HomeMy WebLinkAboutMar 16, 2010 Regular Session Agenda PacketTrophy Club Municipal Utility District No. 1
Trophy Club Entities
Meeting Agenda
100 Municipal Drive
Trophy Club, Texas 76262
Svore Municipal Building Boardroom6:00 PMTuesday, March 16, 2010
REGULAR MEETING
Call to order and announce a quorum.
REGULAR SESSION
1.2010-41-M1 Order 2010-0316 authorizing the issuance of $2,000,000 Trophy Club
Municipal Utility District No. 1 Unlimited Tax Bonds, Series 2010; authorizing
the levy of an ad valorem tax in support of the Bonds; approving an Official
Statement; authorizing the execution of a Paying Agent/Registrar Agreement;
awarding the sale of the Bonds; making certain continuing disclosure
undertakings under Rule 15c2-12; and authorizing other matters related to the
issuance of the Bonds.
M1-Order-2010-0316-Bond.pdf
Paying Agent-Registrar Agreement.pdf
Attachments:
2.2010-13-M1 Receive District Manager's Report
a. Water pumped vs. billed
b. Monthly Revenue for Wastewater Treatment Plant
c. Update on Water Plant Booster Pump (formerly VFD)
d. Candidate Filings Update for Directors' election in May
e. Utility Services completed their annual maintenance of the Ground Storage
and Elevated Tank
f. Update on progress of Trinity Well
Water Pumped Vs Billed Feb 10.pdf
Candidates-May 2010.pdf
Attachments:
3.2010-21-M1 Receive Finance Director's Report
a. Monthly Update
4.2010-43-M1 Review and Approve Disbursements & Variance Report
a. February 2010
February 2010 Monthly Financial Statements.pdfAttachments:
TCMUD No. 1 1 of 142 16 March 2010
March 16, 2010Trophy Club Municipal Utility
District No. 1
Meeting Agenda
5.2010-12-M1 Receive Fire Update from Fire Chief Thomas
a. To provide Board with a monthly update and address the Board's questions.
Fire Update - Feb 10.pdfAttachments:
6.2010-15-M1 Receive Town Council Update
a. Councilmember Rose to provide Board with an update of Council meetings,
notices and relevant business.
7.2010-37-M1 Receive report from Attorney(s) regarding update of MUD 1 Fire Plan .
8.2010-39-M1 Discuss and take appropriate action to amend Order 2010-0216, calling a
Joint-General Election for May 8, 2010 for the purpose of specifying Early
Voting dates, times, and locations.
Deliberar y tomar el debido curso de acción en relación a la Orden 2010-0216
convocando una Elección General Conjunta para el 8 de mayo de 2010 para el
propósito de especificar Votando Temprano las fechas, los tiempos, y las
posiciones.
MUD1-Order2010-0216-Call ElectionAmend31610.pdf
MUD1-Order2010-0216-Call Election-SpanishAmend31610.pdf
Attachments:
9.2010-45-M1 Discuss and take appropriate action concerning a Contract/Agreement
between TCMUD1 and the Trophy Club Country Club (TCCC) to use a portion
of TCCC's property for a temporary fire department facility while a new fire
station is constructed at 100 Municipal Drive.
10.2010-01-M1 Discuss and take appropriate action regarding SEMO Committee meetings
and findings.
11.2010-34-M1 Discuss and take appropriate action regarding the New Intergovernmental
Contract for Employee Services and the Amendment to New
Intergovernmental Contract for Employee Services.
ILA-EmployeeSvcs and Amendment.pdfAttachments:
12.2010-36-M1 Discuss and take appropriate action regarding forming an Implementation
Committee for transitioning TCMUD 1 employee services in-house.
CONVENE INTO CLOSED SESSION
TCMUD No. 1 2 of 142 16 March 2010
March 16, 2010Trophy Club Municipal Utility
District No. 1
Meeting Agenda
*CLOSED SESSION
a. PURSUANT TO SECTION 551.074 OF THE TEXAS GOVERNMENT CODE
REGARDING PERSONNEL MATTERS, TO DELIBERATE THE APPOINTMENT,
EMPLOYMENT, EVALUATION, REASSIGNMENT, DUTIES, DISCIPLINE OR
DISMISSAL OF THE DISTRICT SECRETARY: EMPLOYMENT CONTRACT OF MARY
MOORE.
b. PURSUANT TO SECTION 551.074 OF THE TEXAS GOVERNMENT CODE
REGARDING PERSONNEL MATTERS, TO DELIBERATE THE APPOINTMENT,
EMPLOYMENT, EVALUATION, REASSIGNMENT, DUTIES, DISCIPLINE OR
DISMISSAL OF THE DISTRICT MANAGER: EMPLOYMENT CONTRACT OF
ROBERT SCOTT.
RECONVENE INTO REGULAR SESSION
13.2010-44-M1 Discuss and take appropriate action concerning discussions held in Closed
Session.
a. Mary Moore, MUD Secretary
b. Robert Scott, District Manager
14.2010-42-M1 Review and Approve Minutes:
a. February 16, 2010 - Regular Session minutes
M1 Minutes 021610.pdfAttachments:
15.2010-18-M1 Review Monthly Tax Collection Report
a. February 2010
Feb Tax Collection Report.pdfAttachments:
16.2010-17-M1 Set Next Meeting Date
a. Regular Session: Wednesday, April 8, 2010, 6:00 p.m.
b. Special Joint Session with Town Council - date to be determined.
March 2010 Calendar.pdf
April 2010 CALENDAR.pdf
Attachments:
17.2010-19-M1 Items for Future Agendas
a. MUD 1's water contract with City of Fort Worth
b. Funding of Future Capital Projects; i.e., 2 MG Storage Tank
c. Water Study (Twomey)
d. Disaster Planning
e. Creation of TCMUD1 website (09-115-M1)
f. Re-establish the Fire Station Committee
Citizen Presentation
Adjourn
TCMUD No. 1 3 of 142 16 March 2010
March 16, 2010Trophy Club Municipal Utility
District No. 1
Meeting Agenda
Notice is hereby given that a quorum of the Town Council may be in attendance at
this meeting.
* THE BOARD RESERVES THE RIGHT TO ADJOURN INTO A CLOSED SESSION AT
ANY TIME DURING THE MEETING FOR THE PURPOSE OF SEEKING THE ADVICE OF
ITS ATTORNEY ABOUT ANY ITEM ON THE AGENDA OR THAT ARISES AT THE
MEETING, PURSUANT TO SECTION 551.071 OF THE TEXAS GOVERNMENT CODE.
CERTIFICATION)
THE STATE OF TEXAS)
COUNTY OF DENTON)
COUNTY OF TARRANT)
THIS CERTIFIES THAT ON FRIDAY, MARCH 12, 2010, AT OR BEFORE 5:00 P.M., A
COPY OF THE ABOVE NOTICE OF A MEETING OF THE TROPHY CLUB MUNICIPAL
UTILITY DISTRICT NO. 1 TO BE HELD ON TUESDAY, MARCH 16, 2010, WAS POSTED
ON THE FRONT WINDOW OF THE TROPHY CLUB M.U.D. ADMINISTRATION
BUILDING, 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS, WHICH IS A PLACE
CONVENIENT TO THE PUBLIC WITHIN THE BOUNDARIES OF THE DISTRICT, AND A
COPY WAS ALSO PROVIDED TO THE COUNTY CLERKS OF DENTON AND TARRANT
COUNTIES, TO BE POSTED ON THEIR WEBSITE AND/OR A BULLETIN BOARD AT A
PLACE CONVENIENT TO THE PUBLIC IN SUCH COUNTY COURT HOUSES,
PURSUANT TO SECTION 49.063 OF THE WATER CODE AND SECTION 551.054 OF
THE OPEN MEETINGS ACT, CHAPTER 551 TEXAS GOVERNMENT CODE.
________________________
Mary Moore
MUD Secretary
THIS FACILITY IS WHEELCHAIR ACCESSIBLE AND ACCESSIBLE PARKING SPACES
ARE AVAILABLE. REQUESTS FOR ACCOMMODATIONS OR INTERPRETATIVE
SERVICES MUST BE MADE 48 HOURS PRIOR TO THIS MEETING. PLEASE CONTACT
MARY MOORE AT (682) 831-4685 OR FAX YOUR REQUEST TO (817) 490-0705.
I certify that the attached notice and agenda of items to be considered by this Board
was removed by me from the front window of the Svore Municipal Building, 100
Municipal Drive, Trophy Club, Texas, on the __________ day of
______________________, 2010.
________________________________, Title: ___________________________
TCMUD No. 1 4 of 142 16 March 2010
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-41-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:3/4/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:3/16/2010
Title:Order 2010-0316 authorizing the issuance of $2,000,000 Trophy Club Municipal Utility District No. 1
Unlimited Tax Bonds, Series 2010; authorizing the levy of an ad valorem tax in support of the Bonds;
approving an Official Statement; authorizing the execution of a Paying Agent/Registrar Agreement;
awarding the sale of the Bonds; making certain continuing disclosure undertakings under Rule 15c2-
12; and authorizing other matters related to the issuance of the Bonds.
Attachments:M1-Order-2010-0316-Bond.pdf
Paying Agent-Registrar Agreement.pdf
Action ByDate Action ResultVer.
TCMUD No. 1 5 of 142 16 March 2010
12010-41-M1 Version:File #:
Title
Order 2010-0316 authorizing the issuance of $2,000,000 Trophy Club Municipal Utility District No. 1 Unlimited
Tax Bonds, Series 2010; authorizing the levy of an ad valorem tax in support of the Bonds; approving an
Official Statement; authorizing the execution of a Paying Agent/Registrar Agreement; awarding the sale of the
Bonds; making certain continuing disclosure undertakings under Rule 15c2-12; and authorizing other matters
related to the issuance of the Bonds.
Body
Attached is a draft Bond Order and Paying Agent/Registrar Agreement for the board meeting next Tuesday.
The final terms for the bonds will be inserted into the Bond Order next Tuesday after the winning bid is
determined. Greg Schaecher, from Pete Tart's office will be attending the sale, which will be at at 11:00 a.m.
on March 16th, 2010 and he will have all the proceedings for execution. A review of bids received from the
sale of the bonds will be provided by the District’s Financial Advisor - Dan Almon.
TCMUD No. 1 6 of 142 16 March 2010
ORDER AUTHORIZING THE ISSUANCE OF $2,000,000 TROPHY CLUB
MUNICIPAL UTILITY DISTRICT NO. 1 UNLIMITED TAX BONDS, SERIES 2010;
AUTHORIZING THE LEVY OF AN AD VALOREM TAX IN SUPPORT OF THE
BONDS; APPROVING AN OFFICIAL STATEMENT; AUTHORIZING THE
EXECUTION OF A PAYING AGENT/REGISTRAR AGREEMENT; AWARDING
THE SALE OF THE BONDS; MAKING CERTAIN CONTINUING DISCLOSURE
UNDERTAKINGS UNDER RULE 15c2-12; AND AUTHORIZING OTHER
MATTERS RELATED TO THE ISSUANCE OF THE BONDS
THE STATE OF TEXAS §
COUNTIES OF DENTON AND TARRANT §
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 §
WHEREAS, Trophy Club Municipal Utility District No. 1 (the "District") is a conservation and
reclamation district, a body corporate and politic and governmental agency of the State of Texas, created as
a municipal utility district pursuant to Article 16, Section 59, of the Texas Constitution by Order of the Texas
Commission on Environmental Quality, the successor in interest to the Texas Water Commission
(collectively, the "Commission"), and the District operates pursuant to Chapters 49 and 54 of the Texas Water
Code, as amended (the "Act");
WHEREAS, the District is the successor by merger and consolidation of Trophy Club Municipal
Utility District No. 1 ("Prior MUD 1") and Trophy Club Municipal Utility District No. 2 ("Prior MUD 2" and
with Prior MUD 1, the "Prior MUDs") pursuant to a consolidation election held in the District on May 9,
2009 (the "Consolidation Election") by which the District consolidated the Prior MUDs into the District and
assumed all outstanding and voted but unissued bonds and taxes of the Prior MUDs; and
WHEREAS, the District is authorized by the Act to purchase, construct, acquire, own, operate,
maintain, repair, improve, or extend inside or outside its boundaries any and all works, improvements,
facilities, plants, equipment and appliances necessary to accomplish the purposes of its creation, all in
accordance with the Act; and
WHEREAS, an election was held for and within Prior MUD 1 on May 10, 2008, (the "Bond
Election") to submit to the duly qualified resident electors of the District the propositions of authorizing the
District's issuance of bonds, in one or more series, in the aggregate principal amount of $2,000,000, with the
bonds of each such series, respectively, to mature within not more than 40 years, be sold at such prices, and
bear interest at such rates, as shall be determined within the discretion of the Board of Directors, in
accordance with law for the purpose of providing funds for constructing and equipping an addition to a
building and facilities for a fire station for fire fighting purposes, and to provide for the payment of principal
of and interest on such bonds by the levy and collection of a sufficient ad valorem tax upon all taxable
property within said District, without limit as to rate or amount; and
WHEREAS, the elections described above were called and held under and in strict conformity with
the Constitution and laws of the State of Texas and of the United States of America, and the Boards of
Directors of the Prior MUDs have heretofore officially declared the results of said elections and declared that
the Prior MUDs were legally authorized to issue the bonds as described above; and
TCMUD No. 1 7 of 142 16 March 2010
2
WHEREAS, heretofore no bonds have been issued pursuant to the authority of the Bond Election
and Consolidation Election; and
WHEREAS, this issuance of Bonds will be $2,000,000 in principal amount from the Bond Election,
leaving no unissued bonds from the Bond Election after the delivery of these Bonds; and
WHEREAS, the Commission has approved the issuance of $2,000,000 of bonds pursuant to an order
dated January 19, 2010 (the "Commission Order") upon the terms and conditions stated in the Commission
Order; and
WHEREAS, the Board of the District deems it necessary and advisable at this time to issue
$2,000,000 of bonds pursuant to the Act and the Bond Election.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF TROPHY
CLUB MUNICIPAL UTILITY DISTRICT NO. 1 THAT:
Section 1. DEFINITIONS AND INTERPRETATIONS. (a) When used in this Order, except
in Section 6, and in any resolution or order amendatory or supplemental hereto, the terms listed below shall
have the meanings specified below, unless it is otherwise expressly provided or unless the context otherwise
requires:
"Authorized Investments" shall mean authorized investments as set forth in the Public Funds
Investment Act, Chapter 2256, Texas Government Code and the District's Investment Policy.
"Board" or "Board of Directors" shall mean the governing body of the District.
"Bondholders" or "Registered Owner" shall mean the registered owners of any Bonds. Any reference
to a particular percentage or portion of the Bondholders shall mean the registered owners at the particular time
of the specified percentage or portion in aggregate principal amount of all Bonds then outstanding exclusive
of Bonds held by the District.
"Bonds" means the Bonds initially issued and delivered pursuant to this Bond Order and all substitute
Bonds exchanged therefor, as well as all other substitute bonds and replacement bonds issued pursuant hereto,
and the term "Bond" shall mean any of the Bonds.
"Bond Order" or "Order" means this Bond Order of the Board of Directors authorizing the issuance
of the Bonds.
"Commission" means the Texas Commission on Environmental Quality or its successor.
"Commission Order" means the means the order of the Commission signed January 19, 2010
approving the issuance of the Bonds upon the terms and conditions as outlined in such order.
"Construction Fund" shall mean the District's construction fund which is created and established in
Section 8 of this Order.
"District" shall mean Trophy Club Municipal Utility District No. 1 and any other public agency
succeeding to the powers, rights, privileges, and functions of the District, and shall mean, when appropriate,
the Board of Directors of the District.
"DTC" means The Depository Trust Company of New York.
TCMUD No. 1 8 of 142 16 March 2010
3
"Fiscal Year" shall mean the twelve-month accounting period for the District, as may be changed
from time to time by the Board of Directors.
"Initial Bonds" shall mean the Bond authorized, issued, and initially delivered and registered by the
Comptroller of Public Accounts of the State of Texas as described herein.
"Interest Payment Date" means a date on which interest on the Bonds is due and payable. Interest on
the Bonds is due and payable on March 1, 2011, and semi-annually on each September 1 and March 1
thereafter until the earlier of maturity or redemption.
"Interest and Sinking Fund" shall mean the interest and sinking fund created and established in
Section 7 of this Order.
"Paying Agent/Registrar" shall mean The Bank of New York Mellon Trust Company, N.A., Dallas,
Texas, and such other bank or trust company as may hereafter be appointed in substitution therefor or in
addition thereto to perform the duties of Paying Agent/Registrar in accordance with this Order.
"Record Date" shall mean, with respect to each interest payment date, the fifteenth calendar day of
the month immediately preceding each Interest Payment Date, whether or not such date is a business day.
(b) The titles and headings of the articles and sections of this Order have been inserted for
convenience of reference only and are not to be considered a part hereof and shall not in any way modify or
restrict any of the terms or provisions hereof. This Order and all the terms and provisions hereof shall be
liberally construed to effectuate the purposes set forth herein and to sustain the validity of the Bonds and the
validity of the lien on and pledge of the taxes and revenues pledged to the payment of the Bonds.
Section 2.RECITALS, DESIGNATION, AMOUNT, AND PURPOSE OF THE BONDS.
The recitals set forth in the preamble hereof are incorporated by reference herein and shall have the same
force and effect as if set forth in this Section. Each Bond issued pursuant to this Order shall be designated
and to be known as TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 UNLIMITED TAX
BOND, SERIES 2010 and are hereby authorized to be issued in the aggregate principal amount of
$2,000,000 for the purpose or purposes as set forth in the Bond Election including (i) constructing and
equipping an addition to a building and facilities for a fire station for fire fighting purposes (the "Project");
and (ii) paying the costs of issuance in connection with the Bonds.
Section 3.DATE, DENOMINATION, NUMBERS, AND MATURITIES OF THE BONDS.
The Bonds initially authorized hereby shall be issued and delivered in the form of fully registered Bonds,
without coupons, shall be numbered consecutively from R-1 upward (except the initial Bonds delivered to
the Attorney General of the State of Texas which shall be numbered T-1 upward), shall each be in the
denomination of $5,000 or any integral multiple thereof, shall be dated April 1, 2010 and shall mature serially
on September 1 in each of the years, and in the principal amounts, respectively, and shall bear interest at the
rates, as set forth in the following schedule (unless they shall become due or shall be redeemed prior to their
scheduled maturities as provided in this Order):
Year of
Maturity
Principal
Amount
Interest
Rate
Year of
Maturity
Principal
Amount
Interest
Rate
2012 2022
2013 2023
2014 2024
2015 2025
TCMUD No. 1 9 of 142 16 March 2010
4
2016 2026
2017 2027
2018 2028
2019 2029
2020 2030
2021 2031
The interest shall be payable on the dates and in the manner provided in the FORM OF BOND set forth in
Section 6 of this Order.
Section 5.GENERAL CHARACTERISTICS; REGISTRATION; EXCHANGE;
AUTHENTICATION, TRANSFER; OWNERSHIP. (a) In General. The Bonds shall be issued, shall be
payable, may or shall be redeemed prior to their scheduled maturities, shall be registered, shall have the
characteristics, and shall be signed and executed (and the Bonds shall be sealed), all as provided, and in the
manner indicated, in the FORM OF BOND set forth in Section 6 of this Order.
(b) Registration Books. The District shall keep or cause to be kept at the designated office for
payment of the Paying Agent/Registrar books for the registration and transfer of Bonds (the "Bond
Registration Books"), and the District hereby appoints the Paying Agent/Registrar as its registrar and transfer
agent to keep such books and make such registrations and transfers under such reasonable regulations as the
District or the transfer agent may prescribe; and the Paying Agent/Registrar will register or transfer, as herein
provided, any Bonds upon presentation thereof at such office. The Paying Agent/Registrar shall obtain and
record in the Registration Books the address of the Registered Owner of each Bond to which payments with
respect to the Bonds shall be mailed, as herein provided; but it shall be the duty of each Registered Owner
to notify the Paying Agent/Registrar in writing of the address to which payments shall be mailed, and such
interest payments shall not be mailed unless such notice has been given. The Paying Agent/Registrar shall
keep the Registration Books confidential and, unless otherwise required by law, shall not permit their
inspection by any other entity. Registration of assignments, transfers, conversions and exchanges of Bonds
shall be made in the manner provided and with the effect stated in this Order. Each substitute Bond shall bear
a letter and/or number to distinguish it from each other Bond.
(c) Authentication. On the closing date, one initial Bond numbered T-1 representing the entire
principal amount of the Bonds, payable in installments (the "Initial Bond"), shall be registered in the name
of the Initial Purchaser or his designee as set forth in Section 14 of this Order and shall be executed and
submitted to the Attorney General of Texas for approval, and thereafter registered by the Comptroller of
Public Accounts of the State of Texas or his duly authorized agent, by manual signature. Upon payment for
the Initial Bond, the Paying Agent/Registrar shall cancel the Initial Bond and deliver to the Initial Purchaser
or to the Depository Trust Company on behalf of such Initial Purchaser, as applicable, one registered
definitive Bond for each year of maturity of the Bonds, in the aggregate principal amount of all of the Bonds
for such maturity. To the extent that the Paying Agent/Registrar is eligible to participate in DTC's FAST
System, pursuant to an agreement between the Paying Agent/Registrar and DTC, the Paying Agent/Registrar
shall hold the definitive Bonds in safekeeping for DTC. In addition, the Paying Agent/Registrar shall
authenticate Bonds upon their exchange or transfer as provided herein. No Bond shall be entitled to any
benefit under this Order or be valid or obligatory for any purpose, unless there appears on such Bond a
certificate of authentication substantially in the form provided for herein executed by the Comptroller of
Public Accounts of the State of Texas or the Paying Agent/Registrar, and such certificate upon any Bonds
shall be conclusive evidence, and the only evidence, that such Bond has been duly authenticated and delivered
hereunder.
TCMUD No. 1 10 of 142 16 March 2010
5
An authorized representative of the Paying Agent/Registrar shall, before the delivery of any Bond,
other than the Initial Bonds, date and manually sign said Bond, and no such Bond shall be deemed to be
issued or outstanding unless such Bond is so executed.
(d) Transfer and Exchange. Bonds may be transferred on the aforesaid registration books by the
Registered Owner in person or by his duly authorized attorney, by proper written instrument of transfer in
form and with guaranty of signatures satisfactory to the Paying Agent/Registrar. Bonds may, upon surrender
thereof at the aforesaid office of the Paying Agent/Registrar, be exchanged for a like aggregate principal
amount of Bonds of like form, of the same series and maturity, in any authorized denomination or
denominations, bearing interest from the later of the date thereof or the last interest payment date to which
interest has been paid on the Bonds so surrendered. Such transfers of registration or exchanges shall be
without charge to the Registered Owner of such Bonds, but any taxes or other governmental charges required
to be paid with respect to the same shall be paid by the Registered Owner requesting such registration,
transfer, discharge from registration or exchange as a condition precedent to the exercise of such privilege.
The Paying Agent/Registrar promptly shall cancel all paid Bonds and Bonds surrendered for conversion and
exchange. No additional orders or resolutions need be passed or adopted by the governing body of the
District or any other body or person so as to accomplish the foregoing conversion and Agent/Registrar shall
provide for the printing, execution and delivery of the substitute Bonds in the manner prescribed herein.
Pursuant to Chapter 1201, Government Code, and particularly Subchapter D thereof, the duty of conversion
and exchange of Bonds aforesaid is hereby imposed upon the Paying Agent/Registrar, and, upon the
execution of said Bond, the converted and exchanged Bond shall be valid, incontestable and enforceable in
the same manner and with the same effect as the Bond which initially was issued and delivered pursuant to
this Order, approved by the Attorney General, and registered by the Comptroller of Public Accounts.
Each Bond delivered pursuant to any provision of this Order in exchange or substitution for, or upon
the transfer of, the whole or any part of one or more other Bonds, shall carry all of the rights to interest
accrued and unpaid and to accrue which were carried by the whole or such part, as the case may be, of such
one or more other Bonds, and notwithstanding anything contained in this Order, such Bonds shall be so dated
and bear such notation that neither gain nor loss in interest shall result from any such exchange, substitution
or transfer.
Every exchange or transfer of Bonds under the foregoing provisions shall be effected in such manner
as may be prescribed by the Paying Agent/Registrar. The Paying Agent/Registrar shall not be required to
make exchanges or transfers of any Bond during the period commencing on any Record Date and ending on
the next succeeding interest payment date, or within fifteen (15) days prior to the first publication or mailing
of notice of redemption of such Bond or within thirty (30) days prior to the date of such redemption, anything
in such Bond to the contrary notwithstanding.
(e) Ownership. The Registered Owner in whose name any Bonds shall be registered on the Bond
Registration Books of the District kept by the Paying Agent/Registrar may be deemed and treated as the
absolute owner thereof for all purposes of this Order, whether or not such Bond shall be overdue, and the
District, and any Paying Agent/Registrar shall not be affected by any notice to the contrary; and payment of,
or on account of, the principal of, premium, if any, and interest on any such Bond shall be made only to such
Registered Owner thereof, but such registration may be changed as provided herein. All such payments shall
be valid and effectual to satisfy and discharge the liability upon such Bonds to the extent of the sum or sums
so paid.
(f) Prepayment or Partial Redemption. Upon the prepayment or partial redemption of any Bond,
the Paying Agent/Registrar, shall, upon surrender of the Bond at the aforesaid office of the Paying
Agent/Registrar, exchange such Bond for a new Bond or Bonds for the unredeemed principal amount of such
Bond in the manner set forth in subparagraph (d) above.
TCMUD No. 1 11 of 142 16 March 2010
6
(g) Definitive Bonds. The Bonds issued in exchange for the Initial Bond issued to the Initial
Purchaser specified herein shall be initially issued in the form of a separate single fully registered Bond for
each of the maturities thereof. Upon initial issuance, the ownership of each such Bond may, if so designated
by the Pricing Officer, be registered in the name of Cede & Co., as nominee of The Depository Trust
Company, New York, New York ("DTC"), pursuant to the Book-Entry Only System hereinafter described
and subject to the provisions set forth in subsections (h), (i) and (j) of this Section, and except as provided
in subsection (i) hereof, all of the outstanding Bonds shall be registered in the name of Cede & Co., as
nominee of DTC.
(h) Book-Entry-Only System. The Bonds issued in exchange for the Bonds initially issued as
provided in Section 5(c) shall be issued in the form of a separate single fully registered Bond for each of the
maturities thereof registered in the name of Cede & Co. as nominee of DTC and except as provided in
subsection (h) hereof, all of the Outstanding Bonds shall be registered in the name of Cede & Co., as nominee
of DTC.
With respect to Bonds registered in the name of Cede & Co., as nominee of DTC, the District and
the Paying Agent/Registrar shall have no responsibility or obligation to any securities brokers and dealers,
banks, trust companies, clearing corporations and certain other organizations on whose behalf DTC was
created to hold securities to facilitate the clearance and settlement of securities transactions among DTC
participants (the "DTC Participant") or to any person on behalf of whom such a DTC Participant holds an
interest in the Bonds. Without limiting the immediately preceding sentence, the District and the Paying
Agent/Registrar shall have no responsibility or obligation with respect to (i) the accuracy of the records of
DTC, Cede & Co. or any DTC Participant with respect to any ownership interest in the Bonds, (ii) the
delivery to any DTC participant or any other person, other than a Registered Owner, as shown on the
Registration Books, of any notice with respect to the Bonds, including any notice of redemption, or (iii) the
payment to any DTC Participant or any person, other than a Registered Owner, as shown on the Registration
Books of any amount with respect to principal of, premium, if any, or interest on the Bonds. Notwithstanding
any other provision of this Order to the contrary, but to the extent permitted by law, the District and the
Paying Agent/Registrar shall be entitled to treat and consider the Registered Owner in whose name each Bond
is registered in the Registration Books as the absolute owner of such Bond for the purpose of payment of
principal, premium, if any, and interest, with respect to such Bond, for the purposes of registering transfers
with respect to such Bonds, and for all other purposes of registering transfers with respect to such Bonds, and
for all other purposes whatsoever. The Paying Agent/Registrar shall pay all principal of, premium, if any,
and interest on the Bonds only to or upon the order of the respective Registered Owners, as shown in the
Registration Books as provided in the Order, or their respective attorneys duly authorized in writing, and all
such payments shall be valid and effective to fully satisfy and discharge the District's obligations with respect
to payment of principal of, premium, if any, and interest on the Bonds to the extent of the sum or sums so
paid. No person other than a Registered Owner, as shown in the Registration Books, shall receive a Bond
evidencing the obligation of the District to make payments of principal, premium, if any, and interest pursuant
to the Order. Upon delivery by DTC to the Paying Agent/Registrar of written notice to the effect that DTC
has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions in this
Order with respect to interest checks being mailed to the registered owner at the close of business on the
Record Date the word "Cede & Co." in this Order shall refer to such new nominee of DTC.
(i) Successor Securities Depository; Transfer Outside Book-Entry-Only System. In the event that
the District determines to discontinue the book-entry system through DTC or a successor or DTC determines
to discontinue providing its services with respect to the Bonds, the District shall either (i) appoint a successor
securities depository, qualified to act as such under Section 17(a) of the Securities and Exchange Act of 1934,
as amended, notify DTC and DTC Participants of the appointment of such successor securities depository and
transfer one or more separate Bonds to such successor securities depository or (ii) notify DTC and DTC
Participants of the availability through DTC of Bonds and transfer one or more separate Bonds to DTC
TCMUD No. 1 12 of 142 16 March 2010
7
Participants having Bonds credited to their DTC accounts. In such event, the Bonds shall no longer be
restricted to being registered in the Registration Books in the name of Cede & Co., as nominee of DTC, but
may be registered in the name of the successor securities depository, or its nominee, or in whatever name or
names Registered Owner transferring or exchanging Bonds shall designate, in accordance with the provisions
of this Order.
(j) Payments to Cede & Co. Notwithstanding any other provision of this Order to the contrary, so
long as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to
principal of, premium, if any, and interest on such Bond and all notices with respect to such Bond shall be
made and given, respectively, in the manner provided in the representation letter of the District to DTC.
(k) Initial Bond(s). Immediately after the delivery of the Initial Bond, the Paying Agent/Registrar
shall cancel the Initial Bond delivered hereunder and exchange therefor Bonds in the form of a separate single
fully registered Bond for each of the maturities thereof registered in the name of Cede & Co., as nominee of
DTC and except as provided in Section 5(h), all of the outstanding Bonds shall be registered in the name of
Cede & Co., as nominee of DTC.
Section 6.FORM OF BOND; COMPTROLLER'S REGISTRATION CERTIFICATE;
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE. The form of the Bonds, the
form of Paying Agent/Registrar's Certificate of Authentication, the form of Registration for the Comptroller
of Public Accounts of the State of Texas to be printed on each Bond delivered to the Initial Purchaser thereof,
and the Form of Assignment shall be, respectively, substantially as follows, with necessary and appropriate
variations, omissions, and insertions as permitted or required by this Order:
(a) Form of Bond.
NO. _____ $_______________
UNITED STATES OF AMERICA
STATE OF TEXAS
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
UNLIMITED TAX BOND, SERIES 2010
Interest Rate Maturity Date Dated Date Cusip Number
%April 1, 2010
REGISTERED OWNER:
PRINCIPAL AMOUNT:
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (the "District"), promises to pay to
the Registered Owner identified above, or registered assigns, on the date specified above, upon presentation
and surrender of this Bond at the office for payment of The Bank of New York Mellon Trust Company, N.A.,
Dallas, Texas (the "Paying Agent/Registrar") in Dallas, Texas, the principal amount identified above, in
lawful money of the United States of America, and to pay interest thereon at the rate shown above, calculated
on the basis of a 360-day year of twelve 30-day months, from the later of April 1, 2010, or the most recent
interest payment date to which interest has been paid or duly provided for. Interest on this bond is payable
by check, or in such other manner as may be acceptable to the Registered Owner and the Paying
Agent/Registrar at the risk and expense of the Registered Owner, on March 1, 2011, and each September 1
TCMUD No. 1 13 of 142 16 March 2010
8
and March 1 thereafter while this Bond is outstanding, mailed to the Registered Owner of record as shown
on the books of registration kept by the Paying Agent/Registrar (the "Bond Registration Books"), as of the
date which is the fifteenth calendar day of the month immediately preceding an interest payment date (the
"Record Date"). Notwithstanding the foregoing, during any period in which ownership of the Bonds is
determined only by a book entry at a securities depository for the Bonds, any payment to the securities
depository, or its nominee or registered assigns, shall be made in accordance with existing arrangements
between the District and the securities depository.
IN THE EVENT of a non-payment of interest on a scheduled payment date, and for 30 calendar days
thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the
Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the
District. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which
shall be 15 calendar days after the Special Record Date) shall be sent at least 5 business days prior to the
Special Record Date by United States mail, first-class postage prepaid, to the address of each Registered
Owner as it appears on the Register at the close of business on the last business day next preceding the date
of mailing of such notice.
ANY ACCRUED INTEREST due at maturity or upon the redemption of this Bond prior to maturity
as provided herein shall be paid to the Registered Owner upon presentation and surrender of this Bond for
payment at the designated office for payment of the Paying Agent/Registrar. The District covenants with the
Registered Owner of this Bond that on or before each principal payment date, interest payment date, and any
redemption date for this Bond it will make available to the Paying Agent/Registrar, from the "Interest and
Sinking Fund" the creation of which is affirmed by the Order, the amounts required to provide for the
payment, in immediately available funds, of all principal of and interest on the Bonds, when due.
IF THE DATE for any payment due on this Bond shall be a Saturday, Sunday, or a day on which
the Paying Agent/Registrar is authorized by law or executive order to close, then the date for such payment
shall be the next succeeding day which is not such a Saturday, Sunday, or day on which the Paying
Agent/Registrar is authorized by law or executive order to remain closed; and payment on such date shall
have the same force and effect as if made on the original date payment was due.
THIS BOND is a one of a series of Bonds authorized and issued in the aggregate principal amount
of $2,000,000 pursuant to an Order adopted by the Board of Directors of the District for the purpose of (i)
constructing and equipping an addition to a building and facilities for a fire station for fire fighting purposes;
and (ii) paying the costs of issuance in connection with the Bonds, all as provided by the Order.
THE BONDS maturing on September 1, 2021, and thereafter, shall be subject to redemption prior
to maturity at the option of the District, in whole or from time to time in part, in integral multiples of $5,000,
on September 1, 2020, or on any date thereafter, at the par value thereof, plus accrued interest thereon to the
date set for redemption. If less than all the Bonds are redeemed at any time, the Bonds or portions thereof
to be redeemed shall be selected by the Paying Agent/Registrar at the direction of the District.
THE BONDS of this Series scheduled to mature on September 1, ___, ____ are subject to mandatory
redemption prior to their scheduled maturities, and shall be redeemed by the Issuer, in part, prior to their
scheduled maturities, with money from the Interest and Sinking Fund, with the particular Bonds or portion
thereof to be redeemed to be selected by the Paying Agent/Registrar, by lot or other customary method
(provided that a portion of a Bond may be redeemed only in an integral multiple of $5,000), at a redemption
price equal to the par or principal amount thereof and accrued interest to the date of redemption, on the dates,
and in the principal amounts, respectively, as shown in the following schedule:
[term tables to be added if bid]
TCMUD No. 1 14 of 142 16 March 2010
9
The principal amount of the Bonds required to be redeemed on each such redemption date pursuant to the
foregoing operation of the mandatory redemption shall be reduced, at the option of the Issuer, by the principal
amount of any Bonds, which at least 45 days prior to the mandatory sinking fund redemption date, (1) shall
have been defeased or acquired by the Issuer and delivered to the Paying Agent/Registrar for cancellation,
or (2) shall have been purchased and canceled by the Paying Agent/Registrar at the request of the Issuer at
a price not exceeding the principal amount of such Bonds plus accrued interest to the date of purchase, (3)
have been redeemed pursuant to the optional redemption provisions set forth above and not theretofore
credited against a mandatory sinking fund redemption.
DURING ANY PERIOD in which ownership of the bonds is determined only by a book entry at
a securities depository for the bonds, if fewer than all of the Bonds of the same maturity and bearing the same
interest rate are to be redeemed, the particular Bonds of such maturity and bearing such interest rate shall be
selected in accordance with the arrangements between the District and the securities depository.
AT LEAST 30 DAYS prior to the date fixed for any redemption of Bonds or portions thereof prior
to maturity a written notice of such redemption shall be sent by the Paying Agent/Registrar by United States
mail, first-class postage prepaid, to the Registered Owner of each Bond to be redeemed at its address as it
appears in the Registration Books on the close of business on the day preceding such mailing; provided,
however, that the failure to send, mail or receive such notice, or any defect therein or in the sending or
mailing thereof, shall not affect the validity or effectiveness of the proceedings for the redemption of any
Bond. By the date fixed for any such redemption due, if provision shall be made with the Paying
Agent/Registrar for the payment of the required redemption price for the Bonds or portions for such payment
is made, all as provided above, the Bonds or portions thereof which are to be so redeemed thereby
automatically shall be treated as redeemed prior to their scheduled maturities, and they shall not bear interest
after the date fixed for redemption, and they shall not be regarded as being outstanding except for the right
of the Registered Owner to receive the redemption price from the Paying Agent/Registrar out of the funds
provided for such payment. If a portion of any Bond shall be redeemed a substitute Bond or Bonds having
the same maturity date, bearing interest at the same rate, in any authorized denomination or denominations,
at the written request of the Registered Owner, and in aggregate principal amount equal to the unredeemed
portion thereof, will be issued to the Registered Owner upon the surrender thereof for cancellation, at the
expense of the District, all as provided in the Bond Order.
IF AT THE TIME OF MAILING of notice of optional redemption there shall not have either been
deposited with the Paying Agent/Registrar or legally authorized escrow agent immediately available funds
sufficient to redeem all the Bonds called for redemption, such notice may state that it is conditional, and is
subject to the deposit of the redemption moneys with the Paying Agent/Registrar or legally authorized escrow
agent at or prior to the redemption date, and such notice shall be of no effect unless such moneys are so
deposited on or prior to the redemption date. If such redemption is not effectuated, the Paying
Agent/Registrar shall, within five days thereafter, give notice in the manner in which the notice of redemption
was given that such moneys were not so received and shall rescind the redemption.
THE BONDS are issuable in the form of fully registered Bonds without coupons in the
denominations of $5,000 or any integral multiple of $5,000 for any one maturity. The Registered Owner of
any Bond may surrender the same in exchange for an equal aggregate principal amount of Bonds of the same
maturity and of any other authorized denominations. Such exchanges shall be without expense to the
Registered Owner hereof, but any taxes, fees, or other governmental charges required to be paid with respect
to the same shall be paid by the Registered Owner requesting such exchange as a condition precedent to the
exercise of such privilege.
TCMUD No. 1 15 of 142 16 March 2010
10
THE TRANSFER of this Bond shall be noted, as provided in the Order, upon the Bond Registration
Books kept for that purpose at the above mentioned office of the Paying Agent/Registrar by the Registered
Owner hereof in person, or by his attorney duly authorized in writing, upon surrender of this Bond together
with a written instrument of transfer satisfactory to the Paying Agent/Registrar duly executed by the
Registered Owner or his attorney duly authorized in writing, and thereupon a new fully registered Bond or
Bonds of the same series and maturity and the same aggregate principal amounts, shall be issued to the
transferee in exchange therefor as provided in the Bond Order. Such transfers shall be without expense to
the Registered Owner hereof, but any taxes, fees, or other governmental charges required to be paid with
respect to the same shall be paid by the Registered Owner requesting such transfer as a condition precedent
to the exercise of such privilege.
WHENEVER the beneficial ownership of this Bond is determined by a book entry at a securities
depository for the Bonds, the foregoing requirements of holding, delivering or transferring this Bond shall
be modified to require the appropriate person or entity to meet the requirements of the securities depository
as to registering or transferring the book entry to produce the same effect.
EVERY EXCHANGE OR TRANSFER of Bonds under the foregoing provisions shall be effected
in such manner as may be prescribed by the Paying Agent/Registrar. The Paying Agent/Registrar shall not
be required to make exchanges or transfers of any Bond during the period between any Record date and the
succeeding interest payment date or within forty-five (45) days prior the date fixed for the redemption of such
Bond, anything in this Bond to the contrary notwithstanding.
THE DISTRICT and the Paying Agent/Registrar may deem and treat the person in whose name this
Bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of,
the principal hereof, the premium, if any, due hereon, and the interest due hereon and for all other purposes;
and neither the District nor the Paying Agent/Registrar shall be affected by any notice to the contrary.
THIS BOND, and the other Bonds of the series of which it is a part, are payable (until all the territory
within the District is annexed, all properties and assets of the District are taken over, and all debts, liabilities
and obligations of the District, including this Bond, are assumed by one or more cities and the District is
abolished pursuant to existing Texas law) from the proceeds of an ad valorem tax levied without legal
limitation as to rate or amount upon all taxable property within the District (as such terms are defined in the
Order). The District covenants to levy a continuing direct annual ad valorem tax, without legal limit as to
rate or amount, on all taxable property within the District, for each year while any part of the Bonds are
considered outstanding under the provisions of the Bond Order, in sufficient amount, together with revenues
and receipts
available from other sources which are equally available for such purposes, to pay interest on the Bonds as
it becomes due, to provide a sinking fund for the payment of the principal of the Bonds when due or the
redemption price at any earlier required redemption date with respect to the Bonds, and to pay the expenses
of assessing and collecting such tax, all as more specifically provided in the Bond Order. Reference is hereby
made to the Order for a complete description of the terms, covenants, and provisions pursuant to which this
Bond and the series of Bonds of which it is a part are secured and made payable, the respective rights
thereunder of the Registered Owners of Bonds and of the District and the Paying Agent/Registrar; and the
terms upon which the Bonds are, and are to be, registered and delivered. By acceptance of this Bond, the
Registered Owner hereof expressly assents to all of the provisions of the Bond Order.
NO OTHER ENTITY, including the State of Texas, any political subdivision thereof other than the
District, or any other public or private body, is obligated, directly, indirectly, contingently, or in any other
manner, to pay the principal of or the interest on this Bond from any source whatsoever. No part of the
physical properties of the District, including the properties provided by the proceeds of the Bonds of the series
of which this Bond is a part, is encumbered by any lien for the benefit of the Registered Owner of this Bond.
TCMUD No. 1 16 of 142 16 March 2010
11
IT IS HEREBY CERTIFIED, RECITED, AND REPRESENTED that the issuance of this Bond
and the series of Bonds of which it is a part is duly authorized by law; that all acts, conditions, and things
required to exist and to be done precedent to and in the issuance of this Bond and said series of Bonds to
render the same lawful and valid have been properly done and performed and have happened in regular and
due time, form and manner, as required by law; that due provision has been made for the payment of the
interest on and the principal of this Bond and the series of Bonds of which it is a part by the levy of a direct
annual ad valorem tax upon all taxable property within the District sufficient for said purposes; and that the
issuance of this Bond and said series of Bonds does not exceed any Constitutional or statutory limitation.
THIS BOND shall not be valid or become obligatory for any purpose or be entitled to any security
or benefit under the Bond Order until (a) the certificate of authentication hereon shall have been signed by
the Paying Agent/Registrar or (b) this Bond shall have been registered by the Comptroller of Public Accounts
of the State of Texas.
IN WITNESS WHEREOF, this Bond has been signed with the manual or facsimile signature of the
President or Vice President of the Board of Directors of the District and countersigned with the manual or
facsimile signature of the Secretary or the Assistant Secretary of the Board, and the official seal of the District
has been duly impressed, or placed in facsimile, on this Bond.
_________________________ ___________________________________
Secretary, Board of Directors President, Board of Directors
(DISTRICT SEAL)
(b) Form of Paying Agent/registrar's Authentication Certificate.
PAYING AGENT/REGISTRAR'S AUTHENTICATION CERTIFICATE
(To be executed if this Bond is not accompanied by an
executed Registration Certificate of the Comptroller
of Public Accounts of the State of Texas)
It is hereby certified that this Bond has been issued under the provisions of the Bond Order described
in the text of this Bond; and that this Bond has been issued in conversion or replacement of, or in exchange
for, a Bond, Bonds, or a portion of a Bond or Bonds of a Series which originally was approved by the
Attorney General of the State of Texas and registered by the Comptroller of Public Accounts of the State of
Texas.
Dated THE BANK OF NEW YORK MELLON
TRUST COMPANY, N.A., DALLAS, TEXAS
By_________________________________________
Authorized Representative
(c) Form of Assignment:
ASSIGNMENT
TCMUD No. 1 17 of 142 16 March 2010
12
FOR VALUE RECEIVED, the undersigned registered owner of this Bond, or duly authorized
representative or attorney thereof, hereby assigns this Bond to
(Assignee's Social Security or Tax
Payer Identification Number)
(Print or type Assignee's Name and
Address Including Zip Code)
and hereby irrevocably constitutes and appoints
attorney, to transfer the registration of this Bond on the Paying Agent/Registrar's Registration Books with full
power of substitution in the premises.
Dated _______________
NOTICE: This signature must be guaranteed
by a member of the New York Stock Exchange
or a commercial bank or trust company.
NOTICE: This signature must correspond with the
name of the Registered Owner appearing on the
face of this Bond.
(c) Form of Registration Certificate of the Comptroller of Public Accounts.
COMPTROLLER'S REGISTRATION CERTIFICATE:
REGISTER NO.
I hereby certify that this Bond has been examined, certified as to validity, and approved by the
Attorney General of the State of Texas, and that this Bond has been registered by the Comptroller of Public
Accounts of the State of Texas.
Witness my signature and seal this
Comptroller of Public Accounts of the State of Texas
[COMPTROLLER'S SEAL]
(d) Initial Bond Insertions. The initial Bond shall be in the form set forth is paragraph (a) of this
Section, except that:
(i) immediately under the name of the Bond, the headings "Interest Rate" and "Maturity
Date" shall both be completed with the words "As shown below" and "CUSIP No.
_____" shall be deleted.
TCMUD No. 1 18 of 142 16 March 2010
13
(ii) the first paragraph shall be deleted and the following will be inserted:
"TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (the "Issuer") hereby promises to pay to the
Registered Owner specified above, or registered assigns (hereinafter called the "Registered Owner"), on
___________________ in each of the years, in the principal installments and bearing interest at the per
annum rates set forth in the following schedule:
Years Principal Amount Interest Rates
(Information from Section 3 to be inserted)
The Issuer promises to pay interest on the unpaid principal amount hereof (calculated on the basis of a 360-
day year of twelve 30-day months) from April 1, 2010 at the respective Interest Rate per annum specified
above. Interest is payable on March 1, 2011, and semiannually on each September 1 and March 1 thereafter
to the date of payment of the principal installment specified above, or the date of redemption prior to
maturity; except, that if this Bond is required to be authenticated and the date of its authentication is later than
the first Record Date (hereinafter defined), such Principal Amount shall bear interest from the interest
payment date next preceding the date of authentication, unless such date of authentication is after any Record
Date but on or before the next following interest payment date, in which case such principal amount shall bear
interest from such next following interest payment date; provided, however, that if on the date of
authentication hereof the interest on the Bond or Bonds, if any, for which this Bond is being exchanged is
due but has not been paid, then this Bond shall bear interest from the date to which such interest has been paid
in full."
(iii) The Initial Bond shall be numbered "T-1."
Section 7.SECURITY OF THE BONDS; CONSOLIDATION OF DISTRICT. (a) Security
of Bonds. The Bonds are secured by and payable from a first lien on and pledge of ad valorem taxes, as
specified below.
(b) Levy of Tax. On or before September 1 in each year or as soon after that time as practicable,
the Board shall consider the taxable property in the District and determine the actual rate of the bond tax
and/or the maintenance tax per $100 valuation of taxable property which is to be levied in that year, and levy
the bond tax and/or the maintenance tax against all taxable property in the District.
(i) Annual Budget. Prior to determining the bond tax and/or maintenance tax to be
levied for any calendar year, the Board shall adopt an annual budget for the District setting forth the
estimated expenditures and disbursements of the District's receipts, revenues and funds, the estimated
receipts, revenues and funds and the sources thereof, and the District's debt service for the succeeding
Fiscal Year. The budget shall be developed in accordance with generally accepted accounting
procedures, and shall contain such budgetary items and provisions as may be reasonably necessary
to reflect adequately the operations and activities of the District for the annual period covered by the
budget. The Board shall not determine the bond tax and/or maintenance tax to be levied for any
calendar year until the Board has approved an annual budget for the expenditure and disbursement
of the receipts, revenues and funds of the District.
(ii) Establishment of Interest and Sinking Fund, Levy of Bond Tax. A special fund or
account, to be designated the Trophy Club Municipal Utility District No. 1 Unlimited Tax Bonds,
Series 2010 Interest and Sinking Fund (the "Interest and Sinking Fund") is hereby created and shall
TCMUD No. 1 19 of 142 16 March 2010
14
be established and maintained by the District at its official depository bank. Said Interest and
Sinking Fund shall be kept separate and apart from all other funds and accounts of the District, and
shall be used only for paying the District's debt service on the Bonds. All taxes levied and collected
for and on account of the Bonds shall be deposited, as collected, to the credit of said Interest and
Sinking Fund. During each year while any of the Bonds are outstanding and unpaid, the District shall
compute and ascertain the rate and amount of ad valorem tax, based on the latest approved tax rolls
of the District, with full allowances being made for tax delinquencies and costs of tax collections,
which will be sufficient to raise and produce the money required to make payment of the District's
debt service on the Bonds, including such amounts to satisfy the mandatory redemption schedule for
the Bonds as set forth in the FORM OF BOND.
(iii) Said rate and amount of ad valorem tax is hereby ordered to be levied and is hereby
levied without limit as to rate or amount against all taxable property in the District for each year
while any of the Bonds are outstanding and unpaid, and said ad valorem tax shall be assessed and
collected each such year and deposited to the credit of the aforesaid Interest and Sinking Fund. In
determining the rate of tax to be levied, assessed and collected, the District may take into account the
amount in the Interest and Sinking Fund from the deposit of Bond proceeds on deposit in said fund
for the payment of interest. Said ad valorem taxes are hereby irrevocably pledged to the payment
of the principal of and interest on the Bonds as same become due.
(iv) Chapter 1208, Government Code, applies to the issuance of the Bonds and the pledge
of the taxes granted by the Issuer under this Section, and is therefore valid, effective, and perfected.
Should Texas law be amended at any time while the Bonds are outstanding and unpaid, the result of
such amendment being that the pledge of the taxes granted by the Issuer under this Section is to be
subject to the filing requirements of Chapter 9, Business & Commerce Code, in order to preserve to
the registered owners of the Bonds a security interest in said pledge, the Issuer agrees to take such
measures as it determines are reasonable and necessary under Texas law to comply with the
applicable provisions of Chapter 9, Business & Commerce Code and enable a filing of a security
interest in said pledge to occur.
(c) Consolidation of District. To the extent provided by law, such pledge of taxes will terminate
if one or more cities takes over all properties and assets, assumes all debts, liabilities, and obligations, and
performs all functions and services of the District, and the District is abolished pursuant to law. The laws of
the State of Texas permit the District to be consolidated with one or more conservation and reclamation
districts.
Section 8.FLOW OF FUNDS; CREATION OF CONSTRUCTION FUND;
INVESTMENTS. (a) Maintenance of Funds. Each fund or account created by this Order shall be kept
separate and apart from all other funds and accounts of the District. The Interest and Sinking Fund shall
constitute trust funds which shall be held in trust for the benefit of the Registered Owners of the Bonds. All
other funds shall be used solely as provided in this Order until all of the Bonds have been retired, both as to
principal and interest.
(b) Deposits to Interest and Sinking Fund; Payments from the Interest and Sinking Fund. The
District shall deposit or cause to be deposited into the Interest and Sinking Fund the aggregate of the
following at the time specified: (i) as soon as practicable after the Bonds are sold, accrued interest on the
Bonds from their date to the date of their delivery and capitalized interest on the Bonds; and (ii) the proceeds
from collection of the ad valorem taxes levied, assessed and collected for and on account of the Bonds
pursuant to Section 7 hereof, less costs of collection, as collected. Except as otherwise specifically provided
in this Order, the Interest and Sinking Fund shall be used only to pay the principal of, and redemption
premium, if any, and interest on the Bonds when due, and the charges of the Paying Agent/Registrar. The
TCMUD No. 1 20 of 142 16 March 2010
15
District shall make available to the Paying Agent/Registrar, out of the Interest and Sinking Fund, the amounts
required to pay or redeem the principal of and interest on the Bonds and the Paying Agent/Registrar shall
make all other payments as required by this Order. The Paying Agent/Registrar shall obtain and destroy all
paid Bonds and shall furnish the District an appropriate certificate of destruction at least annually.
(c) Establishment of Construction Fund. (i) A special fund or account, to be designated the
Trophy Club Municipal Utility District No. 1 Unlimited Tax Bonds, Series 2010 Construction Fund (the "
Construction Fund") is hereby created and shall be established and maintained by the District at the District's
depository. bank. The Construction Fund shall be kept separate and apart from all other funds and accounts
of the District. The District shall deposit to the credit of the Construction Fund the balance of the proceeds
of the Bonds remaining after the deposits to the Interest and Sinking Fund provided in Section 8(b) of this
Order. The remainder in the Construction Fund shall be used solely to pay (i) the costs necessary or
appropriate to accomplish such of the purposes for which the Bonds are issued as approved by the
Commission and (ii) the costs of issuing the Bonds. Interest earnings derived from the investment of proceeds
from the sale of the Bonds deposited in the Construction Fund shall be used for the purpose for which the
Bonds are issued. Bond proceeds, including interest earnings, remaining after completion of the purposes
authorized by the Order of the Commission shall be deposited in the Interest and Sinking Fund or used for
additional purposes set forth in Section 2 of this Order as further approved by the Commission.
(ii) Pursuant to the Commission Order, the District will not expend $1,830,809 ($1,664,372
construction plus $166,437 contingencies) for the Project until receipt by the Board of plans and
specifications approved by all entities with jurisdiction and construction documents.
(d) Investments; Earnings. Moneys deposited into the Interest and Sinking Fund and the
Construction Fund may be invested or reinvested in Authorized Investments. Unless otherwise set forth
herein, all interest and income derived from such Authorized Investments immediately shall be credited to,
and any losses debited to, the fund or account from which the investment was made, and surpluses in any fund
shall or may be disposed of in any manner permitted by law. The District shall have the right to have sold
in the open market a sufficient amount of such investments in the event any fund does not have sufficient
uninvested funds on hand to meet the obligations payable out of such fund. After such sale the moneys
resulting therefrom shall belong to the fund from which the moneys for such investments were initially taken.
The District shall not be
responsible to the Registered Owners for any loss arising out of the sale of any Authorized Investments.
Interest earnings derived from the investment of proceeds from the sale of the Bonds shall be used
along with other Bond proceeds for the purpose for which the Bonds are issued as set forth in Section 2
hereof; provided that after completion of such purpose, if any of such interest earnings remain on hand, such
interest earnings shall be deposited in the Interest and Sinking Fund.
Section 9.AMENDMENTS. (a) Amendment with Consent of Owners of a Majority in
Principal Amount of Bonds. The owners of a majority in aggregate principal amount of then outstanding
Bonds shall have the right from time to time to approve any amendment to this Order which may be deemed
necessary or desirable by the District; provided however, that, other than as permitted by subsection (f) of
this Section 9, nothing herein contained shall permit to be construed to permit the amendment, without the
consent of the owner of each of the outstanding Bonds affected thereby, of the terms and conditions of this
Order or the Bonds so as to:
(1) change the Interest and Sinking Fund requirements, interest payment dates or the maturity or
maturities of the outstanding Bonds;
TCMUD No. 1 21 of 142 16 March 2010
16
(2) reduce the amount of the principal of, redemption premium, if any, or interest on the
outstanding Bonds or impose any conditions with respect to such payments;
(3) modify the terms of payment of principal of, redemption premium, if any, or interest on the
outstanding Bonds, or impose any conditions with respect to such payments;
(4) decrease the minimum percentage of the principal amount of Bonds necessary for consent to
any such amendment.
(b) Notice of Amendment. If at any time the District shall desire to amend this Order it shall
cause a written notice of the proposed amendment to be published at least once on a business day in a
financial newspaper, journal, or publication of general circulation in the City of New York, New York, or in
the State of Texas. If, because of temporary or permanent suspension of the publication or general circulation
of all such newspapers, journals, or publications, it is impossible or impractical to publish such notice in the
manner provided herein, then such publication in lieu thereof as shall be made by the Paying Agent/Registrar
shall constitute a sufficient publication of notice. In addition to such publication, the Paying Agent/Registrar
shall cause a written notice of the proposed amendment to be given by registered or certified mail to
registered owners of the Bonds as shown on the Registration Books maintained by the Paying
Agent/Registrar; provided, however, that failure to receive such written notice of the proposed amendment,
or any defect therein or in the mailing thereof, shall not affect the validity of any proceeding in connection
with, or the adoption of, such amendment. Such notice shall briefly set forth the nature of the proposed
amendment and shall state that a copy thereof is on file at the principal office of the Paying Agent/Registrar
for inspection by all Registered Owners of Bonds.
(c) Consent to Amendment. Whenever at any time not less than 30 days, and within one year,
from the date of the first publication of said notice or other service of written notice the District shall receive
an instrument or instruments executed by the Registered Owners of at least a majority in aggregate principal
amount of all Bonds then outstanding, which instrument or instruments shall refer to the proposed amendment
described in said notice and shall specifically consent to and approve such amendment, the District may adopt
the amendatory resolution in substantially the same form.
(d) Effect of Amendment. Upon the adoption of any amendatory resolution or order pursuant to
the provisions of this Section, this Order shall be deemed to be amended in accordance with such amendatory
resolution or order, and the respective rights, duties, and obligations under such amendatory resolution of all
the Bondholders shall thereafter be determined and exercise subject in all respects to such amendments.
(e) Consent of Registered Owners. Any consent given by a Registered Owners pursuant to the
provisions of this Section shall be irrevocable for a period of six months from the date of the first publication
of the notice provided for in this Section, and shall be conclusive and binding upon all future owners of the
Bonds during such period. Such consent may be revoked by the Registered Owner who gave such consent
at any time after six months from the date of the first giving of such notice, or by a successor in title, by filing
notice thereof with the Paying Agent/Registrar and the District, but such revocation shall not be effective if
the Registered Owners of a majority in aggregate principal amount of the then outstanding Bonds have, prior
to the attempted revocation, consented to and approved the amendment.
(f) Amendments Without Consent. Notwithstanding the provisions of (a) through (e) of this
Section, and without notice of the proposed amendment and without the consent of the Bondholders, the
District may, at any time, amend this Order to cure any ambiguity or to cure, correct, or supplement any
defective, omitted or inconsistent provision contained therein, or to make any other change that does not in
any respect materially and adversely affect the interest of the Bondholders, provided that no such amendment
TCMUD No. 1 22 of 142 16 March 2010
17
shall be made contrary to the provision to Section 9(a), and a duly certified or executed copy of each such
amendment shall be filed with the Paying Agent/Registrar.
Section 10.DAMAGED, MUTILATED, LOST, STOLEN, OR DESTROYED BONDS. (a)
Replacement Bonds. In the event any of the outstanding Bonds is damaged, mutilated, lost, stolen or
destroyed, the District shall execute, and the Paying Agent/Registrar shall authenticate, a new bond of the
same principal amount and maturity of the damage, mutilated, lost, stolen or destroyed Bond in exchange or
substitution for such Bond.
(b) Application for Substitute Bonds. Application for exchange and substitution of damaged,
mutilated, lost, stolen or destroyed Bonds shall be made to the Paying Agent/Registrar. In every case, the
applicant for a substitute bond shall furnish to the District and to the Paying Agent/Registrar such security
or indemnity as may be required by them to save each of them harmless from any loss or damage with respect
thereto. In every case of loss, theft, or destruction of a Bond the applicant shall also furnish to the District
and Paying Agent/Registrar evidence to its satisfaction of the loss, theft or destruction, and of the ownership
of such Bond. In every case of damage or mutilation of a Bond, the applicant shall surrender the Bond so
damaged or mutilated.
(c) No Default Occurred. Notwithstanding the foregoing provisions of this Section, in the event
any such Bond Shall have matured, and no default has occurred which is then continuing in the payment of
the principal of, redemption premium, if any, or interest on the Bonds, the District may authorize the payment
of the same (without surrender thereof except in the case of a damaged or mutilated Bond) instead of issuing
a substitute Bond provided security or indemnity is furnished as above provided in this Section.
(d) Charge for Issuing Substitute Bonds. Prior to the issuance of any substitute bond, the District
and the Paying Agent/Registrar may charge the Registered Owner of such Bond with all legal, printing and
other expenses in connection therewith. Every substitute bond issued pursuant to the provisions of this
Section by virtue of the fact that any Bond is lost, stolen or destroyed shall constitute a contractual obligation
of the District whether or not the lost, stolen, or destroyed Bond shall be found at any time, or be enforceable
by anyone, and shall be entitled to all the benefits of this Order equally and proportionately with any and all
other Bonds duly issued under this Order.
(e) Authority for Issuing Substitute Bonds. In accordance with Sec. 1206.022, Government
Code, this Section of this Order shall constitute authority for the issuance of any such replacement Bond
without necessity of further action by the governing body of the District or any other body or person, and the
duty of the replacement of such Bonds is hereby authorized and imposed upon the Paying Agent/Registrar,
and the Paying Agent/Registrar shall authenticate and deliver such Bonds in the form and manner and with
the effect, as provided in Section 5 of this Order for Bonds issued in conversion and exchange for other
Bonds.
Section 11.FEDERAL TAX COVENANTS. (a) Covenants. The District covenants to take
any action necessary to assure, or refrain from any action which would adversely affect, the treatment of the
Bonds as obligations described in section 103 of the Internal Revenue Code of 1986, as amended (the
"Code"), the interest on which is not includable in the "gross income" of the holder for purposes of federal
income taxation. In furtherance thereof, the District covenants as follows:
(1) to take any action to assure that no more than 10 percent of the proceeds of the
Bonds or the projects financed therewith (less amounts deposited to a reserve fund, if any) are used for any
"private business use," as defined in section 141(b)(6) of the Code or, if more than 10 percent of the proceeds
or the projects financed therewith are so used, such amounts, whether or not received by the District, with
TCMUD No. 1 23 of 142 16 March 2010
18
respect to such private business use, do not, under the terms of this Bond Order or any underlying
arrangement, directly or indirectly, secure or provide for the payment of more than 10 percent of the debt
service on the Bonds, in contravention of section 141(b)(2) of the Code;
(2) to take any action to assure that in the event that the "private business use" described
in subsection (1) hereof exceeds 5 percent of the proceeds of the Bonds or the projects financed therewith
(less amounts deposited into a reserve fund, if any) then the amount in excess of 5 percent is used for a
"private business use" which is "related" and not "disproportionate," within the meaning of section 141(b)(3)
of the Code, to the governmental use;
(3) to take any action to assure that no amount which is greater than the lesser of
$5,000,000, or 5 percent of the proceeds of the Bonds (less amounts deposited into a reserve fund, if any) is
directly or indirectly used to finance loans to persons, other than state or local governmental units, in
contravention of section 141(c) of the Code;
(4) to refrain from taking any action which would otherwise result in the Bonds being
treated as "private activity bonds" within the meaning of section 141(b) of the Code;
(5) to refrain from taking any action that would result in the Bonds being "federally
guaranteed" within the meaning of section 149(b) of the Code;
(6) to refrain from using any portion of the proceeds of the Bonds, directly or indirectly,
to acquire or to replace funds which were used, directly or indirectly, to acquire investment property (as
defined in section 148(b)(2) of the Code) which produces a materially higher yield over the term of the
Bonds, other than investment property acquired with --
(A) proceeds of the Bonds invested for a reasonable temporary period of 3 years or
less or, in the case of a refunding bond, for a period of 30 days or less until such proceeds are needed
for the purpose for which the Bonds are issued,
(B) amounts invested in a bona fide debt service fund, within the meaning of section
l.148-1(b) of the Treasury Regulations, and
(C) amounts deposited in any reasonably required reserve or replacement fund to
the extent such amounts do not exceed 10 percent of the proceeds of the Bonds;
(7) to otherwise restrict the use of the proceeds of the Bonds or amounts treated as
proceeds of the Bonds, as may be necessary, so that the Bonds do not otherwise contravene the requirements
of section 148 of the Code (relating to arbitrage) and, to the extent applicable, section 149(d) of the Code
(relating to advance refundings);
(8) to pay to the United States of America at least once during each five-year period
(beginning on the date of delivery of the Bonds) an amount that is at least equal to 90 percent of the "Excess
Earnings," within the meaning of section 148(f) of the Code and to pay to the United States of America, not
later than 60 days after the Bonds have been paid in full, 100 percent of the amount then required to be paid
as a result of Excess Earnings under section 148(f) of the Code; and
(9) to assure that the proceeds of the Bonds will be used solely for new money projects.
(b) Rebate Fund. In order to facilitate compliance with the above covenant (8), a "Rebate Fund" is
hereby established by the District for the sole benefit of the United States of America, and such fund shall
TCMUD No. 1 24 of 142 16 March 2010
19
not be subject to the claim of any other person, including without limitation the Bondholders. The Rebate
Fund is established for the additional purpose of compliance with section 148 of the Code.
(c) Proceeds. The District understands that the term "proceeds" includes "disposition proceeds" as
defined in the Treasury Regulations and, in the case of refunding bonds, transferred proceeds (if any) and
proceeds of the refunded bonds expended prior to the date of issuance of the Bonds. It is the understanding
of the District that the covenants contained herein are intended to assure compliance with the Code and any
regulations or rulings promulgated by the U.S. Department of the Treasury pursuant thereto. In the event that
regulations or rulings are hereafter promulgated which modify or expand provisions of the Code, as
applicable to the Bonds, the District will not be required to comply with any covenant contained herein to
the extent that such failure to comply, in the opinion of nationally recognized bond counsel, will not adversely
affect the exemption from federal income taxation of interest on the Bonds under section 103 of the Code.
In the event that regulations or rulings are hereafter promulgated which impose additional requirements which
are applicable to the Bonds, the District agrees to comply with the additional requirements to the extent
necessary, in the opinion of nationally recognized bond counsel, to preserve the exemption from federal
income taxation of interest on the Bonds under section 103 of the Code. In furtherance of such intention, the
District hereby authorizes and directs the President to execute any documents, certificates or reports required
by the Code and to make such elections, on behalf of the District, which may be permitted by the Code as are
consistent with the purpose for the issuance of the Bonds. This Order is intended to satisfy the official intent
requirements set forth in section 1.150-2 of the Treasury Regulations.
(d) Allocation Of, and Limitation On, Expenditures for the Project. The District covenants to
account for the expenditure of sale proceeds and investment earnings to be used for the purposes described
in Section 2 of this Order (the "Project") on its books and records in accordance with the requirements of the
Internal Revenue Code. The District recognizes that in order for the proceeds to be considered used for the
reimbursement of costs, the proceeds must be allocated to expenditures within 18 months of the later of the
date that (1) the expenditure is made, or (2) the Project is completed; but in no event later than three years
after the date on which the original expenditure is paid. The foregoing notwithstanding, the District
recognizes that in order for proceeds to be expended under the Internal Revenue Code, the sale proceeds or
investment earnings must be expended no more than 60 days after the earlier of (1) the fifth anniversary of
the delivery of the Bonds, or (2) the date the Bonds are retired. The District agrees to obtain the advice of
nationally-recognized bond counsel if such expenditure fails to comply with the foregoing to assure that such
expenditure will not adversely affect the tax-exempt status of the Bonds. For purposes hereof, the District
shall not be obligated to comply with this covenant if it obtains an opinion that such failure to comply will
not adversely affect the excludability for federal income tax purposes from gross income of the interest.
(e) Disposition of Project. The District covenants that the property constituting the Project will not
be sold or otherwise disposed in a transaction resulting in the receipt by the District of cash or other
compensation, unless the District obtains an opinion of nationally-recognized bond counsel that such sale or
other disposition will not adversely affect the tax-exempt status of the Bonds. For purposes of the foregoing,
the portion of the property comprising personal property and disposed in the ordinary course shall not be
treated as a transaction resulting in the receipt of cash or other compensation. For purposes hereof, the
District shall not be obligated to comply with this covenant if it obtains an opinion that such failure to comply
will not adversely affect the excludability for federal income tax purposes from gross income of the interest.
(f) Designation as Qualified Tax-Exempt Bonds. The District hereby designates the Bonds as
"qualified tax-exempt bonds" as defined in section 265(b)(3) of the Code. In furtherance of such designation,
the District represents, covenants and warrants the following: (a) that during the calendar year in which the
Bonds are issued, the District (including any subordinate entities) has not designated nor will designate bonds,
which when aggregated with the Bonds, will result in more than $10,000,000 ($30,000,000 for taxable years
beginning after December 31, 2008 and ending prior to January 1, 2011) of "qualified tax-exempt bonds"
TCMUD No. 1 25 of 142 16 March 2010
20
being issued; (b) that the District reasonably anticipates that the amount of tax-exempt obligations issued,
during the calendar year in which the Bonds are issued, by the District (or any subordinate entities) will not
exceed $10,000,000 ($30,000,000 for taxable years beginning after December 31, 2008 and ending prior to
January 1, 2011); and (c) that the District will take such action or refrain from such action as necessary, and
as more particularly set forth in this Section, in order that the Bonds will not be considered "private activity
bonds" within the meaning of section 141 of the Code.
Section 12.APPROVAL AND REGISTRATION. The President of the Board of Directors of
the District and representatives of the District's Attorneys and Financial Advisors are hereby authorized to
have control of the Bonds and all necessary records and proceedings pertaining to said Bonds pending their
delivery and their investigation, examination and approval by the Attorney General of the State of Texas and
their registration by the Comptroller of Public Accounts of the State of Texas.
Section 13.MISCELLANEOUS PROVISIONS. (a) District's Successors and Assigns.
Whenever in this Order the District is named and referred to it shall be deemed to include its successors and
assigns, and all covenants and agreements in this Order by or on behalf of the District, except as otherwise
provided herein, shall bind and inure to the benefit of its successors and assigns whether or not so expressed.
(b) No Recourse Against District Officers. No recourse shall be had for the payment of the
principal of or interest on the Bonds or for any claim based thereon or on this Order against any officer of the
District or any person executing the Bonds.
(c) Paying Agent/Registrar. The Bank of New York Mellon Trust Company, N. A., Dallas, Texas
is hereby appointed as the Paying Agent/Registrar of the Bonds. The Board hereby approves execution of
a Paying Agent/Registrar Agreement in substantially the form attached hereto as Exhibit "A" with such
changes, additions or deletions as approved by the President of the Board as evidenced by execution of such
agreement. The President or Vice President of the Board is hereby authorized to execute the Paying
Agent/Registrar Agreement and the Secretary of the Board is hereby authorized to attest such agreement.
(d) Substitute Paying Agent/Registrar. The District covenants with the Registered Owners of the
Bonds that at all times while the Bonds are outstanding the District will provide a competent and legally
qualified bank, trust company, financial institution, or other agency to act as and perform the services of
Paying Agent/Registrar for the Bonds under this Order, and that the Paying Agent/Registrar will be one
entity. The District reserves the right to, and may, at its option, change the Paying Agent/Registrar upon not
less than 30 days written notice to the Paying Agent/Registrar, to be effective at such time not to disrupt or
delay the next principal or interest payment date after such notice. In the event that the entity at any time
acting as Paying Agent/Registrar (or its successor by merger, acquisition or other method) should resign or
otherwise cease to act as such, the District covenants that promptly it will appoint a competent and legally
qualified bank, trust company, financial institution, or other agency to act as Paying Agent/Registrar under
this Order. Upon any change in the Paying Agent/Registrar, the previous Paying Agent/Registrar promptly
shall transfer and deliver the Registration Books (or a copy thereof), along with all other pertinent books and
records relating to the Bonds, to the new Paying Agent/Registrar designated and appointed by the District.
Upon any change in the Paying Agent/Registrar, the District promptly will cause a written notice thereof to
be sent by the new Paying Agent/Registrar to each Registered Owner of the Bonds, by United States Mail,
first-class postage prepaid, which notice also shall give the address of the new Paying Agent/Registrar. By
accepting the position and performing as such, each Paying Agent/Registrar shall be deemed to have agreed
to the provisions of this Order, and a certified copy of this Order shall be delivered to each Paying
Agent/Registrar upon request.
TCMUD No. 1 26 of 142 16 March 2010
21
(e) Paying Agent/Registrar May Own Bonds. The Paying Agent/Registrar, in its individual or
any other capacity, may become the owner or pledge of the Bonds with the same rights it would have it if
were not Paying Agent/Registrar.
(f) Benefits of Order Provisions. Nothing in this Order or in the Bonds, expressed or implied,
shall give or be construed to give any persons, firm or corporation, other than the District, the Paying
Agent/Registrar and the Bondholders, any legal or equitable right to claim under or in respect of this Order,
or under any covenant, condition, or provision herein contained, all the covenants, conditions and provisions
contained in this Order or in the Bonds being for the sole benefit of the District, the Paying Agent/Registrar
and the Bondholders.
(g) Severability Clause. If any word, phrase, clause, sentence, paragraph, section or other part
of this Order, or the application thereof to any person or circumstance, shall ever be held to be invalid or
unconstitutional by any court of competent jurisdiction, the remainder of this Order and the application of
such word, phrase, clause, sentence, paragraph, section or other part of this Order to any other person or
circumstances shall not be affected thereby.
(h) Further Proceedings. The President and Secretary of the Board of Directors and other
appropriate officials of the District are hereby authorized and directed to do any and all things necessary
and/or convenient to carry out the terms of this Order.
(i) Effective Date of Order. This Order shall take effect and be in full force and effect upon and
after its passage.
Section 14. SALE OF BONDS, LEGAL OPINION AND OFFICIAL STATEMENT.
(a) Sale. The Bonds are hereby sold, pursuant to the taking of public bids therefor, on this date, and
shall be delivered to _____________ (the "Initial Purchaser") at a price of ______% of the par amount plus
accrued interest. The Board hereby finds and determines that the net effective interest rate on the Bonds, as
calculated pursuant to Chapter 1204, Texas Government Code, as amended is ________%. It is hereby
officially found, determined and declared that the terms of this sale are the most advantageous reasonably
obtainable and the Initial Purchaser's sealed bid produced the lowest net effective interest rate to the District
as required by Section 49.183, Texas Water Code. The Initial Bond shall be registered in the name of the
Initial Purchaser.
(b) Legal Opinion; Approval; Registration; Delivery. The Initial Purchaser's obligation to accept
delivery of the Bonds is subject to its being furnished an opinion of McCall, Parkhurst & Horton L.L.P., such
opinion to be dated and delivered as of the date of delivery and payment for the Bonds. McCall, Parkhurst
& Horton L.L.P. is hereby authorized and directed to submit the Initial Bonds and a transcript of the
proceedings relating to the issuance of the Bonds to the Attorney General of the State of Texas for approval
and, following said approval, to submit the Initial Bonds to the Comptroller of Public Accounts of the State
of Texas for registration. Upon registration of the Initial Bonds, the Comptroller of Public Accounts (or a
deputy designated in writing to act for the Comptroller) shall manually sign the Comptroller's registration
certificate prescribed herein to be printed and endorsed on the Initial Bonds, and the seal of the Comptroller
shall be impressed or placed in facsimile on the Initial Bond. After the Initial Bonds have been registered,
signed, and sealed by the Comptroller, they shall be delivered to the Initial Purchaser, but only upon receipt
of the full purchase price.
(c) Official Statement. An "Official Notice of Sale", an "Official Bid Form", and a "Preliminary
Official Statement", dated March 9, 2010, were prepared and distributed in connection with the sale of the
Bonds (said documents are hereinafter referred to as the "Offering Documents"). Said Offering Documents,
and any addenda, supplement, or amendment thereto, are hereby approved by the Board of Directors of the
TCMUD No. 1 27 of 142 16 March 2010
22
District, and their use in the offer and sale of the Bonds is hereby approved and ratified. The Issuer hereby
approves the form and content of the Official Statement relating to the Bonds and any addenda, supplement
or amendment thereto, and approves the distribution of such Official Statement in the reoffering of the Bonds
by the Initial Purchaser in final form, with such changes therein or additions thereto as the officer executing
the same may deem advisable, such determination to be conclusively evidenced by his execution thereof.
Section 15.OPEN MEETING. The Board of Directors officially finds, determines, and declares
that this Order was reviewed, carefully considered, and adopted at a regular meeting of the Board, and that
a sufficient written notice of the date, hour, place, and subject of this meeting was posted at a place readily
accessible and convenient to the public within the District and on a bulletin board located at a place
convenient to the public for the time required by law preceding this meeting, as required by the Open
Meetings Law, Chapter 551, Government Code, as amended, and that this meeting has been open to the
public as required by law at all times during which this Order and the subject matter hereof has been
discussed, considered, and acted upon. The Board of Directors further ratifies, approves, and confirms such
written notice and the contents and posting thereof.
Section 16. DEFEASANCE OF BONDS. (a) Any Bond and the interest thereon shall be deemed
to be paid, retired, and no longer outstanding (a "Defeased Bond") within the meaning of this Order, except
to the extent provided in subsection (e) of this Section, when payment of the principal of such Bond, plus
interest thereon to the due date (whether such due date be by reason of maturity, or otherwise) either (i) shall
have been made or caused to be made in accordance with the terms thereof or (ii) shall have been provided
for on or before such due date by irrevocably depositing with or making available to the Paying
Agent/Registrar in accordance with an escrow agreement or other instrument (the "Future Escrow
Agreement") for such payment (1) lawful money of the United States of America sufficient to make such
payment or (2) Defeasance Securities that mature as to principal and interest in such amounts and at such
times as will insure the availability, without reinvestment, of sufficient money to provide for such payment,
and when proper arrangements have been made by the Issuer with the Paying Agent/Registrar or an eligible
trust company or commercial bank for the payment of its services until all Defeased Bonds shall have become
due and payable. At such time as a Bond shall be deemed to be a Defeased Bond hereunder, as aforesaid,
such Bond and the interest thereon shall no longer be secured by, payable from, or entitled to the benefits of,
the ad valorem taxes herein levied and pledged as provided in this Order, and such principal and interest shall
be payable solely from such money or Defeasance Securities.
(b) Notwithstanding any other provision of this Order to the contrary, it is hereby provided that any
determination not to redeem Defeased Bonds that is made in conjunction with the payment arrangements
specified in subsection (a)(i) or (ii) of this Section shall not be irrevocable, provided that: (1) in the
proceedings providing for such payment arrangements, the Issuer expressly reserves the right to call the
Defeased Bonds for redemption; (2) gives notice of the reservation of that right to the owners of the Defeased
Bonds immediately following the making of the payment arrangements, and (3) directs that notice of the
reservation be included in any redemption notices that it authorizes.
(c) Any moneys so deposited with the Paying Agent/Registrar may at the written direction of the
Issuer also be invested in Defeasance Securities, maturing in the amounts and times as hereinbefore set forth,
and all income from such Defeasance Securities received by the Paying Agent/Registrar that is not required
for the payment of the Bonds and interest thereon, with respect to which such money has been so deposited,
shall be turned over to the Issuer, or deposited as directed in writing by the Issuer. Any Future Escrow
Agreement pursuant to which the money and/or Defeasance Securities are held for the payment of Defeased
Bonds may contain provisions permitting the investment or reinvestment of such moneys in Defeasance
Securities or the substitution of other Defeasance Securities upon the satisfaction of the requirements
specified in subsection (a)(i) or (ii) of this Section. All income from such Defeasance Securities received by
the Paying Agent/Registrar which is not required for the payment of the Defeased Bonds, with respect to
TCMUD No. 1 28 of 142 16 March 2010
23
which such money has been so deposited, shall be remitted to the Issuer or deposited as directed in writing
by the Issuer.
(d) The term "Defeasance Securities" means (i) direct, noncallable obligations of the United States
of America, including obligations that are unconditionally guaranteed by the United States of America, (ii)
noncallable obligations of an agency or instrumentality of the United States of America, including obligations
that are unconditionally guaranteed or insured by the agency or instrumentality and that, on the date of the
purchase thereof are rated as to investment quality by a nationally recognized investment rating firm not less
than AAA or its equivalent, and (iii) noncallable obligations of a state or an agency or a county, municipality,
or other political subdivision of a state that have been refunded and that, on the date the governing body of
the Issuer adopts or approves the proceedings authorizing the financial arrangements are rated as to
investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent.
(e) Until all Defeased Bonds shall have become due and payable, the Paying Agent/Registrar shall
perform the services of Paying Agent/Registrar for such Defeased Bonds the same as if they had not been
defeased, and the Issuer shall make proper arrangements to provide and pay for such services as required by
this Order.
(f) In the event that the Issuer elects to defease less than all of the principal amount of Bonds of a
maturity, the Paying Agent/Registrar shall select, or cause to be selected, such amount of Bonds by such
random method as it deems fair and appropriate.
Section 17. CONTINUING DISCLOSURE UNDERTAKING. (a) Annual Reports. The District
shall provide annually to the MSRB, in an electronic format as prescribed by the MSRB, within six months
after the end of any fiscal year, financial information and operating data with respect to the District of the
general type included in the final Official Statement authorized by Section 14 of this Order, being the
information described in Exhibit "B" hereto. Any financial statements to be so provided shall be (1) prepared
in accordance with the accounting principles described in Exhibit "B" hereto, or such other accounting
principles as the District may be required to employ from time to time pursuant to state law or regulation, and
(2) audited, if the District commissions an audit of such statements and the audit is completed within the
period during which they must be provided. If the audit of such financial statements is not complete within
such period, then the District shall provide unaudited financial statements within such period, and audited
financial statements for the applicable fiscal year to the MSRB, when and if the audit report on such
statements become available. If the District changes its fiscal year, it will notify the MSRB of the change
(and of the date of the new fiscal year end) prior to the next date by which the District otherwise would be
required to provide financial information and operating data pursuant to this Section.
The financial information and operating data to be provided pursuant to this Section may be set forth
in full in one or more documents or may be included by specific reference to any document that is available
to the public on the MSRB's internet web site or filed with the SEC. All documents provided to the MSRB
pursuant to this Section shall be accompanied by identifying information as prescribed by the MSRB.
(b) Material Event Notices. The District shall notify the MSRB, in an electronic format as
prescribed by the MSRB, in a timely manner, of any of the following events with respect to the Bond, if such
event is material within the meaning of the federal securities laws:
A. Principal and interest payment delinquencies;
B. Non-payment related defaults;
C. Unscheduled draws on debt service reserves reflecting financial difficulties;
TCMUD No. 1 29 of 142 16 March 2010
24
D. Unscheduled draws on credit enhancements reflecting financial difficulties;
E. Substitution of credit or liquidity providers, or their failure to perform;
F. Adverse tax opinions or events affecting the tax-exempt status of the Bond;
G. Modifications to rights of holders of the Bond;
H. Certificate calls;
I. Defeasances;
J. Release, substitution, or sale of property securing repayment of the Bond; and
K. Rating changes.
The District shall notify the MSRB, in an electronic format as prescribed by the MSRB, in a timely
manner, of any failure by the District to provide financial information or operating data in accordance with
subsection (a) of this Section by the time required by such subsection. All documents provided to the MSRB
pursuant to this Section shall be accompanied by identifying information as prescribed by the MSRB.
(c) Limitations, Disclaimers, and Amendments. The District shall be obligated to observe and
perform the covenants specified in this Section for so long as, but only for so long as, the District remains
an "obligated person" with respect to the Bond within the meaning of the Rule, except that the District in any
event will give notice of any deposit made in accordance with Section 8 of this Order that causes the Bond
no longer to be outstanding.
The provisions of this Section are for the sole benefit of the holders and beneficial owners of the
Bond, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right,
remedy, or claim hereunder to any other person. The District undertakes to provide only the financial
information, operating data, financial statements, and notices which it has expressly agreed to provide
pursuant to this Section and does not hereby undertake to provide any other information that may be relevant
or material to a complete presentation of the District's financial results, condition, or prospects or hereby
undertake to update any information provided in accordance with this Section or otherwise, except as
expressly provided herein. The District does not make any representation or warranty concerning such
information or its usefulness to a decision to invest in or sell Bond at any future date.
UNDER NO CIRCUMSTANCES SHALL THE DISTRICT BE LIABLE TO THE HOLDER OR
BENEFICIAL OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN CONTRACT OR TORT,
FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE DISTRICT,
WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN
THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR
TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR
MANDAMUS OR SPECIFIC PERFORMANCE.
No default by the District in observing or performing its obligations under this Section shall comprise
a breach of or default under this Order for purposes of any other provision of this Order. Should the Rule be
amended to obligate the District to make filings with or provide notices to entities other than the MSRB, the
District hereby agrees to undertake such obligation with respect to the Bonds in accordance with the Rule as
amended. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of
the District under federal and state securities laws.
TCMUD No. 1 30 of 142 16 March 2010
25
The provisions of this Section may be amended by the District from time to time to adapt to changed
circumstances that arise from a change in legal requirements, a change in law, or a change in the identity,
nature, status, or type of operations of the District, but only if (1) the provisions of this Section, as so
amended, would have permitted an underwriter to purchase or sell Bonds in the primary offering of the Bonds
in compliance with the Rule, taking into account any amendments or interpretations of the Rule since such
offering as well as such changed circumstances and (2) either (a) the holders of a majority in aggregate
principal amount (or any greater amount required by any other provision of this Order that authorizes such
an amendment) of the outstanding Bond consents to such amendment or (b) a person that is unaffiliated with
the District (such as nationally recognized bond counsel) determines that such amendment will not materially
impair the interest of the holders and beneficial owners of the Bond. If the District so amends the provisions
of this Section, it shall include with any amended financial information or operating data next provided in
accordance with paragraph (a) of this Section an explanation, in narrative form, of the reason for the
amendment and of the impact of any change in the type of financial information or operating data so
provided. The District may also amend or repeal the provisions of this continuing disclosure agreement if
the SEC amends or repeals the applicable provision of the Rule or a court of final jurisdiction enters judgment
that such provisions of the Rule are invalid, but only if and to the extent that the provisions of this sentence
would not prevent an underwriter from lawfully purchasing or selling Bonds in the primary offering of the
Bonds.
Section 18. DEFAULTS AND REMEDIES.
(a) Events of Default. Each of the following occurrences or events for the purpose of this Order is
hereby declared to be an Event of Default:
(i) the failure to make payment of the principal of or interest on any of the Bonds when the
same becomes due and payable; or
(ii) default in the performance or observance of any other covenant, agreement or obligation
of the Issuer, the failure to perform which materially, adversely affects the rights of the Registered Owners
of the Bonds, including, but not limited to, their prospect or ability to be repaid in accordance with this Order,
and the continuation thereof for a period of 60 days after notice of such default is given by any Registered
Owner to the Issuer.
(b) Remedies for Default.
(i) Upon the happening of any Event of Default, then and in every case, any Registered
Owner or an authorized representative thereof, including, but not limited to, a trustee or trustees therefor, may
proceed against the Issuer for the purpose of protecting and enforcing the rights of the Registered Owners
under this Order, by mandamus or other suit, action or special proceeding in equity or at law, in any court
of competent jurisdiction, for any relief permitted by law, including the specific performance of any covenant
or agreement contained herein, or thereby to enjoin any act or thing that may be unlawful or in violation of
any right of the Registered Owners hereunder or any combination of such remedies.
(ii) It is provided that all such proceedings shall be instituted and maintained for the equal
benefit of all Registered Owners of Bonds then outstanding.
(c) Remedies Not Exclusive.
(i) No remedy herein conferred or reserved is intended to be exclusive of any other available
remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every
other remedy given hereunder or under the Bonds or now or hereafter existing at law or in equity; provided,
TCMUD No. 1 31 of 142 16 March 2010
26
however, that notwithstanding any other provision of this Order, the right to accelerate the debt evidenced
by the Bonds shall not be available as a remedy under this Order.
(ii) The exercise of any remedy herein conferred or reserved shall not be deemed a waiver
of any other available remedy.
(iii) By accepting the delivery of a Bond authorized under this Order, such Registered Owner
agrees that the certifications required to effectuate any covenants or representations contained in this Order
do not and shall never constitute or give rise to a personal or pecuniary liability or charge against the officers,
employees or trustees of the Issuer or the Board of Directors.
Section 19.[Reserved for Contingent Insurance Provision] [INSURANCE. The Issuer
approves the insurance of the Bonds by Assured Guaranty Corp. and the payment of such premium and
covenant to comply with all of the terms of the insurance commitment, a copy of which is attached hereto as
Exhibit C and is hereby adopted by this Order.
_____________________________
TCMUD No. 1 32 of 142 16 March 2010
EXHIBIT A
PAYING AGENT/REGISTRAR AGREEMENT
THE PAYING AGENT/REGISTRAR AGREEMENT IS OMITTED AT THIS POINT AS IT
APPEARS ELSEWHERE IN THE TRANSCRIPT OF PROCEEDINGS.
TCMUD No. 1 33 of 142 16 March 2010
EXHIBIT B
CONTINUING DISCLOSURE UNDERTAKINGS
The following information is referred to in Section 18 of this Order.
Annual Financial Statements and Operating Data
The financial information and operating data with respect to the District to be provided annually in
accordance with such Section are as specified (and included in the Appendix or under the headings of the
Official Statement referred to) below:
1. Tables 1, 12 and 13 in Appendix A and
2. the annual audited financial statements of the District
Accounting Principles
The accounting principles referred to in such Section are the accounting principles described in
the notes to the District's annual audited financial statements.
TCMUD No. 1 34 of 142 16 March 2010
EXHIBIT C
INSURANCE COMMITMENT
TCMUD No. 1 35 of 142 16 March 2010
PAYING AGENT/REGISTRAR AGREEMENT
THIS AGREEMENT entered into as of March 16, 2010 (this "Agreement"), by and between the
Trophy Club Municipal Utility District No. 1 (the "Issuer"), and The Bank of New York Mellon Trust
Company, N.A., Dallas, Texas (the "Bank").
RECITALS
WHEREAS, the Issuer has duly authorized and provided for the issuance of its Unlimited Tax Bonds,
Series 2010 (the "Securities") in the aggregate principal amount of $2,000,000, such Securities to be issued
in fully registered form only as to the payment of principal and interest thereon; and
WHEREAS, the Securities are scheduled to be delivered to the initial purchasers thereof on or about
April 15, 2010; and
WHEREAS, the Issuer has selected the Bank to serve as Paying Agent/Registrar in connection with
the payment of the principal of, premium, if any, and interest on said Securities and with respect to the
registration, transfer and exchange thereof by the registered owners thereof; and
WHEREAS, the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has
full power and authority to perform and serve as Paying Agent/Registrar for the Securities;
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE ONE
APPOINTMENT OF BANK AS
PAYING AGENT AND REGISTRAR
Section 1.01. Appointment.
The Issuer hereby appoints the Bank to serve as Paying Agent with respect to the Securities. As
Paying Agent for the Securities, the Bank shall be responsible for paying on behalf of the Issuer the principal,
premium (if any), and interest on the Securities as the same become due and payable to the registered owners
thereof, all in accordance with this Agreement and the "Order" (hereinafter defined).
The Issuer hereby appoints the Bank as Registrar with respect to the Securities. As Registrar for the
Securities, the Bank shall keep and maintain for and on behalf of the Issuer books and records as to the
ownership of said Securities and with respect to the transfer and exchange thereof as provided herein and in
the "Order."
The Bank hereby accepts its appointment, and agrees to serve as the Paying Agent and Registrar for
the Securities.
Section 1.02. Compensation.
As compensation for the Bank's services as Paying Agent/Registrar, the Issuer hereby agrees to pay
the Bank the fees and amounts set forth in Schedule A attached hereto for the first year of this Agreement and
thereafter the fees and amounts set forth in the Bank's current fee schedule then in effect for services as
Paying Agent/Registrar for municipalities, which shall be supplied to the Issuer on or before 90 days prior
TCMUD No. 1 36 of 142 16 March 2010
2
to the close of the Fiscal Year of the Issuer, and shall be effective upon the first day of the following Fiscal
Year.
In addition, the Issuer agrees to reimburse the Bank upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Bank in accordance with any of the provisions hereof
(including the reasonable compensation and the expenses and disbursements of its agents and counsel).
ARTICLE TWO
DEFINITIONS
Section 2.01. Definitions.
For all purposes of this Agreement, except as otherwise expressly provided or unless the context
otherwise requires:
"Acceleration Date" on any Security means the date on and after which the principal or any or all
installments of interest, or both, are due and payable on any Security which has become accelerated
pursuant to the terms of the Security.
"Bank Office" means the principal corporate trust office of the Bank as indicated in Section 6.03
hereof. The Bank will notify the Issuer in writing of any change in location of the Bank Office.
"Fiscal Year" means the fiscal year of the Issuer, ending September 30.
"Holder" and "Security Holder" each means the Person in whose name a Security is registered in the
Security Register.
"Issuer Request" and "Issuer Order" means a written request or order signed in the name of the Issuer
by the President, Vice President, General Manager or other authorized officer of the Issuer, any one
or more of said officials, delivered to the Bank.
"Legal Holiday" means a day on which the Bank is required or authorized to be closed.
"Person" means any individual, corporation, partnership, joint venture, association, joint stock
company, trust, unincorporated organization or government or any agency or political subdivision
of a government.
"Predecessor Securities" of any particular Security means every previous Security evidencing all or
a portion of the same obligation as that evidenced by such particular Security (and, for the purposes
of this definition, any mutilated, lost, destroyed, or stolen Security for which a replacement Security
has been registered and delivered in lieu thereof pursuant to Section 4.06 hereof and the Order).
"Redemption Date" when used with respect to any Bond to be redeemed means the date fixed for
such redemption pursuant to the terms of the Order.
"Order" means the order, ordinance or resolution of the governing body of the Issuer pursuant to
which the Securities are issued, certified by the President, Vice President or any other officer of the
Issuer and delivered to the Bank.
TCMUD No. 1 37 of 142 16 March 2010
3
"Responsible Officer" when used with respect to the Bank means the Chairman or Vice-Chairman
of the Board of Directors, the Chairman or Vice-chairman of the Executive Committee of the Board
of Directors, the President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer,
any Assistant Treasurer, the Cashier, any Assistant Cashier, any Trust Officer or Assistant Trust
Officer, or any other officer of the Bank customarily performing functions similar to those performed
by any of the above designated officers and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of his knowledge of and familiarity
with the particular subject.
"Security Register" means a register maintained by the Bank on behalf of the Issuer providing for the
registration and transfer of the Securities.
"Stated Maturity" means the date specified in the Order the principal of a Security is scheduled to
be due and payable.
Section 2.02. Other Definitions.
The terms "Bank," Issuer," and Securities (Security)" have the meanings assigned to them in the
recital paragraphs of this Agreement.
The term "Paying Agent/Registrar" refers to the Bank in the performance of the duties and functions
of this Agreement.
ARTICLE THREE
PAYING AGENT
Section 3.01. Duties of Paying Agent.
As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such
purpose by or on behalf of the Issuer, pay on behalf of the Issuer the principal of each Security at its Stated
Maturity, Redemption Date, or Acceleration Date, to the Holder upon surrender of the Security to the Bank
at the Bank Office.
As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such
purpose by or on behalf of the Issuer, pay on behalf of the Issuer the interest on each Security when due, by
computing the amount of interest to be paid each Holder and preparing and sending checks by United States
Mail, first class postage prepaid, on each payment date, to the Holders of the Securities (or their Predecessor
Securities) on the respective Record Date, to the address appearing on the Security Register or by such other
method, acceptable to the Bank, requested in writing by the Holder at the Holder's risk and expense.
TCMUD No. 1 38 of 142 16 March 2010
4
Section 3.02. Payment Dates.
The Issuer hereby instructs the Bank to pay the principal of and interest on the Securities on the dates
specified in the Order.
ARTICLE FOUR
REGISTRAR
Section 4.01. Security Register - Transfers and Exchanges.
The Bank agrees to keep and maintain for and on behalf of the Issuer at the Bank Office books and
records (herein sometimes referred to as the "Security Register") and, if the Bank Office is located outside
the State of Texas, a copy of such books and records shall be kept in the State of Texas, for recording the
names and addresses of the Holders of the Securities, the transfer, exchange and replacement of the Securities
and the payment of the principal of and interest on the Securities to the Holders and containing such other
information as may be reasonably required by the Issuer and subject to such reasonable regulations as the
Issuer and the Bank may prescribe. All transfers, exchanges and replacement of Securities shall be noted in
the Security Register.
Every Security surrendered for transfer or exchange shall be duly endorsed or be accompanied by
a written instrument of transfer, the signature on which has been guaranteed by an officer of a federal or state
bank or a member of the National Association of Securities Dealers, in form satisfactory to the Bank, duly
executed by the Holder thereof or his agent duly authorized in writing.
The Bank may request any supporting documentation it feels necessary to effect a re-registration,
transfer or exchange of the Securities.
To the extent possible and under reasonable circumstances, the Bank agrees that, in relation to an
exchange or transfer of Securities, the exchange or transfer by the Holders thereof will be completed and new
Securities delivered to the Holder or the assignee of the Holder in not more than three (3) business days after
the receipt of the Securities to be canceled in an exchange or transfer and the written instrument of transfer
or request for exchange duly executed by the Holder, or his duly authorized agent, in form and manner
satisfactory to the Paying Agent/Registrar.
Section 4.02. Certificates.
If the book-entry system of securities transfers and registrations shall be discontinued, the Issuer shall
provide an adequate inventory of printed Securities to facilitate transfers or exchanges thereof. The Bank
covenants that the inventory of printed Securities will be kept in safekeeping pending their use, and
reasonable care will be exercised by the Bank in maintaining such Securities in safekeeping, which shall be
not less than the care maintained by the Bank for debt securities of other political subdivisions or corporations
for which it serves as registrar, or that is maintained for its own securities.
TCMUD No. 1 39 of 142 16 March 2010
5
Section 4.03. Form of Security Register.
The Bank, as Registrar, will maintain the Security Register relating to the registration, payment,
transfer and exchange of the Securities in accordance with the Bank's general practices and procedures in
effect from time to time. The Bank shall not be obligated to maintain such Security Register in any form
other than those which the Bank has currently available and currently utilizes at the time.
The Security Register may be maintained in written form or in any other form capable of being
converted into written form within a reasonable time.
Section 4.04. List of Security Holders.
The Bank will provide the Issuer at any time requested by the Issuer, upon payment of the required
fee, a copy of the information contained in the Security Register. The Issuer may also inspect the information
contained in the Security Register at any time the Bank is customarily open for business, provided that
reasonable time is allowed the Bank to provide an up-to-date listing or to convert the information into written
form.
The Bank will not release or disclose the contents of the Security Register to any person other than
to, or at the written request of, an authorized officer or employee of the Issuer, except upon receipt of a court
order or as otherwise required by law. Upon receipt of a court order and prior to the release or disclosure of
the contents of the Security Register, the Bank will notify the Issuer so that the Issuer may contest the court
order or such release or disclosure of the contents of the Security Register.
Section 4.05. Cancellation of Certificates.
All certificates surrendered to the Bank, at the designated Payment/Transfer Office, for payment,
redemption, transfer or replacement, shall be promptly canceled by the Bank. The Bank will provide to the
Issuer, at reasonable intervals determined by it, a certificate evidencing the destruction of canceled
certificates.
Section 4.06. Mutilated, Destroyed, Lost or Stolen Securities.
The Issuer hereby instructs the Bank, subject to the applicable provisions of the Order, to deliver and
issue Securities in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities as long as the same
does not result in an overissuance.
In case any Security shall be mutilated, or destroyed, lost or stolen, the Bank, in its discretion, may
execute and deliver a replacement Security of like form and tenor, and in the same denomination and bearing
a number not contemporaneously outstanding, in exchange and substitution for such mutilated Security, or
in lieu of and in substitution for such destroyed lost or stolen Security, only after (i) the filing by the Holder
thereof with the Bank of evidence satisfactory to the Bank of the destruction, loss or theft of such Security,
and of the authenticity of the ownership thereof and (ii) the furnishing to the Bank of indemnification in an
amount satisfactory to hold the Issuer and the Bank harmless. All expenses and charges associated with such
indemnity and with the preparation, execution and delivery of a replacement Security shall be borne by the
Holder of the Security mutilated, or destroyed, lost or stolen.
Section 4.07. Transaction Information to Issuer.
TCMUD No. 1 40 of 142 16 March 2010
6
The Bank will, within a reasonable time after receipt of written request from the Issuer, furnish the
Issuer information as to the Securities it has paid pursuant to Section 3.01, Securities it has delivered upon
the transfer or exchange of any Securities pursuant to Section 4.01, and Securities it has delivered in exchange
for or in lieu of mutilated, destroyed, lost, or stolen Securities pursuant to Section 4.06.
Section 4.08 Reporting Requirements.
To the extent required by the Internal Revenue Code of 1986, as amended, and any regulations or
rulings promulgated by the U.S. Department of the Treasury pursuant thereto, the Bank shall report or assure
that a report is made to the Holder and the Internal Revenue Service the amount of interest paid or the amount
treated as interest accrued on the Security which is required to be reported by a Holder on its returns of
federal income tax.
ARTICLE FIVE
THE BANK
Section 5.01. Duties of Bank.
The Bank undertakes to perform the duties set forth herein and agrees to use reasonable care in the
performance thereof.
Section 5.02. Reliance on Documents, Etc.
(a) The Bank may conclusively rely, as to the truth of the statements and correctness of the
opinions expressed therein, on certificates or opinions furnished to the Bank.
(b) The Bank shall not be liable for any error of judgment made in good faith by a Responsible
Officer, unless it shall be proved that the Bank was negligent in ascertaining the pertinent facts.
(c) No provisions of this Agreement shall require the Bank to expend or risk its own funds or
otherwise incur any financial liability for performance of any of its duties hereunder, or in the exercise of any
of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity satisfactory to it against such risks or liability is not assured to it.
(d) The Bank may rely and shall be protected in acting or refraining from acting upon any
resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond,
note, security, or other paper or document believed by it to be genuine and to have been signed or presented
by the proper party or parties. Without limiting the generality of the foregoing statement, the Bank need not
examine the ownership of any Securities, but is protected in acting upon receipt of Securities containing an
endorsement or instruction of transfer or power of transfer which appears on its face to be signed by the
Holder or an agent of the Holder. The Bank shall not be bound to make any investigation into the facts or
matters stated in a resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, note, security or other paper or document supplied by Issuer.
(e) The Bank may consult with counsel, and the written advice of such counsel or any opinion
of counsel shall be full and complete authorization and protection with respect to any action taken, suffered,
or omitted by it hereunder in good faith and in reliance thereon.
TCMUD No. 1 41 of 142 16 March 2010
7
(f) The Bank may exercise any of the powers hereunder and perform any duties hereunder either
directly or by or through agents or attorneys of the Bank.
Section 5.03. Recitals of Issuer.
The recitals contained herein with respect to the Issuer and in the Securities shall be taken as the
statements of the Issuer, and the Bank assumes no responsibility for their correctness.
The Bank shall in no event be liable to the Issuer, any Holder or Holders of any Security, or any other
Person for any amount due on any Security from its own funds.
Section 5.04. May Hold Securities.
The Bank, in its individual or any other capacity, may become the owner or pledgee of Securities and
may otherwise deal with the Issuer with the same rights it would have if it were not the Paying
Agent/Registrar, or any other agent.
Section 5.05. Moneys Held by Bank.
The Bank shall deposit any moneys received from the Issuer into a trust account to be held in a
paying agency capacity for the payment of the Securities, with such moneys in the account that exceed the
deposit insurance available to the Issuer by the Federal Deposit Insurance Corporation, to be fully
collateralized with securities or obligations that are eligible under the laws of the State of Texas to secure and
be pledged as collateral for trust accounts until the principal and interest on such securities have been
presented for payment and paid to the owner thereof. Payments made from such trust account shall be made
by check drawn on such trust account unless the owner of such Securities shall, at its own expense and risk,
request such other medium of payment.
Subject to the Unclaimed Property Law of the State of Texas, any money deposited with the Bank
for the payment of the principal, premium (if any), or interest on any Security and remaining unclaimed for
three years after the final maturity of the Security has become due and payable will be paid by the Bank to
the Issuer if the Issuer so elects, and the Holder of such Security shall hereafter look only to the Issuer for
payment thereof, and all liability of the Bank with respect to such monies shall thereupon cease. If the Issuer
does not elect, the Bank is directed to report and dispose of the funds in compliance with Title Six of the
Texas Property Code, as amended.
Section 5.06. Indemnification.
To the extent permitted by law, the Issuer agrees to indemnify the Bank its directors, officers and
employees, and hold it harmless against, any loss, liability, or expense incurred without negligence or bad
faith on its part, arising out of or in connection with its acceptance or administration of its duties hereunder,
including the cost and expense against any claim or liability in connection with the exercise or performance
of any of its powers or duties under this Agreement.
Section 5.07. Interpleader.
The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demand,
or controversy over its person as well as funds on deposit, in either a Federal or State District Court located
TCMUD No. 1 42 of 142 16 March 2010
8
in the State and County where the administrative offices of the Issuer are located, and agree that service of
process by certified or registered mail, return receipt requested, to the address referred to in Section 6.03 of
this Agreement shall constitute adequate service. The Issuer and the Bank further agree that the Bank has
the right to file a Bill of Interpleader in any court of competent jurisdiction within the State of Texas to
determine the rights of any Person claiming any interest herein.
Section 5.08. Depository Trust Company Services.
It is hereby represented and warranted that, in the event the Securities are otherwise qualified and
accepted for "Depository Trust Company" services or equivalent depository trust services by other
organizations, the Bank has the capability and, to the extent within its control, will comply with the
"Operational Arrangements," effective August 1, 1987, which establishes requirements for securities to be
eligible for such type depository trust services, including, but not limited to, requirements for the timeliness
of payments and funds availability, transfer turnaround time, and notification of redemptions and calls.
ARTICLE SIX
MISCELLANEOUS PROVISIONS
Section 6.01. Amendment.
This Agreement may be amended only by an agreement in writing signed by both of the parties
hereto.
Section 6.02. Assignment.
This Agreement may not be assigned by either party without the prior written consent of the other.
Section 6.03. Notices.
Any request, demand, authorization, direction, notice, consent, waiver, or other document provided
or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed or delivered to the
Issuer or the Bank, respectively, at the addresses set forth below:
Issuer
Trophy Club Municipal Utility District No. 1
100 Municipal Drive
Trophy Club, Texas 76262
Paying Agent/Registrar
The Bank of New York Mellon Trust Company, N.A.
2001 Bryan Street, 9th Floor
Dallas, Texas 75201
Section 6.04. Effect of Headings.
The Article and Section headings herein are for convenience only and shall not affect the construction
hereof.
TCMUD No. 1 43 of 142 16 March 2010
9
Section 6.05. Successors and Assigns.
All covenants and agreements herein by the Issuer shall bind its successors and assigns, whether so
expressed or not.
Section 6.06. Severability.
In case any provision herein shall be invalid, illegal, or unenforceable, the validity, legality, and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.
Section 6.07. Benefits of Agreement.
Nothing herein, express or implied, shall give to any Person, other than the parties hereto and their
successors hereunder, any benefit or any legal or equitable right, remedy, or claim hereunder.
Section 6.08. Entire Agreement.
This Agreement and the Order constitute the entire agreement between the parties hereto relative to
the Bank acting as Paying Agent/Registrar and if any conflict exists between this Agreement and the Order,
the Order shall govern.
Section 6.09. Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed an
original and all of which shall constitute one and the same Agreement.
Section 6.10. Termination.
This Agreement will terminate (i) on the date of final payment of the principal of and interest on the
Securities to the Holders thereof or (ii) may be earlier terminated by either party upon sixty (60) days written
notice; provided, however, an early termination of this Agreement by either party shall not be effective until
(a) a successor Paying Agent/Registrar has been appointed by the Issuer and such appointment accepted and
(b) notice has been given to the Holders of the Securities of the appointment of a successor Paying
Agent/Registrar. Furthermore, the Bank and Issuer mutually agree that the effective date of an early
termination of this Agreement shall not occur at any time which would disrupt, delay or otherwise adversely
affect the payment of the Securities.
Upon an early termination of this Agreement, the Bank agrees to promptly transfer and deliver the
Security Register (or a copy thereof), together with other pertinent books and records relating to the
Securities, to the successor Paying Agent/Registrar designated and appointed by the Issuer.
The provisions of Section 1.02 and of Article Five shall survive and remain in full force and effect
following the termination of this Agreement.
Section 6.11. Governing Law.
This Agreement shall be construed in accordance with and governed by the laws of the State of
Texas.
TCMUD No. 1 44 of 142 16 March 2010
10
(Execution Page Follows)
TCMUD No. 1 45 of 142 16 March 2010
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.
By: _____________________________________
Title: _____________________________________
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
By: _____________________________________
Joint President
By: _____________________________________
Joint President
TCMUD No. 1 46 of 142 16 March 2010
SCHEDULE A
Paying Agent/Registrar Fee Schedule
(See attached)
TCMUD No. 1 47 of 142 16 March 2010
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-13-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:1/13/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:1/19/2010
Title:Receive District Manager's Report
a. Water pumped vs. billed
b. Monthly Revenue for Wastewater Treatment Plant
c. Update on Water Plant Booster Pump (formerly VFD)
d. Candidate Filings Update for Directors' election in May
e. Utility Services completed their annual maintenance of the Ground Storage and Elevated Tank
f. Update on progress of Trinity Well
Attachments:Water Pumped Vs Billed Feb 10.pdf
Candidates-May 2010.pdf
Action ByDate Action ResultVer.
Trophy Club Municipal Utility
District No. 1
2/16/2010 1
Trophy Club Municipal Utility
District No. 1
1/19/2010 1
TCMUD No. 1 48 of 142 16 March 2010
12010-13-M1 Version:File #:
Title
Receive District Manager's Report
a. Water pumped vs. billed
b. Monthly Revenue for Wastewater Treatment Plant
c. Update on Water Plant Booster Pump (formerly VFD)
d. Candidate Filings Update for Directors' election in May
e. Utility Services completed their annual maintenance of the Ground Storage and Elevated Tank
f. Update on progress of Trinity Well
TCMUD No. 1 49 of 142 16 March 2010
October November December January February March April May June July August September Total for year
2006 74,441 56,296 41,272 54,171 37,626 35,714 55,429 60,800 88,899 113,904 122,820 81,806 823,178
2007 73,757 44,297 35,905 31,695 25,671 40,516 43,121 31,204 42,191 43,717 72,462 76,138 560,674
2008 63,250 47,082 33,371 37,194 31,472 30,766 40,313 48,829 78,091 91,664 115,042 75,494 692,568
2009 63,730 48,170 35,215 35,759 32,240 39,331 46,151 37,382 56,370 125,089 91,724 79,137 690,298
2010 39,794 39,713 29,547 30,305 25,328
Totals 314,972 235,558 175,310 189,124 152,337 146,327 185,014 178,215 265,551 374,374 402,048 312,575 2,931,405
October November December January February March April May June July August
79,297 48,609 36,966 32,915 26,974 25,771 31,755 46,747 70,315 69,134 92,539
84,849 51,836 38,869 32,850 24,742 25,111 32,240 47,364 75,755 68,715 82,007
90,400 55,063 40,772 32,785 22,510 24,451 32,726 47,980 81,195 68,296 71,476
95,952 58,290 42,675 32,721 20,278 23,791 33,211 48,597 86,636 67,878
350,497 213,799 159,281 131,271 94,504 99,122 129,932 190,688 313,900 274,022 246,022
Oct.Nov.Dec.Jan Feb.March April May June July August Sept.Total for year
2006 74,585 55,405 42,852 52,100 33,247 39,250 64,455 73,048 93,187 118,353 127,450 76,301 850,233
2007 72,460 49,249 34,203 28,257 31,492 43,900 41,770 37,340 41,215 43,136 75,480 72,087 570,589
2008 64,370 50,090 35,320 36,610 34,630 34,750 42,900 63,116 78,399 114,256 98,670 72,551 725,662
2009 65,110 48,570 36,411 36,587 36,385 44,120 48,881 38,250 66,450 116,823 94,525 81,500 713,612
2010 40,803 41,600 32,700 31,400 30,145
Totals 317,328 244,914 181,486 184,954 165,899 162,020 198,006 211,754 279,251 392,568 396,125 302,439 3,036,744
Water Billed
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
OctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJune July AugustSeptemberMonthsGallons 2006
2007
2008
2009
2010
Water Pumped
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
123456789101112
MonthsGallons 2006
2007
2008
2009
2010
TCMUD No. 1 50 of 142 16 March 2010
Place 1 Place 2 Place 3 Place 4 Place 5
1 Jim Budarf Jim Moss Kevin Carr Bill Armstrong Jim Thomas
2 Nick Sanders Dean Henry Mark Chapman Neil Twomey Jim Hase
3 Lynn Hale
May 2010 MUD 1 Directors' Election
TCMUD No. 1 51 of 142 16 March 2010
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-21-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:1/14/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:1/19/2010
Title:Receive Finance Director's Report
a. Monthly Update
Attachments:
Action ByDate Action ResultVer.
Trophy Club Municipal Utility
District No. 1
2/16/2010 1
Trophy Club Municipal Utility
District No. 1
1/19/2010 1
TCMUD No. 1 52 of 142 16 March 2010
12010-21-M1 Version:File #:
Title
Receive Finance Director's Report
a. Monthly Update
TCMUD No. 1 53 of 142 16 March 2010
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-43-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:3/5/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:3/16/2010
Title:Review and Approve Disbursements & Variance Report
a. February 2010
Attachments:February 2010 Monthly Financial Statements.pdf
Action ByDate Action ResultVer.
TCMUD No. 1 54 of 142 16 March 2010
12010-43-M1 Version:File #:
Title
Review and Approve Disbursements & Variance Report
a. February 2010
TCMUD No. 1 55 of 142 16 March 2010
TCMUD No. 1 56 of 142 16 March 2010
TCMUD No. 1 57 of 142 16 March 2010
TCMUD No. 1 58 of 142 16 March 2010
TCMUD No. 1 59 of 142 16 March 2010
TCMUD No. 1 60 of 142 16 March 2010
TCMUD No. 1 61 of 142 16 March 2010
TCMUD No. 1 62 of 142 16 March 2010
TCMUD No. 1 63 of 142 16 March 2010
TCMUD No. 1 64 of 142 16 March 2010
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-12-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:1/13/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:1/19/2010
Title:Receive Fire Update from Fire Chief Thomas
a. To provide Board with a monthly update and address the Board's questions.
Attachments:Fire Update - Feb 10.pdf
Action ByDate Action ResultVer.
Trophy Club Municipal Utility
District No. 1
2/16/2010 1
Trophy Club Municipal Utility
District No. 1
1/19/2010 1
TCMUD No. 1 65 of 142 16 March 2010
12010-12-M1 Version:File #:
Title
Receive Fire Update from Fire Chief Thomas
a. To provide Board with a monthly update and address the Board's questions.
TCMUD No. 1 66 of 142 16 March 2010
TCMUD No. 1 67 of 142 16 March 2010
TCMUD No. 1 68 of 142 16 March 2010
TCMUD No. 1 69 of 142 16 March 2010
TCMUD No. 1 70 of 142 16 March 2010
TCMUD No. 1 71 of 142 16 March 2010
TCMUD No. 1 72 of 142 16 March 2010
TCMUD No. 1 73 of 142 16 March 2010
TCMUD No. 1 74 of 142 16 March 2010
TCMUD No. 1 75 of 142 16 March 2010
TCMUD No. 1 76 of 142 16 March 2010
TCMUD No. 1 77 of 142 16 March 2010
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-15-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:1/13/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:1/19/2010
Title:Receive Town Council Update
a. Councilmember Rose to provide Board with an update of Council meetings, notices and relevant
business.
Attachments:
Action ByDate Action ResultVer.
Trophy Club Municipal Utility
District No. 1
2/16/2010 1
Trophy Club Municipal Utility
District No. 1
1/19/2010 1
TCMUD No. 1 78 of 142 16 March 2010
12010-15-M1 Version:File #:
Title
Receive Town Council Update
a. Councilmember Rose to provide Board with an update of Council meetings, notices and relevant business.
TCMUD No. 1 79 of 142 16 March 2010
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-37-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:2/24/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:3/16/2010
Title:Receive report from Attorney(s) regarding update of MUD 1 Fire Plan.
Attachments:
Action ByDate Action ResultVer.
TCMUD No. 1 80 of 142 16 March 2010
12010-37-M1 Version:File #:
Title
Receive report from Attorney(s) regarding update of MUD 1 Fire Plan.
Body
[Enter body here.]
TCMUD No. 1 81 of 142 16 March 2010
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-39-M1 Name:
Status:Type:M1 Order Regular Session
File created:In control:3/2/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:3/16/2010
Title:Discuss and take appropriate action to amend Order 2010-0216, calling a Joint-General Election for
May 8, 2010 for the purpose of specifying Early Voting dates, times, and locations.
Deliberar y tomar el debido curso de acción en relación a la Orden 2010-0216 convocando una
Elección General Conjunta para el 8 de mayo de 2010 para el propósito de especificar Votando
Temprano las fechas, los tiempos, y las posiciones.
Attachments:MUD1-Order2010-0216-Call ElectionAmend31610.pdf
MUD1-Order2010-0216-Call Election-SpanishAmend31610.pdf
Action ByDate Action ResultVer.
TCMUD No. 1 82 of 142 16 March 2010
12010-39-M1 Version:File #:
Title
Discuss and take appropriate action to amend Order 2010-0216, calling a Joint-General Election for May 8,
2010 for the purpose of specifying Early Voting dates, times, and locations.
Deliberar y tomar el debido curso de acción en relación a la Orden 2010-0216 convocando una Elección
General Conjunta para el 8 de mayo de 2010 para el propósito de especificar Votando Temprano las fechas,
los tiempos, y las posiciones.
Body
As per Section 85.004 of the Texas Election Code, the Order Calling Election must state the location of each
early voting polling place. The original list (Attachment "A") has changed since the Board adopted the Order
on February 16th, so the Order is before the Board for amendment of the Early Voting Locations - Attachment
"A".
TCMUD No. 1 83 of 142 16 March 2010
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
ORDER NO. 2010-0216
AN ORDER OF THE BOARD OF DIRECTORS OF TROPHY CLUB
MUNICIPAL UTILITY DISTRICT NO. 1, ORDERING AND CALLING A
JOINT GENERAL ELECTION BETWEEN TROPHY CLUB MUNICIPAL
UTILITY DISTRICT NO. 1 AND THE TOWN OF TROPHY CLUB TO BE
HELD ON MAY 8, 2010, FOR THE PURPOSE OF ELECTING FIVE (5)
MUD DIRECTORS TO FIVE (5) PLACES ON THE TROPHY CLUB
MUNICIPAL UTILITY DISTRICT NO. 1 BOARD, WITH THREE (3)
DIRECTORS SERVING FOR FOUR (4) YEAR TERMS EACH, AND TWO
(2) DIRECTORS SERVING FOR TWO (2) YEAR TERMS EACH;
DESIGNATING POLLING PLACES; ESTABLISHING OTHER
PROCEDURES FOR CONDUCTING THE ELECTION; ESTABLISHING
A DATE FOR CANVASSING RETURNS; PROVIDING FOR
NECESSARY ACTIONS; PROVIDING A JOINT ELECTION
AGREEMENT; PROVIDING A CUMULATIVE CLAUSE; PROVIDING A
SEVERABILITY CLAUSE; PROVIDING FOR PUBLICATION;
PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, Section 41.001(a)(2) of the Texas Election Code establishes the
second Saturday of May as a Uniform Election Date for the purposes of conducting a
General or Special Election; and
WHEREAS, Section 3.004 of the Texas Election Code provides that the
governing body of a political subdivision shall be the authority to order a General or
Special Election; and
WHEREAS, the Trophy Club Municipal Utility District No. 1 Board of Directors
(MUD 1) desires to and hereby calls a Joint General Election for the purpose of electing
five (5) MUD 1 Directors for purposes hereinafter set forth; and
WHEREAS, Section 85.004 of the Texas Election Code provides that an election
order and the election notice must state the location of each early voting polling place,
and attached and incorporated herein as Exhibit “A” is a copy of the Early Voting
Locations; and,
WHEREAS, Section 3.005 of the Texas Election Code provides that an election
ordered by an authority of a political subdivision shall be ordered not later than the 62nd
day before Election Day; and
WHEREAS, Section 271.002 of the Texas Election Code and Section 49.104 of
the Texas Water Code provides that the governing bodies of two or more political
subdivisions may enter into an agreement to hold a joint election if the elections ordered
by the authorities of the subdivisions are to be held on the same day in all or part of the
same territory and can be served by common polling places.
TCMUD No. 1 84 of 142 16 March 2010
TCMUD 1 Order 2010-0216
Page 2 of 6
WHEREAS, Trophy Club Municipal Utility District No. 1 and the Town of Trophy
Club meet the specified criteria and desire to hold their election jointly, and attached
and incorporated herein as Exhibit “B” is a copy of the Joint Election Agreement
between said entities; and
WHEREAS, the Election shall be conducted in accordance with the Elections
Code under the jurisdiction of the Denton County Elections Department (the “Elections
Administrator”) pursuant to the Joint Election Agreement and Contract for Election
Services (the “Contract”) by and among Denton County Elections Department
(“DCED”), and other participating entities, if any, described in the Contract. The District
Manager or his designee(s) are authorized to amend or supplement the Contract to the
extent required for the Election to be conducted in an efficient and legal manner, as
determined by the Elections Administrator and attached and incorporated herein as
Exhibit “C” is a copy of said Contract between DCED, the MUD and the Town;
NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1:
Section 1. GOVERNING LAW; QUALIFICATION OF VOTERS
The Election shall be held in accordance with the Constitution of the State of Texas and
the Texas Election Code, and all resident, qualified electors of the Town / District (?)
shall be eligible to vote at the election.
Section 2. EARLY VOTING
The Denton County Elections Administrator, Frank Phillips, is hereby appointed as Early
Voting Clerk for the election. Deputy early voting judges/clerks will be appointed as
needed to process early voting mail and to conduct early voting. Early voting by mail
shall be conducted in conformance with the requirements of the Code. Ballot
applications and ballots voted by mail shall be sent to by each entity to the Early Voting
Clerk, 401 West Hickory, Denton, Texas 76201, Denton, Texas 75207. The Elections
Administrator and/or the Early Voting Clerk are hereby authorized to appoint the
members of the Early Voting Ballot Board and the presiding judge and alternate judge in
accordance with the requirements of the Code.
Early Voting by personal appearance will be held at the locations listed in Attachment
“A” of this document and on the dates and times as provided below. Any qualified voter
of the Joint Election may vote early by personal appearance at any of the joint early
voting locations. Voters residing in Tarrant County may only vote on Town and/or MUD-
related items at the Town of Trophy Club early voting polling location.
As Early Voting Clerk, the Elections Administrator shall receive applications for early
voting ballots to be voted by mail in accordance with Chapter 31 and 86 of the Texas
Election Code. Any request for early voting ballots to be voted by mail received by the
MUD Secretary shall be forwarded immediately by fax or courier to the Elections
Administrator for processing.
TCMUD No. 1 85 of 142 16 March 2010
TCMUD 1 Order 2010-0216
Page 3 of 6
The Elections Administrator is hereby authorized and directed to make such changes in
polling locations as may be necessary for the proper performance of the Election. Each
polling place shall be open from 7:00 a.m. to 7:00 p.m. on Election Day. Attachment “A”
may be amended at a later date to include and / or delete any early voting sites added
and/or deleted due to other political subdivisions adding or canceling an election.
Early Voting Dates and Times:
Monday, April 26 8a - 5p
Tuesday, April 27 8a - 5p
Wednesday, April 28 8a - 5p
Thursday, April 29 8a - 5p
Friday, April 30 8a - 5p
Saturday, May 1 8a - 12p
Monday, May 3 7a - 7p
Tuesday, May 4 7a - 7p
Any qualified voter of the Joint Election may vote early by personal appearance at any
of the Joint Early Voting locations. Voters residing in Tarrant County may only vote on
MUD-related items at the Town of Trophy Club early voting polling location.
Section 3. ADMINISTRATION
E-slate, a Direct Record Electronic (DRE) System shall be used for Early Voting by
personal appearance, and in the May 8, 2010 Election. Paper ballots, which are
optically scanned, shall be used for early voting by mail. In the May 8, 2010 Election,
the Elections Administrator shall cause ballots to be prepared in the form of the ballot
first above prescribed, being in both English and Spanish, and shall furnish election
officials said ballots, in such form, together with any other forms or blanks, in
accordance with the Charter of the Town of Trophy Club, the Constitution and laws of
the State of Texas and the Voting Rights Act of 1965, and any amendments thereto,
insofar as same are applicable. E-Slate, a Direct Record Electronic (DRE) System shall
be provided and used at each polling location on Election Day.
Section 4. DATE OF ELECTION
It is hereby ordered that a Joint General Election (the “Election”) shall be held in and
throughout both the Town of Trophy Club and the Trophy Club Municipal Utility District
No. 1 on Saturday, May 8, 2010.
Section 5 . PURPOSE OF ELECTION
The purpose of this Joint General Election is to elect five (5) MUD Directors to five (5)
places on the Trophy Club Municipal Utility District No. 1 Board, with three (3) directors
serving for four (4) year terms each, and two (2) directors serving for two (2) year terms
each.
Section 6. ELIGIBILITY FOR CANDIDACY
As set forth in Section 141.001 of the Texas Election Code, no person shall be eligible
for a public elective office of this state, unless that person is a United States citizen, at
least 18 years of age on the first day of the term to be filled at the Election, has not been
determined mentally incompetent by a final judgment of a court, has not been finally
TCMUD No. 1 86 of 142 16 March 2010
TCMUD 1 Order 2010-0216
Page 4 of 6
convicted of a felony from which the person has not been pardoned or otherwise
released from the resulting disabilities, and has resided continuously in the State of
Texas for twelve (12) months immediately preceding the date of the regular filing
deadline for the candidate’s application for a candidate whose name is to appear on the
general election ballot, or the date of the election at which the candidate’s name is
written in for a write in candidate. Additional requirements are as follows:
A. Municipal Utility District Directors:
(1) Must own land subject to taxation in the District for which they are filing; or
(2) Must be a qualified voter within the District; and
(3) Must not otherwise be disqualified from serving as a member of the Board of a
Municipal Utility District pursuant to Section 49.052 of the Texas Water Code, as
amended.
Section 7. APPLICATION FOR A PLACE ON THE BALLOT
Pursuant to Section 143.007 of the Texas Election Code, any eligible and qualified
person may have that person's name printed upon the official ballot as a candidate for
the office hereinbefore set forth by filing the person's sworn application with the MUD
Secretary for MUD Board position not later than 5:00 p.m. on March 8, 2010. Each
such application shall be on a form as prescribed by the Texas Election Code. The
order in which the names of the candidates are to be printed on the ballot shall be
determined by a drawing by the MUD Secretary for MUD Director positions, as provided
by Section 52.094 of the Texas Election Code. Notice of the time and place for such
drawing shall be given in accordance with Section 52.094(c) and (d) of the Texas
Election Code.
Section 8. PLURALITY VOTE
MUD1 directors shall be elected by plurality vote consistent with Section 49.102 of the
Texas Water Code.
Section 9. ELECTION MATERIALS
The Election Materials enumerated in the Election Code shall be printed in both English
and Spanish for use at the polling places and for Early Voting. Provisions shall be
made for oral assistance to Spanish-speaking voters.
Section 10. DELIVERY OF RETURNS
The election officers shall make returns for the Election in the manner required by law,
and the ballots that are properly marked in conformance with the provisions of the Code
for votes cast both during the period of early voting and on the day of the Election shall
be counted in the manner required by law.
All election records and supplies shall be preserved by the Election Administrator in
accordance with the Texas Election Code.
TCMUD No. 1 87 of 142 16 March 2010
TCMUD 1 Order 2010-0216
Page 5 of 6
Section 11. POSTING AND PUBLICATION OF NOTICE
Notice of the Election shall be given by posting a Notice of Election in both English and
Spanish containing a substantial copy of this Ordinance on the window of the Svore
Municipal Building, commonly used for posting notices of the meetings of the MUD
Board and at both the Denton and Tarrant County websites pursuant to Section 49.063
of the Water Code not less than twenty-one (21) days prior to the date of the Election.
Participants agree to publish one notice for both entities on the same day for two (2)
successive weeks in a newspaper of general circulation published within the Town, the
date of the first publication to be not less than fourteen (14) days nor more than thirty
(30) days prior to the date set for the Election.
Section 12. NECESSARY ACTIONS
The MUD Presidents and the MUD Secretary, in consultation with the MUD Attorneys
and bond counsel, are hereby authorized and directed to take any and all actions
necessary to comply with the provisions of the Code and the Federal Voting Rights Act
in carrying out and conducting the Election, whether or not expressly authorized herein.
Section 13. CANVASSING OF RETURNS
In accordance with Section 67.003(2) of the Texas Election Code, the Trophy Club
Municipal District No. 1 shall convene on their regularly scheduled meeting date of
Tuesday, May 18, 2010, at 6:00 p.m. to canvass the returns of the Election.
Section 14. JOINT ELECTION AGREEMENT
Section 271.002 of the Texas Election Code provides that the governing bodies of two
or more political subdivisions may enter into an agreement to hold a Joint Election if the
elections ordered by the authorities of the subdivisions are to be held on the same day
in all or part of the same territory and can be served by common polling places. A copy
of the Joint Election Agreement between the Trophy Club Municipal District No. 1 and
Town of Trophy Club is attached hereto as Exhibit “B” and is incorporated herein.
Additionally, a copy of Joint Election Agreement with Denton County Elections to
conduct elections for Town of Trophy Club and Trophy Club Municipal District No. 1 is
attached hereto as Exhibit “C.”
Section 15. CUMULATIVE CLAUSE
This Order shall be cumulative of all provisions of Orders of Trophy Club Municipal
Utility District No. 1, except where the provisions of this Order are in direct conflict with
the provisions of such other orders, in which event the conflicting provisions of such
other orders are hereby repealed.
Section 16. SEVERABILITY CLAUSE
It is hereby declared to be the intent of the Board of Directors of Trophy Club Municipal
Utility District No. 1 that the phrases, clauses, sentences, paragraphs, and sections of
this Order are severable, and if any phrase, clause, sentence, paragraph, or section of
this Order shall be declared unconstitutional by the valid judgment or decree of any
court of competent jurisdiction, such unconstitutionality shall not affect any of the
remaining phrases, clauses, sentences, paragraphs, or sections of this Order, since the
same would have been enacted by the Board of Directors without incorporation of any
such unconstitutional phrase, clause, sentence, paragraph, or section.
TCMUD No. 1 88 of 142 16 March 2010
TCMUD 1 Order 2010-0216
Page 6 of 6
Section 17. EFFECTIVE DATE
This Order shall become effective from and after its date of passage and publication in
accordance with law.
AND IT IS SO ORDERED.
PASSED AND APPROVED by the Board of Directors of Trophy Club Municipal
Utility District No. 1 this 16th day of March 2010.
___________________________ _____________________________
DEAN HENRY, Joint President JIM BUDARF, Joint President
TCMUD No. 1 TCMUD No. 1
ATTEST:
____________________________ _____________________________
JIM HASE, Joint Secretary JAMES C. THOMAS, Joint Secretary
TCMUD No. 1 TCMUD No. 1
APPROVED AS TO FORM:
____________________________
ATTORNEY, TCMUD No. 1 (Seal)
TCMUD No. 1 89 of 142 16 March 2010
DISTRITO DE SERVICIOS PÚBLICOS
MUNICIPALES Nro. 1 DE TROPHY CLUB
ORDEN Nro. 2010-0216
ORDEN DE LA JUNTA DIRECTIVA DEL DISTRITO DE SERVICIOS
PÚBLICOS MUNICIPALES Nro. 1 DE TROPHY CLUB PARA
ORDENAR Y CONVOCAR UNA ELECCIÓN GENERAL CONJUNTA
ENTRE EL DISTRITO DE SERVICIOS PÚBLICOS MUNICIPALES
Nro. 1 DE TROPHY CLUB Y EL POBLADO DE TROPHY CLUB PARA
CELEBRARSE EL 8 DE MAYO DE 2010, CON EL PROPÓSITO DE
ELEGIR A CINCO (5) DIRECTORES DE MUD PARA CINCO (5)
CARGOS DE LA JUNTA DIRECTIVA DEL DISTRITO DE SERVICIOS
PÚBLICOS MUNICIPALES Nro. 1 DE TROPHY CLUB; TRES (3)
DIRECTORES ESTARÁN A CARGO DE SUS PUESTOS DURANTE
TÉRMINOS DE CUATRO (4) AÑOS CADA UNO Y DOS (2)
DIRECTORES ESTARÁN A CARGO DE SUS PUESTOS DURANTE
TÉRMINOS DE DOS (2) AÑOS CADA UNO; DESIGNAR LOS
LUGARES DE VOTACIÓN; ESTABLECER OTROS PROCEDIMIENTOS
PARA LLEVAR A CABO LA ELECCIÓN; ESTABLECER UNA FECHA
PARA DAR EL DICTAMEN DE LOS RESULTADOS DE LA ELECCIÓN;
DISPONER LAS ACCIONES NECESARIAS; DISPONER UN
CONVENIO DE ELECCIONES CONJUNTAS; DISPONER UNA
CLÁUSULA ACUMULATIVA; ESTIPULAR UNA CLÁUSULA DE
DIVISIBILIDAD; DISPONER LA PUBLICACIÓN; DISPONER EL
REGISTRO Y LA PREPARACIÓN DE LA DOCUMENTACIÓN QUE
SERÁ FIRMADA EN EL CONTRATO; Y DISPONER UNA FECHA
EFECTIVA.
EN VISTA DE QUE la Sección 41.001(a)(2) del Código Electoral de Texas
establece el segundo sábado de mayo como una fecha uniforme de elecciones para los
propósitos de celebrar una Elección General o Especial; y
EN VISTA DE QUE la Sección 3.004 del Código Electoral de Texas estipula que
el órgano directivo de una subdivisión política será la autoridad para ordenar una
Elección General o Especial; y
EN VISTA DE QUE por medio del presente la Junta Directiva del Distrito de
Servicios Públicos Municipales Nro. 1 de Trophy Club (MUD 1) desea convocar una
Elección General Conjunta con el propósito de elegir a cinco (5) Directores del MUD 1
para los propósitos establecidos más adelante; y
EN VISTA DE QUE la Sección Sec. 85.004 del Código Electoral de Texas
estipula que una orden de elecciones y el aviso de elecciones deben indicar el lugar de
cada casilla electoral y se incorpora al presente como Anexo “A” una copia del; y
EN VISTA DE QUE la Sección 3.005 del Código Electoral de Texas estipula que
una elección ordenada por una autoridad de una subdivisión política se deberá ordenar
a más tardar el sexagésimo segundo día antes del Día de Elección; y
TCMUD No. 1 90 of 142 16 March 2010
TCMUD 1 Order 2010-0216
EN VISTA DE QUE la Sección 271.002 del Código Electoral de Texas y la
Sección 49.104 del Código de Agua de Texas estipulan que los órganos directivos de
dos o más subdivisiones políticas pueden acordar un convenio para celebrar una
elección conjunta si las elecciones ordenadas por las autoridades de las subdivisiones
se celebrarán el mismo día en todo o en parte del mismo territorio y pueden utilizarse
casillas electorales comunes.
EN VISTA DE QUE el Distrito de Servicios Públicos Municipales Nro. 1 de
Trophy Club y el Poblado de Trophy Club reúnen los criterios especificados y desean
celebrar sus elecciones en forma conjunta, y se incorpora al presente como Anexo “B”
una copia del Convenio de Elecciones Conjuntas entre dichas entidades; y
EN VISTA DE QUE la Elección se celebrará en conformidad con el Código
Electoral bajo la jurisdicción del Departamento Electoral del Condado de Denton (el
“Administrador de Elecciones”) de acuerdo con el Convenio de Elecciones Conjunta y
Contrato de Servicios Electorales (el “Contrato”) acordado entre el Departamento
Electoral del Condado de Denton (en lo sucesivo, “DCED”) y otras entidades
participantes, de haber alguna, descritas en el Contrato. El Administrador del Distrito o
sus personas designadas tienen autorización para modificar o complementar el
Contrato hasta el punto requerido para que la Elección se celebre de una manera
eficiente y legal, según lo determinado por el Administrador de Elecciones, e
incorporado al presente como Anexo “C” es una copia de dicho Contrato entre DCED,
el MUD y el Poblado;
AHORA, POR LO TANTO, LA JUNTA DIRECTIVA DEL DISTRITO DE
SERVICIOS PÚBLICOS MUNICIPALES Nro. 1 DE TROPHY CLUB ORDENA QUE:
Sección 1. LEY REGENTE; REQUISITOS DE LOS VOTANTES
La Elección se celebrará en conformidad con la Constitución del Estado de Texas y el
Código Electoral de Texas, y todos los electores calificados residentes del Poblado /
Distrito (?) serán elegibles para votar en la elección.
Sección 2. VOTACIÓN ANTICIPADA
Por medio del presente se designa a Frank Phillips, Administrador de Elecciones del
Condado de Denton, como Oficial de la Votación Anticipada. Se designará a los jueces/
oficiales suplentes de votación anticipada según sea necesario para procesar la
votación anticipada por correo y llevar a cabo la votación anticipada. La votación
anticipada por correo se llevará a cabo en conformidad con los requisitos del Código.
Cada entidad debe enviar las solicitudes de boletas y las boletas para votar por correo
a Early Voting Clerk, 401 West Hickory, Denton, Texas 76201, Denton, Texas 75207.
Por medio del presente el Administrador de Elecciones y/o el Oficial de Votación
Anticipada están autorizados para asignar a los miembros del Consejo de Boletas de
Votación Anticipada y al juez presidente y juez alterno en conformidad con los
requisitos del Código.
La Votación Anticipada en persona se llevará a cabo en los sitios indicados en el Anexo
“A” de este documento y en las fechas y horarios estipulados más adelante. Cualquier
votante calificado de la Elección Conjunta puede votar por anticipado en persona en
TCMUD No. 1 91 of 142 16 March 2010
TCMUD 1 Order 2010-0216
cualquiera de los lugares de votación anticipada conjunta. Los votantes que residen en
el Condado de Tarrant sólo pueden votar por las partidas que se relacionan con el
Poblado y/o el MUD en el lugar de votación del Poblado de Trophy Club.
Como Oficial de Votación Anticipada, el Administrador de Elecciones recibirá
solicitudes de boletas de votación anticipada para votar por correo en conformidad con
el Capítulo 31 y 86 del Código Electoral de Texas. Cualquier solicitud de boletas de
votación anticipada para votar por correo recibida por el Secretario del MUD se enviará
inmediatamente por fax o por paquetería al Administrador de Elecciones para su
procesamiento.
Por medio del presente se autoriza e instruye al Administrador de Elecciones a que
haga los cambios de los lugares de votación que considere necesarios para la
celebración adecuada de la Elección. El Día de Elección, cada lugar de votación estará
abierta de 7:00 a.m. a 7:00 p.m. El Anexo “A” se puede modificar en una fecha
posterior para incluir y/o eliminar cualquier lugar de votación anticipada añadido y/o
eliminado debido a que otras subdivisiones políticas añadan o cancelen una elección.
Fechas y horarios de la votación anticipada:
Lunes 26 de abril 8 a.m. a 5 p.m.
Martes 27 de abril 8 a.m. a 5 p.m.
Miércoles 28 de abril 8 a.m. a 5 p.m.
Jueves 29 de abril 8 a.m. a 5 p.m.
Viernes 30 de abril 8 a.m. a 5 p.m.
Sábado 1 de mayo 8 a.m. a 12 p.m.
Lunes 3 de mayo 7 a.m. a 7 p.m.
Martes 4 de mayo 7 a.m. a 7 p.m.
Cualquier votante calificado de la Elección Conjunta puede votar anticipadamente en
persona en cualquiera de los lugares de Votación Anticipada Conjunta. Los votantes
que residen en el Condado de Tarrant sólo pueden votar por las partidas que se
relacionan con el MUD en el lugar de votación anticipada del Poblado de Trophy Club.
Sección 3. ADMINISTRACIÓN
Se usará E-slate, un sistema electrónico de grabación directa (DRE) para la votación
anticipada en persona y en la Elección del 8 de mayo de 2010. Se usarán boletas
correspondientes de lectura óptica para la votación anticipada por correo. En la
Elección del 8 de mayo de 2010, el Administrador de Elecciones se encargará de que
se preparen boletas del tipo descrito previamente, siendo en inglés y en español, y
proveerá a los oficiales de la elección dichas boletas, en dicha forma, junto con
cualesquiera otros formularios o papeles en blanco, en conformidad con la Ley
Orgánica del Poblado de Trophy Club, la Constitución y las leyes del Estado de Texas y
la Ley de Derechos de Votación de 1965, y cualquier modificación a éstas, en tanto que
corresponda lo mismo. Se proveerá el sistema E-Slate, un sistema electrónico de
grabación directa (DRE) y se usará en cada lugar de votación el Día de Elección.
TCMUD No. 1 92 of 142 16 March 2010
TCMUD 1 Order 2010-0216
Sección 4. FECHA DE LA ELECCIÓN
Por medio del presente se ordena que se celebrará una Elección General Conjunta (en
lo sucesivo, la “Elección”) en el Poblado de Trophy Club y en el Distrito de Servicios
Públicos Municipales Nro. 1 de Trophy Club el sábado 8 de mayo de 2010.
Sección 5. PROPÓSITO DE LA ELECCIÓN
El propósito de esta Elección General Conjunta es elegir a cinco (5) Directores del
MUD para cinco (5) cargos de la Junta Directiva del Distrito de Servicios Públicos
Municipales Nro. 1 de Trophy Club; tres (3) directores estarán a cargo de sus puestos
durante términos de cuatro (4) años cada uno y dos (2) directores estarán a cargo de
sus puestos durante términos de dos (2) años cada uno.
Sección 6. ELEGIBILIDAD PARA CANDIDATURA
De acuerdo a lo establecido en la Sección 141.001 del Código Electoral de Texas,
ninguna persona será elegible para un cargo público de elección de este estado a
menos que esa persona sea ciudadana de los Estados Unidos, tenga por lo menos 18
años de edad el primer día del término del cargo que ha de ocupar en la Elección, no
haya sido determinada mentalmente incompetente por un juicio final de un tribunal, no
haya sido finalmente convicta de un delito grave del que no haya sido perdonado o de
otra manera liberada de las discapacidades resultantes, y haya residido continuamente
en el Estado de Texas durante doce (12) meses inmediatamente antes de la fecha
límite para presentar la solicitud de candidatura para un candidato cuyo nombre
aparecerá en la boleta de la elección general, o la fecha de la elección en la que el
nombre del candidato se escriba como candidato escrito. Los requisitos adicionales son
los siguientes:
A. Directores de Distrito de Servicios Públicos Municipales:
(1) Deben ser propietarios de terreno sujeto a impuestos en el Distrito para el cual
presentan su candidatura; o
(2) Deben ser votantes calificados dentro del Distrito; y
(3) No deben de otra manera ser descalificados de fungir como miembros de la
Junta de un Distrito de Servicios Públicos Municipales en conformidad con la Sección
49.052 del Código Electoral de Texas, según modificado.
Sección 7. SOLICITUD PARA UN LUGAR EN LA BOLETA
En conformidad con la Sección 143.007 del Código Electoral de Texas, cualquier
persona elegible y que reúna los requisitos puede pedir que se imprima su nombre en
la boleta oficial como candidato para el cargo establecido previamente presentando la
solicitud jurada de la persona ante el Secretario del MUD para el cargo de la Junta del
MUD a más tardar el 8 de marzo de 2010 a las 5:00 p.m. Dicha solicitud deberá ser de
la forma descrita por el Código Electoral de Texas. El orden en el que se imprimirán los
nombres de los candidatos en la boleta se determinará mediante un sorteo llevado a
cabo por el Secretario del MUD para los puestos de Director, según lo estipulado en la
Sección 52.094 del Código Electoral de Texas. El aviso de la hora y el lugar de dicho
sorteo se dará en conformidad con la Sección 52.094(c) y (d) del Código Electoral de
Texas.
TCMUD No. 1 93 of 142 16 March 2010
TCMUD 1 Order 2010-0216
Sección 8. VOTO POR PLURALIDAD
Se elegirá a los directores del MUD1 mediante voto por pluralidad de acuerdo a la
Sección 49.102 del Código de Distribución de Agua de Texas.
Sección 9. MATERIALES DE LA ELECCIÓN
Los materiales de elección enumerados en el Código Electoral se imprimirán en inglés
y en español para usarse en las casillas electorales y para la Votación Anticipada.
Habrá disponible asistencia verbal para los votantes de habla hispana.
Sección 10. ENTREGA DE LOS RESULTADOS
Los oficiales de elección darán el dictamen de los resultados de la Elección de la
manera requerida por la ley, y las boletas que estén marcadas correctamente en
conformidad con las disposiciones del Código para la emisión de votos durante el
período de votación anticipada y en el día de la Elección se contarán de la manera
requerida por la ley.
El Administrador de Elecciones conservará todos los registros y suministros de la
elección en conformidad con el Código Electoral de Texas.
Sección 11. COLOCACIÓN Y PUBLICACIÓN DEL AVISO
El aviso de la Elección se dará mediante la colocación de un Aviso de Elección en
inglés y en español que contenga una copia substancial de esta Ordenanza en la
ventana del edificio Svore Municipal Building, comúnmente usada para colocar avisos
de las asambleas de la Junta del MUD y en las páginas Web de los Condados de
Denton y Tarrant en conformidad con la Sección 49.063 del Código de Distribución de
Agua a más tardar veintiún (21) días antes de la fecha de la Elección.
Los participantes acuerdan publicar un aviso para ambas entidades el mismo día de
dos (2) semanas consecutivas en un periódico de circulación general en el Poblado. La
fecha de la primera publicación deberá ser a no menos de catorce (14) días y a no más
de treinta (30) días antes de la fecha establecida para la Elección.
Sección 12. ACCIONES NECESARIAS
Por medio del presente se autoriza e instruye al Presidente y al Secretario del MUD a
que en consulta con los Abogados del MUD y el asesor jurídico de bonos, tomen todas
y cada una de las acciones necesarias para cumplir con las estipulaciones del Código y
de la Ley Federal de Derechos de Votación para celebrar y realizar la Elección, sea o
no que se autorice expresamente en el presente.
Sección 13. ESCRUTINIO DE LOS RESULTADOS
En conformidad con la Sección 67.003(2) del Código Electoral de Texas, el Distrito de
Servicios Públicos Municipales Nro. 1 de Trophy Club se reunirá en la fecha
normalmente programada para la asamblea: martes 18 de mayo de 2010 a las 6:00
p.m. para hacer el escrutinio de los resultados de la Elección.
Sección 14. CONVENIO DE ELECCIONES CONJUNTAS
La Sección 271.002 del Código Electoral de Texas estipula que los órganos directivos
de dos o más subdivisiones políticas pueden acordar un convenio para celebrar una
Elección Conjunta si las elecciones ordenadas por las autoridades de las subdivisiones
TCMUD No. 1 94 of 142 16 March 2010
TCMUD 1 Order 2010-0216
se celebrarán el mismo día en todo o en parte del mismo territorio y pueden utilizarse
casillas electorales comunes. Una copia del Convenio de Elecciones Conjuntas entre el
Distrito de Servicios Públicos Municipales Nro. 1 de Trophy Club y el Poblado de
Trophy Club se anexa e incorpora al presente como Anexo “B”. Adicionalmente, una
copia del Convenio de Elecciones Conjuntas con el Condado de Denton para celebrar
las elecciones para el Poblado de Trophy Club y el Distrito de Servicios Públicos
Municipales Nro. 1 de Trophy Club se incorpora al presente como Anexo “C”.
Sección 15. CLÁUSULA ACUMULATIVA
Esta Orden será acumulativa de todas las estipulaciones de las Órdenes del Distrito de
Servicios Públicos Municipales Nro. 1 de Trophy Club, salvo cuando las estipulaciones
de esta Orden entren en conflicto directo con las estipulaciones de otras órdenes, en
cuyo caso se repelerán las estipulaciones conflictivas de las otras órdenes.
Sección 16. CLÁUSULA DE DIVISIBILIDAD
Por medio del presente se declara que la intención de la Junta Directiva del Distrito de
Servicios Públicos Municipales Nro. 1 de Trophy Club es que las frases, cláusulas,
enunciados, párrafos y secciones de esta Orden sean divisibles y si alguna frase,
cláusula, sentencia, párrafo o sección de esta Orden se declarara inconstitucional por
consideración válida o decreto de algún tribunal de jurisdicción competente, dicha
inconstitucionalidad no afectará a ninguna de las frases, cláusulas, enunciados,
párrafos o secciones remanentes de esta Orden, dado que la Junta Directiva habría
legislado el mismo sin la incorporación en dicha frase, cláusula, enunciado, párrafo o
sección inconstitucional.
Sección 17. FECHA EFECTIVA
Esta Orden será efectiva a partir y después de esta fecha de aceptación y publicación
en conformidad con la ley.
TCMUD No. 1 95 of 142 16 March 2010
TCMUD 1 Order 2010-0216
Y ASÍ SE ORDENA.
ACEPTADO Y APROBADO por la Junta Directiva del Distrito de Servicios
Públicos Municipales Nro. 1 de Trophy Club este día 16 de febrero de 2010.
___________________________ _____________________________
DEAN HENRY, Presidente Conjunto JIM BUDARF, Presidente Conjunto
TCMUD Nro. 1 TCMUD Nro. 1
ATESTIGUA:
____________________________ _____________________________
JIM HASE, Secretario Conjunto JAMES C. THOMAS, Secretario Conjunto
TCMUD Nro. 1 TCMUD Nro. 1
APROBADO COMO FORMA:
____________________________
ABOGADO, TCMUD Nro. 1 (Sello)
TCMUD No. 1 96 of 142 16 March 2010
AVISO DE ELECCIÓN GENERAL/ESPECIAL/CONJUNTA
DEL POBLADO DE TROPHY CLUB
A los votantes registrados del Poblado de Trophy Club, Texas: Se notifica por el presente que el
sitio de votación ubicado en 100 Municipal Drive estará abierto de 7:00 a.m. a 7:00 p.m. el
sábado 8 de mayo de 2010 para votar en una Elección General/Especial/Conjunta con el
propósito de elegir un (1) Concejal para la Posición 3 por un término de dos (2) años y un (1)
Concejal para la Posición 4 por un término de dos (2) años, y un (1) Concejal para la Posición 5
por un término de tres (3) años del Consejo Municipal del Poblado de Trophy Club, y elegir un (1)
Concejal por un término de un (1) año y para completar el resto del término del cargo de la
Posición 2 debido a la vacante creada en la Posición 2 del Consejo Municipal del Poblado de
Trophy Club, y cinco (5) directores para Trophy Club MUD 1, posiciones 1 al 5, siendo todas
posiciones generales, y para votar en una Elección Especial con una boleta de votación
combinada en conformidad con la Sección 321.409 del Código Electoral de Texas para
determinar si los ciudadanos desean volver a autorizar el Impuesto de Ventas y Uso Local en el
Poblado de Trophy Club a una taza de un cuarto del uno por ciento (0.25%) para continuar
proveyendo ingresos para el mantenimiento y reparación de las calles municipales.
VOTACIÓN ANTICIPADA
La votación anticipada en persona se llevará a cabo en 100 Municipal Drive en los siguientes
días y horarios:
Lunes 26 de abril
Martes 27 de abril
Miércoles 28 de abril
Jueves 29 de abril
Viernes 30 de abril
Sábado 1 de mayo
Lunes 3 de mayo
Martes 4 de mayo
8 a.m. – 5 p.m.
8 a.m. – 5 p.m.
8 a.m. – 5 p.m.
8 a.m. – 5 p.m.
8 a.m. – 5 p.m.
8 a.m. – 12 p.m.
7 a.m. – 7 p.m.
7 a.m. – 7 p.m.
Además de los sitios de votación anticipada localizados dentro del Poblado, los votantes de
Trophy Club en el Condado de Denton pueden votar en todos los sitios de votación anticipada
designados y mantenidos por el Condado de Denton en todo el Condado. Los votantes de
Trophy Club en el Condado de Tarrant solo pueden votar en los sitios de votación anticipada
localizados dentro del Poblado de Trophy Club.
VOTACIÓN ANTICIPADA POR CORREO
Las solicitudes de boletas de votación por correo deben ser enviadas a: Frank Phillips, Early
Voting Clerk, 401 West Hickory, Denton, Texas 76201Las solicitudes de boletas de votación por
correo deben ser recibidas no más tarde del 30 de abril de 2010.
TCMUD No. 1 97 of 142 16 March 2010
TCMUD No. 1 98 of 142 16 March 2010
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-45-M1 Name:
Status:Type:M1 Agreement Regular Session
File created:In control:3/11/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:3/16/2010
Title:Discuss and take appropriate action concerning a Contract/Agreement between TCMUD1 and the
Trophy Club Country Club (TCCC) to use a portion of TCCC's property for a temporary fire
department facility while a new fire station is constructed at 100 Municipal Drive.
Attachments:
Action ByDate Action ResultVer.
TCMUD No. 1 99 of 142 16 March 2010
12010-45-M1 Version:File #:
Title
Discuss and take appropriate action concerning a Contract/Agreement between TCMUD1 and the Trophy
Club Country Club (TCCC) to use a portion of TCCC's property for a temporary fire department facility while a
new fire station is constructed at 100 Municipal Drive.
Body
At the time this packet went out, the contract/agreement is with the TCCC attorneys. This is before the Board
should we receive the contract/agreement back in time for action.
TCMUD No. 1 100 of 142 16 March 2010
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-01-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:1/4/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:2/6/2010
Title:Discuss and take appropriate action regarding SEMO Committee meetings and findings.
Attachments:
Action ByDate Action ResultVer.
Trophy Club Municipal Utility
District No. 1
2/16/2010 1
Trophy Club Municipal Utility
District No. 1
1/25/2010 1
Trophy Club Municipal Utility
District No. 1
1/19/2010 1
TCMUD No. 1 101 of 142 16 March 2010
12010-01-M1 Version:File #:
Title
Discuss and take appropriate action regarding SEMO Committee meetings and findings.
TCMUD No. 1 102 of 142 16 March 2010
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-34-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:2/9/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:2/16/2010
Title:Discuss and take appropriate action regarding the New Intergovernmental Contract for Employee
Services and the Amendment to New Intergovernmental Contract for Employee Services.
Attachments:ILA-EmployeeSvcs and Amendment.pdf
Action ByDate Action ResultVer.
Trophy Club Municipal Utility
District No. 1
2/16/2010 1
TCMUD No. 1 103 of 142 16 March 2010
12010-34-M1 Version:File #:
Title
Discuss and take appropriate action regarding the New Intergovernmental Contract for Employee Services
and the Amendment to New Intergovernmental Contract for Employee Services.
Body
[Enter body here.]
TCMUD No. 1 104 of 142 16 March 2010
NEW INTERGOVERNMENTAL CONTRACT FOR EMPLOYEE SERVICES
This New Intergovernmental Contract for Employee Services (the "Contract") is
between the following parties:
Trophy Club Master District (the "Master District")
100 Municipal Drive
Trophy Club, Texas 76262
and
The Town of Trophy Club, Texas (the "Town")
100 Municipal Drive
Trophy Club, Texas 76262
WHEREAS, the Master District is an administrative agency and joint
operating Board established by Trophy Club Municipal Utility District No. 1
("MUD1") and Trophy Club Municipal Utility District No. 2 ("MUD 2") under a
written agreement entitled NEW MASTER DISTRICT CONTRACT dated and
effective as of October 4, 2000, as amended. Each of MUD l and MUD 2 is a
Municipal Utility District created and operating under the provisions of Article XVI,
Section 59, of the Texas Constitution, and the general laws of the State of Texas
including, particularly, Chapter 54 and 49 of the Texas Water Code, as amended.
The Master District is structured and operates as a separate entity joint venture,
with MUD l and MUD 2 being the equal controlling owners of the joint venture.
This Contract is signed by the Master District in its capacity as the operator of
common water and wastewater facilities in the Trophy Club and Solana-Westlake
projects.
WHEREAS, the Town is a home-rule municipal corporation duly organized
and operating pursuant to the Constitution and laws of the State of Texas and its
home rule charter.
WHEREAS, the Master District and the Town each perform certain
governmental services or functions within their respective jurisdiction. Prior to
October 1, 1998, the MUD 1 (in its capacity as the "Master District" at that time
for itself and MUD 2) and the Town each had their own employees to perform
various services and functions. By a written agreement dated and effective as of
October 1, 1998, entitled INTERGOVERNMENTAL CONTRACT FOR
EMPLOYEE SERVICES (the "1998 CONTRACT FOR EMPLOYEE SERVICES"),
MUD l (in its capacity as the "Master District" at that time for itself and MUD 2)
and the Town agreed that all employees of MUD l became employees of the
Town subject to the personnel policies of the Town and included on the payroll of
the Town so that employment salaries, benefits, and personnel policies of both
MUD l and the Town could be administered more efficiently, effectively, and
TCMUD No. 1 105 of 142 16 March 2010
2008 New Intergovernmental Contract for Employee Services 2
economically. With the execution of the 1998 CONTRACT FOR EMPLOYEE
SERVICES, the Town (through its employees including those personnel who
formerly were employees of MUD 1) began performing services that previously
had been part of MUD l's operations for the benefit of itself and MUD 2. This
Contract is to update, modify, and supersedes the 1998 CONTRACT FOR
EMPLOYEE SERVICES.
WHEREAS, this Contract is executed by the Master District and the
Town as an Intergovernmental or Interlocal contract under Chapter 791 (the
Interlocal Cooperation Act) of the Texas Government Code and is an amendment
and renewal of the 1998 CONTRACT FOR EMPLOYEE SERVICES.
WHEREAS, this Contract has been authorized by the governing body of
each party to this Contract. The governing body of each party to this Contract
has determined that the terms and provisions of this Contract are desirable, fair,
and advantageous for that party and therefore the Contract serves a valid public
purpose.
WHEREAS, the parties to this Contract believe that their longstanding
contractual and cooperative relationship has benefited both the Town and the
Master District, and their respective taxpayers and customers, because the
administration of employment issues is handled in a more efficient, effective and
economical manner, and governmental services which are the responsibility of
each of the respective entities are performed by a single workforce consisting of
Town employees. Moreover, while the Master District and the Town each
performs distinct governmental services or functions within their respective
jurisdictions, they also have a community of interest in performing these services
and functions. The Master District and the Town have determined that this
community of interest is best served by continuing their cooperative and
intergovernmental contractual relationship with respect to employment services.
WHEREAS, the parties hereby confirm their understanding and intent
that all persons who were employed by MUD 1 (in its capacity as the "Master
District" at that time for itself and MUD 2) performing work in the operations of the
Master District immediately prior to October 1, 1998, became employees of the
Town as of October 1, 1998, for all purposes, with the Town responsible on and
after October 1, 1998, for all salary, benefits, and other compensation of such
employees and with such employees subject to the personnel policies of the
Town.
NOW, THEREFORE, for and in consideration of the above and
foregoing premises, the benefits flowing to each of the parties hereto, and other
good and valuable consideration, the Town of Trophy Club, Texas and the
Trophy Club Master District do hereby contract and agree as follows:
TCMUD No. 1 106 of 142 16 March 2010
2008 New Intergovernmental Contract for Employee Services 3
I.
Term
This Contract shall become effective upon approval by both of the respective
governing bodies of Town and Master District and upon execution by their
respective authorized representatives. The Contract shall continue in effect until
terminated by either party as provided herein.
II.
Scope of Employment Services
Town shall provide employees to perform services for Master District in
accordance with the terms of this Agreement. The parties understand and agree
that on and after the effective date of this Agreement, all such employees are
employees of the Town subject to the personnel policies of the Town in
accordance with the terms of this Agreement. The parties hereto agree that the
attached organizational chart identifies the structure of the respective operations
of the parties and their relationship under this Contract. The Organizational Chart
is attached hereto and incorporated herein as Exhibit A.
III.
Master District Management
Master District retains a Master District Manager to oversee the operations of the
Master District (hereinafter "District Manager"). The District Manager may be an
independent contractor or an employee of the Master District but in neither case
is the District Manager an employee of the Town. This Contract is not intended to
make any change in any separate contract between the Master District and the
District Manager ("District Manager Contract"). Whether the District Manager is
an independent contractor or an employee of the Master District, the District
Manager shall he compensated by the Master District and report directly to the
Board of Directors of the Master District. The person designated as the District
Manager for the Master District shall be supervised and directed by the Board of
Directors of the Master District.
TCMUD No. 1 107 of 142 16 March 2010
2008 New Intergovernmental Contract for Employee Services 4
IV.
Compliance with Town Personnel Policies
Under the terms of the District Manager Contract, where applicable, or under the
terms of the employment of the District Manager, where applicable, the District
Manager shall be either contractually or as a term of employment, whichever
applies, required to comply with the personnel policies and procedures of the
Town in fulfilling his obligations for the management and oversight of Master
District operations. The parties hereto understand and agree that the Town
employees shall be subject to the personnel policies and procedures adopted by
the Town.
V.
Master District Standard Operating Procedures
The Master District retains the authority to adopt standard operating procedures
("SOPs") regulating and governing the operational control of Master District
assets and facilities; however, the scope of such standard operating procedures
shall relate only to technical matters governing Master District operations and
shall not conflict with the Town personnel policies and procedures. Prior to the
issuance of any standard operating procedures, such SOPs shall be submitted to
the Human Resources Manager or equivalent position for review and to allow
such person to identify any inconsistencies or conflict between the proposed
SOPs and the Town personnel policies. The Town shall provide written notice to
the District Manager of any such conflict between the SOPs and the Town
policies and of any matters that the Town determines to regulate matters other
than those operational matters for which SOPs are allowed under this Contract.
In the event of a conflict, the parties agree to meet and discuss the identified
conflict and to use reasonable efforts to resolve the conflict in order to meet the
needs of both the Master District and the Town.
As used in this Contract the terms "operation(s)," "operational," "operational
functions," or "operational standards" shall mean those technical functions
performed by Town employees for the Master District which are governed or
regulated by a state or federal regulatory agency, regulatory standards or permit
standards, or other applicable local, state, or federal law or which are regulated
by an SOP of the Master District pursuant to this Contract.
TCMUD No. 1 108 of 142 16 March 2010
2008 New Intergovernmental Contract for Employee Services 5
VI.
Compliance with Standard Operating Procedures of the Master District
Subject to the requirements set forth in Paragraph V above, while this Contract
is in effect, the Town agrees that all employees providing services to the Master
District shall follow the Master District's SOPs governing the operational aspects
of Master District assets and facilities.
VII.
Approved Positions and Funding
Each year, as part of the approval of the respective budgets of tile parties, the
governing body for each of the parties approves a listing of funded positions or
an organizational chart showing all funded employee positions. The approved
budgets contain detailed information regarding the amount of money that each of
the parties hereto contributes toward the expenses of funding employee
positions. The Town and the Master District agree hereunder that the positions
and payment approved in their respective budgetary processes shall comply with
the terms of this Contract and shall serve as partial consideration for the services
provided under this Contract.
VIII.
Compensation
As compensation for the services provided or to be provided to the Master
District by the Town under this Contract, upon the Town presenting a detailed
listing of all incurred expenses the Master District agrees to pay to the Town at
least monthly an amount equal to the actual costs incurred by the Town for
salary, benefits, and other compensation of the Town employees providing
services to the Master District, subject to Paragraph VII of this Contract. The
term "actual costs" as used in this Contract means those costs that the Town
incurs over and above the cost that the Town would incur if it were not providing
personnel to perform services for the Master District operations. Whenever
practical to do so, the Town shall have costs (other than employee costs)
associated with Master District functions charged directly to the Master District,
including but not limited to training expenses, travel, supplies, administrative and
other miscellaneous costs not directly attributable to salary benefits and other
compensation. As further consideration for the services of Town employees,
Master District agrees that the use of all equipment owned by or leased to Master
District may be used by licensed and/or qualified Town employees in the
performance of services for Master District pursuant to this Agreement.
TCMUD No. 1 109 of 142 16 March 2010
2008 New Intergovernmental Contract for Employee Services 6
IX.
Policies and Decisions
This Contract is intended to provide for the furnishing of employment services by
the Town to the Master District in the Town's capacity as an independent
contractor. The Master District retains all right, power, and control that it has by
law and by the New Master District Contract to set policies and to make
decisions regarding the services provided by Town employees in the
performance of operational functions for the Master District and the operation of
Master District assets and facilities.
Master District shall have the right, for good cause upon the violation of
operational standards, or for violations of SOPS, as allowed by the Town's
personnel policies, to require that a particular Town employee be removed from
performing services in the operations of the Master District, provided however,
that the removal of an employee shall not be required until such employee has
been disciplined in accordance with Town policies and had an opportunity to
avail himself of any and all appeals allowed under the Town's personnel policies
and procedures.
As new or additional employees are needed to perform services for the Master
District, the Town shall follow Town personnel policies and procedures in the
selection of those employees. Prior to the hiring of any employee to perform
services for the Master District, the Town shall request from the Master District,
or its designee, the approval of the selection, compensation, benefits, and job
description of each such employee. The Town agrees to follow the Master
District's recommendations for selection, compensation, benefits, and job
description of each employee performing services for the Master District. In the
event of a conflict under this paragraph, the parties agree to meet and discuss
the identified conflict and to use reasonable efforts to resolve the conflict in order
to meet the needs of both the Master District and the Town. The Master District
shall not be required to fund any decision that it has not approved regarding an
employee performing services for the Master District. Decisions by the Master
District under this Contract shall be made by the Board of Directors of the Master
District or by its designated officer(s) or agents. All Town employees performing
services in the operations of the Master District shall be supervised and directed
by persons approved by the District Manager.
Nothing in this Contract shall be interpreted as an abdication by the Master
District or MUD1 and MUD2 as the joint venture partners in the Master District of
their governmental rights, powers, and duties with regard to services provided by
the Master District.
TCMUD No. 1 110 of 142 16 March 2010
2008 New Intergovernmental Contract for Employee Services 7
X.
Discipline
The parties agree that the Town's standard personnel policies and disciplinary
procedures shall apply to all Town employees performing services in the
operations of the Master District.
Employees are divided by reason of their duties into two groups. The first group
consists of those employees whose services are shared by the Town and the
Master District (hereinafter “Shared Service Providers”), and the second group
consists of those whose services are provided exclusively to the Master District
(hereinafter “Master District Service Providers”).
The following provision(s) shall apply to Master District Service Providers:
1. In all cases in which the established facts show a clear violation of the
Personnel Manual, its provisions shall apply and shall be administered
by the Town Manager alone in accordance with the Personnel Manual.
In addition to the Town’s Personnel Manual, the Master District has
established certain Standard Operating Procedures (SOPs) to be
followed by Master District Service Providers.
2. In cases where an alleged violation of the Personnel Manual is not
clearly defined by the facts but where an alleged violation of one or
more of the SOPs of the Master District exists, the input of the District
Manager shall be a prerequisite to any disciplinary measure taken for
such violation. Should the input of the District Manager result in a
conflict with the disciplinary measure proposed by the Town Manager,
then the conflict shall be resolved by referral of the matter to the
Master District Chairman for final disposition.
XI.
Liability; Insurance: Indemnification
The Town shall be responsible for the acts, negligence, and omissions of its
employees performing services in the operations of the Master District, unless
the acts or omissions were pursuant to operational standards or SOPs of the
Master District or District Manager or actions or omissions performed pursuant to
or under the direction, supervision, or instruction of the Master District or the
District Manager. If the acts or omissions were pursuant to operational standards
or SOPs of the Master District or District Manager, or the acts or omissions were
performed pursuant to or under the direction, supervision, or instruction of the
Master District or the District Manager, the Master District shall assume liability
for the acts, negligence or omissions of Town employees.
TCMUD No. 1 111 of 142 16 March 2010
2008 New Intergovernmental Contract for Employee Services 8
The parties to this Contract shall each individually obtain insurance, with
coverages as mutually agreed upon, that the parties determine will insure
themselves individually and collectively from liabilities related to and arising out
or this Contract and fulfill the indemnity obligations of each party, to the extent
allowed by law, under this Contract. Such insurance shall insure against liability
arising out of or related to the work performed by Town employees under this
Contract, with both parties named as additional insured under such insurance
policies.
To the extent allowed by law, both Town and Master District agree to defend,
indemnify and hold each other harmless from their respective negligence or
intentional conduct arising out of or related to this Contract and resulting in harm
to them individually or to a third party, including without limitation property
damage to the parties hereto or to a third party. The indemnity extends to all
costs and expenses incurred, including reasonable attorney's fees, to defend
against, settle or pay the claim asserted by another. In the event a claim is made
by another against either the Town or the Master District, written notice of the
claim shall immediately be given to the other party, in order that the other party
may determine whether its indemnity duty must be performed and in order to
allow the indemnitor to perform indemnity. If any part of the foregoing indemnity
shall be deemed or determined unenforceable or contrary to public policy by a
court of competent jurisdiction, then each party shall contribute to any judgment
according to its percentage of fault.
Neither Town nor Master District waive any immunity or defense that would
otherwise be available to it against claims arising from the exercise of
governmental powers and functions and nothing in this Agreement shall be
deemed a waiver of the governmental, sovereign, or official immunity afforded by
law to either Town or Master District.
XII.
Further Cooperation
The parties to this Contract agree to cooperate to sign and deliver any other
documents that may be necessary or appropriate to implement the provisions of
this Contract. In the event of a conflict under this Contract, the parties agree to
meet and discuss the identified conflict and to use reasonable efforts to resolve
the conflict in order to meet the needs of both the Master District and the Town.
XIII.
Termination
This Contract may be terminated by either party at any time upon thirty (30) days
written notice to the other party.
TCMUD No. 1 112 of 142 16 March 2010
2008 New Intergovernmental Contract for Employee Services 9
XIV.
Execution and Date
This Contract is signed by the parties in multiple counterparts. This Contract is
dated and shall be effective for all purposes as of February 13, 2008.
TROPHY CLUB MASTER DISTRICT TOWN OF TROPHY CLUB, TEXAS
By: ___________________ By: __________________________
Carol Borges, Chair C. Nick Sanders, Mayor
Attest: Attest:
By: _______________________ By: ___________________________
Secretary, Board of Directors Town Secretary
Approved as to form: Approved as to form:
______________________________ _______________________________
Robert G. West, Attorney Patricia A. Adams, Town Attorney
Trophy Club Master District Town of Trophy Club, Texas
______________________________
Pamela Liston, Attorney
Trophy Club Master District
TCMUD No. 1 113 of 142 16 March 2010
AMENDMENT TO NEW INTERGOVERNMENTAL
CONTRACT FOR EMPLOYEE SERVICES
This is an amendment to the New Intergovernmental Contract for
Employee Services (the “Contract”), with an effective date of February 13, 2008,
between Trophy Club Master District (the “Master District”) and the Town of
Trophy Club, Texas (the “Town”)
WHEREAS, the Master District and the Town desire to amend the
Contract to allow the option of having the District Manager become a Town
employee for all purposes, with the Town responsible for all salary, benefits, and
other compensation of the District Manager and with the District Manager subject
to the personnel policies of the Town.
WHEREAS, this amendment shall be considered effective as of
December 11, 2008.
WHEREAS, the parties to the Contract desire that the terms of the
Contract not expressly addressed in this Amendment shall continue in full force
and effect.
NOW, THEREFORE, the parties agree as follows:
1. Section III (Master District Management), is amended in its entirety
as follows:
Master District designates a Master District Manager to oversee the
operations of the Master District (hereinafter “District Manager”). The
District Manager may be an independent contractor, an employee of the
Master District or an employee of the Town. This Contract is not intended
to make any change in any separate contract that may exists now or in the
future between the Master District and the District Manager (“District
Manager Contract”). Whether the District Manager is an independent
contractor, employee of the Master District, or employee of the Town, the
District Manager shall report directly to the Board of Directors of the
Master District except where otherwise provided in this Agreement. The
person designated as the District Manager for the Master District shall be
supervised and directed by the Board of Directors of the Master District.
This Amendment is signed by the parties in multiple counterparts. This
Amendment is dated and shall be effective for all purposes as of December 11,
2008.
TCMUD No. 1 114 of 142 16 March 2010
TROPHY CLUB MASTER DISTRICT TOWN OF TROPHY CLUB,
TEXAS
By: _____________________________ By: _______________________
Constance White Nick Sanders
Chairman, Board of Directors Mayor
Attest: Attest:
By: _____________________________ By:______________________
Mary Moore Lisa Hennek
Secretary, Board of Directors Town Secretary
Approved as to form: Approved as to form:
________________________________ __________________________
Robert G. West Patricia A. Adams, Town Attorney
Attorney for Trophy Club Master District Town of Trophy Club, Texas
__________________________________
Pamela Liston
Attorney for Trophy Club Master District
TCMUD No. 1 115 of 142 16 March 2010
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-36-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:2/23/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:3/16/2010
Title:Discuss and take appropriate action regarding forming an Implementation Committee for transitioning
TCMUD 1 employee services in-house.
Attachments:
Action ByDate Action ResultVer.
TCMUD No. 1 116 of 142 16 March 2010
12010-36-M1 Version:File #:
Title
Discuss and take appropriate action regarding forming an Implementation Committee for transitioning TCMUD
1 employee services in-house.
Body
The Board requested this agenda item for March at the February 16th 2010 meeting.
TCMUD No. 1 117 of 142 16 March 2010
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-44-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:3/5/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:3/16/2010
Title:Discuss and take appropriate action concerning discussions held in Closed Session.
a. Mary Moore, MUD Secretary
b. Robert Scott, District Manager
Attachments:
Action ByDate Action ResultVer.
TCMUD No. 1 118 of 142 16 March 2010
12010-44-M1 Version:File #:
Title
Discuss and take appropriate action concerning discussions held in Closed Session.
a. Mary Moore, MUD Secretary
b. Robert Scott, District Manager
TCMUD No. 1 119 of 142 16 March 2010
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-42-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:3/5/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:3/16/2010
Title:Review and Approve Minutes:
a. February 16, 2010 - Regular Session minutes
Attachments:M1 Minutes 021610.pdf
Action ByDate Action ResultVer.
TCMUD No. 1 120 of 142 16 March 2010
12010-42-M1 Version:File #:
Title
Review and Approve Minutes:
a. February 16, 2010 - Regular Session minutes
TCMUD No. 1 121 of 142 16 March 2010
MINUTES OF REGULAR SESSION
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
February 16, 2010
The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant
Counties met in Regular Session on Tuesday, February 16, 2010, in the Boardroom of the
Administration Building, 100 Municipal Drive, Trophy Club, Texas 76262.
DIRECTORS PRESENT:
Dean Henry Joint President
Jim Budarf Joint President
Gary Cantrell Joint Vice President
Kevin Carr Joint Vice President
Jim Hase Joint Secretary/Treasurer
Jim Thomas Joint Secretary/Treasurer
Neil Twomey Director
Bob Fair Director
Joseph Boclair Director
DIRECTORS ABSENT:
Steven Kohs Director
STAFF AND GUESTS PRESENT:
Robert Scott District Manager
Mary Moore MUD Secretary
Bob West MUD Attorney
Kathy DuBose Finance Director
Danny Thomas Fire Chief
Connie White Town Mayor
Brandon Emmons Town Manager
Kathleen Wilson Town Councilmember
Bill Rose Town Councilmember
Dan Almon Southwest Securities
Jeff Gulbas Attorney, McCall, Parkhurst & Horton
Shirley Hase 209 Inverness Drive
Betty Ann Henry 308 Oakmont
Scott Smith 2 Salida Drive
REGULAR SESSION
Call to Order and Announce a Quorum.
President Henry announced a quorum and called the meeting to order at 6:00 p.m.
1. Discuss and take appropriate action regarding the sale of Trophy Club Municipal
Utility District No. 1 Unlimited Tax Bonds, Series 2010, including the adoption of a
resolution authorizing the sale of such bonds and the publication of the Notice of
Sale. 2010-28-M1
Attorney West introduced Dan Almon, MUD 1’s Financial Advisor, and Jeff Gulbas, who is here
in place of Pete Tart, Bond Counsel from McCall, Parkhurst & Horton.
Dan Almon explained the procedure for the Notice of Sale, the first payment, which is for
interest only, is scheduled for March 1, 2011. Almon distributed a schedule, showing the
TCMUD No. 1 122 of 142 16 March 2010
TCMUD No. 1 Regular Session Minutes – February 16, 2010 2
preliminary numbers based on 4.5% interest rate par bonds. At this time, Almon advised we are
at a very favorable interest rate and Almon remains confident the rates should remain low as the
market is strong. The bonds will be sold on the Internet, at a competitive sale at 11:00 a.m. in
the morning of the 16th of March, and additional information will be provided to staff.
Jeff Gulbas advises his clients who are very interested in pursuing the construction bid process,
to make the award of those bids contingent on the bond finance at closing.
Attorney West advised that TCEQ would prefer that MUD 1 wait until the Bonds are sold before
beginning construction.
Director Cantrell asked about prepayment, refinance or early termination.
Dan Almon answered there is a 10-year early redemption option where you can take the bonds
away from holders without their consent after 10 years and this is standard, and this is proposed
to be in our documents.
Jeff Gulbas advised the Board that this resolution is a preliminary step in the Bond Sale process
to comply with legal requirements.
Director Budarf moved to approve the sale of Trophy Club Municipal Utility District No. 1
Unlimited Tax Bonds, Series 2010, including adoption of the resolution authorizing the sale of
such bonds and the publication of the Notice of Sale. Director Twomey seconded the motion.
Motion carried unanimously (9-0).
2. Receive District Manager's Report 2010-13-M1
a. Water pumped vs. billed
b. Monthly Revenue for Wastewater Treatment Plant
c. Update on Water Plant Booster Pump (formerly VFD)
d. Update on Candidate Filings for Directors' election in May
e. Update regarding meeting with Richard Kuhlman, Maguire Partners
District Manager Scott advised that the wastewater treatment plant was without power for 16
hours between last Thursday and Friday due to the snow storm; however, the generator kept
the plant running efficiently during this power outage. Lift Station 1 was down for about 6 or 7
hours. Since it, too, had a generator, the lift station continued to work properly.
President Henry provided the Board with an update regarding his meeting with Richard
Kuhlman of Maguire Partners over in Solana. Westlake asked for a meeting regarding the
Water Contract with the City of Fort Worth. President Henry, District Manager Scott and Town
Manager Emmons all attended this meeting and discussed the contract language; however,
there was only one attorney at this meeting.
Attorney West advised that he has not been contacted by anyone regarding this contract.
Trophy Club has a long history with the City of Fort Worth’s Water Department. West advised
that there will be one contract for all of Fort Worth’s customers.
Director Twomey asked District Manager Scott if he could provide a ballpark figure for how
much the Open Records Requests and Ethics Complaints initiated by Ryan Chitwood have cost.
District Manager Scott advised that the MUD 1 Board has paid out over $13,000 in legal fees
relating to Open Records Requests and the recent Ethics Complaint initiated by Ryan Chitwood
and MUD 1 Director Steven Kohs.
TCMUD No. 1 123 of 142 16 March 2010
TCMUD No. 1 Regular Session Minutes – February 16, 2010 3
Action: Discussion only.
3. Receive Finance Director's Report 2010-21-M1
a. Monthly Update
Finance Director DuBose updated the Board and addressed the Board’s questions.
Director Cantrell complimented Finance Director DuBose on the reports presented this month.
Finance Director DuBose spent a lot of time looking at software applications. Dubose stated
there are very few software applications that do municipal or MUD District specific integrated
systems that are also web-based applications. Most applications are client servers, 10-15 years
old, and are older generation. DuBose has identified a product that uses Java 2 Platform, is web
based, internet native, platform neutral, will run on many different systems, and has inherent
remote access. This product will enable for downloads and uploads, very easy integration, very
simple to modify, eliminates much of the redundancy we are dealing with now. DuBose advises
the most elegant capability is its reporting capability, the ease of creating those reports and
repopulation of data. This is a fully integrated system for municipalities and utility districts that
pulls in utility billing, permitting, as well as financial reporting and payroll and it is called
Interprise. Council did approve at last night’s meeting, to move forward with this purchase.
DuBose is looking at putting it in place by the first of May.
Director Hase asked if Interprise could handle Utility Billing information coming from STW.
Finance Director DuBose advised it could.
Director Thomas asked what the overall cost is and what the firewall protections are.
Finance Director DuBose stated that it would be the same cost, $10,000, which is what we are
currently paying for licenses for STW, but we would not be spending the additional monies for
support.
Director Carr asked if there is an upfront cost to transfer data from STW to Interprise, and
Dubose advised there was not.
Finance Director DuBose advised the fee is $7,400/year plus a certain amount hours of training.
District Manager Scott asked DuBose why Haltom City went off of Interprise and went back to
STW after using Interprise.
Finance Director DuBose stated that she believes that Haltom City did not want to put in the
time to learn Interprise, and they were very comfortable with STW.
Action: Discussion only.
4. Review and Approve Disbursements and Variance Report 2010-14-M1
a. January 2010
Director Cantrell moved to approve the January 2010 disbursements and variance report.
Director Twomey seconded the motion. Motion carried unanimously (9-0).
5. Receive Fire Update from Fire Chief Thomas 2010-12-M1
a. To provide Board with a monthly update and address the Board's questions.
Fire Chief Thomas updated the Board and addressed the Board’s questions.
TCMUD No. 1 124 of 142 16 March 2010
TCMUD No. 1 Regular Session Minutes – February 16, 2010 4
Thomas advised that recently we had some elevator emergencies. Thomas advised there are
12 elevators in Town and felt it would be prudent to have his staff trained on how to handle
elevator emergencies. Thomas found a trainer for $300 a day and co-sponsored the class with
the City of Roanoke. The class was held at the Roanoke Rec Center, where they have an
elevator available. Town staff and Roanoke staff were in attendance as well as many other
cities, and the Fire Station made $50. Thomas added that he sent all his supervisors to a
Leadership Conference for three days in Frisco, which was very beneficial and educational.
Action: Discussion only.
6. Receive Town Council Update 2010-15-M1
a. Councilwoman Wilson to provide Board with an update of Council meetings, notices
and relevant business.
Councilwoman Wilson provided the Board with the following updates:
1. Park Board gave an excellent update regarding their bond election
2. Joint Election with Denton County
3. New position / opening for Place 2
4. Wilson asked for an agenda item under Future Agenda Meetings regarding the transfer
of EMS to MUD 1
5. At the March 8th meeting, Wilson asked Council to name a replacement person due to
her resignation
6. Wilson read an outgoing message to the Board, as she will be resigning from Council
effective February 23, 2010, the official resignation date.
Action: Discussion only.
President Henry presented Councilmember Kathleen Wilson with a single yellow rose, stating
that she is our Yellow Rose of Texas.
Board took a brief recess at 7:15 p.m., resuming at 7:20 p.m.
7. Discuss and take appropriate action regarding an Order calling a Joint-General
Election for May 8, 2010 for the purpose of electing five (5) directors to five (5)
places on the Trophy Club MUD 1 Board. 2010-30-M1
Deliberar y tomar el debido curso de acción en relación a la Orden convocando una
Elección General Conjunta para el 8 de mayo de 2010 con el propósito de elegir
cinco (5) directores para ocupar cinco (5) cargos en la Junta de Trophy Club MUD 1.
Director Twomey moved to approve the Order 2010-0216, calling a Joint General Election for
May 8, 2010. Director Thomas seconded the motion. Motion carried unanimously (9-0).
El director Twomey movió a aprobar la Orden 2010-0216 llamamiento una Elección general
Conjunta para el 8 de mayo de 2010. El director Thomas apoyó el movimiento. El movimiento
llevó unánimemente (9-0).
8. Discuss and take appropriate action regarding a Joint Election Agreement and
Contract for Services with Denton County for the May 8, 2010 election. 2010-31-M1
Director Budarf moved to approve the Joint Election Agreement and Contract for Services with
Denton County for the May 8, 2010 election. Director Carr seconded the motion. Floor opened
for discussion. Motion carried unanimously (9-0).
9. Discuss and take appropriate action regarding a Joint Election Agreement
between Trophy Club Municipal Utility District No. 1 and Town of Trophy Club for
the May 8, 2010 election. 2010-32-M1
TCMUD No. 1 125 of 142 16 March 2010
TCMUD No. 1 Regular Session Minutes – February 16, 2010 5
Director Thomas moved to approve the Joint Election Agreement between Trophy Club
Municipal Utility District No. 1 and the Town of Trophy Club for the May 8, 2010 election.
Director Cantrell seconded the motion. Motion carried unanimously (9-0).
10. Review, discuss and take appropriate action regarding restructuring the MUD 1
Rate Order. 2010-33-M1
Director Twomey stated this has been on the Future Agenda list for some time. Twomey
recently attended the AWBD Conference, where they had a Rate Order Seminar. Twomey has
an interest in creating a separate category in our rate order for those customers who may be on
a fixed income. We have approximately 496 residences who have the $25,000 MUD
Homestead Exemption. Twomey would like to work with MUD Manager, look at customer base,
look at a separate rate order for people who are already qualified for the above homestead
exemption, and have possibly the first 6,000 or 8,000 gallons water be charged at a reduced
rate, by developing a model that shows what we can or cannot do, to help mitigate their water
costs on an on-going basis. This would be about 1/6th of our customer base. Twomey would
like the Board’s approval to work with the District Manager and Staff over the next few months
to address the above issue. Board may also want to look at deposit fees for renters. Twomey
advised that we have for a long time looked at data retrieval and organizing it and come back in
two or three months with a recommendation for the Board.
Director Budarf commends Director Twomey for bringing this forward, and advised that this is
part of our budget process. We need to look at deposits for our rental properties, as a high
percentage of our write-offs are for rental properties.
Director Cantrell advised another area we may also want to look at is “temporary meters” and
Cantrell offered to assist, even though at the time he would no longer be a director.
Director Hase moved to appoint Directors Twomey and Cantrell to work on restructuring the
Rate Order. Director Thomas seconded the motion. Motion carried unanimously (9-0).
11. Discuss and take appropriate action regarding an update to the Amendment to the
Information Form. 2010-29-M1
Attorney West explained the recent updates to the Amendment to the Information Form, which
is the new, lower tax rate and reinsertion of the information regarding stand-by fees.
Director Thomas moved to approve the updated Amendment to the Information Form. Director
Cantrell seconded the motion. Motion carried unanimously (9-0).
12. Discuss and take appropriate action regarding SEMO Committee meetings and
findings. 2010-01-M1
Connie White, 119 Trophy Club Drive, addressed the Board. Mayor White thanked the Board
for their time and attention to this matter. A RFQ was submitted to the Town Manager from
MUD 1 on Monday, February 8, 2010. Town Manager Emmons submitted a response to the
RFQ request to District Manager Scott on Friday, February 12, 2010. The Town’s RFQ
response reflects a net savings of $97,000 from current expenditures and is a true number
based on employees. White asked the Board to consider this RFQ, and White also asked the
Board to consider the Finance Department’s request for Interprise software.
Town Manager Emmons addressed the Board, advising that in answer to the RFQ Org Chart,
all employees would still be Town employees, with the 15 100% MUD employees reporting to
District Manager Scott; however, Scott would still be under the Town Manager. The cost for all
the RFQ Services is $300,000, then we have the Fire Department portion, based on the
employee’s salary and bill half back to the MUD, similar to what is done today, bill 100% for
TCMUD No. 1 126 of 142 16 March 2010
TCMUD No. 1 Regular Session Minutes – February 16, 2010 6
salaries and benefits associated with the 15 100% MUD employees.
Director Carr advised that the Board had also requested a quote from the Town strictly for
payroll services, a quote for IT Services and a quote for our portion of the Fire Employees.
Town Manager Emmons advised that in order for the Town to continue to offer the TMRS
Retirement Package and Town procured Health Insurance, it has to be represented that all
employees are Town Employees; therefore, the District Manager is still under the Town
Manager. Emmons stated that one of the issues with today’s arrangement with split 50-50
shared employees, it might have worked ten years ago but it’s not working now. Brandon offers
this contract with some measurables that the Town can provide to the MUD.
Director Carr stated we want to get the most productivity for the best money.
Mayor White stated that the previous arrangement was 50/50, so the MUDs were entitled to
50%, whether that got the job done or not. What the Town is saying now is that the Town will
get the job done. It is a commitment the Town is making. The Town is asking for a chance to
do it, and if it doesn’t work, if the Town doesn’t deliver, then the MUD can cancel the contract.
One of the advantages is the MUD has a fixed cost. The Town believes they can do the job;
they can do it for a fixed amount, and the Town is making the commitment. White advised that
the MUD audit is completed; however, the Town’s audit is not yet completed, because the Town
made the decision that it was important to have the MUD audit done on time. White asked for
the opportunity to prove that the Town can provide the service.
Director Hase advised that a handout with updated information was distributed to everyone.
Hase asked Town Manager Emmons for an explanation regarding Item B in the RFQ.
Town Manager Emmons explained that the Town has certain expenses related to support for all
the employees, and under this scenario, there was no section for the Human Resources
department, which is the support for these employees that are going to be doing these jobs.
Emmons advised that the $28,743 represents the total cost of the Human Resources Services
for the 60 employees that will now be providing some sort of service to help support those 15
100% MUD employees who are truly dedicated to the MUD plus the 6.5 fire personnel.
Director Hase clarified that the $28,743 is for Human Resources and not payroll.
Town Manager Emmons replied that the correct title for B is Human Resources/Admin costs.
This is a service level contract, plus all the support, plus all the administrative support, all the
daily processes. Emmons clarified that the $99,000 for Fire is for 6.5 firefighters, including the
Chief, and that includes the administrative support for the Fire Chief. There is actually a
position in the $99,000 of $26,000, which is the administrative assistant for the Fire Chief, along
with the administrative overhead.
Director Budarf stated that the current costs for IT (Information Technology) is $197,000 and the
RFQ bid from the Town was $49,000 for IT.
Town Manager Emmons advised the $49,000 for IT is for salary only; it does not include
software, equipment or hardware. Currently the budget is $77,000 for salaries, and $120,000
for miscellaneous; i.e., investment, hardware, and licensing for software. Emmons stated that
the Town is offering a 25% discount on all of the administrative functions in the Town and the
Town is making the assumption that the Town will be picking up those additional costs.
Director Cantrell replied that in reality the MUDs have done that through organization by going
TCMUD No. 1 127 of 142 16 March 2010
TCMUD No. 1 Regular Session Minutes – February 16, 2010 7
from three entities down to one and the demand that we put on those departments.
Director Carr advised that the original chart provided by the Town for Health Insurance had
errors and many of the cell formulas were incorrect.
MUD Secretary Moore explained that after a careful evaluation of the Town’s chart for Health
Insurance and comparing the costs for health insurance provided by the MUD’s insurance
broker and the deduction of $26,000, which is the amount the MUDs are currently spending for
medical insurance for the ten (10) shared employees, there is a $7,000 annual savings in health
care costs should we adopt Column D or Column E.
Director Hase said Chart No. 2 has been updated. The $87,000 fee to move the unvested
employees from TMRS to TCDRS is no longer applicable. TCDRS has clarified that the
unvested employees, those employees with less than five years of service, the money that was
contributed to TMRS stays with TMRS. TMRS and TCDRS are “sister” retirement services and
therefore each entity recognizes time for those employees who have time in each retirement
plan.
Director Hase stated that if there is motion to be made, the SEMO Committee has presented all
the changes that we have made in the last week or so, and the SEMO Committee’s
presentation is complete.
Director Boclair asked if there was a monetary impact on Column E, or would either one of
those options lead you to the same approximate value.
Director Hase stated that there is not a monetary impact on Option 1 or Option 2. Hase stated
the difference between Option 1 and Option 2, is that Option 1 is a complete separation from the
Town with the MUDs moving their employees over to the TCDRS Retirement System. Option 2
is a “lease agreement” with the Town, which is a different agreement from what the Town
interpreted. The MUD’s interpretation is we would contract with the Town to pay everybody,
including the 100% MUD employees, and the Town would bill us a “fee” for running that payroll.
The MUD retains total control of their employees, and the only thing the Town is doing is payroll
for the 100% MUD employees.
Director Thomas added that the benefit of Option 2 is there is no change in health care for all
employees and there is no need to change retirement systems.
Director Hase stated that Town Manager Emmons stated at the meeting on Monday, that
Emmons does not want to bid payroll as a separate item. Hase would like to offer the Town to
adopt Option 2, because of the impact of the increase in health insurance costs to Town and its
employees. Hase feels it is better for both entities to go for Option 2 to offset the extra cost for
Town’s Health Insurance. Hase asked Town Manager Emmons to give the MUD Board a quote
for payroll services. This will help both sides, the MUD and the Town. The SEMO Committee
encourages the Town/Manager to give the MUDs a quote for payroll services.
Director Thomas realized from the recent SEMO meetings that with the right persons in place,
we can do the work ourselves.
Director Twomey questioned that if the lowest cost option is Column D, why are we favoring
Column E.
Director Hase answered that if we try in-house, Column E, for a year, or we try the CPA for a
year, and we test it, and we don’t like it, which would be the easiest to transfer out of. If we go
TCMUD No. 1 128 of 142 16 March 2010
TCMUD No. 1 Regular Session Minutes – February 16, 2010 8
to the CPA first, then we would have an employee in-house, and you have an employee you
may or may not need. It would be easier to start with Column E and go to Column D than it
would be to go from Column D to Column E.
Director Twomey asked for District Manager Scott’s opinion or input.
District Manager Scott, believes it will be cleaner if we have our own employees. The current
process is not working. If we go with Town Manager Emmons’ offer, Scott would need to have
more discussions with Town Manager Emmons.
Director Boclair stated Column E is the best scenario for the MUD. Column D may save us a
few dollars. There are a couple things that need to be considered here. Most of us have jobs
outside of here, and what Boclair is facing at work is how to get more for less, better
efficiencies, and it comes down to dedicated resources; that’s how you get your efficiencies.
Mayor White admitted that the MUD’s audit is done and the Town’s is not. As a resident of both
entities, Boclair doesn’t want the Town running contract services for another entity. Boclair
wants the Town to focus on doing the best job the Town can do on their portion. Boclair stated
that in his opinion, Option 2 for Column E gives everybody the best of everything. It gives this
Board the control over its business; with MUD having dedicated resources, and it also gives the
added benefit of this pooled resource for Health Insurance.
Town Manager Emmons asked the Board to consider the impacts that this decision will have on
the employees. Emmons understands that there is an email from TCDRS which states it is not
going to impact and can be moved over. Emmons read from the email, “They can leave their
TMRS open and draw retirement with TMRS when they meet TMRS eligibility.” If you have less
than ten (10) years, you don’t get to retire until you are 62. Emmons still has questions whether
or not, when employees separate from TMRS; they will not lose their vesting with TMRS.
Emmons’ understanding is if you’re not vested with TMRS, you don’t get to keep your money in
there. Emmons asked the Board to get a firm confirmation from TCDRS if it can go through
there, because the email does not state that if an employee has less than five years, that the
Town’s contribution will be honored. Emmons’ understanding is that the Town’s money can’t be
moved into TCDRS, and under the TMRS program, if you are not vested, you do not get to keep
the Town’s money in the program.
Director Twomey made a two-part motion; Twomey moved to adopt Column E of Chart 1 from
the SEMO Committee; and Twomey further moved that the MUD Board recommends the Town
Council adopt Option 2 by the March 16th MUD 1 meeting, to give the Town Council time to
consider Option 2. Director Boclair seconded the motion. Floor opened for discussion.
Motion carried unanimously (9-0).
13. Discuss and take appropriate action regarding the New Intergovernmental
Contract for Employee Services and the Amendment to New Intergovernmental
Contract for Employee Services. 2010-34-M1
Action: Tabled to March meeting.
14. Review and Approve Minutes: 2010-35-M1
a. January 19, 2009 - Regular Session
b. January 25, 2009 - Special/Joint Session
Director Budarf moved to approve the January 19th and January 25th minutes. Director Thomas
seconded the motion. Motion carried unanimously (9-0).
TCMUD No. 1 129 of 142 16 March 2010
TCMUD No. 1 Regular Session Minutes – February 16, 2010 9
15. Set Next Meeting Date 2010-17-M1
a. Regular Session: Tuesday, March 16, 2010, 6:00 p.m.
The Board agreed to hold their next meeting on Tuesday, March 16, 2010, 6:00 p.m.
16. Review Monthly Tax Collection Report 2010-18-M1
a. January 2010
Action: Discussion only.
17. Items for Future Agendas 2010-19-M1
a. MUD 1's water contract with City of Fort Worth
b. Funding of Future Capital Projects; i.e., 2 MG Storage Tank
c. Water Study (Twomey)
d. Disaster Planning
e. Creation of TCMUD1 website (09-115-M1)
f. Agreement between TCMUD1 and the Trophy Club Country Club (TCCC) for the use
of a portion of TCCC's parking lot.
g. Fire Station Committee
h. Trinity Well – March agenda
i. Report from Attorneys regarding Update to Fire Plan
j. Plan a follow-up Joint Meeting with Town Council - 2010-37-M1
k. Form an Implementation Committee- 2010-36-M1
The Board added items I, J and K to Items for Future Agendas.
Director Budarf thanked Councilmember Wilson for standing up for what she believes in and for
her dedication to the Town, adding that she will be missed.
President Henry called on each of the Directors to offer their comments on Wilson’s departure.
Director Boclair thanked Kathleen Wilson for her service and dedication to the Town, and
appreciated by more people than she realizes.
Director Fair stated he admired Kathleen for her passion, agrees that she will be missed and
wishes her the best.
Director Thomas stated that it has been a joy to work with and she has been honorable.
Director Cantrell stated that is has always been a pleasure to work with Kathleen and Kathleen
believes in what she says and does her research and the citizens of Trophy Club are going to
miss Kathleen, and thanked Kathleen from the Citizens as well as from he and Margi.
District Manager Scott offered that Kathleen Wilson was a breath of fresh air to work with, and
it’s been a pleasure to work with Kathleen.
Director Carr as a resident, Carr really appreciates her dedication and her sacrifice. Kathleen
was one of the few who investigated the issues and represented the residents and not her own
agenda; and thank you!
Director Hase – Councilmembers and MUD Directors come and go, and Hase is proud to be
considered Wilson’s friend.
Director Twomey stated that this is not good-bye, but just another chapter of your life. Twomey
has enjoyed working with Wilson.
Attorney West has enjoyed working with Kathleen, and noticed the courage that she brings to
her convictions, her willingness to share those even though they may be unpopular on particular
issues and to take a stand. West will miss Kathleen, especially for what she brought to the
table.
Action: Discussion only.
TCMUD No. 1 130 of 142 16 March 2010
TCMUD No. 1 Regular Session Minutes – February 16, 2010 10
Public Comments or Presentations.
No citizens approached the Board.
Adjourn.
Meeting adjourned at 9:22 p.m.
___________________________ _____________________________
DEAN HENRY, Joint President JIM BUDARF, Joint President
TCMUD No. 1 TCMUD No. 1
ATTEST:
____________________________ ______________________________
JIM HASE, Joint Secretary JAMES C. THOMAS, Joint Secretary
TCMUD No. 1 TCMUD No. 1
____________________________
MARY MOORE (Seal)
MUD Secretary
TCMUD No. 1 131 of 142 16 March 2010
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-18-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:1/13/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:1/19/2010
Title:Review Monthly Tax Collection Report
a. February 2010
Attachments:Feb Tax Collection Report.pdf
Action ByDate Action ResultVer.
Trophy Club Municipal Utility
District No. 1
2/16/2010 1
Trophy Club Municipal Utility
District No. 1
1/19/2010 1
TCMUD No. 1 132 of 142 16 March 2010
12010-18-M1 Version:File #:
Title
Review Monthly Tax Collection Report
a. February 2010
Body
Per Denton County Tax Office, we will continue to get reports for MUD 1 and MUD 2 until
December 2010.
TCMUD No. 1 133 of 142 16 March 2010
TCMUD No. 1134 of 14216 March 2010
TCMUD No. 1135 of 14216 March 2010
TCMUD No. 1136 of 14216 March 2010
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-17-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:1/13/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:3/16/2010
Title:Set Next Meeting Date
a. Regular Session: Wednesday, April 8, 2010, 6:00 p.m.
b. Special Joint Session with Town Council - date to be determined.
Attachments:March 2010 Calendar.pdf
April 2010 CALENDAR.pdf
Action ByDate Action ResultVer.
TCMUD No. 1 137 of 142 16 March 2010
12010-17-M1 Version:File #:
Title
Set Next Meeting Date
a. Regular Session: Wednesday, April 8, 2010, 6:00 p.m.
b. Special Joint Session with Town Council - date to be determined.
TCMUD No. 1 138 of 142 16 March 2010
13/10/2010 8:56 AMMary MooreSMTWT F S1234567 8 9 10 11 12 1314 15 16 17 18 19 2021 22 23 24 25 26 2728 29 30 31March 2010SMTWT F S1234567891011 12 13 14 15 16 1718 19 20 21 22 23 2425 26 27 28 29 30April 2010March 2010MondayTuesdayWednesdayThursdayFridaySat/SunMarch 112:30pmFinance Meeting (PS Conference Room)6:30pmEDC B (Board Room)26:00amRepublican Party Primary Election (Svore Municipal 3:00pmStephanie Gohlke - Internal Meeting (PS Conference Room)4:00pmPolice Chaplain Meeting (internal) 310:00amChair Massage (SvoreMunicipal Buildling Board Room)10:00amInternal Meeting (PS Conference Room)7:00pmTenatively - 25th Anniversary Committee (PS Conf 4Audit Committee and Bond Rating10:00amTraining - Identity Theft/Liberty Mutual 2:00pmTraining - Identity Theft/Liberty Mutual 7:00pmP&Z Commission (Council Chambers)7:00pm25th Anniversary 510:00amFinance Meeting (Internal) (PS Conference Room)678Finance Meeting (internal) (PS Con7:00pmMOVED - Council (MUD Bd Rm)99:00amStaff Meetings (SvoreMunicipal Building Board Room)6:30pmTree Board (PS Conference Room)7:00pmParks & Recreation Board (PS Conf Room)1011121314159:00amUS Census Bureau (Svore Council Chamber)166:00pmTCMUD No.1 Meeting(Svore Municipal Buildling Board Room)7:00pmTrophy Club Park SubCommittee (PS Conference Room)1710:00amEAC (PS Conference Room)12:00pmCOURT (Svore Municipal Building Boardroom)189:00amUS Census Bureau (Svore Council Chamber)6:00pm25th Town Anniversary Committee (PS 7:00pmP&Z Commission (Council Chambers)192021229:00amUS Census Bureau (Svore Council Chamber)6:30pmEDC A (PS Conference Room)7:00pmMOVED - Council (MUD Bd Rm)239:00amStaff Meetings (SvoreMunicipal Building Board Room)4:00pmTBD - ZBA (Svore Municipal Buildling Board Room)7:00pmCitizens Police Academy Alumni 249:00amUS Census Bureau (Svore Council Chamber)256:00pmTML Region VIII Meeting (TCCC)6:00pm Public Safety Advisory Committee (Internal) (Police Dept. Training Room)7:00pmTCWC (PS Conference Room)262728299:00amUS Census Bureau -Svore Council Chamber (Svore Council Chamber)30319:00amUS Census Bureau (Svore Council Chamber)TCMUD No. 1139 of 14216 March 2010
13/10/2010 8:56 AMMary MooreSMTWT F S1234567891011 12 13 14 15 16 1718 19 20 21 22 23 2425 26 27 28 29 30April 2010SMTWT F S12345678910111213141516 17 18 19 20 21 2223 24 25 26 27 28 2930 31May 2010April 2010MondayTuesdayWednesdayThursdayFridaySat/SunApril 17:00pmP&Z Commission (Council Chambers)2GOOD FRIDAY3459:00amUS Census Bureau (Svore Council Chamber)6:30pmEDC B (Board Room)64:00pmPolice Chaplain Meeting (internal) (Police Training Room)7:00pmParks & Recreation Board (Svore Municipal Building Board Room)79:00amUS Census Bureau (Svore Council Chamber)10:00amChair Massage (PS Conference Room)6:00pmMUD 1 Meeting (Svore Municipal Buildling Board R87:00amApril Run-Off Election(Svore Building )97:00amApril Run-Off (Svore Building)108:00amTCWC Garage Sale11129:00amUS Census Bureau (Svore Council Chamber)7:00pmMOVED- Council (MUD Bd Rm)136:00amRepublican Party Primary Election (Svore Municipal 9:00amStaff Meetings (SvoreMunicipal Building Board Room)6:30pmTree Board (PS Conference Room)149:00amUS Census Bureau (-Svore Council Chamber)157:00pmP&Z Commission (Council Chambers)161718199:00amUS Census Bureau ( Svore Council Chamber)206:00pmTCMUD No.1 Meeting(Svore Municipal Buildling Board Room)7:00pmTrophy Club Park SubCommittee (PS Conference Room)2110:00amEAC (PS Conference Room)12:00pmCOURT (Svore Municipal Building Boardroom)226:00pm Public Safety Advisory Committee (Internal) (Police Dept. Training Room)7:00pmTCWC (PS Conference Room)23249:00amCrud Mobile25268:00amTown/MUD General Election (Svore (Council Chambers))6:30pmEDC A (PS Conference Room)7:00pmMOVED - Council (MUD Bd Rm)278:00amTown/MUD General Election (Svore (Co9:00amStaff Meetings (PS Conf Room)4:00pmTBD - ZBA (Svore Municipal Buildling 7:00pmCitizens Police Academy Alumni 288:00amTown/MUD General Election (Svore (Council Chambers))298:00amTown/MUD General Election (Svore (Council Chambers))308:00amTown/MUD General Election (Svore (Council Chambers))TCMUD No. 1140 of 14216 March 2010
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-19-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:1/13/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:1/19/2010
Title:Items for Future Agendas
a. MUD 1's water contract with City of Fort Worth
b. Funding of Future Capital Projects; i.e., 2 MG Storage Tank
c. Water Study (Twomey)
d. Disaster Planning
e. Creation of TCMUD1 website (09-115-M1)
f. Re-establish the Fire Station Committee
Attachments:
Action ByDate Action ResultVer.
TCMUD No. 1 141 of 142 16 March 2010
12010-19-M1 Version:File #:
Title
Items for Future Agendas
a. MUD 1's water contract with City of Fort Worth
b. Funding of Future Capital Projects; i.e., 2 MG Storage Tank
c. Water Study (Twomey)
d. Disaster Planning
e. Creation of TCMUD1 website (09-115-M1)
f. Re-establish the Fire Station Committee
TCMUD No. 1 142 of 142 16 March 2010