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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