 463,476,934 463,476,934 463,476,934 50,620,914 50,620,914 50,620,914 50,620,914 514,097,848 514,097,848 514,097,848 514,097,848 3,249,566$ 3,674,531$ 4,155,071$ 4,698,454$ 0.55$ 0.56$ 0.58$ 0.60$ 280,775$ 289,198$ 297,874$ 306,811$ Page 4 of 6 249 Schedule 10 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 1 - Base Case Scenario Base Value 2024 2025 2026 2027 2028 2029 Admin O&M Cost per Meter Equivalent 68.76 Base Year 2022 Escalation Factor 4.9% Escalated per Meter Equivalent Value 75.62$ Fixed Cost Projection 651,619$ 683,393$ 716,717$ 751,666$ 788,320$ 826,760$ 5.33$ Board / Non-Operating O&M Expense Base Year 2022 Escalation Factor 3.0% Escalated per Meter Equivalent Value 5.65$ Fixed Cost Projection 48,714$ 50,175$ 51,681$ 53,231$ 54,828$ 56,473$ Outstanding Sewer Debt GO Series 2014 402,313$ 400,063$ 402,688$ 405,063$ 406,400$ 407,463$ Revenue Series 2015 610,838 617,138 617,013 620,513 623,638 630,163 Revenue Series 2019 (23%)87,213 87,190 87,133 87,041 86,914 86,753 Total Outstanding Sewer Debt 1,100,363$ 1,104,390$ 1,106,833$ 1,112,616$ 1,116,952$ 1,124,378$ TOTAL SEWER COST 3,576,353$ 3,828,278$ 4,107,280$ 4,421,856$ 4,766,153$ 5,153,958$ Cost per Meter Equivalent 34.59$ 36.53$ 38.68$ 41.11$ 44.30$ 47.90$ or Cost per 1,000 billed gallons 7.39$ 7.75$ 8.15$ 8.60$ 9.27$ 10.03$ Page 5 of 6 250 Schedule 10 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 1 - Base Case Scenario Admin O&M Cost per Meter Equivalent Base Year Escalation Factor Escalated per Meter Equivalent Value Fixed Cost Projection Board / Non-Operating O&M Expense Base Year Escalation Factor Escalated per Meter Equivalent Value Fixed Cost Projection Outstanding Sewer Debt GO Series 2014 Revenue Series 2015 Revenue Series 2019 (23%) Total Outstanding Sewer Debt TOTAL SEWER COST Cost per Meter Equivalent or Cost per 1,000 billed gallons 2030 2031 2032 2033 867,076$ 909,357$ 953,699$ 1,000,204$ 58,167$ 59,912$ 61,709$ 63,561$ 407,413$ 411,200$ 409,500$ 412,475$ 631,138 635,388 639,038 642,088 87,708 87,443 87,144 86,811 1,126,258$ 1,134,031$ 1,135,682$ 1,141,373$ 5,581,842$ 6,067,029$ 6,604,036$ 7,210,402$ 51.88$ 56.39$ 61.38$ 67.01$ 10.86$ 11.80$ 12.85$ 14.03$ Page 6 of 6 251 Schedule 11 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 2 - Trophy Club Analysis Base Value 2024 2025 2026 2027 2028 2029 WATER Equivalent Connections Trophy Club / TCMUD 10,766 10,766 10,766 10,766 10,766 10,766 10,766 Consumption per Equivalent / Billed Volumes Trophy Club / TCMUD 6,933 895,659,000 895,700,599 895,700,599 895,700,599 895,700,599 895,700,599 Produced Volumes Assumed Loss Factor 11% Required Production 1,006,358,427 1,006,405,167 1,006,405,167 1,006,405,167 1,006,405,167 1,006,405,167 Production by Source Wells 20%201,271,685 201,281,033 201,281,033 201,281,033 201,281,033 201,281,033 Ft. Worth 80%805,086,742 805,124,134 805,124,134 805,124,134 805,124,134 805,124,134 Ft. Worth Wholeale Water Cost Base Rate 2.99$ Escalation Factor 4.4% Assumed Rate 3.12$ 3.26$ 3.40$ 3.55$ 3.71$ 3.87$ Purchased Water Cost 2,510,434$ 2,621,706$ 2,737,783$ 2,858,998$ 2,985,581$ 3,117,768$ Trophy Club O&M Cost Cost Fixed O&M Cost Per Meter Equivalent 113.97$ Base Year 2022 Escalation Factor 6.7% Escalated per Meter Equivalent Value 129.65$ Fixed Cost Projection 1,395,755$ 1,488,651$ 1,587,730$ 1,693,404$ 1,806,110$ 1,926,319$ Variable O&M Cost per 1,000 gal 0.15$ Base Year 2022 Escalation Factor 3.0% Escalated per 1,000 gal Value 0.16$ 0.17$ 0.17$ 0.18$ 0.18$ 0.19$ Variable Cost Projection 163,838$ 168,761$ 173,824$ 179,039$ 184,410$ 189,942$ Admin O&M Cost per Meter Equivalent 70.90$ Savings Factor -11.34% Admin O&M Cost per Meter Equivalent 62.86 Base Year 2022 Escalation Factor 4.9% Escalated per Meter Equivalent Value 69.14$ Fixed Cost Projection 744,343$ 780,639$ 818,706$ 858,628$ 900,497$ 944,408$ Total O&M Cost 2,303,936$ 2,438,052$ 2,580,260$ 2,731,070$ 2,891,017$ 3,060,669$ GF Transfer %5% GF Transfer 115,197$ 121,903$ 129,013$ 136,554$ 144,551$ 153,033$ Page 1 of 6 252 Schedule 11 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 2 - Trophy Club Analysis WATER Equivalent Connections Trophy Club / TCMUD Consumption per Equivalent / Billed Volumes Trophy Club / TCMUD Produced Volumes Assumed Loss Factor Required Production Production by Source Wells Ft. Worth Ft. Worth Wholeale Water Cost Base Rate Escalation Factor Assumed Rate Purchased Water Cost Trophy Club O&M Cost Cost Fixed O&M Cost Per Meter Equivalent Base Year Escalation Factor Escalated per Meter Equivalent Value Fixed Cost Projection Variable O&M Cost per 1,000 gal Base Year Escalation Factor Escalated per 1,000 gal Value Variable Cost Projection Admin O&M Cost per Meter Equivalent Savings Factor Admin O&M Cost per Meter Equivalent Base Year Escalation Factor Escalated per Meter Equivalent Value Fixed Cost Projection Total O&M Cost GF Transfer % GF Transfer 2030 2031 2032 2033 10,766 10,766 10,766 10,766 895,700,599 895,700,599 895,700,599 895,700,599 1,006,405,167 1,006,405,167 1,006,405,167 1,006,405,167 201,281,033 201,281,033 201,281,033 201,281,033 805,124,134 805,124,134 805,124,134 805,124,134 4.04$ 4.22$ 4.41$ 4.61$ 3,255,808$ 3,399,960$ 3,550,494$ 3,707,693$ 2,054,527$ 2,191,269$ 2,337,112$ 2,492,661$ 0.19$ 0.20$ 0.21$ 0.21$ 195,641$ 201,510$ 207,555$ 213,782$ 990,460$ 1,038,757$ 1,089,410$ 1,142,532$ 3,240,627$ 3,431,536$ 3,634,077$ 3,848,976$ 162,031$ 171,577$ 181,704$ 192,449$ Page 2 of 6 253 Schedule 11 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 2 - Trophy Club Analysis Base Value 2024 2025 2026 2027 2028 2029 Outstanding Water Debt Revenue Series 2016 247,320$ 249,836$ 247,635$ 249,820$ 247,092$ 248,683$ Revenue Series 2019 (77% Water)264,399 264,329 264,155 263,876 263,493 263,004 Total Outstanding Water Debt 511,719$ 514,165$ 511,790$ 513,696$ 510,584$ 511,687$ TOTAL WATER COST 5,441,287$ 5,695,826$ 5,958,846$ 6,240,319$ 6,531,734$ 6,843,158$ Cost per Meter Equivalent 42.12$ 44.09$ 46.12$ 48.30$ 50.56$ 52.97$ or Cost per 1,000 billed gallons 6.08$ 6.36$ 6.65$ 6.97$ 7.29$ 7.64$ SEWER Equivalent Connections Trophy Club / TCMUD 8,384 8,384 8,384 8,384 8,384 8,384 8,384 Consumption per Equivalent / Billed Volumes Trophy Club / TCMUD 4,607 463,476,934 463,476,934 463,476,934 463,476,934 463,476,934 463,476,934 TCMUD O&M Cost Cost Fixed O&M Cost Per Meter Equivalent 145.01$ Base Year 2022 Escalation Factor 13.08% Escalated per Meter Equivalent Value 185.41$ Fixed Cost Projection 1,554,415$ 1,757,695$ 1,987,559$ 2,247,484$ 2,541,400$ 2,873,754$ Variable O&M Cost per 1,000 gal 0.43$ Base Year 2022 Escalation Factor 3.0% Escalated per 1,000 gal Value 0.46$ 0.47$ 0.49$ 0.50$ 0.51$ 0.53$ Variable Cost Projection 211,991$ 218,351$ 224,901$ 231,648$ 238,598$ 245,756$ Admin O&M Cost per Meter Equivalent 70.90$ Savings Factor -11.34% Admin O&M Cost per Meter Equivalent 62.86$ Base Year 2022 Escalation Factor 4.9% Escalated per Meter Equivalent Value 69.14$ Fixed Cost Projection 579,648$ 607,913$ 637,557$ 668,646$ 701,251$ 735,446$ Total O&M Cost 2,346,055$ 2,583,959$ 2,850,018$ 3,147,778$ 3,481,249$ 3,854,956$ GF Transfer %5% GF Transfer 117,303$ 129,198$ 142,501$ 157,389$ 174,062$ 192,748$ Page 3 of 6 254 Schedule 11 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 2 - Trophy Club Analysis Outstanding Water Debt Revenue Series 2016 Revenue Series 2019 (77% Water) Total Outstanding Water Debt TOTAL WATER COST Cost per Meter Equivalent or Cost per 1,000 billed gallons SEWER Equivalent Connections Trophy Club / TCMUD Consumption per Equivalent / Billed Volumes Trophy Club / TCMUD TCMUD O&M Cost Cost Fixed O&M Cost Per Meter Equivalent Base Year Escalation Factor Escalated per Meter Equivalent Value Fixed Cost Projection Variable O&M Cost per 1,000 gal Base Year Escalation Factor Escalated per 1,000 gal Value Variable Cost Projection Admin O&M Cost per Meter Equivalent Savings Factor Admin O&M Cost per Meter Equivalent Base Year Escalation Factor Escalated per Meter Equivalent Value Fixed Cost Projection Total O&M Cost GF Transfer % GF Transfer 2030 2031 2032 2033 249,635$ 250,208$ 250,498$ 246,083$ 265,898 265,096 264,190 263,179 515,534$ 515,304$ 514,688$ 509,262$ 7,174,001$ 7,518,377$ 7,880,962$ 8,258,379$ 55.53$ 58.20$ 61.00$ 63.92$ 8.01$ 8.39$ 8.80$ 9.22$ 8,384 8,384 8,384 8,384 463,476,934 463,476,934 463,476,934 463,476,934 3,249,572$ 3,674,537$ 4,155,077$ 4,698,461$ 0.55$ 0.56$ 0.58$ 0.60$ 253,129$ 260,722$ 268,544$ 276,600$ 771,308$ 808,919$ 848,364$ 889,733$ 4,274,008$ 4,744,179$ 5,271,986$ 5,864,795$ 213,700$ 237,209$ 263,599$ 293,240$ Page 4 of 6 255 Schedule 11 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 2 - Trophy Club Analysis Base Value 2024 2025 2026 2027 2028 2029 Outstanding Sewer Debt GO Series 2014 339,505$ 337,606$ 339,821$ 341,826$ 342,954$ 343,851$ Revenue Series 2015 586,358 592,405 592,285 595,645 598,645 604,908 Revenue Series 2019 (23%)83,718 83,696 83,641 83,552 83,431 83,276 Total Outstanding Sewer Debt 1,009,580$ 1,013,707$ 1,015,747$ 1,021,023$ 1,025,030$ 1,032,035$ TOTAL SEWER COST 3,472,938$ 3,726,865$ 4,008,266$ 4,326,190$ 4,680,342$ 5,079,739$ Cost per Meter Equivalent 34.52$ 37.05$ 39.84$ 43.00$ 46.52$ 50.49$ or Cost per 1,000 billed gallons 7.49$ 8.04$ 8.65$ 9.33$ 10.10$ 10.96$ Page 5 of 6 256 Schedule 11 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 2 - Trophy Club Analysis Outstanding Sewer Debt GO Series 2014 Revenue Series 2015 Revenue Series 2019 (23%) Total Outstanding Sewer Debt TOTAL SEWER COST Cost per Meter Equivalent or Cost per 1,000 billed gallons 2030 2031 2032 2033 343,809$ 347,005$ 345,570$ 348,081$ 605,844 609,924 613,427 616,355 84,193 83,939 83,652 83,332 1,033,845$ 1,040,867$ 1,042,649$ 1,047,768$ 5,521,554$ 6,022,255$ 6,578,235$ 7,205,802$ 54.89$ 59.86$ 65.39$ 71.63$ 11.91$ 12.99$ 14.19$ 15.55$ Page 6 of 6 257 Schedule 12 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 2 - Westlake Base Value 2024 2025 2026 2027 2028 2029 2030 WATER Equivalent Connections Westlake 637 637 753 869 985 987 987 987 Consumption per Equivalent / Billed Volumes Westlake 12,217 93,310,000 110,388,735 127,394,171 144,399,607 144,692,804 144,692,804 144,692,804 Produced Volumes Assumed Loss Factor (1)8% Required Production 101,977,199 120,642,311 139,227,315 157,812,319 158,132,750 158,132,750 158,132,750 Ft. Worth Wholeale Water Cost Base Rate 2.99$ Escalation Factor 4.4% Assumed Rate 3.12$ 3.26$ 3.40$ 3.55$ 3.71$ 3.87$ 4.04$ Purchased Water Cost 317,987$ 392,845$ 473,435$ 560,392$ 586,392$ 612,354$ 639,467$ Westlake O&M Cost Cost Fixed O&M Cost Per Meter Equivalent 155.98$ Base Year 2021 Escalation Factor 3.0% Escalated per Meter Equivalent Value 170.44$ Fixed Cost Projection 108,486$ 111,741$ 115,093$ 118,546$ 122,102$ 125,765$ 129,538$ Variable O&M Cost per 1,000 gal 0.53$ Base Year 2021 Escalation Factor 3.0% Escalated per 1,000 gal Value 0.58$ 0.59$ 0.61$ 0.63$ 0.65$ 0.67$ 0.69$ Variable Cost Projection 58,763$ 71,605$ 85,114$ 99,370$ 102,559$ 105,636$ 108,805$ Total O&M Cost 167,250$ 183,345$ 200,207$ 217,916$ 224,661$ 231,401$ 238,343$ Transfer %18.7% Transfer 31,357$ 34,375$ 37,536$ 40,857$ 42,121$ 43,385$ 44,686$ PR Transfer 162.70$ Base Year 2021 Escalation Factor 3.0% Escalated per Meter Equivalent Value 177.79$ Fixed Cost Projection 113,164$ 116,559$ 120,056$ 123,657$ 127,367$ 131,188$ 135,124$ Outstanding Water Debt Revenue Series 2016 25,794$ 26,057$ 25,827$ 26,055$ 25,770$ 25,936$ 26,036$ Revenue Series 2019 (77% Water)27,575 27,568 27,550 27,521 27,481 27,430 27,732 Total Outstanding Water Debt 53,370$ 53,625$ 53,377$ 53,576$ 53,251$ 53,366$ 53,767$ Page 1 of 6 258 Schedule 12 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 2 - Westlake WATER Equivalent Connections Westlake Consumption per Equivalent / Billed Volumes Westlake Produced Volumes Assumed Loss Factor (1) Required Production Ft. Worth Wholeale Water Cost Base Rate Escalation Factor Assumed Rate Purchased Water Cost Westlake O&M Cost Cost Fixed O&M Cost Per Meter Equivalent Base Year Escalation Factor Escalated per Meter Equivalent Value Fixed Cost Projection Variable O&M Cost per 1,000 gal Base Year Escalation Factor Escalated per 1,000 gal Value Variable Cost Projection Total O&M Cost Transfer % Transfer PR Transfer Base Year Escalation Factor Escalated per Meter Equivalent Value Fixed Cost Projection Outstanding Water Debt Revenue Series 2016 Revenue Series 2019 (77% Water) Total Outstanding Water Debt 2031 2032 2033 987 987 987 144,692,804 144,692,804 144,692,804 158,132,750 158,132,750 158,132,750 4.22$ 4.41$ 4.61$ 667,779$ 697,345$ 728,220$ 133,424$ 137,427$ 141,550$ 0.71$ 0.73$ 0.75$ 112,069$ 115,431$ 118,894$ 245,493$ 252,858$ 260,444$ 46,027$ 47,408$ 48,830$ 139,178$ 143,353$ 147,653$ 26,095$ 26,126$ 25,665$ 27,648 27,554 27,448 53,743$ 53,679$ 53,113$ Page 2 of 6 259 Schedule 12 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 2 - Westlake Base Value 2024 2025 2026 2027 2028 2029 2030 TOTAL WATER COST 683,127$ 780,748$ 884,612$ 996,398$ 1,033,793$ 1,071,695$ 1,111,387$ Cost per Meter Equivalent 89.44$ 86.40$ 84.83$ 84.30$ 87.28$ 90.48$ 93.84$ or Cost per 1,000 billed gallons 7.32$ 7.07$ 6.94$ 6.90$ 7.14$ 7.41$ 7.68$ SEWER Equivalent Connections Westlake 233 233 349 465 581 583 583 583 Consumption per Equivalent / Billed Volumes Westlake 7,236 20,231,000 30,303,086 40,375,172 50,447,258 50,620,914 50,620,914 50,620,914 TRA Wholesale Sewer Treatment Cost TRA Rate Projection 11.24$ 12.91$ 12.43$ 10.93$ 9.05$ Future Escalation Factor 3.00% Assumed Rate 11.24$ 12.91$ 12.43$ 10.93$ 9.05$ 9.33$ 9.61$ Assumed I/I Factor 8.0% Volumes for Treatment 21,990,217 32,938,137 43,886,056 54,833,976 55,022,733 55,022,733 55,022,733 Projected Wholesale Cost 247,236$ 425,297$ 545,591$ 599,226$ 498,176$ 513,121$ 528,515$ Westlake O&M Cost Cost Fixed O&M Cost Per Meter Equivalent 53.98$ Base Year 2021 Escalation Factor 3.0% Escalated per Meter Equivalent Value 58.98$ Fixed Cost Projection 13,743$ 14,155$ 14,580$ 15,017$ 15,468$ 15,932$ 16,410$ Total O&M Cost 13,743$ 14,155$ 14,580$ 15,017$ 15,468$ 15,932$ 16,410$ GF Transfer %29.8% GF Transfer 4,095$ 4,218$ 4,344$ 4,475$ 4,609$ 4,747$ 4,890$ PR Transfer 76.85$ Base Year 2021 Escalation Factor 3.0%83.98$ Escalated per Meter Equivalent Value 19,567$ 20,154$ 20,758$ 21,381$ 22,022$ 22,683$ 23,364$ Outstanding Sewer Debt GO Series 2014 62,808$ 62,456$ 62,866$ 63,237$ 63,446$ 63,612$ 63,604$ Revenue Series 2015 24,480 24,732 24,727 24,868 24,993 25,254 25,294 Revenue Series 2019 (23%)3,495 3,494 3,492 3,488 3,483 3,477 3,515 Total Outstanding Sewer Debt 90,783$ 90,683$ 91,085$ 91,593$ 91,922$ 92,343$ 92,412$ TOTAL SEWER COST 375,423$ 554,507$ 676,359$ 731,691$ 632,197$ 648,826$ 665,590$ Page 3 of 6 260 Schedule 12 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 2 - Westlake TOTAL WATER COST Cost per Meter Equivalent or Cost per 1,000 billed gallons SEWER Equivalent Connections Westlake Consumption per Equivalent / Billed Volumes Westlake TRA Wholesale Sewer Treatment Cost TRA Rate Projection Future Escalation Factor Assumed Rate Assumed I/I Factor Volumes for Treatment Projected Wholesale Cost Westlake O&M Cost Cost Fixed O&M Cost Per Meter Equivalent Base Year Escalation Factor Escalated per Meter Equivalent Value Fixed Cost Projection Total O&M Cost GF Transfer % GF Transfer PR Transfer Base Year Escalation Factor Escalated per Meter Equivalent Value Outstanding Sewer Debt GO Series 2014 Revenue Series 2015 Revenue Series 2019 (23%) Total Outstanding Sewer Debt TOTAL SEWER COST 2031 2032 2033 1,152,220$ 1,194,643$ 1,238,261$ 97.28$ 100.86$ 104.55$ 7.96$ 8.26$ 8.56$ 583 583 583 50,620,914 50,620,914 50,620,914 9.89$ 10.19$ 10.50$ 55,022,733 55,022,733 55,022,733 544,370$ 560,701$ 577,522$ 16,902$ 17,409$ 17,931$ 16,902$ 17,409$ 17,931$ 5,036$ 5,187$ 5,343$ 24,064$ 24,786$ 25,530$ 64,195$ 63,930$ 64,394$ 25,464 25,610 25,732 3,504 3,492 3,479 93,163$ 93,032$ 93,605$ 683,536$ 701,116$ 719,932$ Page 4 of 6 261 Schedule 12 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 2 - Westlake Base Value 2024 2025 2026 2027 2028 2029 2030 Cost per Meter Equivalent 134.27$ 132.40$ 121.21$ 104.95$ 90.37$ 92.74$ 95.14$ or Cost per 1,000 billed gallons 18.56$ 18.30$ 16.75$ 14.50$ 12.49$ 12.82$ 13.15$ Page 5 of 6 262 Schedule 12 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 2 - Westlake Cost per Meter Equivalent or Cost per 1,000 billed gallons 2031 2032 2033 97.70$ 100.22$ 102.91$ 13.50$ 13.85$ 14.22$ Page 6 of 6 263 Schedule 13 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 2 - Trophy Club Analysis Base Value 2024 2025 2026 2027 2028 2029 2030 WATER Equivalent Connections Trophy Club / TCMUD 10,766 10,766 10,766 10,766 10,766 10,766 10,766 10,766 Consumption per Equivalent / Billed Volumes Trophy Club / TCMUD 6,933 895,659,000 895,700,599 895,700,599 895,700,599 895,700,599 895,700,599 895,700,599 Produced Volumes Assumed Loss Factor (1)11% Required Production 1,006,358,427 1,006,405,167 1,006,405,167 1,006,405,167 1,006,405,167 1,006,405,167 1,006,405,167 Production by Source Wells 20%201,271,685 201,281,033 201,281,033 201,281,033 201,281,033 201,281,033 201,281,033 Ft. Worth 80%805,086,742 805,124,134 805,124,134 805,124,134 805,124,134 805,124,134 805,124,134 Ft. Worth Wholeale Water Cost Base Rate 2.99$ Escalation Factor 4.43% Assumed Rate 3.12$ 3.26$ 3.40$ 3.55$ 3.71$ 3.87$ 4.04$ Purchased Water Cost 2,510,434$ 2,621,706$ 2,737,783$ 2,858,998$ 2,985,581$ 3,117,768$ 3,255,808$ Trophy Club O&M Cost Cost Fixed O&M Cost Per Meter Equivalent 113.97$ Base Year 2022 Escalation Factor 6.66% Escalated per Meter Equivalent Value 129.65$ Fixed Cost Projection 1,395,755$ 1,488,651$ 1,587,730$ 1,693,404$ 1,806,110$ 1,926,319$ 2,054,527$ Variable O&M Cost per 1,000 gal 0.15$ Base Year 2022 Escalation Factor 3% Escalated per 1,000 gal Value 0.16$ 0.17$ 0.17$ 0.18$ 0.18$ 0.19$ 0.19$ Variable Cost Projection 163,838$ 168,761$ 173,824$ 179,039$ 184,410$ 189,942$ 195,641$ Admin O&M Cost per Meter Equivalent 70.90$ Savings Factor -11.34% Admin O&M Cost per Meter Equivalent 62.86 Base Year 2022 Escalation Factor 4.9% Escalated per Meter Equivalent Value 69.14$ Fixed Cost Projection 744,343$ 780,639$ 818,706$ 858,628$ 900,497$ 944,408$ 990,460$ Total O&M Cost 2,303,936$ 2,438,052$ 2,580,260$ 2,731,070$ 2,891,017$ 3,060,669$ 3,240,627$ GF Transfer %5% GF Transfer 115,197$ 121,903$ 129,013$ 136,554$ 144,551$ 153,033$ 162,031$ Outstanding Water Debt Revenue Series 2016 247,320$ 249,836$ 247,635$ 249,820$ 247,092$ 248,683$ 249,635$ Revenue Series 2019 (77% Water)264,399 264,329 264,155 263,876 263,493 263,004 265,898 Total Outstanding Water Debt 511,719$ 514,165$ 511,790$ 513,696$ 510,584$ 511,687$ 515,534$ Page 1 of 6 264 Schedule 13 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 2 - Trophy Club Analysis WATER Equivalent Connections Trophy Club / TCMUD Consumption per Equivalent / Billed Volumes Trophy Club / TCMUD Produced Volumes Assumed Loss Factor (1) Required Production Production by Source Wells Ft. Worth Ft. Worth Wholeale Water Cost Base Rate Escalation Factor Assumed Rate Purchased Water Cost Trophy Club O&M Cost Cost Fixed O&M Cost Per Meter Equivalent Base Year Escalation Factor Escalated per Meter Equivalent Value Fixed Cost Projection Variable O&M Cost per 1,000 gal Base Year Escalation Factor Escalated per 1,000 gal Value Variable Cost Projection Admin O&M Cost per Meter Equivalent Savings Factor Admin O&M Cost per Meter Equivalent Base Year Escalation Factor Escalated per Meter Equivalent Value Fixed Cost Projection Total O&M Cost GF Transfer % GF Transfer Outstanding Water Debt Revenue Series 2016 Revenue Series 2019 (77% Water) Total Outstanding Water Debt 2031 2032 2033 10,766 10,766 10,766 895,700,599 895,700,599 895,700,599 1,006,405,167 1,006,405,167 1,006,405,167 201,281,033 201,281,033 201,281,033 805,124,134 805,124,134 805,124,134 4.22$ 4.41$ 4.61$ 3,399,960$ 3,550,494$ 3,707,693$ 2,191,269$ 2,337,112$ 2,492,661$ 0.20$ 0.21$ 0.21$ 201,510$ 207,555$ 213,782$ 1,038,757$ 1,089,410$ 1,142,532$ 3,431,536$ 3,634,077$ 3,848,976$ 171,577$ 181,704$ 192,449$ 250,208$ 250,498$ 246,083$ 265,096 264,190 263,179 515,304$ 514,688$ 509,262$ Page 2 of 6 265 Schedule 13 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 2 - Trophy Club Analysis Base Value 2024 2025 2026 2027 2028 2029 2030 TOTAL WATER COST 5,441,287$ 5,695,826$ 5,958,846$ 6,240,319$ 6,531,734$ 6,843,158$ 7,174,001$ Cost per Meter Equivalent 42.12$ 44.09$ 46.12$ 48.30$ 50.56$ 52.97$ 55.53$ or Cost per 1,000 billed gallons 6.08$ 6.36$ 6.65$ 6.97$ 7.29$ 7.64$ 8.01$ SEWER Equivalent Connections Trophy Club / TCMUD 8,384 8,384 8,384 8,384 8,384 8,384 8,384 8,384 Westlake 233 233 349 465 581 583 583 583 Subtotal 8,617 8,733 8,849 8,965 8,967 8,967 8,967 Consumption per Equivalent / Billed Volumes Trophy Club / TCMUD 4,607 463,476,934 463,476,934 463,476,934 463,476,934 463,476,934 463,476,934 463,476,934 Westlake 7,236 20,231,000 30,303,086 40,375,172 50,447,258 50,620,914 50,620,914 50,620,914 Subtotal 483,707,934 493,780,020 503,852,106 513,924,192 514,097,848 514,097,848 514,097,848 TCMUD O&M Cost Cost Fixed O&M Cost Per Meter Equivalent 141.09$ Base Year 2022 Escalation Factor 13.08% Escalated per Meter Equivalent Value 180.40$ Fixed Cost Projection 1,554,413$ 1,757,692$ 1,987,556$ 2,247,480$ 2,541,396$ 2,873,749$ 3,249,566$ Variable O&M Cost per 1,000 gal 0.43$ Base Year 2022 Escalation Factor 3% Escalated per 1,000 gal Value 0.46$ 0.47$ 0.49$ 0.50$ 0.51$ 0.53$ 0.55$ Variable Cost Projection 221,245$ 232,627$ 244,493$ 256,862$ 264,658$ 272,597$ 280,775$ Admin O&M Cost per Meter Equivalent 68.76$ Savings Factor -11.34% Admin O&M Cost per Meter Equivalent 60.96$ Base Year 2022 Escalation Factor 5% Escalated per Meter Equivalent Value 67.05$ Fixed Cost Projection 577,711$ 605,882$ 635,426$ 666,411$ 698,907$ 732,988$ 768,730$ Total O&M Cost 2,353,368$ 2,596,201$ 2,867,476$ 3,170,754$ 3,504,961$ 3,879,335$ 4,299,072$ GF Transfer %5% GF Transfer 117,668$ 129,810$ 143,374$ 158,538$ 175,248$ 193,967$ 214,954$ Outstanding Sewer Debt GO Series 2014 402,313$ 400,063$ 402,688$ 405,063$ 406,400$ 407,463$ 407,413$ Revenue Series 2015 610,838 617,138 617,013 620,513 623,638 630,163 631,138 Revenue Series 2019 (23%)87,213 87,190 87,133 87,041 86,914 86,753 87,708 Total Outstanding Sewer Debt 1,100,363$ 1,104,390$ 1,106,833$ 1,112,616$ 1,116,952$ 1,124,378$ 1,126,258$ Page 3 of 6 266 Schedule 13 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 2 - Trophy Club Analysis TOTAL WATER COST Cost per Meter Equivalent or Cost per 1,000 billed gallons SEWER Equivalent Connections Trophy Club / TCMUD Westlake Subtotal Consumption per Equivalent / Billed Volumes Trophy Club / TCMUD Westlake Subtotal TCMUD O&M Cost Cost Fixed O&M Cost Per Meter Equivalent Base Year Escalation Factor Escalated per Meter Equivalent Value Fixed Cost Projection Variable O&M Cost per 1,000 gal Base Year Escalation Factor Escalated per 1,000 gal Value Variable Cost Projection Admin O&M Cost per Meter Equivalent Savings Factor Admin O&M Cost per Meter Equivalent Base Year Escalation Factor Escalated per Meter Equivalent Value Fixed Cost Projection Total O&M Cost GF Transfer % GF Transfer Outstanding Sewer Debt GO Series 2014 Revenue Series 2015 Revenue Series 2019 (23%) Total Outstanding Sewer Debt 2031 2032 2033 7,518,377$ 7,880,962$ 8,258,379$ 58.20$ 61.00$ 63.92$ 8.39$ 8.80$ 9.22$ 8,384 8,384 8,384 583 583 583 8,967 8,967 8,967 463,476,934 463,476,934 463,476,934 50,620,914 50,620,914 50,620,914 514,097,848 514,097,848 514,097,848 3,674,531$ 4,155,071$ 4,698,454$ 0.56$ 0.58$ 0.60$ 289,198$ 297,874$ 306,811$ 806,216$ 845,529$ 886,760$ 4,769,945$ 5,298,474$ 5,892,024$ 238,497$ 264,924$ 294,601$ 411,200$ 409,500$ 412,475$ 635,388 639,038 642,088 87,443 87,144 86,811 1,134,031$ 1,135,682$ 1,141,373$ Page 4 of 6 267 Schedule 13 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 2 - Trophy Club Analysis Base Value 2024 2025 2026 2027 2028 2029 2030 TOTAL SEWER COST 3,571,400$ 3,830,401$ 4,117,682$ 4,441,907$ 4,797,161$ 5,197,680$ 5,640,283$ Cost per Meter Equivalent 34.54$ 36.55$ 38.78$ 41.29$ 44.58$ 48.31$ 52.42$ or Cost per 1,000 billed gallons 7.38$ 7.76$ 8.17$ 8.64$ 9.33$ 10.11$ 10.97$ Page 5 of 6 268 Schedule 13 Trophy Club / Westlake / Trophy Club MUD No. 1 Trophy Club MUD No. 1 Feasibility Study Scenario 2 - Trophy Club Analysis TOTAL SEWER COST Cost per Meter Equivalent or Cost per 1,000 billed gallons 2031 2032 2033 6,142,473$ 6,699,080$ 7,327,998$ 57.09$ 62.26$ 68.11$ 11.95$ 13.03$ 14.25$ Page 6 of 6 269 TOWN COUNCIL COMMUNICATION REGULAR MEETING MEETING DATE: December 11, 2023 FROM: Tamara Smith, Assistant to the Town Manager AGENDA ITEM: Discuss and consider approval of a public drainage easement agreement with the Homeowners Association of Hogan’s Glen, Inc.; and authorization for the Mayor to execute same on behalf of the Town. BACKGROUND/SUMMARY: On March 21, 2023, the Town of Trophy Club received a formal request from the Hogan’s Glen HOA (the “HOA”), for assistance relating to sedimentation buildup in the Hogan’s Glen ponds. The HOA’s request was discussed at the June 13, 2023, Town Council meeting, and the Town Council determined that $150,000 from the stormwater drainage utility fund should be used to mitigate the stormwater siltation. Stormwater drainage utility funds may be used as authorized by Town Code of Ordinances Sec. 13.03.036, and Texas Local Gov’t Code Ch. 552, the Municipal Drainage Utility Systems Act. At the August 28th Council meeting, the Town Attorney was instructed to negotiate an easement agreement with the HOA to ensure compliance with Texas law. The attached public drainage easement agreement represents the final draft of the agreement between the Town and the HOA. FISCAL IMPACT: The Town Council has approved a not-to-exceed expenditure of $150,000 in exchange for the Hogan’s Glen Homeowners Association (HOA) public drainage easement, release of claims, and for improvements to the public drainage easement area. Payment of the $150,000 will be made in three separate payments of $50,000, with each payment contingent upon the commencement, completion, inspection, and acceptance of the public drainage improvements, as further detailed in the public drainage easement agreement. It is clarified that the Town is not under any obligation to maintain the easement, and the designated funds for this transaction will be sourced from the Storm Drainage Utility Fund. This arrangement ensures transparency and accountability in the utilization of public funds for the acquisition of the drainage easement. LEGAL REVIEW: Approved as to legal form by Town Attorney. 270 ATTACHMENTS: Easement Agreement ACTION/OPTIONS: Move to approve or deny agenda item. 271 FINAL DRAFT 12.8.2023 Page 1 NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER. PUBLIC DRAINAGE EASEMENT AGREEMENT THE STATE OF TEXAS § § KNOW ALL PERSONS BY THESE PRESENTS: COUNTY OF DENTON § THAT THE HOMEOWNERS ASSOCIATION OF HOGAN’S GLEN, INC., a Texas non-profit corporation having an address at 10340 Alta Vista Rd. #C, Fort Worth, Texas 76244 (the “Grantor”), for and in consideration of the sum of TEN AND NO/100 DOLLARS ($10.00) and other good and valuable consideration, to Grantor in hand paid by the Town of Trophy Club, a home-rule municipal corporation situated in Denton County, Texas, having an address at 1 Trophy Wood Drive, Trophy Club, Texas 76262 (the “Town” or “Grantee”), the receipt and sufficiency of which is hereby acknowledged, has this day Granted, Sold, and Conveyed and does hereby Grant, Sell, and Convey unto the Town, its successors and assigns, a perpetual non-exclusive public drainage easement (the “Easement”) for the limited municipal purposes of constructing, reconstructing, inspecting, using, repairing, replacing, and maintaining public drainage facilities in, upon, and across said Easement, being located within the Town of Trophy Club, Texas, and more particularly described as follows: All that certain tract, piece or parcel of land, lying and being situated in the County of Denton, State of Texas, described in EXHIBIT “A”, which is attached hereto and made a part hereof for all purposes, and to which reference is hereby made for a more particular description of said property (the “Easement Property”); TO HAVE AND TO HOLD, the above described Easement, together with all and singular the rights and appurtenances thereto in anywise belonging unto Grantee, its successors and assigns forever; and Grantor does hereby bind itself, its heirs, executors, administrators, successors, and assigns to warrant and forever defend all and singular the said Easement unto the Grantee, its successors and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof by, through, or under the Grantor, but not otherwise. NOW, THEREFORE, in consideration of the Easement granted above and for other good and valuable consideration in accordance with the mutual rights and obligations in this this Public Drainage Easement Agreement (the “Easement Agreement”) the parties mutually agree as follows: 1. Grantor reserves the right to use and enjoy the easement for open space, private drainage, recreation, and any other lawful purposes; provided, however, that Grantor 272 FINAL DRAFT 12.8.2023 Page 2 its successors, and assigns, and invitees shall not create a nuisance or do any act that will be detrimental to the Town’s use of the Easement. 2. Grantee shall have the right, but not the obligation, to maintain the Easement in a condition required for proper operation and maintenance of the Town’s stormwater drainage utility system. The Easement shall not be made open to the general public, but shall be used by Grantee, its successors, assigns, or contractors for the limited public drainage purposes identified in this Easement Agreement, and may be used on a temporary basis for maintenance and repairs to existing culvert, roadway, or other public improvements currently adjacent to or existing on the Easement Property. 3. Grantee is not obligated to ensure that water is continuously diverted to the Easement and makes no warranties of any kind whatsoever concerning the proper functionality or design of the storm sewer drainage facilities currently existing or to be improved by Grantor in the Easement. Grantee shall not be responsible for water diverted away from the Easement, whether directly or indirectly by Grantor or any other third parties. Grantor its heirs, successors, and assigns hereby agree that no obstruction to the natural flow of storm waters, stream, or creek overflow shall be permitted by filling or by construction of any type of dam, bridge, walkway, or any other structure within the Easement. In the event of an obstruction, the Town may, but is not obligated to, remove the same and may charge the costs of such removal against any person or party causing the same. 4. Grantor, its successors, and assigns, hereby reserves the right to maintain the Easement Property shall continue to maintain the Easement Property in accordance with its current drainage and other maintenance obligations, but shall not alter the design of the Easement Property, or make improvements to the Easement Property without the Town’s written permission. 5. Grantee, its successors, and assigns, have the right and privilege, but not the obligation, at any and all times to remove or keep removed all or parts of structures, fences, landscaping, personal property, improvements, or growth which in any way may endanger or interfere with the construction, maintenance, repair, replacement, inspection, or efficiency of the Easement, and the Grantee shall at all times have the right of ingress and egress to and from and upon the Easement for the purpose of constructing, reconstructing, inspecting, maintaining, replacing, and adding to or removing all or part of the public drainage facilities located in the Easement without the necessity at any time of procuring the permission of anyone. 6. As additional consideration and in exchange for the mutal promises contained in this Easement Agreement, Grantor hereby releases and forever discharges, on behalf of the Grantor and its successors and assigns, the Town and its officers, agents, servants, and employees and any others acting or purporting to act on its behalf, from any and all liability, claims, actions, causes of action and negligence, whether real or asserted, of every nature, kind and character which the Grantor has or ever had against the Town whatsoever arising out of or connected in any way to drainage, siltation, erosion, or contamination of the ponds up to the date of execution of this Easement Agreement. The consideration provided in this Easement Agreement is not an admission of any responsibility or liability of the Town. The Grantor hereby covenants not to sue, on behalf of itself and its assigns, the Town or its 273 FINAL DRAFT 12.8.2023 Page 3 officers, agents, servants and employees and any others acting or purporting to act on the Town’s behalf for any matters arising out of, relating to, or in any way connected with the matters released herein. DRAINAGE IMPROVEMENTS 1. Drainage Improvements. The Grantee shall pay the “not-to-exceed” amount of ONE- HUNDRED AND FIFTY-THOUSAND AND NO/100 DOLLARS ($150,000.00) as (1) additional consideration for the convenance of the Easement; (2) the Grantor’s release in Paragraph 6, above; (3) the construction of drainage improvements on the Easement Property benefitting the Easement and the Town’s stormwater drainage utility system; and (4) as security for the faithful completion of drainage improvements by Grantor. 2. The Town shall complete payment of the “not-to-exceed” amount by making three (3) equal payments of $50,000 subject to the following conditions: (1) The 1st payment of $50,000, shall be made by the Grantee within ten (10) days after review and written approval by the Town Engineer that staging, setup, and dredging has started; and (2) The 2nd payment of $50,000, shall be made by the Grantee within ten (10) days after inspection and written determination by the Town Engineer that the dredging work is 100% complete in accordance with the plans and specifications for the project; and (3) The 3rd payment of $50,000, shall be made by the Grantee within ten (10) days after: (i) inspection and final written acceptance by the Town Engineer that all “clean up” work is complete and no final puchlist items or other minor work remains; and (2) after Grantor has furnished to the Grantee satisfactory evidence including a unconditional and final affidavits that all indebtedness to the Grantor’s contractor has been paid, that all indebtedness connected with the work and all sums of money due for labor, materials, apparatus, fixtures, or machinery furnished and used in the performance of the work have been paid or otherwise satisfied. 3. Insurance. Grantor shall ensure that contractors performing work within the Easement shall provide insurance in form and substance in accordance with the Town’s standard insurance requirements for public works projects, which are on file in the Town, or in the Office of the Town Engineer, and which are incorporated herein by reference. 4. Compliance with Laws. Grantor shall ensure that contractors performing work within the Easement shall comply with all local, state, and federal laws, rules, and regulations, relating to drainage, flood control, runoff, erosion, pollution, hazardous materials, waste, sedimentation, and any other control and mitigation requirements related thereto. 5. Books and Records. Grantor shall ensure that contractors performing work within the Easement shall make all books and records available for audit and inspection by the Town. 6. Performance, Payment, and Maintenance Bonds. Prior to the commencement of construction on the Easement Property, Grantor, or its contractors, shall provide a 274 FINAL DRAFT 12.8.2023 Page 4 performance bond, payment bond, and maintenance bond that meets the requirements of Chapter 2253 of the Texas Government Code, and names the Town as additional obligee. Each bond shall be in the full amount of the costs to construct the work and shall be made in favor of the Town ensuring completion of the work in accordance with the plans and specifications approved by the Town Engineer. The performance bond, payment bond, and maintenance bond shall be executed by a corporate surety authorized to do business in Texas in accordance with Chapter 2253 of the Texas Government Code. 7. INDEMNIFICATION BY CONTRACTOR. GRANTOR SHALL CAUSE ALL CONTRACTORS PERFORMING WORK ON THE EASEMENT PROPERTY TO COVENANT AND AGREE TO INDEMNIFY, HOLD HARMLESS, AND DEFEND THE TOWN, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR PROPERTY DAMAGE OR LOSS AND/OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS OF WHATSOEVER KIND OR CHARACTER, WHETHER REAL OR ASSERTED (INCLUDING, WITHOUT LIMITATION, REASONABLE FEES AND EXPENSES OF ATTORNEYS, EXPERT WITNESSES, AND OTHER CONSULTANTS), ARISING OUT OF OR IN CONNECTION WITH, DIRECTLY OR INDIRECTLY, THE CONSTRUCTION, MAINTENANCE, REPAIR, OR ANY OTHER USE OF THE EASEMENT PROPERTY. THE CONTRACTORS AND SUBCONTRACTORS, SHALL FURTHER AGREE TO BE LIABLE FOR INJURY OR DAMAGE TO TOWN PROPERTY, ARISING OUT OF OR IN CONNECTION WITH ANY AND ALL ACTS OR OMISSIONS OF CONTRACTORS AND SUBCONTRACTORS. THIS OBLIGATION TO INDEMNIFY SHALL APPLY TO ALL CLAIMS THAT ARISE FROM EVENTS THAT OCCUR BEFORE OR AFTER THE TIME THE TOWN INSPECTS AND ACCEPTS THE PUBLIC DRAINAGE IMPROVEMENTS, REGARDLESS OF WHETHER ANY SUCH DAMAGES, CLAIMS OR LIABILITIES ARE ALLEGED TO BE CAUSED, IN WHOLE OR IN PART, BY THE NEGLIGENT ACT OR OMISSION, OR OF THE CONCURRENT NEGLIGENT ACT OR OMISSION OF THE TOWN, ITS OFFICERS AND EMPLOYEES, AND SHALL CONTINUE TO APPLY TO THE CONTRACTOR FOR TWO YEARS AFTER THE TOWN INSPECTS AND ACCEPTS THE PUBLIC IMPROVEMENTS. MISCELLANEOUS 1. Severability. In case any one or more of the provisions contained in this Easement Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision hereof, and this Easement Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. 2. Entire Agreement. This Easement Agreement contains the entire agreement between the parties relating to the rights herein granted and the obligations herein assumed. Any or all representations or modifications concerning this instrument shall be of no force and effect except for a subsequent modification in writing signed by the parties hereto. 275 FINAL DRAFT 12.8.2023 Page 5 3. Declaration of Covenants and Restrictions. The parties their successors, and assigns acknowledge and agree that Grantor’s recorded Declaration of Covenants and Restrictions, as amended, authorize Grantor to sell easements and related appurtanances to the Town, and the recorded Declaration of Covenants and Restrictions, as amended, and this Easement Agreement are not intended to restrict or limit the rights of the Town to exercise its legislative and governmental rights, duties, and powers insofar as zoning, building, use, maintenance, and other like obligations are concerned. 4. No Waiver. All rights, remedies, and privileges permitted or available to the parties under this Easement Agreement or at law or equity shall be cumulative and not alternative, and election of any such right, remedy or privilege shall not constitute a waiver or exclusive election of any rights, remedies, or privilege with respect to any other permitted or available right, remedy or privilege. Additionally, one instance of forbearance by a party in the enforcement of any such right, remedy or privilege, shall not constitute a waiver of such right, remedy or privilege by that party. A default under this Easement Agreement by the Town shall not result in forfeiture of any Easement rights, remedies, or privileges under this Easement Agreement by the Town. 5. Venue and Governing Law. The Grantor and Grantee agree that this Easement Agreement shall be enforceable in Denton County, Texas, without regard to conflict of laws principles, and if legal action is necessary in connection therewith, exclusive venue shall lie in Denton County, Texas. The terms and provisions of this Easement Agreement shall be construed in accordance with the laws and court decisions of the State of Texas. 6. Successor and Assigns. This Easement Agreement and the terms and conditions herein shall be binding upon and inure to the benefit of the parties, hereto, their respective successors and assigns. This Easement Agreement may not be assigned without the mutual written consent of the Grantor and Grantee. 7. Counterparts. The Easement Agreement may be executed in any number of counterparts, each of which shall be deemed an original and constitute one and the same instrument. 8. Governmental Function(s) and Immunity. The parties hereby acknowledge and agree that the Town is entering into this Easement Agreement in the performance of and pursuant to its governmental functions for the health, safety, and welfare of the citizens of the Town, the general public, and the State of Texas, and nothing contained in this Easement Agreement shall be construed as constituting a waiver of the Town’s governmental immunity from suit or liability, which is expressly reserved to the fullest extent allowed by law. 9. Waiver of Attorney’s Fees. The parties expressly covenant and agree that in the event of any litigation arising between the parties to this Easement Agreement, each party shall be solely responsible for payment of its attorneys (except as required pursuant to the indemnity obligations in this Easement Agreement) and that in no event shall either party be responsible for the other party’s attorneys’ fees regardless of the outcome of the litigation. 10. Additional Verifications. To the extent required by Texas law, the Grantor verifies that: (1) It does not have a practice, policy, guidance, or directive that discriminates against a 276 FINAL DRAFT 12.8.2023 Page 6 firearm entity or firearm trade association, as defined in Texas Government Code § 2274.001, and that it will not during the term of the contract discriminate against a firearm entity or firearm trade association; (2) It does not “boycott Israel” as that term is defined in Texas Government Code Ch. 2271 and § 808.001 and it will not boycott Israel during the term of this Easement Agreement; and (3) It does not “boycott energy companies,” as those terms are defined in Texas Government Code §§ 809.001 and 2276.001, and it will not boycott energy companies during the term of the Easement Agreement; (4) It does not engage in scrutinized business operations with Sudan, Iran, or designated foreign terrorist organization as defined in Texas Government Code, Chapter 2270; and (5) It is not owned by or the majority of its stock or other ownership interest is held or controlled by i) individuals who are citizens of China, Iran, North Korea, Russia, or a designated country as defined by Texas Government Code § 2275.0101; or ii) a company or other entity, including a governmental entity, that is owned or controlled by citizens of or is directly controlled by the government of China, Iran, North Korea, Russia, or a designated country; nor is it headquartered in China, Iran, North Korea, Russia, or a designated country. 11. Ethics Disclosure. To the extent required by law, the Grantor represents that it has completed a Texas Ethics Commission (the “TEC”) form 1295 (“Form 1295”) generated by the TEC’s electronic filing application in accordance with the provisions of Texas Gov’t Code Ch. 2252.908 and the rules promulgated by the TEC. The parties agree that, with the exception of the information identifying the Town and the contract identification number, the Town is not responsible for the information contained in the Form 1295. 12. This Easement Agreement shall be filed for record in the deed records of Denton County, Texas, shall be deemed a covenant running with the land and shall be binding on the successors and assigns of the Grantor and Grantee. EXECUTED this _______ day of ____________________, 2023. GRANTOR: HOMEOWNERS ASSOCIATION OF HOGAN’S GLEN, INC., a Texas non-profit corporation By: Name: Title: STATE OF TEXAS § § COUNTY OF DENTON § The foregoing instrument was acknowledged before me this _____ day of ____________, 2023, by ___________________, ___________________ of the Homeowners Association of Hogan’s Glen, Inc., a Texas non-profit corporation, who is 277 FINAL DRAFT 12.8.2023 Page 7 personally known to me to be the person who signed the foregoing instrument and he acknowledged that the execution thereof was his free act and deed as such ___________________ for the uses and purposes therein expressed, and that the said instrument is the act and deed of said ___________________ for the uses and purposes therein expressed. WITNESS my hand and official seal this ____ day of ____________, 2023. Notary Public, in and for the State of Texas My Commission Expires: 278 FINAL DRAFT 12.8.2023 Page 8 GRANTEE: TOWN OF TROPHY CLUB, TEXAS By: __________________________ Jeannette Tiffany, Mayor ATTEST: ____________________________ Tammy Dixon, Town Secretary APPROVED AS TO FORM: _____________________________ Dean Roggia, Town Attorney MAYOR’S ACKNOWLEDGMENT THE STATE OF TEXAS § § COUNTY OF DENTON § BEFORE ME, the undersigned authority, a Notary Public in and for said State, on this day personally appeared Jeannette Tiffany, Mayor, of the Town of Trophy Club, Texas, a municipal corporation, known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the said Town of Trophy Club, Texas, a home-rule municipal corporation, that she was duly authorized to perform the same by appropriate action of the Town Council of the Town of Trophy Club and that she executed the same as the act of the said Town for the purpose and consideration therein expressed, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this the day of_____________, A.D. 2023. Notary Public, in and for the State of Texas My Commission Expires: 279 FINAL DRAFT 12.8.2023 Page 9 EXHIBIT A Tract 1 That certain portion of property generally described as Denton County Central Appraisal District Property ID 206484, Geographic ID SJ0202A-000000-0000-0000-0001, described as THE VILLAS OF HOGANS GLEN LOT OPEN SPACE A and identified in the Warranty Deed recorded as Document No. 1994-91662; and Deed Without Warranty recorded as Document No. 2023-26024, Deed Records, Denton County, Texas (previously owned by Beck Properties Development-I, L.P.) Tract 2 That certain portion of property generally described as Denton County Central Appraisal District Property ID 206485, Geographic ID SJ0202A-000000-0000-0000-0002, described as THE VILLAS OF HOGANS GLEN LOT OPEN SPACE B and identified in the Warranty Deed recorded as Document No. 1994-91662; and Deed Without Warranty recorded as Document No. 2023-26024, Deed Records, Denton County, Texas (previously owned by Beck Properties Development-I, L.P.) Tract 3 That certain portion of property generally described as Denton County Central Appraisal District Property ID 207938, Geographic ID SJ0201A-000000-0000-0000-0001, described as THE ESTATES OF HOGANS GLEN LOT OPEN SPACE A and identified in the Warranty Deed recorded as Document No. 1998-95873; and Deed Without Warranty recorded as Document No. 2023-26024, Deed Records, Denton County, Texas (previously owned by Beck Properties Development-I, L.P.) WHEN RECORDED, RETURN TO: Town of Trophy Club Attn: Matt Cox, Director of Community Development 1 Trophy Wood Drive, Trophy Club, TX 76262 280 TOWN COUNCIL COMMUNICATION REGULAR MEETING MEETING DATE: December 11, 2023 FROM: Tamara Smith, Assistant to the Town Manager AGENDA ITEM: Discuss and consider Council Retreat Agenda Items BACKGROUND/SUMMARY: In November, the Mayor and the recently appointed Town Manager collaborated to establish a framework for the Council Retreat scheduled for January. Per Town Charter requirements, in January, the Mayor and Council delineate the vision and goals for the upcoming year. Simultaneously, the Town Manager is entrusted with the responsibility of executing these goals through the seamless management of day-to-day Town functions. A harmonious collaboration between the Town Council and the Town Manager is essential for fostering a successful working relationship and ensuring the overall success of Town operations. The Town Manager presented a well-defined sequence of steps designed to bring the TC Strategic Plan to fruition. In addition, the Mayor proposed the inclusion of a facilitator to enhance the Council's decision-making process. The selected facilitator is a member of Strategic Government Resources (SGR) and specializes in strategic foresight. This collaboration between the Town Council and the facilitator is poised to contribute significantly to the attainment of mandated goals in the upcoming year. Moreover, it will play a pivotal role in laying the groundwork for the initial phases of formulating a new TC Strategic Plan. The guidance provided by the Town Council will serve as a crucial catalyst for the new Town Manager, expediting the development of both a strategic plan and a parks master plan while also facilitating updates to our comprehensive plan. The Mayor also engaged in discussions with SGR regarding the initial mandated goal-setting, as stipulated by the charter, and outlined the proposal put forth by the new Town Manager. As a result, a comprehensive two-day agenda was formulated. During the Town Council work session held on November 13, 2023, the Council confirmed the dates for the upcoming Council retreat as January 19th and 20th. Day 1 •Governance Training (2 Hours) Session Focus: Concentrating on defining roles, responsibilities, and relationships, while exploring actionable strategies for success. The facilitation of this discussion will be Lead in Tandem or SGR. 281 Day 2 •Discuss Timing and Sequence of Upcoming Vision/Master Plan Development (2 Hours) Session Focus: Aims to explore the optimal strategy for attaining our long-term goals. The facilitation of this discussion will be Lead in Tandem or SGR. •Learning About and Preparing for Strategic Plan (2 Hours) Session Focus: Concentrate on exploring Strategic Plans, gathering feedback from the Council regarding desired levels of public engagement and inclusion of relevant organizations. The objective is to create a dynamic and adaptable document for the Town, incorporating it into shorter-term annual goals. The facilitation of this discussion will be handled by SGR. •Budget Preparation (2-3 Hours) Session Focus: Focus on the upcoming fiscal year budget and tax rate. The facilitation of this discussion will be Lead in Tandem. FISCAL IMPACT: The staff contacted several facilitators, and SGR met the needs of the organization at the most competitive price. The complete cost for SGR's facilitation services is $10,425, and this expenditure will be covered by the General Fund from the Town Manager's Contingency fund, as well as catering for the event. In lieu of an off-site venue, we will be utilizing one of the rooms available at Town Hall. ATTACHMENTS: SGR Council Retreat Proposal, Capital Improvement Projects List ACTION/OPTIONS: Provide direction to staff. 282 Proposal for: Council Retreat Town of Trophy Club, Texas November 10, 2023 Proposal pricing is valid for 90 days. Reservations for event dates are valid for 21 days. Strategic Government Resources P.O. Box 1642, Keller, Texas 76244 Office: 817-337-8581 Mike Mowery, President of Leadership Development & Strategic Foresight MMowery@GovernmentResource.com 283 Table of Contents 1. Company Profile 2. Investing in Leadership Development 3. Scope of Work 4. Retreat Facilitator 5. SGR Leadership Development Facilitators 6. Professional Services Fee 7. Billing 8. Response Request 9. Appendices: • Appendix A: Council Retreats • Appendix B: Professional Services Agreement 284 Company Profile Strategic Government Resources, Inc. (SGR) incorporated in Texas in 2002 to help local governments become more successful by Recruiting, Assessing, and Developing Innovative, Collaborative, and Authentic Leaders. SGR is fully owned by Ron Holifield, who spent two high- profile decades in city management and served as the City Manager for several local governments. SGR’s business model is truly unique. Although we are a private company, SGR operates like a local government association. Most of SGR’s principals are former local government officials, allowing SGR to bring a depth of local government expertise to every project that no other firm can match. SGR’s Core Values are Customer Service, Integrity, Philanthropy, Continuous Improvement, Agility, Collaboration, Protecting Relationships, and the Golden Rule. SGR is a full-service firm, specializing in executive recruitment, interim placements, online training, onsite training, leadership development, psychometric assessments, strategic visioning retreats, one-on-one employee coaching, and other consulting services. SGR’s services are designed to promote innovation, team building, collaboration, and continuous improvement in local governments. SGR has approximately 700 local government clients in 47 states across all our business lines. SGR has 31 full-time employees, 1 part-time employee, 21 recruiters, 20 facilitators, and multiple consultants who function as subject matter experts on a variety of projects. SGR has corporate headquarters in Texas, as well as virtual offices in California, Colorado, Florida, Minnesota, New York, North Carolina, Ohio, Oklahoma, and Oregon. View all SGR team members and bios at: Meet the Team. 1 285 2 286 Why Invest in Leadership Development? Leadership Development focuses on the competencies needed for upper-level managers and senior executives who have the responsibility of shaping the organization's culture and systems to facilitate excellent performance. Leadership Development events help leaders navigate how they can effectively shape and mold the future. How Do Live Events Work? SGR's Leadership Development Events are highly customizable and can be tailored to meet the specific needs of your organization. Certain needs may simply require a customized agenda while others may require confirming other specifics such as preferred topic, duration, target audience, intended outcomes, budget, and more. SGR organizes its catalog by "format", which simply indicates the intended event experience. Available formats include the following: • Retreats for elected officials • Workshops for Management Teams • Executive Book Briefings • Round-Table Discussions on Values-based Leadership • Strategic Foresight Workshops • Servant Leadership Conferences • Executive Coaching and Mentoring Whether you are interested in scheduling a retreat, workshop, executive book briefing, or other available service, SGR will work with you to create an agenda that fits your needs. 3 287 Scope of Work Thank you for the opportunity to submit this proposal to facilitate a Council Retreat for the Town of Trophy Club. This proposal includes event details, facilitator background information, and the cost of services. Session Title Facilitator Date/Time Location Council Retreat Mike Mowery Times TBD Dates TBD but anticipate January 2024 TBD Scope of Work: •Advance interviews with Council Members and Mayor •Review Principles of Good Board Governance to enable elected officials to be most successful. •Development of the Process for Creating a long-term strategic vision involving community input, staff input, and a cohesive set of strategic priorities for the future. •Update on current CIP’s. •Establishing Council’s short-term goals. Process for Advance Interviews: Building rapport between the facilitator and participants is an important component of holding a successful retreat. SGR utilizes a process called “advance interviews” which equips the facilitator with the knowledge needed to address the most important issues within your organization as well as customize the agenda for the retreat based on your needs. Prior to the retreat, the SGR Facilitator will conduct advance interviews with the Mayor, Town Council and Town Manager. Interviews are approximately 45-50 minutes in length and are normally done via telephone, however, in-person interviews can be arranged upon request. Process for Scheduling Advance Interviews: 1.Once an agreement has been fully executed, SGR will introduce the host organization to the SGR facilitator for the retreat via email. The facilitator will provide their availability based on dates they have reserved for this purpose. 2.SGR requests that someone within your organization schedules the interviews for each participant to meet with the facilitator. Once scheduled, participants should be given the facilitator’s email address and phone number for convenience. 4 288 3.Once the interviews have been scheduled, the city will send the facilitator the names, email addresses, and phone numbers of the participants being interviewed along with the day and time the interview is scheduled. 4.If a participant cannot schedule an interview for any of the times the facilitator provided, please contact the facilitator to see if they can schedule a different time for that individual. 5.Below is a sample email the town can share with participants: Our town has scheduled a Council Retreat with SGR that will be held on (Event Date.) In preparation for the retreat, SGR will be conducting advance interviews with all the participants by telephone. These interviews will be one-on-one between you and the facilitator and will last approximately 45-50 minutes. No preparation will be required on your part for the advance interview as the questions will be intended as an opportunity for you to give your opinions about the direction and future of the town. The times for the interviews are as follows: (Days and Times for the interviews supplied by the facilitator.) The town will be reaching out to you to schedule the interviews. If you are not available for any of these times, please contact the town, and we will reach out to the facilitator to see if another time can be arranged. The facilitator, (Facilitator’s Name), will be calling you from this number, (Facilitator’s Phone Number). Recommended Timeframe: We recommend the executed contract be sent to SGR at least 30 days prior to the scheduled retreat, if possible. This allows for an adequate amount of time for the meeting agenda to be finalized, advance interviews to be scheduled and conducted, any necessary online surveys or personality profiles to be prepared and assigned, and efficient travel arrangements to be made. Since we generally do not connect you with the facilitator until after we have received the signed contract, we ask that you plan accordingly. If the town desires to work personally with the facilitator to establish the exact date for the meeting, we can execute a contract with the date set as “to be determined.” The town and the facilitator can then coordinate on the exact date according to their mutual availability. Facilitator: The facilitator for the retreat will be President of Leadership Development and Strategic Foresight Mike Mowery. Please view Mike’s bio included in this proposal. To view the bios for all SGR Facilitators, please visit the facilitator section on the SGR website at: Meet the Team. 5 289 Date: TBD Location: TBD Requested Logistical Support from the town: 1.A meeting location, break coordination, and expenses. 2.All AV set up, including a laptop and projector with power point capability, as well as the ability to play videos with adequate sound for a full room to easily hear. 3.Printing of all materials, if applicable. 4.Two chart-size, “Post It” style pads with sticky backs, six different colored large size markers (wide tip). 6 290 Facilitator Dr. Mike Mowery is the President of Leadership Development for Strategic Government Resources (SGR). He has been with SGR since 2011. Mike has studied leadership for over 30 years and is experienced in guiding local governments in strategic visioning, building effective teams, and overcoming obstacles to improve and enhance organizational health. He has led over 500 Workshops on Leadership for local governments. He is a graduate of Baylor University, Southwestern Baptist Theological Seminary, and Golden Gate Baptist Theological Seminary. His doctoral project focused on developing a process to help leaders create a strategic vision for a larger organization. This has become the foundation fo r SGR’s approach to Strategic Planning which is being used by more and more City Councils. Mike is the creator and presenter of SGR’s Next Generation Leader training program and leads other workshops and classes including Building Better Leaders, Building the Great Workplace, and Overcoming the 5 Dysfunctions of a Team. Mike has helped develop and redefine SGR’s Strategic Visioning Process used in city council retreats around the nation. He was also one of the developers for SGR’s Mentoring Program, used to help emerging leaders reach their potential. Mike has a passion for seeing leaders grow, excel, and provide outstanding leadership to their organizations. In addition to having earned several certifications in facilitation methods, he is in the process of a certified coach with the International Coaches Federation. Mike Mowery, President; Leadership Development & Strategic Foresight MikeMowery@governmentresource.com 817-223-7320 7 291 LEADERSHIP DEVELOPMENTFACILITATORS governmentresource.com RANDY MAYEUXBOB LASALA AUSTIN HOLIFIELD TRACEY MADISON MIKE MOWERY KRISTY CARD WILL HAMPTONARETHA FERRELL- BENAVIDES ANDY DUKE 8 292 governmentresource.com LEADERSHIP DEVELOPMENTFACILITATORS SCOTT WILLINGHAMTED STUDDARD HILARY SHINECINDY RYAN OMAR REYES TROY RIGGS DOUG THOMAS FRANCES PELLEYJULIE OLDBURY 9 293 Professional Services Fees Professional Service Unit Price Quantity Subtotal Council Retreat Day 1-Evening Session (3 hours) Day 2-Day Session $8,500 1 $8,500 Advance Interviews $275 per interview. The quantity of interviews is estimated in the proposal. The exact price will be calculated based on the actual number of interviews conducted. $275 7 $1,925 Interview with Town Manager No Charge 1 No Charge Estimated Total for Services $10,425 AFI Member Discount The Alliance for Innovation (AFI) is a nationwide non-profit association of local governments dedicated to promoting innovation and improving the quality of life in their local communities. Founded in 1994, the Alliance provides a platform for collaboration, learning, and sharing of best practices among its members. AFI collaborates with SGR and leverages the expertise of their specialists to deliver professional foresight, innovation, and culture-building services. AFI and SGR are proud to offer a robust selection of offerings thoughtfully designed to guide local governments teams on their individual innovation journeys. Membership in AFI gives local governments a leg up on the activities most essential to building a prosperous future. •Become more proactive – Our strategic foresight services help local governments anticipate change and design proactive strategies to build the future they envision. •Build a stronger team – Our culture building services and events are designed to help local governments build cultures of enhanced innovation and foresight. •Get on the cutting edge – Our innovation services help local governments stay up to date on the latest social innovations and pioneering technology. In addition to membership benefits, Alliance for Innovation (AFI) Members receive a 10% discount on all SGR Leadership Development services. For more information on becoming an AFI Member, please contact Director of AFI National Member Relations, Kristen Dorman at: kristendorman@governmentresource.com. 10 294 Billing SGR will send an invoice immediately following the date of service, which can sometimes result in multiple session offerings being represented in a single invoice if the event dates are all delivered within a relatively short period of time. Payment is due within thirty (30) days of receipt. If full payment is not made by the due date, SGR reserves the right to suspend the delivery of all future events until full payment is made. Balances that are unpaid after the payment deadline are subject to a fee of 5% per month or the maximum lawful rate, whichever is less, on the owed amount every month, charged monthly until the balance is paid. Purchase Order Number If applicable, please provide the appropriate Purchase Order (PO). This PO number will be included on the invoice for services provided as part of this Professional Services Agreement. PO #: 11 295 Response Request For the purpose of efficient planning and coordination, we kindly request that your organization responds in a timely manner to our proposal, indicating whether you choose to proceed with the collaboration or explore alternative directions. Prompt feedback is of utmost importance as it enables us to create comprehensive plans and allocate necessary resources. The proposal pricing is valid for 90 days. Reservations for event dates will be valid for 21 days. If SGR does not receive a response to move forward with the contract process within 21 days, we cannot guarantee an available facilitator for the requested date(s) and time(s).Your timely response ensures that both parties can effectively prepare, align strategies, and optimize outcomes. We greatly appreciate your commitment to this collaborative approach. 12 296 13 297 Agreement for Council Retreat (“PROJECT”) to Town of Trophy Club, Texas (“CLIENT”) between CLIENT and Strategic Government Resources, Inc. (“SGR”) SGR and CLIENT (together, “Parties”) agree as follows, effective upon the date of the later signature below, in consideration of the mutual promises contained in this Agreement and other good and valuable consideration, the sufficiency of which each Party hereby acknowledges. 1. SGR promises and agrees: A. To perform the services described in SGR’s Proposal for PROJECT dated November 10, 2023 (“PROPOSAL”) substantially in the timeframe projected in the PROPOSAL. B. To comply with all applicable open records, public information and similar laws, and consult with CLIENT if SGR is asked for information before disclosure, unless prevented by court order or law from doing so. 2. CLIENT promises and agrees: A. To pay SGR promptly as billed or invoiced for such services in accordance with the amounts stated in PROPOSAL, including Reimbursable Expenses and costs of any Supplemental Services or Other Expenses that CLIENT selects. B. To respond to drafts of documents and reports in a timely manner; failure to do so may, in SGR’s reasonable discretion, extend timelines and can negatively impact the outcome of the process. C. To provide legal opinions to SGR regarding when and if any information relating to the PROJECT must or should be released in accordance with public information laws or legal process. D. That if CLIENT receives an open records request, CLIENT shall notify and share the request with SGR in writing as soon as possible but within no more than three (3) business days of receipt. E. To cooperate with SGR to enable SGR to perform its obligations to CLIENT. 3. Additional Terms and Conditions: A. SGR may substitute personnel other than those initially placed, who have substantially equivalent training and experience and subject to approval of CLIENT, due to factors such as SGR employee/consultant turnover, developing needs of the PROJECT, or CLIENT’s request. B. Remedies i. CLIENT can terminate this agreement at any time for no reason upon giving SGR seven (7) days advance written notice of the termination date. In such an event, SGR will be compensated for all work satisfactorily performed up to and through the termination date. 14 298 ii. SGR can terminate this agreement upon seven (7) days advance written notice of the termination date to CLIENT if CLIENT has failed to promptly pay in full any undisputed portion of any bill or invoice (if the dispute is in good faith) or has failed to perform its contractual promises in a manner that materially impedes SGR’s ability to perform. In such an event, SGR will be compensated for all work satisfactorily performed up to and through the termination date. C. There are no third-party beneficiaries to this Agreement. D. If any term or condition of this Agreement is invalidated by final judgment of a court of competent jurisdiction or becomes impossible to perform, the Parties will confer about whether to continue performance without amending the Agreement, without prejudice to either Party’s right to terminate the Agreement without cause. E. This Agreement embodies the complete and final understandings, contract, and agreement between the Parties, superseding any and all prior written or verbal representations, understandings, or agreements pertaining to this PROJECT. This Agreement can be modified only by signed written amendment. Electronic communications purporting to amend this Agreement will be effective only if the electronic communication includes specific reference to this Agreement or PROJECT. F. This Agreement will be governed by the substantive laws of the State of Texas without regard to the jurisdiction’s choice-of-law doctrines. Venue for any litigation relating to this Agreement will be exclusively in Denton County of the State of Texas. G. Notices related to this Agreement will go to the respective Parties as follows but either Party can change the addressee for notices to that Party by written notice to the other Party. i. For the purposes of this Agreement, legal notice shall be required for all matters involving potential termination actions, litigation, indemnification, and unresolved disputes. This does not preclude legal notice for any other actions having a material impact on the Agreement. ii. Any notice required be given by this Agreement shall be deemed to have been given within three (3) days of emailing or depositing in the mail. 15 299 Legal Notices: SGR Attn: Melissa Valentine, Corporate Secretary PO Box 1642 Keller, TX 76244 Melissa@GovernmentResource.com CLIENT Attn: Address: Email: PROJECT Representative: SGR Name: Mike Mowery Title: President of Leadership Development & Strategic Foresight Email: MMowery@governmentresource.com Phone: 817-337-8581 CLIENT Name: Title: Email: Phone: Billing and Invoicing: SGR Attn: Finance Finance@GovernmentResource.com 817-337-8581 CLIENT Name: Title: Email: Phone: On-Site AV/IT Point of Contact (for day-of session needs): SGR Attn: Training Training@GovernmentResource.com 817-337-8581 CLIENT Name: Title: Email: Phone: 16 300 On-Site Event Coordinator Point of Contact (for day-of session needs): SGR Attn: Training Training@GovernmentResource.com 817-337-8581 CLIENT Name: Title: Email: Phone: H. Unless sooner terminated, this Agreement shall terminate at such time as the PROJECT is completed and the requirements of this Agreement are satisfied, except that duties of payment, of information disclosure, any representations and warranties, and placement guarantee survive this Agreement. I. The Parties and each individual who executes this Agreement on behalf of a Party represent and warrant to the other Party that as to each Party’s respective signatory, that signatory is authorized by their Party to execute this Agreement and to bind their Party hereto. J. Time is of the essence to this Agreement. K. This Agreement may be executed in counterparts which together will comprise the Agreement. L. This Agreement is subject to appropriation of funds by CLIENT. M. Balances that are unpaid after the payment deadline are subject to a fee of 5% per month or the maximum lawful rate, whichever is less, on the owed amount every month, charged monthly until the balance is paid. Strategic Government Resources, Inc. Town of Trophy Club, Texas Signature Signature Printed Name: Printed Name: Title: Title: Date Date 17 301 TOWN OF TROPHY CLUB, TEXAS Annual Program of Services APPENDIX Proposed Projects FY24 Adopted Budget 54 302 5ꢀYearꢀCapitalꢀImprovementꢀProgramꢀͲꢀFY2024ꢀͲꢀFY2028 Scheduledꢀtoꢀ coincideꢀwithꢀ MUDꢀproject Year Begins Sidewalks/ꢀ Pathways Parks/ FieldsDescriptionDrainageStreetsꢀTCꢀPool TCꢀPark TownꢀHall FundingꢀSource Comments *FY2024 InvernessꢀStormꢀSystemꢀImprovement $1,500,000ꢀARPA ThisꢀprojectꢀisꢀslatedꢀtoꢀbeꢀcompletedꢀwithꢀtheꢀMUD'sꢀprojectꢀforꢀtheꢀsameꢀarea. InvernessꢀStreetꢀreplacement ForestꢀHillꢀtoꢀIndianꢀCreek*FY2024 $1,500,000 CurrentꢀBond ThisꢀprojectꢀisꢀslatedꢀtoꢀbeꢀcompletedꢀwithꢀtheꢀMUD'sꢀprojectꢀforꢀtheꢀsameꢀarea. Thisꢀwillꢀbeꢀforꢀaꢀnewꢀgateꢀsystemꢀcomingꢀintoꢀtheꢀpark,ꢀupdatingꢀtheꢀguardꢀshack,ꢀupdatingꢀ currentꢀrestroomsꢀandꢀaddingꢀbetterꢀparkingꢀareas.TCꢀParkꢀEntrance CurrentꢀBond/CIPꢀCashFY2024 FY2024 $800,000 ComprehensiveꢀPlanꢀͲꢀTown $100,000 GeneralꢀFundꢀͲꢀFundꢀBalance Theꢀlastꢀapprovedꢀmasterꢀplanꢀwasꢀcompletedꢀinꢀ2008.ꢀꢀThisꢀwillꢀupdateꢀthatꢀplanꢀandꢀgiveꢀtheꢀ ParksꢀandꢀRec.ꢀDept.ꢀaꢀblueꢀprintꢀofꢀwhatꢀtheꢀprioritiesꢀareꢀforꢀtheꢀparkꢀsystem.ParksꢀMasterꢀPlan GeneralꢀFundꢀͲꢀFundꢀBalance FY2024 FY2024 $120,000 GFꢀFundꢀBalance/BondꢀFunds/Parklandꢀ TheꢀTownꢀhasꢀapprovedꢀ$330,000ꢀfromꢀParklandꢀdedicationꢀfunding.ꢀTheꢀadditionalꢀfundingꢀPickleballꢀCourts $1,300,000 Dedication/HOT willꢀcomeꢀfromꢀGFꢀbalance.ꢀ$500,000ꢀforꢀtheꢀfirstꢀpartꢀofꢀtheꢀbuildꢀproject. ThisꢀwillꢀprovideꢀaꢀcoverꢀforꢀtheꢀfrontꢀentranceꢀtoꢀTownꢀHallꢀtoꢀprotectꢀvisitorsꢀfromꢀtheꢀsunꢀ andꢀrain.ꢀAdditionallyꢀthisꢀcoveredꢀareaꢀwillꢀaddꢀaꢀnewꢀpostingꢀboardꢀforꢀcouncilꢀagendas.ꢀTownꢀHallꢀEntranceꢀCovering FY2024 FY2024 $100,000 $40,000 GeneralꢀFundꢀͲꢀFundꢀBalance GeneralꢀFundꢀͲꢀFundꢀBalanceTownꢀHallꢀRearꢀPatioꢀCovering TownꢀHall:ꢀꢀPoliceꢀParkingꢀLot FireꢀDepartmentꢀPortableꢀRadios Rearꢀbreakꢀareaꢀcover.ꢀ CoveredꢀareaꢀforꢀPatrolꢀUnitsꢀandꢀLockꢀup.ꢀꢀThisꢀwillꢀprovideꢀcoveredꢀparkingꢀforꢀ16ꢀparkingꢀ spacesꢀandꢀaꢀcoveredꢀareaꢀoffꢀtheꢀbuildingꢀbyꢀtheꢀholdingꢀcellꢀdoor.GeneralꢀFundꢀͲꢀFundꢀBalance GeneralꢀFundꢀͲꢀFundꢀBalance FY2024 FY2024 $275,000 $100,000 ReplacementꢀofꢀtheꢀMotorolaꢀ6000ꢀportableꢀradiosꢀwithꢀnewꢀ8000.ꢀ PatrolꢀUnitꢀCameraꢀsystemꢀreplacements:ꢀThisꢀfundingꢀwillꢀreplaceꢀtheꢀoldꢀcameraꢀsystemsꢀ withꢀtheꢀnewꢀMotorolaꢀM500ꢀsystems.ꢀTheꢀcurrentsꢀsystemsꢀareꢀ10ꢀyearsꢀoldꢀandꢀoutdated.ꢀ Costꢀisꢀforꢀ8ꢀcameraꢀsystemsꢀinstalled. PoliceꢀDepartmentꢀͲꢀCarꢀCameraꢀSystems GeneralꢀFundꢀͲꢀFundꢀBalance FY2024 $120,000 ThisꢀisꢀaꢀpaymentꢀkioskꢀforꢀtheꢀparkingꢀlotꢀofꢀTownꢀHall,ꢀitꢀwouldꢀallowꢀcitationꢀpaymentsꢀandꢀ possiblyꢀParksꢀ&ꢀRecꢀmembershipꢀpaymentsꢀandꢀwaterꢀutilityꢀpayments.ꢀꢀTheꢀCityꢀofꢀKellerꢀ utilizesꢀoneꢀofꢀtheseꢀsoꢀthatꢀtheyꢀhaveꢀaꢀsolutionꢀforꢀcitationꢀpaymentsꢀinꢀTownꢀsinceꢀtheyꢀalsoꢀ outsourceꢀtheirꢀcourtꢀofficeꢀtoꢀColleyville.ꢀꢀItꢀisꢀbasicallyꢀlikeꢀaꢀbanksꢀATMꢀbutꢀisꢀusedꢀforꢀ acceptingꢀpaymentsꢀinsteadꢀofꢀdispeningꢀfunds. PaymentꢀKioskꢀatꢀTownꢀHall FundꢀBalance/ARPA/CARES FY2024 FY2024 $50,000 $50,000 SchoolꢀZoneꢀFlashers ITꢀImprovements $25,000 FundꢀBalance FundꢀBalanceꢀ SchoolꢀZoneꢀflashersꢀnearꢀhighꢀschoolꢀcrossingꢀwalk Improvements/UpgradesꢀrecommendedꢀbyꢀNetGenius,ꢀonceꢀtheyꢀhaveꢀevaluatedꢀallꢀofꢀourꢀ equipment.FY2024 FY2024 StreetꢀLightsꢀͲꢀTCꢀ&ꢀBobcatꢀͲꢀBobcatꢀ&ꢀParkviewꢀ ͲꢀSchoolꢀexitsꢀͲꢀMarshallꢀCreek $2,000,000 $6,000,000 TrophyꢀClubꢀDr/Bobcat:ꢀThisꢀprojectꢀisꢀpartiallyꢀfundedꢀbyꢀDentonꢀCountyꢀwithꢀaꢀ$3,000,000ꢀ grantꢀandꢀtheꢀTownꢀwillꢀfundꢀtheꢀbalance.ꢀ(est.ꢀ$3,000,000.).ꢀForꢀaꢀtotalꢀprojectꢀcostꢀestimateꢀ $6ꢀmillion. TrophyꢀClubꢀDr/Bobcat:ꢀThisꢀprojectꢀisꢀpartiallyꢀfundedꢀbyꢀDentonꢀCountyꢀwithꢀaꢀ$3,000,000ꢀ grantꢀandꢀtheꢀTownꢀwillꢀfundꢀtheꢀbalance.ꢀ(est.ꢀ$3,000,000.).ꢀForꢀaꢀtotalꢀprojectꢀcostꢀestimateꢀ $6ꢀmillion. GeneralꢀFundꢀͲꢀFundꢀBalanceꢀͲꢀStormꢀ DrainageHogan'sꢀGlenꢀDrainageꢀ FY2024ꢀ FY2024ꢀ $150,000 GrantꢀFundsꢀ($3M)/FutureꢀCOꢀBondꢀ Fundsꢀ($3M)Roundaboutꢀ(TrophyꢀClubꢀDrive/BobcatꢀBlvd) Thisꢀwillꢀenhanceꢀtheꢀparkꢀforꢀfutureꢀrecreationalꢀactivitiesꢀthatꢀwillꢀbeꢀpartꢀofꢀtheꢀparkꢀmasterꢀ planꢀandꢀalsoꢀhelpꢀincreaseꢀtheꢀattendanceꢀatꢀtheꢀparkꢀfromꢀtheꢀactivities.ꢀꢀSomeꢀofꢀthisꢀcouldꢀ beꢀexpandedꢀATVꢀcourses,ꢀaddingꢀmoreꢀbike/hikingꢀtrails,ꢀpossibleꢀcampꢀsites,ꢀbridgesꢀonꢀtrails, etc.ꢀꢀItꢀwillꢀalsoꢀupdateꢀcurrentꢀrestroomꢀfacilitiesꢀandꢀpicnicꢀsitesꢀtoꢀbeꢀmoreꢀinviting.ꢀꢀThisꢀlistꢀ couldꢀchangeꢀdependingꢀonꢀtheꢀresultsꢀofꢀtheꢀParkꢀMasterꢀPlan. TCꢀParkꢀimprovements TCꢀBaseballꢀFieldsꢀ FutureꢀCOꢀBonds FY2025 $4Ͳ5ꢀmillion Thisꢀwillꢀreplaceꢀsomeꢀcurrentꢀfencingꢀthatꢀisꢀnotꢀupꢀtoꢀstandardsꢀandꢀaddꢀturfꢀtoꢀtheꢀinfieldsꢀofꢀ theꢀballfields.* * * FY2025 FY2025 FY2026 $2Ͳ4ꢀmillion FutureꢀCOꢀBond/HOT FutureꢀCOꢀBonds FutureꢀCOꢀBonds FutureꢀCOꢀBonds CreekmereꢀDr.ꢀStreetꢀReplacement AllꢀofꢀCreekmereꢀDr.ꢀ ForrestꢀHillꢀStreetꢀReplacement IndianꢀCreekꢀtoꢀFreshꢀMeadowꢀCt. GreenbriarꢀCt.ꢀ ThisꢀprojectꢀisꢀslatedꢀtoꢀbeꢀcompletedꢀwithꢀtheꢀMUD'sꢀprojectꢀforꢀtheꢀsameꢀarea. ThisꢀprojectꢀisꢀslatedꢀtoꢀbeꢀcompletedꢀwithꢀtheꢀMUD'sꢀprojectꢀforꢀtheꢀsameꢀarea. ThisꢀprojectꢀisꢀslatedꢀtoꢀbeꢀcompletedꢀwithꢀtheꢀMUD'sꢀprojectꢀforꢀtheꢀsameꢀarea. $1,500,000 $1,500,000 * * FY2026 FY2026 FY2027 FY2027 FY2028 FY2028 FY2028 FY2028 FY2028 FY2028 FY2028 FY2028 $500,000 $1,500,000 $3,000,000 $2,000,000 $550,000 $215,000 $400,000 $250,000 $250,000 IndianꢀCreekꢀtoꢀendꢀofꢀCt. TimberlineꢀDr.FutureꢀCOꢀBonds FutureꢀCOꢀBonds FutureꢀCOꢀBonds FutureꢀCOꢀBonds FutureꢀCOꢀBonds FutureꢀCOꢀBonds FutureꢀCOꢀBonds FutureꢀCOꢀBonds FutureꢀCOꢀBonds FutureꢀCOꢀBonds GeneralꢀFundꢀͲꢀFundꢀBalance ThisꢀprojectꢀisꢀslatedꢀtoꢀbeꢀcompletedꢀwithꢀtheꢀMUD'sꢀprojectꢀforꢀtheꢀsameꢀarea. ThisꢀprojectꢀisꢀslatedꢀtoꢀbeꢀcompletedꢀwithꢀtheꢀMUD'sꢀprojectꢀforꢀtheꢀsameꢀarea.OakmontꢀDrive TrophyꢀClubꢀDr.ꢀ Palmetto RoaringꢀCreekꢀCourtꢀ WoodlandsꢀCourtꢀ PaintꢀRockꢀCourt WindingꢀCreekꢀCourt DurangoꢀandꢀParkviewꢀAreaꢀꢀ TurnberryꢀandꢀHighlandsꢀArea TownꢀHallꢀRoof $150,000 $75,000 $450,000 $235,000 Typicalꢀlifeꢀexpectancyꢀ+20ꢀyears,ꢀwithꢀroutineꢀannualꢀmaintenance Typicalꢀlifeꢀexpectancyꢀ+15ꢀyears,ꢀwithꢀannualꢀquarterlyꢀmaintenance.ꢀBlowerꢀmotorsꢀhaveꢀ beenꢀreplacedꢀonꢀallꢀ3ꢀTownꢀHallꢀRTUsTownꢀHallꢀRTUsꢀ(roofꢀtopꢀunits)ꢀthreeꢀ(3)GeneralꢀFundꢀͲꢀFundꢀBalanceFY2028 FY2028 FY2028 FY2028 SplashꢀPadꢀResurfacing MainꢀPoolꢀHeaters $50,000 GeneralꢀFundꢀͲꢀFundꢀBalance GeneralꢀFundꢀͲꢀFundꢀBalance GeneralꢀFundꢀͲꢀFundꢀBalanceMainꢀPoolꢀDivingꢀBoard MoveꢀwallsꢀbehindꢀStaffꢀseatingꢀonꢀbothꢀsidesꢀofꢀpodium,ꢀinstallꢀlightingꢀforꢀcouncilꢀmembersꢀ toꢀpushꢀwhenꢀtheyꢀwouldꢀlikeꢀtoꢀspeakꢀfromꢀdais.CouncilꢀChambersꢀremodel GeneralꢀFundꢀͲꢀFundꢀBalance GeneralꢀFundꢀͲꢀFundꢀBalance FY2028 FY2028 $120,000 $175,000TownꢀHallꢀandꢀPDꢀFlooring/Carpet Typicalꢀlifeꢀexpectancyꢀ8Ͳ12ꢀyears FY24 Adopted Budget 55 303 FY2028 FY2028 FY2028 FY2028 FY2028 FY2028 TownꢀHallꢀPaintꢀInterior/Exterior $120,000 $75,000 GeneralꢀFundꢀͲꢀFundꢀBalance GeneralꢀFundꢀͲꢀFundꢀBalance Everyꢀ5ꢀyears TownꢀHall/PDꢀaddꢀGasꢀTanklessꢀWaterꢀHeaters Currentlyꢀwaterꢀheatersꢀareꢀelectric.ꢀTanklessꢀ(gas)ꢀwillꢀbeꢀmoreꢀefficientꢀinꢀtheꢀlongꢀrun. Officeꢀspaceꢀisꢀnotꢀutilized.ꢀRemodelꢀ(includingꢀdemo)ꢀandꢀaddingꢀaꢀsecondꢀfloorꢀforꢀstorage.ꢀ Projectꢀwouldꢀaddꢀ+900ꢀsqftꢀofꢀstorage.StreetsꢀandꢀParksꢀShopꢀRemodel GeneralꢀFundꢀͲꢀFundꢀBalance GeneralꢀFundꢀͲꢀFundꢀBalance GeneralꢀFundꢀͲꢀFundꢀBalance GeneralꢀFundꢀͲꢀFundꢀBalance $95,000 Streets/ParksꢀaddꢀStorageꢀBuildingꢀ20x40 UpgradeꢀTownꢀCrosswalkꢀFlashersꢀtoꢀ5g TownꢀHall/PDꢀUpgradeꢀCardꢀReadersꢀ Neededꢀforꢀstreetsꢀandꢀparksꢀdepatment.ꢀCoveredꢀstorageꢀforꢀequipment,ꢀmaterials,ꢀetc.$130,000 $200,000 $150,000 Crosswalkꢀsoftwareꢀandꢀhardwareꢀwillꢀneedꢀtoꢀbeꢀupgradedꢀforꢀbetterꢀcommunicationꢀ throughoutꢀtown. Cardꢀreadersꢀareꢀ5ꢀyearsꢀoldꢀandꢀneedꢀtoꢀbeꢀupgradedꢀtoꢀtheꢀnewꢀsoftwareꢀandꢀelctronicꢀkeyꢀ cards Totals $ꢀꢀꢀꢀ1,650,000 $ꢀꢀꢀꢀꢀꢀꢀꢀꢀ21,165,000 $ꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀ250,000 $ꢀꢀꢀꢀꢀꢀꢀꢀꢀꢀ50,000 $ꢀꢀꢀꢀꢀ1,420,000 $ꢀꢀꢀꢀꢀꢀꢀꢀꢀ800,000 $ꢀꢀꢀꢀ2,585,000 FY24 Adopted Budget 56 304 TOWN COUNCIL COMMUNICATION MEETING DATE: December 11, 2023 FROM: Tammy Dixon, Town Secretary AGENDA ITEM:Discuss and consider approval of the 2024 Town Council meeting dates. BACKGROUND/SUMMARY: Per the T own Charter, the Town Council shall hold at least two (2) regular meetings a month for at least seven (7) months and a minimum of one meeting during each of the other five (5) months, for a minimum of nineteen (19) regular meetings per year. The Town Council may hold as many other meetings as may be necessary for the transaction of the business of the Town. All regular meetings shall be held at the Municipal Building or at such other places within town limits as will permit the attendance of the general public. The draft schedule includes two (2) regular meetings in February, April, May*, June, August, September, and October, and (1) regular meeting in January, March, July, November, and December. The Town Council Retreat is set for January 19th and 20th. *May meetings: •If an election is held, the last day to canvass is May 15th (recommended by Denton County Elections). The first meeting in May could be moved to the 15th OR a special meeting could be held on the 15th to canvass. Per state law only two councilmembers are needed to qualify as a quorum to canvass. •The 4th Monday is a holiday, meeting scheduled for 4th Tuesday. BOARD REVIEW/CITIZEN FEEDBACK: N/A FISCAL IMPACT: N/A LEGAL REVIEW: N/A ATTACHMENTS: Draft Calendar ACTION/OPTIONS: Discuss and consider approval of 2024 meeting dates. 305 Date Meeting Type HARD deadline by 12 pm Draft to Council LAST DAY TO POST 1/8 Regular - 7 pm 12/29 1/3 1/5 Su M Tu W Th F Sa Su M Tu W Th F Sa Su M Tu W Th F Sa 1/19 RETREAT 1/2 day 1/12 1 2 3 4 5 6 1 2 3 1 2 1/20 RETREAT Full Day 7 8 9 10 11 12 13 4 5 6 7 8 9 10 3 4 5 6 7 8 9 2/12 Regular - 7 pm 2/2 2/7 2/9 14 15 16 17 18 19 20 11 12 13 14 15 16 17 10 11 12 13 14 15 16 2/26 Regular - 7 pm 2/16 2/21 2/23 21 22 23 24 25 26 27 18 19 20 21 22 23 24 17 18 19 20 21 22 23 3/25 Regular - 7 pm 3/15 3/20 3/22 28 29 30 31 25 26 27 28 29 24 25 26 27 28 29 30 4/8 Regular - 7 pm 3/28 4/3 4/5 31 4/22 Regular - 7 pm 4/12 4/17 4/19 5/13 Regular - 7 pm 5/3 5/8 5/10 5/15 *Special Mtg to Canvass (if election is held) Su M Tu W Th F Sa Su M Tu W Th F Sa Su M Tu W Th F Sa 5/28 Regular - 7 pm 5/17 5/22 5/24 1 2 3 4 5 6 1 2 3 4 1 6/10 Regular - 7 pm 6/2 6/5 6/7 7 8 9 10 11 12 13 5 6 7 8 9 10 11 2 3 4 5 6 7 8 6/24 Regular - 7 pm 6/14 6/19 6/21 14 15 16 17 18 19 20 12 13 14 15 16 17 18 9 10 11 12 13 14 15 7/22 Regular - 7 pm 7/12 7/17 7/19 21 22 23 24 25 26 27 19 20 21 22 23 24 25 16 17 18 19 20 21 22 8/12 Regular - 7 pm 8/2 8/7 8/9 28 29 30 26 27 28 29 30 31 23 24 25 26 27 28 29 8/26 Regular - 7 pm 8/16 8/21 8/23 30 9/9 Regular - 7 pm 8/30 9/4 9/6 9/23 Regular - 7 pm 9/13 9/18 9/20 10/14 Regular - 7 pm 10/4 10/9 10/11 Su M Tu W Th F Sa Su M Tu W Th F Sa Su M Tu W Th F Sa 10/28 Regular - 7 pm 10/18 10/23 10/25 1 2 3 4 5 6 1 2 3 1 2 3 4 5 6 7 11/11 Regular - 7 pm 11/1 11/6 11/8 7 8 9 10 11 12 13 4 5 6 7 8 9 10 8 9 10 11 12 13 14 12/9 Regular - 7 pm 11/22 12/4 12/6 14 15 16 17 18 19 20 11 12 13 14 15 16 17 15 16 17 18 19 20 21 21 22 23 24 25 26 27 18 19 20 21 22 23 24 22 23 24 25 26 27 28 28 29 30 31 25 26 27 28 29 30 31 29 30 Hard deadline = Agenda Items Due. Software will be locked and no edits can be made, or new items added without notifying TMO/TSO MAY MEETINGS Su M Tu W Th F Sa Su M Tu W Th F Sa Su M Tu W Th F Sa *If an election is held, last day to canvass is 5/15) The 1st meeting could be 1 2 3 4 5 1 2 1 2 3 4 5 6 7 moved to the 15th OR a special meeting could be held on the 15th to canvass. 6 7 8 9 10 11 12 3 4 5 6 7 8 9 8 9 10 11 12 13 14 (Per state law only 2 council members needed to qualify as a quorum to canvass) 13 14 15 16 17 18 19 10 11 12 13 14 15 16 15 16 17 18 19 20 21 20 21 22 23 24 25 26 17 18 19 20 21 22 23 22 23 24 25 26 27 28 *The 4th Monday is a holdiay. Meeting set for 4th Tuesday 27 28 29 30 31 24 25 26 27 28 29 30 29 30 31 Regular Meetings Town Offices Close 1/2 Day Agenda Item/Backup Deadline NISD Extended Holidays Town Offices Closed-Holidays Draft Agenda to due to Council 2024 Town Council Meeting Schedule April 2024 May 2024 June 2024 July 2024 January 2024 February 2024 March 2024 December 2024 Town of Trophy Club August 2024 September 2024 October 2024 November 2024 D R A F T 306 1 2 3 Request Day Who Requested Date of Last Action 1 8.9.22 CM Beach 6.27.23 1.10.23 CM Beach Added twice 2 6.13.23 MPT Sheridan 6.27.23 3 8.18.23 Interim TM Arata 8.18.23 8.25.20 MPT Shoffner 1.10.23 8.28.23 MPT Sheridan 11.13.23 4 11.13.23 MPT Sheridan 11.13.23 EDC 4B Articles of Incorporation Statement Repeal. The Town has received the original signage plan for the round‐a‐bout at Trophy Club Dr. and Trophy Lake. During the June 27th Council meeting, Councilmember Beach directed Director of Community Development Matt Cox to complete additional research on alternative options. Will be discussed in the November workshop. Improvements at the existing Trophy Lake/Club Drive roundabout crosswalks. On August 25, 2020, Mayor Pro Tem Philip Shoffner added the Traffic Mitigation future agenda item. This item was removed from future agenda items on January 10, 2023. On August 18, 2023, Interim Town Manager Patrick Arata added the roundabouts back to the future agenda item. A workshop for the roundabouts was held on November 13, 2023. A plan to continue the conversation at the January Council retreat was recommended, with further discussions on addressing issues brought up by the community, and cost. Bobcat roundabouts. Town staff to provide a plan of action for trash baskets in Town‐Owned Mayor Pro Tem Sheridan would like staff to prepare a plan of action to install trash collector baskets in storm drain inlets in the Town with a not to exceed amount of $75,000. Also, provide a plan to have PD30 put in trash collector baskets when phase 3 begins. Interim Town Manager Arata discussed the item with the Finance subcommittee on June 27th. Mayor Pro Tem Sheridan would like to amend the EDC Articles of Incorporation Article Eight, Board of Directors, to repeal the statement, "No more than two (2) members of the board of directors shall be members of the Town Council." Future Agenda Items Future Agenda Item Future Agenda Items have 3 Categories: Council requested items that need additional research and will be brought back for public discussion at a Council Meeting. For agenda items with significant research time Council will be updated. Council requested future agenda items that need to be addressed. Researched agenda items that are scheduled to be reported to Council. (first 2‐4 weeks) The Future Agenda Items list will be attached to the Council Meeting agenda to provide Council with a status on all items. During Council meetings, the future agenda items will be reviewed and removed if completed or added if new agenda items need to be addressed. Footnotes may be added. December 11, 2023 307