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HomeMy WebLinkAbout2017-0725 Special Meeting Joint Session Agenda PacketTROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1  BOARD OF DIRECTORS  SPECIAL MEETING ‐ JOINT SESSION WITH  TOWN OF TROPHY CLUB TOWN COUNCIL   100 MUNICIPAL DRIVE  TROPHY CLUB, TEXAS 76262  July 25, 2017 8:00 p.m.  Svore Municipal Boardroom  SPECIAL MEETING AGENDA   CALL TO ORDER AND ANNOUNCE A QUORUM   JOINT SESSION  1. Review of and take appropriate action regarding the Interlocal Cooperation Agreement for  Administration of Fire Protection Services between the Town of Trophy Club and Trophy Club  Municipal Utility District No. 1.   attachments:  Staff Report     Interlocal Cooperation Agreement for Administration of Fire Protection Svc.                            Annual Report April 2017‐July 2017                            Vehicle Maintenance and Certification Records                            2016 Building Inspection Records                            2017 Building Inspection Records    2. Consider and take appropriate action regarding the Fire Protection Services Fiscal Year 2018 budget.   attachments:  Town of Trophy Club Fire Protection Svc. FY 2018 Budget          District Preliminary Fire Budget FY 2018    3. Receive an update from Fire Chief Wade Carroll regarding the Standard Operating Procedures for the  Fire Department.   attachments:  Staff Report          Policy Acknowledgement Report     4. Consider and take appropriate action regarding an Amendment to Section 7.1, Retail Customer  Charge, Subsection (a) of the Amended and Restated Contract for Wholesale Water Supply and  Wastewater Treatment Services and Water and Wastewater Operational Services.          attachment:  Revised – Amended Wholesale Water Supply and Wastewater Treatment Services    Contract.    ADJOURN   THE STATE OF TEXAS    §   COUNTIES OF DENTON AND TARRANT §    THIS NOTICE CERTIFIES THAT ON FRIDAY, JULY 21, 2017, BY 6:30 P.M., THE MEETING AGENDA OF TROPHY  CLUB MUNICIPAL UTILITY DISTRICT NO. 1, BOARD OF DIRECTORS SPECIAL MEETING TO BE HELD ON  TUESDAY, JULY 25, 2017 AT 8:00 P.M., WAS POSTED ON THE FRONT WINDOW OF TROPHY CLUB  MUNICIPAL UTILITY DISTRICT NO. 1  ADMINISTRATION BUILDING, 100 MUNICIPAL DRIVE, TROPHY CLUB,  Trophy Club Municipal Utility District No. 1 1 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet TEXAS, WHICH IS A PLACE CONVENIENT TO THE PUBLIC AND WITHIN THE BOUNDARIES OF THE DISTRICT  AND NOTIFICATION WAS POSTED TO THE DISTRICT WEBSITE, IN ACCORDANCE WITH SECTION 49.063 OF  THE WATER CODE AND SECTION 551.054 OF THE TEXAS GOVERNMENT CODE, AS AMENDED.    _______________________________  LAURIE SLAGHT, DISTRICT SECRETARY                Trophy Club Municipal Utility District No. 1 2 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet To: Mayor and Town Council From: Wade Carroll, Fire Chief CC: Thomas M. Class, Sr., Town Manager Holly Fimbres, Town Secretary/RMO Re: Administration of Fire Department Services Joint Session Meeting, July 25, 2017 Agenda Item: Review of and take appropriate action regarding the Interlocal Cooperation Agreement for Administration of Fire Protection Services between the Town of Trophy Club and the Trophy Club Municipal Utility District No. 1 (Town Council). Explanation: The Interlocal Agreement between the Trophy Club Municipal Utility District (TCMUD) No. 1 and the Town of Trophy Club for the Administration of Fire Department Services requires that the Fire Department provide proof of performance in the form of an annual audit checklist, Attachment “B”, to ensure the readiness and proper maintenance of TCMUD No. 1 owned assets. The agreement requires a single report submitted by the Fire Department annually after the end of the fiscal year. Interim Fire Chief Rick Lasky submitted a preliminary report in April of 2017. The documentation attached includes an updated Attachment “B” Annual Report and supportive documentation to be reviewed as part of this agenda item. The final report will be submitted during the month of October 2017 with subsequent reports being submitted only on an annual basis. Attachments: • Interlocal Cooperation Agreement for Administration of Fire Protection Services • Attachment B - Annual Report • Vehicle Maintenance and Certification Records • 2016 Building Inspection Records • 2017 Building Inspection Records Trophy Club Municipal Utility District No. 1 3 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet INTERLOCAL COOPERATION AGREEMENT FOR ADMINISTRATION OF FIRE PROTECTION SERVICES THIS AGREEMENT is made and entered into this 19th day of September, 2016, by and between Trophy Club Municipal Utility District No. 1, a district created pursuant to Section 59, Article XVI, Texas Constitution and the Texas Water Code, Chapter 54 hereinafter referred to as "District", and the Town of Trophy Club, a home rule municipal corporation, hereinafter referred to as "Town". WITNESSETH : WHEREAS, District is a duly organized political subdivision of the State of Texas engaged in the administration of fire protection and related services for the benefit of those persons residing, traveling within, or being physically located within the boundaries of District, which boundaries include, without limitation, portions of the incorporated and unincorporated limits of the Town of Trophy Club, Texas; and WHEREAS, District and Town operate pursuant to the 2008 Interlocal Cooperation Agreement for Fire Protection Services as amended by the First Amendment to 2008 Interlocal Cooperation Agreement for Fire Protection Services hereinafter collectively "2008 ILA for Fire Protection Services") and District provides firefighting services to residents of the Trophy Club Public Improvement District No. 1 hereinafter also referred to as "PID"); and WHEREAS, the PID pays their part of the fire expenditures through an assessment from the Town; and WHEREAS, the provision of Fire Functions is a governmental function that serves the public health and welfare, promotes efficiency and effectiveness of local governments, and is of mutual concern to the contracting parties; and WHEREAS, District is individually authorized to perform Fire Functions pursuant to Section 49.351 of the Texas Water Code and the Town is individually authorized to perform Fire Functions pursuant to its police powers and the parties desire to enter into this Agreement regarding the performance of Fire Functions; and WHEREAS, the Interlocal Cooperation Act, Texas Government Code, Chapter 791, et seq., as amended (the "Act") provides authority for governmental entities of the State of Texas to enter into interlocal agreements with each other regarding governmental functions and services as set forth in the Act; WHEREAS, Town and District have determined it necessary and appropriate to enter into a new agreement for the operation of Fire Protection Services superseding the 2008 ILA for Fire Protection Services; and Trophy Club Municipal Utility District No. 1 4 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet NOW, THEREFORE, District and Town, for and in consideration of the recitals set forth above and terms and conditions below, agree as follows: 1. Incorporation /Term 1.1 Incorporation of Recitals. The foregoing recitals are agreed upon and incorporated herein as a part of this Agreement. 1.2 Term. This Agreement shall become effective upon approval by each of the respective governing bodies of Town and District and upon execution by their respective authorized representatives, and shall remain in effect for an initial trial period of five (5) years, commencing October 1, 2016 and terminating on September 30, 2021. The parties shall have a joint meeting to review the agreement in July 2017. Upon expiration of any five (5) year term, this agreement shall automatically be extended for an additional five (5) year term unless written notice of nonrenewal is given in accordance with Section X. II. Definitions 2.1 As used herein, the words and phrases hereinafter set forth shall have the meanings as follows: A. "Eligible Persons" shall mean those persons residing, traveling within, or being physically located within the corporate boundaries of the Town of Trophy Club, Texas and/or District, including without limitation both incorporated an unincorporated areas, and shall also include those persons residing, traveling within, or being physically located within the corporate boundaries of another political subdivision of the State of Texas with whom Town and/or District have a mutual aid agreement to provide fire protection services and those persons located within the fire district as designated by Denton County and accepted by Town and/or District. B. "Emergency Medical Services" shall mean any and all of the customary and usual activities of trained paramedics providing emergency health care services, C. "Fire-fighting Activities", "Fire Protection Services", or "Fire Functions" shall mean any and all of the customary and usual activities of a fire department, including fire suppression, fire prevention, training, safety education, maintenance, communications, photography, and administration. Page 1 of 12 Trophy Club Municipal Utility District No. 1 5 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet III. Budget and Funding 3.1 Budget and Funding A. Budget Preparation: Town shall prepare a budget for Fire Protection Services and present that budget to the Town Council and District for approval at a joint meeting before August 1 of each year. Both parties shall approve the contractual budget by August 15 of each year. Budget amendments requiring additional funding shall be submitted for approval to both Town Council and District. This Agreement does not impact the authority of District to set the appropriate tax rate for District In order to facilitate a level emergency services assessment for the Trophy Club Public Improvement District pursuant to the annual Service and Assessment Plan or SAP" and District Fire Tax, District shall provide outstanding debt, lease and reserve reimbursement obligations as illustrated in Attachment "A" to this Agreement. Changes and/or updates to Attachment "A" shall be provided to Town prior to June 30 of each year of this Agreement, and any renewal term. B. Funding: District and Town shall share the funding of all costs associated with Fire Protection Services provided to Eligible Persons as defined herein, pursuant to the approved Budget and in accordance with the terms of this Agreement. Such funding shall be accomplished as follows: 1) District shall fund 50% of all costs associated of personnel providing Fire Protection Services provided to Eligible Persons as defined herein, in accordance with the terms of the Town approved Budget through the assessment and collection of an annual Fire Tax on the property owners of District. 2) District shall fund 100% of all costs of services and supplies associated with Fire Protection Services and services associated with operating the Fire Department in accordance with the terms of the Town approved Budget through the assessment and collection of an annual Fire Tax on the property owners of District. 3) District shall fund 100% of all fire capital replacement costs through an annual capital replacement contribution as defined herein, in accordance with the terms of the approved Fire Budget through the assessment and collection of an annual Fire Tax on the property owners of District. 4) The Town shall fund all costs associated with Fire Protection Services to Eligible Persons by an annual assessment on and collection from Eligible Persons owning real property and improvements thereon located within the Town but not within District and levied in accordance with the Public Improvement District Act, Chapter 372 of the Texas Local Government Code, as amended; such Page 2 of 12 Trophy Club Municipal Utility District No. 1 6 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet assessment shall be adopted by Town Council through the approval of the Annual Service and Assessment Plan for Authorized Services for the Trophy Club Public Improvement District No. 1. If the beneficial assessment determined in the SAP (Service and Assessment Plan) is an amount different from the fire tax of District, the Parties agree to negotiate the reconciliation of the difference. 5) District shall continue to pay all outstanding debt obligations incurred and existing prior to the commencement of the contract term. 6) Budget overages or shortages shall be applied proportionally during the months of April to September of the current budget year. C. Payment: Payments from the District for the purpose of Fire Protection Services shall be paid to the Town on a monthly basis. The monthly payments shall constitute the entirety of the annual contract divided by twelve (12) months, minus total PID assessment fee for Fire Protection services, beginning on October 31 and concluding on September 30 of each fiscal year of the term of the Agreement, and thereafter for each successive year in which this Agreement is in effect. Payments will become past due fifteen (15) business days after the established due date. The total amount of existing fire protection debt service shall be netted out. IV. Operational Obligations and Rights of the Parties 4.1 District Obligations and Rights: District shall perform all of its duties and obligations as herein stated and shall devote sufficient time and attention to the execution of such duties in full compliance with the terms and conditions of this Agreement. 4.2 Town Obligations and Rights: A. Upon the effective date of this Agreement, Town shall be responsible for providing Fire Protection Services to Eligible Persons, including but not limited to assuming full responsibility for the operational control and management of Fire Protection Services, previously under the control and direction of District. The Town's responsibilities hereunder shall include, without limitation, the control, and management of all personnel as more specifically set forth in Section VI and all policy and personnel matters related to and arising out of providing Fire Protection Services and the obligations specifically assumed hereunder. B. Town, acting through its Town Manager or designees, shall oversee the daily operations of Fire Protection Services. C. The officers and employees of Town shall perform all duties and responsibilities of the District necessary to render Fire Protection Services to all Eligible Persons. Page 3 of 12Trophy Club Municipal Utility District No. 1 7 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet D. It shall be the responsibility and duty of Town, its officers and employees, within the sole discretion of such officers and employees, to determine priorities in the dispatching and use of such equipment and personnel to perform Fire Functions under this Agreement. E. Town shall have the authority to enter into mutual aid agreements on behalf of District and Town to provide Fire Protection Services as deemed appropriate by Town. The term of such agreements shall run concurrently with the term of this Agreement and shall terminate upon termination of this Agreement. F. Town shall perform all of its duties and obligations as herein stated and shall devote sufficient time and attention to the execution of such duties provided on behalf of District in full compliance with the terms and conditions of this Agreement and shall provide immediate and direct supervision of employees, agents, contractors, sub- contractors and/or laborers, if any, in the furtherance of the purposes, terms and conditions of this agreement for the mutual benefit of Town and District. G. Town will provide an annual report regarding status and maintenance of fire station, engine/pumper, brush truck, and ladder truck. Additionally, Town will continue to meet and/or exceed the requirements set by the NFPA and TCFP. H. District may hire Fire Auditors of their choice to review physical Fire Department assets and operator practices on an annual basis for benefit of District and Town; audit may occur during the month of April. (See Attachment "B"). All Auditors fees will be paid by the District. I. The Town shall provide the District timely notice of any accident, damage, dangerous or defective condition relating to District assets under this agreement. V. Assets 5.1 Ownership. Prior to the commencement of this agreement, all assets owned or directly purchased by District utilized for Fire Protection Services shall remain the property of District. This Agreement does not affect right, title or interest to such property. All assets owned or directly purchased by Town utilized for Fire Protection Services shall remain the property of the Town. This Agreement does not affect right, title, or interest to such property. 5.2 Ownership Upon Termination. Upon termination of this Agreement, each party shall retain ownership of assets purchased with its respective funds unless both Town and District elect to negotiate terms to transfer ownership to the other party. Page 4 of 12Trophy Club Municipal Utility District No. 1 8 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet VI. Employee Supervision and Organization 6.1 Control and Oversight. Town shall have control and oversight over Fire Protection Services and control and oversight over Emergency Medical Services. Town shall have exclusive authority to establish Standard Operating Procedures for Fire/EMS Protection Services. (hereinafter collectively," SOPs"). 6. 2 Benefits and Human Resources Services. In accordance with Town personnel policies, Town shall provide benefits and human resources services to all eligible employees providing Fire Protection Services. DISTRICT shall provide funding as set forth in Subsection 3.1(B). The Parties understand and agree that on and after the effective date of this Agreement, all employees providing Fire Protection Services shall be Town employees and shall be solely subject to Town personnel policies and SOPs. VII. Consideration The parties agree that sufficient consideration for this Agreement exists and is found in the Payments Made pursuant to Section III of this Agreement and in the cross promises set forth above and other good and valuable consideration. District's agreement to fund Fire Functions as provided in Section III above in exchange for Town's agreement to oversee and manage Fire Functions for Eligible Persons as provided in Section IV above, shall serve as sufficient consideration under this Agreement. Each party hereto paying for the performance of governmental functions or services shall make such payments from current revenues legally available to the paying party. Each party further agrees that it is fairly compensated for the services or functions performed under the terms of this Agreement VIII. Negligence of Parties/Insurance 8.1 Town Negligence/Insurance. Town shall be responsible for its sole negligence. Town agrees to and accepts full responsibility for the acts, negligence, and/or omissions of all Town's officers, employees, and agents acting under its direction. Town shall provide liability insurance to cover the acts and omissions of Town, its officers, employees, and agents performing obligations under this agreement, including but not limited to all personnel providing Fire Protection Services. 8.2 District Negligence/Insurance. District shall be responsible for its sole negligence. District agrees to and accepts full responsibility for the acts, negligence, and/or omissions of all District's officers, employees, and agents acting under its direction. District shall maintain general liability insurance to cover District owned or leased assets. District shall provide liability insurance to cover the acts and omissions of District, its officers, employees, and agents performing obligations under this Agreement. Page 5 of 12Trophy Club Municipal Utility District No. 1 9 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Ix. Immunity The fact that Town and District accept certain responsibilities relating to the rendering of Fire Protection Services under this Agreement as part of their responsibility for providing protection for the public health makes it imperative that the performance of these vital services be recognized as a governmental function and that the doctrine of governmental immunity shall be, and it is hereby, invoked to the extent possible under the law. Neither Town nor District waives any immunity or defense that would otherwise be available to it against claims arising from the exercise of governmental powers and functions. X. Default /Termination In the event that either party hereto breaches any term or condition of this Agreement, this Agreement may be terminated by the aggrieved party if such default is not cured within a period of one hundred eighty (180) days after receipt of written notice of default by the party allegedly in breach of its obligations hereunder. At the option of the aggrieved party, if such default is not cured within the one hundred eighty (180) day period, this Agreement shall immediately terminate without further notice, unless an extension is mutually agreed and approved by both Town and District. Xl. Entire Agreement This Agreement represents the entire and integrated agreement between Town and District and supersedes all prior negotiations, representations, and/or agreements, either written or oral. This Agreement may be amended only by written instrument signed by both parties. XII. Venue The laws of the State of Texas shall govern this Agreement and each of its terms and provisions, including but not limited to the rights and duties of the parties hereto, and exclusive venue shall be in Denton County, Texas. XIII. Severability In the event that any portion of this Agreement shall be found to be contrary to law, it is the intent of the parties hereto that the remaining portions shall remain valid and in full force and effect to the extent possible. Page 6 of 12Trophy Club Municipal Utility District No. 1 10 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet XIV. Non-Waiver All rights, remedies, and privileges permitted or available to either party under this Agreement or at law or equity shall be cumulative and not alternative, and election of any such right, remedy, or privilege shall not constitute a waiver or exclusive election of rights, remedies or privileges with respect to any other permitted or available right, remedy or privilege. Additionally, one instance of forbearance by the either party in the enforcement of any such right, remedy or privilege against the other party, shall not constitute a waiver of such right, remedy or privilege by the forbearing party. A default by either party under this Agreement shall not result in a forfeiture of any rights, remedies, or privileges under this Agreement by such defaulting party. XV. ANNUAL FINANCIAL AUDIT Town shall provide any documents requested by auditors of District no later than November 30 of each year. Page 7 of 12Trophy Club Municipal Utility District No. 1 11 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Signature Authority The undersigned officer and/or agents of the parties hereto are the properly authorized officials and have the necessary authority to execute this agreement on behalf of the parties hereto and each party hereby certifies to the other that any necessary resolutions extending such authority have been duly passed and are now in full force and effect. EXECUTED in duplicate originals. The effective date of this Agreement shall be L`c1, 2016. TOWN OF TRP#-1= TE AS By: Name: C. Nick Sanders Title: Mayor O Py ate: ATTEST: A By: Name: Holl Fimbi-s Aim m Title: Town Secreta / RM® 17 Ry 1 , 1 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 By: tf C------- Name: Kevin R. Carr Title: President ATTES4 Date: r 1,-4. By: Name.James Hase Title: Secretary/Treasurer CILUB M OQ •• -(AR/i,14 ti// i z o;•- W c . z c.• o T•4 y• TEXAS •,•\\\ Page 8 of 12Trophy Club Municipal Utility District No. 1 12 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet ACKNOWLEDGEMENTS STATE OF TEXAS COUNTY OF DENTON § COUNTY OF TARRANT § This instrument was acknowledged before me on the V(1 day of Y.rrtDtf , 2016 by C. Nick Sanders, Mayor of the TOWN OF TROPHY CLUB, TEXAS, a home rule municipal corporation, on behalf of such corporation o<,re-. HOLLY FPublici,re- I Notary Public s'`,,,.,, I SISTATEOFTEXAS Mrc°"n'.7n5rlots NotaryPubii in and for the State of Texas STATE OF TEXAS COUNTY OF DENTON § COUNTY OF TARRANT § This instrument was acknowledged before me on the 19-'14dayof MU eby 2016 by Kevin Carr, President of the TROPHY CLUB CIPAL UTILITY DISTRICT NO. 1, district, on behalf of such corporation t LAURIE SLAGHT ilt i?El Notary Public,State of Texas 4,00 comm.Expires 01-19-2020 ary Public in and or 4 State of Texas o„ rou a: ; Notary ID 128720534 Page 9 of 12 Trophy Club Municipal Utility District No. 1 13 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Attachment "A" Trophy Club MUD - Fire Department Debt Reimbursement Ladder Truck Fiscal Year Fire Station Bond Reserve Lease Total 2017 148,658 $ 68,096 $ 127,149 $ 343,903 2018 150,858 68,096 127,149 346,103 2019 147,883 68,096 127,149 343,128 2020 149,908 68,096 127,149 345,153 2021 151,758 68,096 127, 149 347,003 2022 153,433 68,096 127,149 348,678 2023 153,433 68,096 221,529 2024 153,183 68,096 221,279 2025 152,683 68,096 220,779 2026 148,083 68,096 216,179 2027 153,368 68,096 221,464 2028 153,243 68,096 221,339 2029 152,783 68,096 220,879 2030 152,113 68,096 220,209 2031 151,163 68,096 219,259 Total 2,272,550 $1,021,440 $ 762,894 $4,056,884 Page 10 of 12 Trophy Club Municipal Utility District No. 1 14 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Attachment "B" Trophy Club Municipal Utility District No. 1 Fire Department Assets and Operator Practices Annual Audit Checklist 1. Standard Operating Procedures (SOP) — Meet or exceed all requirements of Town SOP's for Fire Department. 2. Annual Inspection of all Fire Department Vehicles: a. Ladder, Pumper and Brush Truck records of maintenance: including a full operational inspection once a year by a manufacturer approved facility (e.g. Pierce in Denton) 3. Hose annual pressure testing documentation as required by the National Fire Protection Association standards (NFPA). 4. Air Packs Self Contained Breathing Apparatus (SCBA) as required. Manufacturer guidelines of the National Fire Protection Association standards (NFPA). 5. Radio communications will be checked. and kept current with technology and operational requirements as appropriate 6. Training records including all certification documents required per local, state and federal and National Fire Protection Association standards 7. Meet or exceed all requirements of fire plan approved by the Texas Commission on Environmental Quality (TCEQ). Page 11 of 12Trophy Club Municipal Utility District No. 1 15 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet 1 INTERLOCAL COOPERATION AGREEMENT FOR ADMINISTRATION OF FIRE PROTECTION SERVICES Attachment "B" Annual Report “Town will provide an annual report regarding status and maintenance of fire station, engine/pumper, brush truck, and ladder truck. Additionally, Town will continue to meet and/ or exceed the requirements set by the NFPA and TCFP.” (October 1, 2016 – July 25, 2017) **Note: This is an update to the report filed with the TCMUD on April 1, 2017 and includes required documentation for the final annual report that will be submitted on September 30, 2017. From this point forward only an annual report will be filed as per the ILA. Submitted by: Fire Chief Wade Carroll Trophy Club Municipal Utility District No. 1 16 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet 2 Attachment "B" Trophy Club Municipal Utility District No. 1 Fire Department Assets and Operator Practices Annual Audit Checklist 1. Standard Operating Procedures (SOP) — Meet or exceed all requirements of Town SOP’s for Fire Department. 2. Annual Inspection of all Fire Department Vehicles: a. Ladder, Pumper and Brush Truck records of maintenance: including a full operational inspection once a year by a manufacturer approved facility (e. g. Pierce in Denton) 3. Hose annual pressure testing documentation as required by the National Fire Protection Association standards (NFPA). 4. Air Packs Self Contained Breathing Apparatus (SCBA) as required. Manufacturer guidelines of the National Fire Protection Association standards (NFPA). 5. Radio communications will be checked and kept current with technology and operational requirements as appropriate. 6. Training records including all certification documents required per local, state and federal and National Fire Protection Association standards. 7. Meet or exceed all requirements of fire plan approved by the Texas Commission on Environmental Quality (TCEQ). Trophy Club Municipal Utility District No. 1 17 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet 3 1. Standard Operating Procedures (SOP) — Meet or exceed all requirements of Town SOP’s for Fire Department. Action: The Trophy Club Fire Department completed a revision and distributed the departmental Standard Operating Procedures (SOPs) on July 14, 2017. SOPs were approved by the Town Manager and SOPs meet or exceed all SOP requirements of the Town for the Fire Department. The SOPs were distributed using Lexipol and 94% of fire department members have acknowledged receipt of the SOPs. (one member on vacation) All members have access to the SOPs on and off duty through the Lexipol system. ______________________________________________________________________________ 2. Annual Inspection of all Fire Department Vehicles: a. Ladder, Pumper and Brush Truck records of maintenance: including a full operational inspection once a year by a manufacturer approved facility (e. g. Pierce in Denton) Action: All service, repairs and maintenance was performed by Siddons Martin Emergency Group, 3500 Shelby Lane, Denton, Texas 76207. Siddons Martin Emergency Group is the only authorized sales and service group for the State of Texas for Pierce Fire Apparatus. Siddons Martin Emergency Group employees are factory trained, EVT and ASE certified technicians. 2015 Pierce Arrow XT HD 105 Ladder Truck (T681) Annual Preventative Maintenance Major Preventative Maintenance was performed on October 28, 2016 which included a 104 Point Visual Inspection report identifying needed/ recommended repairs. Service performed included changing engine oil, oil filter, fuel filter, transmission fluid and filter, pump fluid, coolant filter. A test of coolant, an inspection of the differential fluid, the air dyer, power steering fluid, a wheel off brake inspection and complete chassis lubrication. Aerial Device Maintenance was performed which includes cleaning and lubricating all ladder points. Adjust ladder cables, change filter element, hydraulic filter, and aerial desiccant filter, top off hydraulic fluid and perform drift test on all cylinders. Operate and inspect all ladder appliances Pump Test was performed in accordance with NFPA standards which includes a visual inspection report identifying needed/ recommended repairs. No issues found. Foam Maintenance was performed which includes draining foam hydraulic tank, change filter and check for leaks. Foam to pump connection leak was repaired. Generator Maintenance was performed which includes hydraulic oil, hydraulic oil filter and make frequency adjustment. Trophy Club Municipal Utility District No. 1 18 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet 4 T681 Repairs The Fire Department has maintained the readiness of T681 through daily and weekly inspection programs that ensure the operability of major vehicle components and identify any repair needs. Year to date, the fire department has spent $4937.64 in the maintenance and repairs of the truck. Preventative maintenance and repair invoices are attached. 2007 Pierce Arrow XT Engine/Pumper (E681) Annual Preventative Maintenance Major Preventative Maintenance was performed on December 13, 2016 which included a 104 Point Visual Inspection report identifying needed/ recommended repairs. Service performed included changing engine oil, oil filter, fuel filter, transmission fluid and filter, pump fluid, coolant filter. A test of coolant, an inspection of the differential fluid, the air dyer, power steering fluid, a wheel off brake inspection and complete chassis lubrication. The Pump Test was performed in accordance with NFPA standards which includes a visual inspection report identifying needed/ recommended repairs. Repairs needed and completed included pump packing leak, discharge valve leak and pump transmission input shaft seal leak. Compressed Air Foam System Test was performed which included a visual inspection report identifying needed/ recommended repairs. Service performed included changing hydraulic filter, foam filter, air filter, compressor oil filter, and oil separator. Hydraulic solenoid leak was repaired. Foam Maintenance was performed which includes draining foam hydraulic tank, change filter and check for leaks. Foam to pump connection leak was repaired. Generator Maintenance was performed which includes engine oil, oil filter, and spark plug. E681 Repairs The Fire Department has maintained the readiness of E681 through daily and weekly inspection programs that ensure the operability of major vehicle components and identify any repair needs. Year to date, the fire department has spent $19,200.57 in the maintenance and repairs of the engine. Preventative maintenance and repair invoices are attached. 2011 Ford F550 Brush Truck (B681) Annual Preventative Maintenance Ford Diesel Multi-Point Inspection was performed on March 14, 2017 by Grapevine Ford. Service performed included changing engine oil, oil filter, and coolant. Pump maintenance was performed on October 13, 2016 by Wildfire Truck & Equipment Sales. Service performed included changing engine oil, oil filter, fuel filter, air filter, fuel primer bulb, and pre air filter. B681 repairs The Fire Department has maintained the readiness of B681 through daily and weekly inspection programs that ensure the operability of major vehicle components and identify any repair Trophy Club Municipal Utility District No. 1 19 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet 5 needs. Year to date, the fire department has spent $4002.51 in the maintenance and repairs of the brush truck. Preventative maintenance and repair invoices are attached. Aerial Ladder and Ground Ladder Testing Aerial and Ground Ladder testing was performed on February 3, 2017 by CFS Inspections. CFS Inspections is accredited to the requirements of ISO/ICE 17020 for Aerial and Ground Ladders and complies with all NFPA standards. All testing was conducted in accordance with NFPA 1911 for aerials and NFPA 1931 for ground ladders. All ladders passed testing. ______________________________________________________________________________ 3. Hose annual pressure testing documentation as required by the National Fire Protection Association standards (NFPA). Action: Hose testing was performed on October 20, 2016 by Waterway Inc. Waterway Inc. is ISO 9001 Certified. All hose was tested in accordance with NFPA 1962 and passed. ______________________________________________________________________________ 4. Air Packs Self Contained Breathing Apparatus (SCBA) as required. Manufacturer guidelines of the National Fire Protection Association standards (NFPA). Action: SCBA Testing All SCBA were tested on February 13, 2017 by Municipal Emergency Services (MES). MES is an authorized sales and service group for the State of Texas for Scott brand SCBA. Testing was conducted in accordance with NFPA 1852. 13 SCBAs and 2 RIT (Rapid Intervention Team) Paks were flow tested. One SCBA failed flow testing. Repairs were made to the failed SCBA and said SCBA passed subsequent testing. Annual SCBA Mask Fit Testing SCBA Fit Tests check whether an SCBA facepiece properly fits the face of the Firefighter who wears it. The fitting characteristic of an SCBA facepiece is the ability of the mask to separate a Firefighter's respiratory system from ambient air during physical activity. The fire department purchased and received new SCBA masks on April 28, 2017. The new masks have been put in service and fit testing for all employees are scheduled for August 1, 2017. All masks received an informal seal test by each firefighter at time of issuance. SCBA Air Fill Cascade System Cascade System preventative maintenance was performed on March 9, 2017 by August Industries Inc. August Industries Inc. is an authorized sales and service center for Bauer Cascade System for the State of Texas. Service performed included changing the oil, oil filter, air intake element, secures cartridge, o-ring, and a before and after service air test. Quarterly air testing is performed by August Industries Inc. in accordance with the Texas Commission on Trophy Club Municipal Utility District No. 1 20 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet 6 Fire Protection (TCFP) and NFPA 1989 and was performed on the following dates; December 13, 2016, March 9, 2017, March 9, 2017, June 27, 2017. ______________________________________________________________________________ 5. Radio communications will be checked and kept current with technology and operational requirements as appropriate. Action: All radio communications equipment utilized by the Trophy Club Fire Department is current and operational. No radios have been found to be in need of repair. ______________________________________________________________________________ 6. Training records including all certification documents required per local, state and federal and National Fire Protection Association standards. Action: All training records for Trophy Club Fire Department personnel including certifications are current, recorded in our records management system and in accordance with local, state, federal and National Fire Protection Association standards. All members’ fire and EMS certifications are current and a listing of certification renewal dates is attached. ______________________________________________________________________________ 7. Meet or exceed all requirements of fire plan approved by the Texas Commission on Environmental Quality (TCEQ). Action: The Trophy Club Fire Department fire plan meets and exceeds the requirements set by the Texas Commission on Environmental Quality. After contacting Daniel Harrison, Natural Resource Specialist, at the TCEQ on April 13, 2017 it was discovered that the TCEQ no longer requires a “Fire Plan” to be filed for the TCMUD but will require a copy of the ILA. The ILA regarding the Town’s oversight and management of the fire department’s operations (ex. Budget, personnel, apparatus, equipment, etc.) and the requirement that the fire department is bound by the rules, regulations and standards set by the Texas Commission on Fire Protection negates the need for a “Fire Plan” to be registered with the TCEQ. TCEQ Fire Plans is a requirement for Districts that have the sole responsibility for managing a fire department. ______________________________________________________________________________ Fire Station Safety Inspection Program Beginning in November of 2016 the Trophy Club Fire Department implemented a Fire Station Safety Inspection Program. This program ensures that the Fire Station is inspected monthly. Trophy Club Municipal Utility District No. 1 21 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet 7 The Fire Station Safety Inspection Program consists of a 48 point inspection that is completed before the end of each month. Any repairs, hazards and/or deficiencies are addressed to ensure a safe working environment for fire department employees and visitors. The inspections include identifying routing safety hazards, all NFPA/IFC commercial business required life safety codes and the proper functioning of all the building systems. The program is designed to reduce unnecessary repairs and/or injuries. Repairs noted on the last page (Exception November where none were noted) are addressed by fire personnel assigned to buildings and grounds maintenance. A copy of the Fire Station Safety Inspection form is kept on the Safety Bulletin Board located in the Day Room/ Kitchen area of the Fire Station. Inspections performed from November through the end of June are attached. Attachments: 1. Vehicle Maintenance Invoices 2. Aerial Ladder Testing Certificate 3. Ground Ladder Testing Certificate 4. Hose Testing Certificate 5. Air Pack Testing 6. Cascade System Annual Maintenance 7. Cascade System Air Quality Testing 8. Training Certifications Expiration Dates 9. Monthly Station Safety Inspections Trophy Club Municipal Utility District No. 1 22 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Trophy Club Municipal Utility District No. 1 23 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Trophy Club Municipal Utility District No. 1 24 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Trophy Club Municipal Utility District No. 1 25 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Trophy Club Municipal Utility District No. 1 26 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Trophy Club Municipal Utility District No. 1 27 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Trophy Club Municipal Utility District No. 1 28 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Trophy Club Municipal Utility District No. 1 29 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Trophy Club Municipal Utility District No. 1 30 of 227 July 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Special Session Joint Meeting Agenda Packet Trophy Club Municipal Utility District No. 1 189 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Trophy Club Municipal Utility District No. 1 190 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Trophy Club Municipal Utility District No. 1 191 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Trophy Club Municipal Utility District No. 1 192 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet FUND DEPARTMENT 01 GENERAL FUND 256 FIRE LINE ITEM DETAIL LINE ITEMS FY 2017 BUDGET PROPOSED 2018 50100 SALARIES - REGULAR 551,224$ 558,792$ 50130 SALARIES - OVERTIME 50,237 50,122 50140 SALARIES - LONGEVITY 5,618 5,879 50145 SALARIES - STIPEND - - 50160 SALARIES - CERTIFICATION 5,400 4,950 51200 RETIREMENT 80,434 81,248 51210 MEDICAL INSURANCE 68,414 85,723 51215 DENTAL INSURANCE 4,797 4,285 51216 VISION INSURANCE 479 433 51218 LIFE INSURANCE AND OTHER 3,684 3,746 52220 SOCIAL SECURITY TAXES 37,974 37,565 52225 MEDICARE TAXES 8,881 8,785 52250 UNEMPLOYMENT TAXES 1,467 1,424 52260 WORKMAN'S COMPENSATION 9,969 10,139 52290 PRE-EMPLOYMENT PHYSICALS/TESTING 8,785 4,600 53240 TUITION REIMBURSEMENT 1,300 5,075 PERSONNEL TOTAL 838,663$ 862,766$ 60100 PROFESSIONAL OUTSIDE SERVICES 6,600$ -$ 60800 SOFTWARE AND SUPPORT 2,506 6,943 63200 ADVERTISING 500 500 63250 PRINTING 495 250 63551 SCHOOLS AND TRAINING 7,880 15,670 64000 ELECTRICITY 6,673 8,140 64100 WATER 1,200 4,648 64300 TELEPHONE 50 - 64400 COMMUNICATIONS /PAGERS/MOBILES 10,851 13,245 65000 INSURANCE 16,513 - 65200 BUILDING MAINTENANCE 12,000 16,750 65300 VEHICLE MAINTENANCE 20,000 46,000 65350 EQUIPMENT MAINTENANCE 23,370 17,240 66250 EMERGENCY MANAGEMENT 1,000 1,000 66500 DISPATCH - DENTON COUNTY 5,700 2,723 68100 DUES AND MEMBERSHIP 15,582 19,295 68190 FLAGS AND REPAIRS 3,050 3,500 68200 TRAVEL AND PER DIEM 4,081 7,066 68700 SAFETY PROGRAM - - 69110 INSPECTION FEES 500 - 70100 OFFICE SUPPLIES 500 250 70200 PRINTER SUPPLIES - 1,400 70300 POSTAGE 50 50 70400 PUBLICATIONS/BOOKS/SUBSCRIPTIONS 350 350 71000 FUEL 21,111 13,613 72100 UNIFORMS 31,140 6,687 72220 PHARMACY - - 72300 SAFETY EQUIPMENT/PROTECTIVE CLOTHING - 30,200 78400 SMALL EQUIPMENT 17,050 5,000 78600 HARDWARE 750 1,100 79100 MAINTENANCE SUPPLIES 1,500 1,500 79999 MISCELLANEOUS EXPENSE 1,000 6,000 83700 CAPITAL EXPENSES 45,836 - 87100 PROGRAMS AND SPECIAL PROJECTS 7,500 13,750 SERVICES/SUPPLIES TOTAL 265,338.00$ 242,869.73$ 01-256 TOTAL 1,104,001.00$ 1,105,635.73$ Trophy Club Municipal Utility District No. 1 193 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 ‐  FIRE DEPARTMENT  DRAFT  FY 2018 BUDGET FIRE DEPARTMENT   Account Description FY 2016 FY2017 Adopted FY2017 Town FY 2018 YTD Total Budget Fire Budget Amended Proposed thru 6/30/17 Revenues‐Town 122‐40001‐000‐000 Assessment ‐ Emerg Svcs 403,838           472,439              489,475   SEE SCHEDULE TAX_ASSESS 122‐40003‐000‐000 Emer Svcs Assessmen/Delinquent 346                   ‐                           ‐                  122‐40015‐000‐000 Property Taxes/Assessments P&I ‐                        750                       ‐                  122‐42014‐000‐000 Fire Permits/Sprinkler 5,200               5,000                  100            122‐43400‐000‐000 Fire Inspections 1,075               825                      ‐                  122‐43415‐000‐000 Denton/Tarrant Cty Pledge‐Fire 10,000             10,000                16,000       122‐49026‐000‐000 Proceeds from Sale of Assets 60,000             ‐                           ‐                  Revenues‐MUD 122‐40001‐000‐000 Assessment‐Emerg Svcs Reimb from Town 112                   122‐40010‐000‐000 Property Taxes/MUD Fire 875,978           1,035,810           1,045,584 1,029,872      SEE SCHEDULE TAX_ASSESS 122‐40011‐000‐000 Property Taxes/Fire‐Delinquent 18,076             ‐                           ‐                 2,874               122‐40020‐000‐000 Property Taxes/Fire P&I 7,621               4,500                  ‐                 3,542               122‐49036‐000‐000 GASB Reserves 36,182             ‐                           ‐                 ‐                        122‐49900‐000‐000 Miscellaneous Income 11,100             ‐                           ‐                 149                   Total 1,429,416        1,529,324          ‐                   1,551,159 1,036,549       Expenses‐Town   122‐50005‐045‐000 Salaries & Wages 511,904           551,224              551,224          558,792    122‐50010‐045‐000 Overtime 58,952             50,237                50,237            50,122       122‐50011‐045‐000 Holiday Pay 14,718             ‐                           ‐                       ‐                  122‐50016‐045‐000 Longevity 5,730               5,618                  5,618               5,879         122‐50017‐045‐000 Certification 4,740               5,400                  5,400               4,950         122‐50020‐045‐000 Retirement 71,888             80,434                80,434            81,248       122‐50026‐045‐000 Medical Insurance 56,876             68,414                68,414            85,723       122‐50027‐045‐000 Dental Insurance 5,016               4,797                  4,797               4,285         122‐50028‐045‐000 Vision Insurance 968                   479                      479                  433            122‐50029‐045‐000 Life Insurance & Other 4,016               3,684                  3,684               3,746         122‐50030‐045‐000 Social Security Taxes 32,993             37,974                37,974            37,565       122‐50035‐045‐000 Medicare Taxes 7,714               8,881                  8,881               8,785         122‐50040‐045‐000 Unemployment Taxes 2,125               1,467                  1,467               1,424         122‐50045‐045‐000 Workman's Compensation 9,379               9,969                  9,969               10,139       122‐50060‐045‐000 Pre‐employment Physicals/Test 54                     700                      700                  4,600         122‐50075‐045‐000 Tuition Reimbursement ‐                        1,300                  1,300               5,075         122‐55030‐045‐000 Software & Support 5,561               8,206                  2,506               6,943         Denton County Dispatch 5,700                122‐55045‐045‐000 Legal 6,560               6,600                  ‐                       ‐                  122‐55080‐045‐000 Maintenance & Repairs/Equipment 54,653             21,370                23,370            17,240       122‐55085‐045‐000 Generator Maintenance & Repairs ‐                        2,000                  ‐                       ‐                  122‐55090‐045‐000 Vehicle Maintenance 14,808             20,000                20,000            46,000       122‐55160‐045‐000 Professional Outside Services 2,744               ‐                           6,600               2,723         122‐60005‐045‐000 Telephone 59                     50                        50                     ‐                  122‐60010‐045‐000 Communications/Mobiles 6,835               8,931                  10,851            13,245       122‐60020‐045‐000 Electricity/Gas 5,686               6,673                  6,673               8,140         122‐60025‐045‐000 Water 2,027               1,200                  1,200               4,648         122‐60026‐045‐000 Cable 1,920               1,920                  ‐                       ‐                  122‐60035‐045‐000 Postage 46                     50                        50                    50              122‐60066‐045‐000 Publications/Books/Subscrips 172                   350                      350                  350            122‐60070‐045‐000 Dues & Memberships 15,457             15,582                15,582            19,295       122‐60080‐045‐000 Schools & Training 3,743               7,880                  7,880               15,670       122‐60096‐045‐000 Emergency Management 1,000               1,000                  1,000               1,000         122‐60100‐045‐000 Travel & per diem 1,147               4,081                  4,081               7,066         122‐60110‐045‐000 Physicals/Testing 6,804               8,085                  8,085                ‐                  122‐60125‐045‐000 Advertising 4,200               500                      500                  500            122‐60160‐045‐000 Programs & Special Projects 3,671               7,500                  7,500               13,750       122‐60180‐045‐000 Fire Inspection/Enforcement 359                   500                      500                   ‐                  122‐60195‐045‐000 Flags & Repair 2,355               3,050                  3,050               3,500         122‐60243‐045‐000 Prior Year Expense ‐                         ‐                            ‐                        ‐                  122‐60245‐045‐000 Miscellaneous Expense 1,119               1,000                  1,000               6,000         122‐60280‐045‐000 Property Maintenance/Building Maintenance ‐                        12,000                12,000            16,750       122‐65005‐045‐000 Fuel & Lube 4,729               21,111                21,111            13,613       122‐65010‐045‐000 Uniforms 9,516               3,140                  31,140            6,687         122‐65015‐045‐000 Protective Clothing 47,907             28,000                ‐                       30,200       122‐65030‐045‐000 Chemicals 1,191               1,500                  ‐                       ‐                  122‐65035‐045‐000 Small Tools/Equipment 1,868               6,000                  17,050            5,000         122‐65055‐045‐000 Hardware 394                   750                      750                  1,100         122‐65085‐045‐000 Office Supplies 328                   500                      500                  250            122‐65095‐045‐000 Maintenance & Supplies ‐                         ‐                           1,500               1,500         122‐65105‐045‐000 Printing ‐                        498                      495                  250            122‐00000‐045‐000 Printer Supplies ‐                         ‐                            ‐                       1,400         122‐69050‐045‐000 Radios 7,934               29,000                ‐                       ‐                  122‐69255‐045‐000 Airpacks ‐                        11,050                ‐                       ‐                  Comments Preliminary Draft 7/21/2017Trophy Club Municipal Utility District No. 1 194 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 ‐  FIRE DEPARTMENT  DRAFT  FY 2018 BUDGET FIRE DEPARTMENT   Account Description FY 2016 FY2017 Adopted FY2017 Town FY 2018 YTD Total Budget Fire Budget Amended Proposed thru 6/30/17 Comments Expenses‐MUD   122‐55080‐045‐000 Maintenance & Repairs (GASB34)‐                         ‐                            ‐                 10,754             122‐60030‐045‐000 Rent And/Or Usage 214,379           216,754              216,754          218,954   216,754          SEE SCHEDULE FD‐B 122‐60055‐045‐000 Insurance 9,072               16,513                16,513            18,000      12,385            TML INVOICE  122‐60337‐045‐000 Transfer to Town/Fire Budget ‐                 434,711           122‐69005‐045‐000 Capital Outlays 7,918               16,836                45,836            ‐                 ‐                        122‐69008‐045‐000 Short Term Debt ‐Principal ‐                         ‐                            ‐                        ‐                 ‐                        122‐69009‐045‐000 Short Term Debt ‐Interest ‐                        ‐                           ‐                       ‐                 ‐                        122‐69195‐045‐000 GASB34/Reserve for Replacement 81,420             81,420                81,420            81,420      81,420            ANNUAL RESERVE FOR NEW FIRE ENGINE 122‐69305‐045‐000 Capital Leases 127,149           127,149              127,149          127,149   127,149          LEASE PAYMENT NO. 3 OF 7 FOR LADDER TRUCK Total 1,441,804        1,529,324          1,529,324      1,551,159 883,173          Total Fire Revenues 1,429,416        1,529,324          ‐                       1,551,159 Total Fire Expenses 1,441,804        1,529,324          1,529,324      1,551,159 Net Budget Surplus (Deficit)(12,388)           ‐                           (1,529,324)     ‐                 Fire Budget 1,551,159  Less:  Rent/Debt Service 218,954    Less:  Capital Leases 127,149    Less:  ESD Assessment 489,475    TML Fire Insurance 18,000      Less Capital Outlays ‐             Less GASB34/Reserve for Replacement 81,420      Less Denton County Fire Pledge 16,000      Less Fire Permits/Sprinkler 100            Less Fire Inspections ‐             122‐60337‐045‐000 Transfer to Town from MUD/Fire Budget 600,061    Monthly payment to Town Oct 17‐Sept 18 50,005       Town/MUD Fire Contract Calculation FY 2018  Preliminary Draft 7/21/2017Trophy Club Municipal Utility District No. 1 195 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet To: Mayor and Town Council From: Wade Carroll, Fire Chief CC: Thomas M. Class, Sr., Town Manager Holly Fimbres, Town Secretary/RMO Re: Fire Department Standard Operating Procedures Joint Session Meeting, July 25, 2017 Agenda Item: Receive an update from Fire Chief Wade Carroll regarding the Fire Department’s Standard Operating Procedures (Town Council). Explanation: The Interlocal Agreement between the Trophy Club Municipal Utility District No. 1 and the Town of Trophy Club for the administration of the Fire Department per Attachment “B” requires that the Fire Department “Meet or exceed all requirements of the Town SOP’s for the Fire Department.” The Fire Department completed the revision of its SOP’s on July 14, 2017 and were approved by the Town Manager as meeting all requirements of the Town. SOP’s were posted and disseminated to all Fire Department employees through the Lexipol system on July 14, 2017 and a report was run within the system to ensure that all employees received and acknowledged the approved SOP’s. As of July 19th, 93% of personnel have acknowledged receipt of the revised SOPs. (14 of 15 current members, one on vacation since the 14th and one open firefighter position). Attachments: • Lexipol Policy Upload • Policy Acknowledgement Report Trophy Club Municipal Utility District No. 1 196 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Ackknowledged Policy Updates Report User Name First Name Last Name Manual Policy Number Policy Title Issue Date Acknowledgement Date txf004-srusk Steve Rusk Trophy Club Fire Department Policy Manual 104 Trophy Club Fire Department 2017 SOP 7/14/2017 7/18/2017 txf004-gsipes Gary Sipes Trophy Club Fire Department Policy Manual 104 Trophy Club Fire Department 2017 SOP 7/14/2017 7/19/2017 txf004-gboos Greg Boos Trophy Club Fire Department Policy Manual 104 Trophy Club Fire Department 2017 SOP 7/14/2017 7/15/2017 txf004-kevans Kalo Evans Trophy Club Fire Department Policy Manual 104 Trophy Club Fire Department 2017 SOP 7/14/2017 7/18/2017 txf004-sstockstrom Sara Stockstrom Trophy Club Fire Department Policy Manual 104 Trophy Club Fire Department 2017 SOP 7/14/2017 7/14/2017 txf004-wcarroll Wade Carroll Trophy Club Fire Department Policy Manual 104 Trophy Club Fire Department 2017 SOP 7/14/2017 7/14/2017 txf004-sbeck Shane Beck Trophy Club Fire Department Policy Manual 104 Trophy Club Fire Department 2017 SOP 7/14/2017 7/17/2017 txf004-bpeters Brian Peters Trophy Club Fire Department Policy Manual 104 Trophy Club Fire Department 2017 SOP 7/14/2017 7/14/2017 txf004-rfitzgerald Ray Fitzgerald Trophy Club Fire Department Policy Manual 104 Trophy Club Fire Department 2017 SOP 7/14/2017 7/17/2017 txf004-sgarrett Shawn Garrett Trophy Club Fire Department Policy Manual 104 Trophy Club Fire Department 2017 SOP 7/14/2017 7/14/2017 txf004-dhurd Donnie Hurd Trophy Club Fire Department Policy Manual 104 Trophy Club Fire Department 2017 SOP 7/14/2017 7/14/2017 txf004-jsmith Justin Smith Trophy Club Fire Department Policy Manual 104 Trophy Club Fire Department 2017 SOP 7/14/2017 7/18/2017 txf004-mtackett Matthew Tackett Trophy Club Fire Department Policy Manual 104 Trophy Club Fire Department 2017 SOP 7/14/2017 7/17/2017 txf004-esampson Eric Sampson Trophy Club Fire Department Policy Manual 104 Trophy Club Fire Department 2017 SOP 7/14/2017 7/15/2017 Unacknowledged Policy Updates User Name First Name Last Name Manual Policy Number Policy Title Issue Date Acknowledgement Date txf004-dhards Dusten Hards Trophy Club Fire Department Policy Manual 104 Trophy Club Fire Department 2017 SOP 7/14/2017 Trophy Club Municipal Utility District No. 1 197 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 1 of 28 AMENDED AND RESTATED CONTRACT FOR WHOLESALE WATER SUPPLY AND WASTEWATER TREATMENT SERVICES AND WATER AND WASTEWATER OPERATIONAL SERVICES This Amended and Restated Contract for Wholesale Water Supply and Wastewater Treatment Services and Water and Wastewater Operations Services (“Contract”) is entered into as of ___________ , 2014 2017 (the “Effective Date”) between THE TOWN OF TROPHY CLUB, TEXAS, a home rule municipality located in Denton and Tarrant Counties (hereinafter “Town”) and TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1, a conservation and reclamation District of the State of Texas in Denton and Tarrant Counties created and operating pursuant to Chapters 49 and 54 of the Texas Water Code (hereinafter “MUD”). Recitals WHEREAS, MUD currently supplies retail water and wastewater services to those customers located within the corporate boundaries of MUD; and WHEREAS, Town currently provides water and wastewater services to a certain portion of property located within the territorial boundaries of Town which property is not located within the boundaries of MUD nor is provided retail water or wastewater services therefrom, hereinafter referred to as the “Property” and more fully described in Exhibit “A”; and WHEREAS, Town and MUD previously entered into the following contracts providing for the provision of wholesale water and wastewater services, and contract operation services, by MUD to Town: (i) “Contract for Water Supply and Wastewater Treatment” dated November 20, 2007, as amended by that certain “First Modification of Contract for Water Supply and Wastewater Treatment” dated July 7, 2008 (hereafter, the “2007 Wholesale Contract”); and (ii) “Contract for Water and Wastewater Operational Services” dated November 12, 2007 as subsequently amended on July 7, 2008 and November 19, 2013 (hereafter, the “2007 Operations Contract”); WHEREAS, Town and MUD desire to amend and restate the 2007 Wholesale Contract and to terminate the 2007 Operations Contract; WHEREAS, the Interlocal Cooperation Act, Texas Government Code, Chapter 791, et seq., as amended (the “Act”) provides authority for governmental entities of the State of Texas to enter into interlocal contracts with each other regarding governmental functions and services as set forth in the Act; and WHEREAS, the provision of wholesale water and wastewater services by MUD to Town, and the provision of operational services by MUD to Town, are Trophy Club Municipal Utility District No. 1 198 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 2 of 28 valid governmental functions necessary for the public health, safety and welfare for which an interlocal contract is allowed pursuant to the Act; and WHEREAS, each Party hereto paying for the performance of governmental functions or services shall make such payments from current revenues legally available to the paying Party and each Party hereby finds and agrees that it is fairly compensated for the services or functions performed under the terms of this Contract. NOW, THEREFORE, Town and MUD, for and in consideration of the recitals set forth above and terms and conditions below, agree as follows: ARTICLE I. INCORPORATION / DEFINITIONS / EXHIBITS 1.1 Incorporation of Recitals. The foregoing recitals are agreed upon and incorporated herein as a part of this Contract. 1.2 Definitions. Unless the content indicates others, the following words used in this Contract shall have the following meanings: 2007 Operations Contract means that certain “Contract for Water and Wastewater Operational Services” dated November 12, 2007 entered into by MUD and Town, as subsequently amended on July 7, 2008 and November 19, 2013. 2007 Wholesale Contract means that certain “Contract for Water Supply and Wastewater Treatment” dated November 20, 2007”, as amended by that certain “First Modification of Contract for Water Supply and Wastewater Treatment” dated July 7, 2008 entered into by Town and MUD, as amended. Annual Capital Improvements and Maintenance Charge has the meaning set out in Section 7.2. Annual Debt Service Requirement has the meaning set out in Section 7.2. Certified Assessed Valuation means the most current certified assessed valuation from the County Tax-Assessor collector as of August 1 of a calendar year. Commission or TCEQ means the Texas Commission on Environmental Quality and any successor or successors exercising any of its duties and functions. Emergency means a sudden unexpected happening; an unforeseen occurrence or condition; exigency; pressing necessity; or a relatively permanent Trophy Club Municipal Utility District No. 1 199 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 3 of 28 condition or insufficiency of service or of facilities resulting from causes outside of the reasonable control of MUD. The term includes Force Majeure and acts of third parties that cause the MUD Water System or MUD Wastewater System to be unable to provide the Wholesale Water Services or Wholesale Wastewater services agreed to be provided herein. EPA means the Environmental Protection Agency and any successor or successors exercising any of its duties and functions. Fort Worth Impact Fee means the charge imposed by Fort Worth pursuant to Chapter 395 of the Local Government Code under the Fort Worth Water Contract. Fort Worth Water Contract means the Contract for Water Service Between the City of Fort Worth, Texas, and Trophy Club Municipal Utility MUD No. 1, dated November 16, 2010, as amended. Infiltration and Inflow means water that enters a wastewater collection system through physical defects in the system or from other point sources. MUD means Trophy Club Municipal Utility District No. 1. MUD Wastewater System means the wastewater collection lines, lift stations, pipes, valves, meters, pumps, motors, treatment plant, effluent discharge lines, and other facilities, equipment and appurtenances thereto owned or controlled by the MUD, and any expansions, improvements, enlargements, additions and replacements thereto. MUD Water System means the water supply, treatment, storage, transmission, pumping and distribution system of the MUD and appurtenances thereto, and any expansions, improvements, enlargements, additions and replacements thereto. Operations Services has the meaning set out in Section 5.2. Parties or Party shall mean either one or more of MUD or Town or both, as the context provides. Permit means Permit No. WQ0011593-001 held by MUD authorizing the treatment and disposal of treated wastewater effluent. Person(s) means an individual, corporation, partnership, association, joint venture or any other third party legal entity. Points of Connection of Wastewater means that point or points where Town Wastewater Collection System connects to MUD’s Wastewater System. Trophy Club Municipal Utility District No. 1 200 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 4 of 28 Points of Connection of Water means that point or points where Town Water System connects to MUD’s Water System. Property means the approximately 609-acre tract of land located within the corporate boundaries of Town shown in the attached Exhibit “A”. Retail Customer Charge has the meaning set forth in Section 7.1. Town means the Town of Trophy Club, Texas, a home-rule municipality located in Denton and Tarrant Counties, Texas, and all land included within the territorial limits and extraterritorial jurisdiction of Town, at Town’s creation and thereafter annexed from time to time. Town Customers means any Person(s) residing within the Property and who have the right to receive, who contract to receive or otherwise are receiving Water and/or Wastewater Services from Town Water Distribution System and/or Town Wastewater Collection System. Town Rate Order means an order adopted by Town setting out the rates and fees for retail water and wastewater services for Town Customers, including without limitation administrative fees, customer deposits, usage rates, late charges, returned check fees, disconnect fees, meter re-read fees, and after- hours service fees, and any Town Surcharge. Town Surcharge has the meaning set forth in Section 7.1(d). Town Wastewater Collection System means the Wastewater system constructed and owned by Town for the collection of Wastewater received from Town Customers, ending at the Points of Connection of Wastewater. Town Water Distribution System means the water distribution system constructed and owned by Town for the distribution of potable water received from MUD to Town Customers, beginning at the Points of Connection of Water, including any elevated storage tanks and pumping facilities. The Town Water Distribution System shall not include any Wells. Utility Fee has the meaning set out in Section 7.4. Utility Fee Remainder has the meaning set out in Section 7.4. Wastewater means the water-carried wastes, exclusive of ground, surface, and storm waters, normally discharged from the sanitary conveniences of dwellings, including apartment houses, hotels, offices buildings and institutions, of a domestic, not industrial, nature, and that meets the requirements of this Contract. Trophy Club Municipal Utility District No. 1 201 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 5 of 28 Water or Water Supply means potable water that meets federal and state standards for consumption by humans. Wells means any and all potable water wells that may be constructed within the Property or for the benefit of the Property by Town or its designee. Wholesale Wastewater Services means the wholesale wastewater treatment and disposal services provided by MUD in accordance with the terms and conditions of this Contract in receiving, treating, testing, and disposing of Wastewater from Town Wastewater Collection System in accordance with this Contract. Wholesale Water Services means the wholesale services provided by MUD in furnishing a wholesale supply of Water to Town at the Points of Connection of Water. 1.3 Exhibits. The following Exhibits attached to this Contract are hereby made a part of the Contract as though fully incorporated herein: Exhibit “A” - The Property Exhibit “B” - Points of Connection of Water and Wastewater ARTICLE II. EFFECT ON PRIOR CONTRACTS 2.1 2007 Operations Contract. As of the Effective Date, the 2007 Operations Contract shall terminate for all purposes; provided, however, the terms and conditions set forth therein relating to payment by Town to MUD for services shall remain in effect until such time as MUD commences collection of the Retail Customer Charge under this Contract. 2.2 2007 Wholesale Contract. As of the Effective Date, the 2007 Wholesale Contract shall be amended and restated by this Contract. 2.3 Prior Revenues. MUD shall be entitled to collect and retain all revenues for any and all water and wastewater services rendered to Town Customers prior to the Effective Date pursuant to the 2007 Operations Contract and 2007 Wholesale Contract, including any such revenues received after the Effective Date. The Parties agree that it is their mutual intent that the MUD shall continue to receive all payments under the 2007 Operations Contract and 2007 Wholesale Contract until such time as any payments under this Contract can be collected in lieu thereof. Trophy Club Municipal Utility District No. 1 202 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 6 of 28 ARTICLE III. WHOLESALE WATER SERVICES 3.1 Points of Connection of Water. MUD shall deliver a wholesale supply of Water to Town Water Distribution System at the existing Points of Connection of Water. Any additional Points of Connection of Water must be at locations mutually agreed upon in writing by the Parties. 3.2 Quantity of Wholesale Water Services. Subject to the terms of this Contract, MUD agrees to purchase and transport to Town a supply of W ater: (i) in a quantity that meets all regulatory requirements for public water systems applicable to the provision of retail water service by Town to Town Customers located within the Property; and (ii) to be made available according to the same terms, conditions and limitations that MUD furnishes a supply of Water to its retail customers. MUD agrees that, for purposes of compliance with 30 Texas Administrative Code Sec. 290.45(f), the maximum authorized daily purchase rate shall be not less than 0.6 gallons per minute, and the maximum hourly purchase rate plus actual service pump capacity shall be at least 2.0 gpm per connection or provide at least 1,000 gpm and be able to meet peak hourly demands, whichever is less. 3.3 Resale Prohibited. Town shall not provide or sell Water received under this Contract to any person entity, private or public, other than Town’s retail customers located within the Property, without MUD’s prior written consent. The Parties agree that as of the Effective Date, MUD has not provided any such consent and Town does not provide retail water or wastewater service to any customers located outside the Property. 3.4 Sole Provider. MUD will be the sole source of Wholesale Water Services to Town for the Property unless MUD consents in writing to Town’s conversion to another wholesale provider. Under the terms and conditions set forth herein, MUD shall be entitled to provide Wholesale Water Services to Town for the Property from any source available to MUD. 3.5 Title to Water. Title to the water purchased by MUD and transported to Town under this Contract shall remain with MUD at all times until it reaches the Points of Connection of Water. At the Points of Connection of Water, title to the Water shall pass to the Town. 3.6 Conservation and Drought Planning. Town will adopt a water conservation plan and a drought contingency plan in compliance with TCEQ rules, 30 Texas Administrative Code, Chapter 288, with provisions at least as stringent as the provisions of the existing MUD Water Conservation and Drought Contingency Plan. MUD shall provide Town with any amended or revised MUD Water Conservation and Drought Contingency Plan upon adoption, and Town will adopt a water conservation plan and a drought contingency plan in compliance with TCEQ rules, 30 Texas Administrative Code, Chapter 288, with provisions at Trophy Club Municipal Utility District No. 1 203 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 7 of 28 least as stringent as the provisions of the amended or revised MUD Water Conservation and Drought Contingency Plan within sixty (60) days of Town’s receipt of the amended or revised MUD Water Conservation and Drought Contingency Plan. Town specifically agrees that upon institution of any mandatory water conservation or drought contingency restrictions by MUD upon its customers, MUD shall impose identical restrictions upon Town Customers as part of the Operational Services until and unless Town has adopted more stringent restrictions, in which event MUD shall enforce Town’s more stringent restrictions upon Town Customers. 3.7 Plumbing Regulations. MUD and Town both covenant and agree to adopt and enforce adequate plumbing regulations with provisions for the proper enforcement thereof, to ensure that neither cross-connection nor other undesirable plumbing practices are permitted. Plumbing regulations adopted by Town shall be not less stringent than those adopted by MUD. 3.8 Curtailment of Service. If water service is curtailed by MUD to other customers of the MUD Water System, MUD may impose a like curtailment on Wholesale Water Services delivered to Town under this Contract. MUD will impose such curtailments in a nondiscriminatory fashion. The Parties agree that they will not construe this Contract to prohibit MUD from curtailing service completely in the event of a maintenance, operation or Emergency for a reasonable period necessary to complete such maintenance operations or repairs or respond to an Emergency circumstance. Town acknowledges and agrees that the MUD’s provision of Wholesale Water Services under this Contract is subject to applicable provisions of the MUD Water Conservation and Drought Contingency Plan. 3.9 Water Service Rules, Regulations and Policies. Within sixty (60) days of the Effective Date, Town agrees to adopt retail water service rules, regulations and policies with provisions at least as stringent as, and not inconsistent with, the provisions of the existing MUD water service rules, regulations and policies (the “MUD Service Rules and Policies”). MUD shall provide Town with any amended or revised water service rules, regulations and policies upon adoption, and Town will adopt provisions at least as stringent as the provisions of the amended or revised MUD service rules, regulations or policies within sixty (60) days of Town’s receipt of the amended or revised MUD service rules, regulations and policies. 3.10 Consumer Confidence Report. Town shall timely adopt a consumer confidence report in accordance with all regulatory requirements, and to conduct any public hearing relating thereto. MUD agrees to furnish all required data and information required for Town to prepare the report and a draft of the report to Town for Town’s approval, and further agrees to distribute the approved report to all Town customers upon receipt from Town as part of the Operations Services to be provided hereunder. Trophy Club Municipal Utility District No. 1 204 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 8 of 28 ARTICLE IV. WHOLESALE WASTEWATER SERVICES 4.1 Points of Connection of Wastewater. MUD shall receive Wastewater from Town Wastewater Collection System at the existing Points of Connection of Wastewater. Any additional Points of Connection of Wastewater must be at locations mutually agreed upon in writing by the Parties. 4.2 Wholesale Wastewater Service. (a) Subject to the terms and conditions of this Contract and the requirements of applicable law, MUD agrees to provide Wholesale Wastewater Services to Town: (i) in a quantity that meets all regulatory requirements applicable to the provision of retail wastewater service by Town to Town Customers located within the Property; and (ii) according to the same terms, conditions and limitations that MUD furnishes wastewater service to its retail customers. (b) Town agrees that it shall adopt and enforce: (1) wastewater service rules and policies at least as stringent as, and not inconsistent with, the MUD Service Rules and Policies; and (ii) any pretreatment requirements for its retail customers as may be necessary to cause the quality of Wastewater Town delivers to the MUD Wastewater System pursuant to this Contract to meet the requirements of this Contract and the MUD Service Rules and Policies. MUD shall be responsible for the quality of any Wastewater collected from MUD customers and passed through the Town Wastewater Collection System to the MUD Wastewater System. (c) MUD shall be entitled to collect samples of Wastewater at or near the Point(s) of Connection into the MUD Wastewater System or from any point within the Town Wastewater Collection System and cause the same to be analyzed in accordance with accepted methods in the industry to determine if such Wastewater complies with the MUD Service Rules and Policies and any pretreatment requirements. If analysis discloses that the Wastewater does not comply with the MUD Service Rules and Policies and any pretreatment requirements, Town shall be obligated to require the offending originator to immediately cease discharging such Wastewater into the Town Wastewater Collection System or to pretreat such Wastewater such that the discharge of prohibited Wastewater ceases immediately. 4.3 Sole Provider. MUD will be the sole source of Wholesale Wastewater Service to Town for the Property unless MUD consents in writing to Town’s conversion to another wholesale provider. Under the terms and conditions set forth herein, MUD shall be entitled to provide Wholesale Wastewater Service to Town for the Property from any source of treatment capacity available to MUD. Trophy Club Municipal Utility District No. 1 205 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 9 of 28 4.4 Wholesale Service Commitment Not Transferable. MUD’s commitment to provide Wholesale Wastewater Service is solely to Town and solely for the Property. Town may not assign or transfer in whole or in part its right to receive Wholesale Wastewater Service without MUD’s prior written consent. 4.5 Curtailment of Service. The Parties agree that, if Wastewater service is curtailed by MUD to other customers of the MUD Wastewater System, MUD may impose a like curtailment on Wholesale Wastewater Service delivered to Town under this Contract. The MUD will impose such curtailments in a nondiscriminatory fashion. The Parties agree that they will not construe this Contract to prohibit MUD from curtailing service completely in the event of a maintenance operation or Emergency for a reasonable period necessary to complete such maintenance operations or repairs or respond to an Emergency circumstance. 4.6 Town Prevention of Infiltration and Inflow. Town will adopt and enforce such ordinances as are reasonably necessary or prudent to minimize Infiltration and Inflow to the Town Wastewater Collection System, and such ordinances shall be at least as stringent as, and not inconsistent with, the MUD’s Service Rules and Policies. Town will prohibit the discharge of drainage water and stormwater run-off into the Town Wastewater Collection System. 4.7 Liability of Town. As between the Parties, liability for damages to third persons arising from the reception, transportation, delivery, treatment and disposal of all Wastewater will remain with Town to each Point of Connection of Wastewater; provided, however, that if any such liability to third parties arises directly out of an act or omission of MUD in the provision of Operations Services, then the MUD will pay all costs and expenses arising out of such liability as part of the Operations Services provided hereunder. Town agrees that any sewer backups caused by force majeure, intrusion of roots into the Town Wastewater Collection System, defects in construction of the Town Wastewater Collection System or other circumstances that are not under the direct control of MUD do not arise out of the act or omission of MUD, and MUD shall have no liability in connection therewith. As between the Parties, liability for damages to third persons will pass to MUD at the Points of Connection of Wastewater to the MUD Wastewater System. 4.8 Liability of MUD. Subject to the foregoing, MUD will bear the responsibility as between the Parties for the proper reception, transportation, treatment, and disposal of such Wastewater received by it at each Point of Connection of Wastewater in accordance with the Contract. However, the Parties agree that they will not construe this Contract to cause MUD to have liability for damages to the MUD Wastewater System or to third persons arising from the delivery by Town of any W astewater that is prohibited under this Agreement. Similarly, this Contract shall not be construed as a waiver of any governmental immunity that MUD or Town may enjoy with respect to any claims brought by third party persons or entities. Trophy Club Municipal Utility District No. 1 206 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 10 of 28 4.9 MUD Treatment and Use of Wastewater. MUD may treat the Wastewater delivered by the Town pursuant to this Contract and dispose of the effluent generated thereby in such manner as may be provided in the Permit or other TCEQ authorization in its sole discretion; provided, however, that if MUD has effluent available, as determined in MUD’s discretion, then MUD will make available all or part of such effluent to Town at Town’s request in accordance with all terms and conditions of the MUD Service Rules and Policies relating to the use of wastewater effluent for irrigation customers, as modified from time to time. To the extent allowed by law, MUD will make effluent available to Town at no charge. Town shall be responsible for the acquisition or construction of all facilities and improvements required to transport effluent from the MUD Wastewater System to the place of use, and any modifications to the MUD’s Wastewater System, at Town’s sole expense. The design of all such improvements and modifications shall be subject to MUD’s prior approval. Town shall also be responsible for securing at its sole cost and expense all regulatory approvals required for the delivery and use of effluent. Notwithstanding any provision herein to the contrary, the Town acknowledges and agrees as follows: (i) that Trophy Club Country Club shall have an opportunity to purchase any excess Wastewater effluent prior to such effluent being made available to Town and (ii) Town may not furnish or resell to third parties any Wastewater effluent. 4.10 Wastewater Service Rules, Regulations and Policies. Within sixty (60) days of the Effective Date, Town agrees to adopt wastewater service rules, regulations and policies with provisions at least as stringent as, and not inconsistent with, the provisions of the existing MUD wastewater service rules, regulations and policies (“MUD Service Rules and Policies”). MUD shall provide Town with any amended or revised wastewater service rules, regulations and policies upon adoption, and Town will adopt provisions at least as stringent as the provisions of the amended or revised MUD service rules, regulations or policies within sixty (60) days of Town’s receipt of the amended or revised MUD service rules, regulations and policies. ARTICLE V. OPERATIONS SERVICES RELATED TO TOWN WATER DISTRIBUTION SYSTEM, TOWN WASTEWATER COLLECTION SYSTEM, AND TOWN WELLS 5.1 Town’s Obligation to Construct Town Water Distribution System and Town Wastewater Collection System. Town shall continue to design and construct, at its sole cost and expense, the Town Water Distribution System and a Town Wastewater Collection System to provide retail water and wastewater service to Town Customers. The Town Water Distribution System shall include all facilities necessary to store Water and to convey Water from the Points of Connection of Water to Town Customers. The Town Wastewater Collection System shall include all facilities necessary to transport Wastewater from Town Customers to the Points of Connection of Wastewater. The Parties specifically agree that the MUD shall have no obligation whatsoever to construct new Trophy Club Municipal Utility District No. 1 207 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 11 of 28 improvements within, or as part of, the Town Water Distribution System or the Town Wastewater Collection System to serve new development or new land uses within the Property. 5.2 Provision of MUD Operations Services. (a) MUD agrees to provide the following contract operation, maintenance, meter reading, billing and reporting functions (collectively, the “Operations Services”) to Town in connection with the Town Water Distribution System and Town Wastewater Collection System: 1) Operating and maintaining the Town Water Distribution System and Town Wastewater Collection System in the same manner as the MUD operates and maintains the MUD Water System and the MUD Wastewater System; 2) Repairing and replacing the Town Water Distribution System and Town Wastewater Collection System (but excluding any expansions) in the same manner as the MUD repairs and replaces the MUD Water System and the MUD Wastewater System as necessary to provide continuous and adequate service in accordance with all regulatory requirements; 3) Reading individual meters of Town retail customers on behalf of Town; 4) Billing, collecting from, and responding to service calls from Town Customers; 5) Dead-end water flushes; 6) Prepare and filing certain operational and compliance reports required by law, including those required by the Commission or EPA relating to operation of the Town Wastewater Collection System or Town Water Distribution System, as more particularly described in Section 5.2(e) below; 7) Preparing and furnishing to Town a monthly operational report including the same detail and information prepared by the MUD for its own system; 8) Providing a representative, upon prior request of Town, to present reports at regular Town Council meetings regarding service matters; and 9) Cooperating with respect to any inspection of the Town Wastewater Collection System or Town Water Distribution System by TCEQ, EPA or any other regulatory entity. Trophy Club Municipal Utility District No. 1 208 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 12 of 28 (b) MUD will provide Operations Services to Town under this Contract in compliance with all applicable, federal, state, and local laws, rules and regulations, and in the same manner that it provides those services to retail water and wastewater customers within the MUD. If MUD’s failure to comply with all applicable, federal, state, and local laws, rules and regulations for which it is responsible under this Contract results in fines or penalties against Town of any kind or any requirement that Town take corrective action by any governmental agency having jurisdiction, then MUD shall pay such fines and penalties, and shall undertake such correction, as part of the Operations Services provided hereunder; provided, however, that notwithstanding any provision in this Contract to the contrary, MUD shall have absolutely no responsibility to pay any costs, fines or penalties that arise out of any of the following: (i) the design or construction of the Town Wastewater Collection System or Town Water Distribution System; (ii) the introduction of prohibited Wastewater by any customer of the Town into the Town Wastewater Collection System for which the Town has not taken immediate enforcement action; (iii) any action, decision, inaction or delay of the Town that contributes to the circumstance or condition that results in the violation, fine or penalty; (iv) matters which are outside the scope of Operations Services to be provided by MUD; and (v) matters that are outside the reasonable control of the MUD, including acts of force majeure and acts of third parties. (c) As an independent contractor, MUD shall work independently and exercise its own judgment in providing the Operations Services. Town shall have no control over the means or methods of the MUD’s work, except that MUD shall provide Operations Services in a professional and workmanlike manner consistent with the standards by which it furnishes services to its own retail water and wastewater customers, and shall comply with all applicable local, state and federal laws, rules and regulations. (d) Town acknowledges that the Operations Services do not include any services or obligations not specifically set forth in this Contract. By way of example and without limitation, the Operations Services do not include design or construction of extensions to the Town Wastewater Collection System or Town Distribution System; plumbing inspections; construction inspections; records retention; filing of plans for new infrastructure improvements with regulatory authorities; legislative functions such as adoption of policies, rates and service rules; or enforcement of Town ordinances, rules, regulations or policies. (e) As part of the Operations Services, MUD shall prepare, execute and file on behalf of Town those operations and sampling reports and filings that may legally be executed by an operator of a public water or wastewater system on behalf of the owner. With respect to those reports, plans and filings that must be executed or filed directly by the owner of the public water or wastewater system, MUD shall prepare a draft report, plan and/or filing for Town, but Town shall be solely responsible for final approval, execution and filing thereof. The Trophy Club Municipal Utility District No. 1 209 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 13 of 28 Parties agree that the data to be furnished by MUD for purposes of preparing reports, filings and plans on behalf of Town shall be operational and sampling data obtained by MUD in connection with providing the Operations Services, and Town shall be responsible for gathering and furnishing other data not generated as a result of operating the Town Water Distribution System and Town Wastewater Collection System, such as Town population data. 5.3 Wells. Town has sole discretion regarding the specifications for, number and location of Wells that may be constructed by Town. Any and all Wells constructed by or at the direction of Town or dedicated to Town shall be owned and operated by Town, and are outside the scope of Operations Services to be furnished by MUD. No Wells shall be connected to the Town Water Distribution System without the prior consent and approval of the MUD. MUD has sole discretion regarding the specifications for, number and location of Wells that may be constructed by MUD. 5.4 Cooperation. (a) Town agrees to fully cooperate with MUD in connection with the provision of Operations Services by MUD. By way of example and without limitation, Town shall not prevent, hinder or impair MUD’s access to the Town Wastewater Collection System or Town Water Distribution System. Similarly, in the event Town receives any notices, correspondence, notices of enforcement action, inspection reports, customer correspondence or other information relating to water or wastewater services, operations or water or wastewater facilities, it shall provide a copy thereof to MUD as soon as reasonably practical. Town shall also timely execute any operations reports or filings that must be executed by an authorized representative of Town, and shall fully cooperate as necessary to allow MUD to file any regulatory reports or filings that MUD files on behalf of Town as part of the Operations Services. (b) The Parties agree to fully cooperate and provide notice to each other as soon as practicable regarding emergencies and events that materially impact water and wastewater service. (c) The Parties will fully cooperate to respond to alleged violations or enforcement action pertaining to water and wastewater services. 5.5 Approvals for MUD Bonds Relating to Town Infrastructure. The Parties acknowledge and agree that the Operations Services to be provided by MUD include necessary repairs or replacement of the Town Wastewater Collection System or the Town Water Distribution System. In the event that MUD seeks to issue bonds for funding any such repairs or replacements and TCEQ withholds approval for the issuance of such bonds, or the Attorney General of the State of Texas refuses to render an opinion approving the validity of bonds issued by MUD for such purposes, then the Parties agree to fully cooperate as necessary to cause such repair or replacement to proceed without delay at no Trophy Club Municipal Utility District No. 1 210 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 14 of 28 additional cost to Town. MUD shall have no obligation to undertake any such repair or replacement until an alternative funding source is identified and agreed upon by the Parties. 5.6 Elevated Storage Tank. The Parties acknowledge that the Town Water Distribution System includes an elevated storage tank to which both Parties contributed funding. As part of the Operations Services, MUD shall operate the elevated storage tank to provide and maintain pressure to customers of both the Town Water Distribution System and the MUD Water System in accordance with all applicable regulatory requirements applicable to both systems. 5.7 Insurance. MUD agrees to secure and maintain insurance for the Town Water Distribution System and Town Wastewater Collection System at MUD’s sole cost and expense. The Parties mutually agree that any payments of insurance under any such policies should go to MUD for purposes of repair or replacement of Town infrastructure. In the event that the insurance company tenders payment of the insurance proceeds to Town for any reason, Town agrees to immediately remit all such insurance proceeds to MUD, which shall utilize the proceeds for repair or replacement of Town infrastructure, or if the amount of the proceeds exceeds the cost of the repair or replacement, MUD shall credit such excess proceeds to the Annual Capital Improvements and Maintenance Charge due from Town. AR TICLE VI. CHARGES TO TOWN 6.1 Charges to Town for Wholesale Water Service, Wholesale Wastewater Services and Operational Services. The MUD charges to Town for Wholesale Water Services, Wholesale Wastewater Services, and Operational Services shall consist of the following: (a) The Retail Customer Charge; (b) The Annual Capital Improvements and Maintenance Charge; (c) Fort Worth Impact Fees; and (d) Utility Fees. ARTICLE VII. BILLING AND PAYMENT 7.1 Retail Customer Charge. (a) MUD shall provide to Town any amended or revised MUD Rate Order adopted by MUD and Town shall adopt a Town Rate Order identical to the amended or revised MUD Rate Order. The Town shall adopt a Town Rate Order Trophy Club Municipal Utility District No. 1 211 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 15 of 28 identical to the amended or revised MUD Rate Order provided that the Town has received receipt of the amended or revised MUD Rate Order at least 96 hours before a regularly scheduled Council meeting. In the event that the Town receives receipt of the amended or revised MUD Rate Order with less than 96 hours before a regularly scheduled Council meeting then the Town shall adopt a Town Rate Order identical to the amended or revised MUD Rate Order at the second regularly scheduled Council meeting after receiving receipt of the amended or revised MUD Rate Order. Within thirty (30) days of the Effective Date, Town shall adopt the Town Rate Order. Except as provided in Section 7.1(d) below, the Town Rate Order shall be identical to the existing MUD Rate Order. MUD shall provide to Town any amended or revised MUD Rate Order adopted by MUD not later than sixty (60) days before the effective date of any new rates and charges, and Town shall adopt a Town Rate Order identical to the amended or revised MUD Rate Order within sixty (60) days of Town’s receipt of the amended or revised MUD Rate Order, such that the effective date of any changes to the Town Rate Order and MUD Rate Order shall be identical. In the event that in connection with any rate proceeding TCEQ (or the Public Utility Commission of Texas) changes any MUD rates, fees or charges, MUD shall provide immediate notice thereof to Town and Town shall use its best efforts to change the Town Rate Order immediately, including by calling a special meeting if necessary. (b) As part of the Operations Services provided to Town, MUD shall bill and collect amounts due from Town Customers under the Town Rate Order for the provision of retail water and wastewater services. Such billing and collection shall be conducted by MUD in the same manner of billing and collections performed by MUD for retail water and wastewater service furnished by MUD to its retail customers in the MUD boundaries. (c) Town hereby authorizes MUD to collect all monthly payments from Town Customers under the Town Rate Order and to directly deposit such payments into the MUD bank accounts. MUD shall keep one hundred percent (100%) of all collections from Town Customers, except as provided in Section 7.1(d) below. All such payments collected by MUD from Town Customers under the Town Rate Order identical to the rates, fees and charges of MUD are collectively referred to herein as the “Retail Customer Charge.” (d) Town shall have the right at any time to modify its rate order to include separate fees and charges in addition to those billed and charged by MUD. Any such additional Town fees or charges (a “Town Surcharge”) shall be separately identified on the MUD’s bill to Town Customers. Town shall give MUD not less than 60 days prior written notice of any such additional Town charge. Except as provided in Section 7.2(d) below with respect to the levy and collection of a Town Surcharge for payment of the Annual Capital Improvements and Maintenance Charge, MUD shall remit payment of any such additional Town fees and charges that it collects to Town within fifteen (15) days after receipt of a written invoice for payment from Town. Notwithstanding any provision herein to Trophy Club Municipal Utility District No. 1 212 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 16 of 28 the contrary, Town agrees that the volumetric rates for water and wastewater service to Town Customers under the Town Rate Order must be identical to the MUD volumetric rates for water and wastewater services under the MUD Rate Order, and the Town Surcharge shall not be a gallonage charge (and instead shall be a fixed sum). 7.2 Annual Capital Improvements and Maintenance Charge. (a) The Annual Capital Improvements and Maintenance Charge shall be calculated in accordance with the following methodology: 1) Town shall furnish its most current certified assessed valuation from the County Tax-Assessor (the “Certified Assessed Valuation”) for the Property to the MUD on or before August 1 of each year that this Contract remains in effect. 2) No later than September 1 of the same year, MUD will furnish Town with an annual debt service, maintenance and operations budget that contains the following items: a. The total debt service requirements for new money ad valorem tax bonds issued by MUD after the Effective Date in the next calendar year (“Annual Debt Service Requirement”); b. The total expenses to be funded with maintenance taxes in the next fiscal year (“Annual Maintenance and Repair Requirement”), save and except budgeted costs of MUD director fees and director elections, the costs of which MUD agrees shall not be funded by the Annual Capital Improvements and Maintenance Charge; c. The cumulative total of the Certified Assessed Valuation for the MUD and the Property; d. Town’s percentage share of the Annual Debt Service Requirement and Annual Maintenance and Repair Requirement calculated by dividing the Certified Assessed Valuation for the Property by the cumulative total of the Certified Assessed Valuation for the MUD and the Property; and e. The amount of the next year’s Annual Debt Service Requirement and Annual Maintenance and Repair Requirement for which the Town is responsible for payment during the subsequent calendar year (the “Annual Capital Improvements and Maintenance Charge”) shall be equal to the product of the Town’s percentage share of the Annual Debt Service Requirement and Annual Maintenance and Trophy Club Municipal Utility District No. 1 213 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 17 of 28 Repair Requirement multiplied by the Annual Debt Service Requirement and Annual Maintenance and Repair Requirement. (b) If for any reason the timing of issuance of ad valorem tax debt by MUD does not allow the Annual Capital Improvements and Maintenance Charge to be calculated in accordance with the foregoing schedule, then Town’s share of any such ad valorem debt service payments shall be added to the next subsequent calendar year Annual Debt Service Requirement. (c) Town shall determine, in its sole discretion, the source of funding for payment of the Annual Capital Improvements and Maintenance Charge; provided, however, that (i) the Town shall not levy and collect an ad valorem tax for payment of the Annual Capital Improvements and Maintenance Charge; and (ii) the source of funding shall be collected only from Town Customers within the Property. Without limitation, Town may levy a Town Surcharge (as defined in Section 7.1(d) above) in the Town Rate Order for purposes of generating revenues for payment of the Annual Capital Improvements and Maintenance Charge. (d) If Town levies a Town Surcharge for payment of the Annual Capital Improvements and Maintenance Charge, then MUD shall retain the Town Surcharge for payment of the Annual Capital Improvements and Maintenance Charge. If Town uses another source of funding to pay the Annual Capital Improvements and Maintenance Charge, then Town shall pay such funds to MUD within thirty (30) days of receipt, but in no event later than the end of the calendar year. Within thirty (30) days of the end of each calendar year, MUD shall prepare and furnish to Town a reconciliation that identifies the cumulative sum collected by MUD from the Town Surcharge or paid by Town from other funding sources. In the event that the cumulative sum collected exceeds the Annual Capital Improvements and Maintenance Charge, the MUD shall remit such excess monies to Town within thirty (30) days after the reconciliation report is furnished to Town. If the cumulative sum collected is less than the Annual Capital Improvements and Maintenance Charge, then Town shall pay the full amount of the deficit within thirty (30) days of receipt of the MUD reconciliation report. (e) Each Annual Capital Improvements and Maintenance Charge shall remain in effect from January through December of each year that this Contract remains in effect. The Parties acknowledge that the payment procedures may cause the MUD to be responsible for principal or interest on bonds during the calendar year before Town has fully contributed its pro rata share of such payments to MUD; provided, however, the reconciliation and payment obligations of the Parties shall ensure that Town pays, and the MUD receives, the Annual Capital Improvements and Maintenance Charge for each calendar year (and not more or less). Trophy Club Municipal Utility District No. 1 214 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 18 of 28 (f) A new Annual Capital Improvements and Maintenance Charge shall be calculated for each calendar year in accordance with the same methodology set forth in Section 7.2(a) for so long as this Contract remains in effect. (g) If all of the Property is annexed into the corporate boundaries of the MUD, then Town’s obligation to pay the Annual Capital Improvement and Maintenance Charge will terminate on the January 1 following the effective date of the annexation. 7.3 Fort Worth Impact Fees. Town understands that MUD has a separate agreement for water services with the City of Fort Worth (hereinafter “Fort Worth Water Contract” as defined above) and that pursuant to that Fort Worth Water Contract, MUD is responsible for collection of Fort Worth’s impact fees from new customers that are paid to Fort Worth. Town understands and agrees that as a wholesale water supply customer of MUD, Town will be required to collect and pay all impact fees due under the Fort Worth Water Contract for each new Town Customer. The Parties further agree that Town’s permitting department collects the Fort Worth Impact Fee from each new Town Customer and each new retail customer of MUD within the boundaries of Town, and provides a daily collection report to MUD identifying all new customers. Town remits the cumulative Fort Worth Impact Fees collected from all such customers to MUD each month upon receipt of a written invoice for payment from MUD, and MUD in turn provides payment to the City of Fort Worth. Town agrees to continue to take such actions as may be necessary to collect or to allow for the collection from all new retail connections of Town and MUD within the boundaries of Town an amount equal to the impact fee assessed by the City of Fort Worth pursuant to the Fort Worth Water Contract and to remit such sum to MUD in the amount and in accordance with the terms set forth in the Fort Worth Water Contract. Upon receipt of such funds from Town, MUD shall immediately remit that amount to the City of Fort Worth. Town agrees that no new Town Customer shall be entitled to receive water or wastewater service for which the Fort Worth Impact Fee is not collected and paid to MUD. In the event that payment of the Fort Worth Impact Fee is not collected from any new Town Customer, MUD may immediately disconnect service until payment is received. 7.4 Utility Fees. The Parties acknowledge that the 2007 Wholesale Contract provided for the Town to pay MUD a lump sum amount of $540,000 and a Utility Fee of $2,300 for each new service connection to the Town Water Distribution System and Town Wastewater Collection System until the total amount of Utility Fees paid to MUD equaled $3,260,000, in consideration of the MUD’s payment of the debt service on bonds issued to finance the construction and installation of the existing MUD Water System and MUD Wastewater System. For purposes of this contract, and in consideration of the receipt of Utility Fees, MUD agrees that Town shall not be responsible for payment of debt service on ad valorem tax bonds issued by MUD prior to the Effective Date, or any refunding thereof. The 2007 Wholesale Contract further provided that to the extent the Town paid less Trophy Club Municipal Utility District No. 1 215 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 19 of 28 than this sum to the District as of May 7, 2013, then the Town would be required to pay ten percent (10%) interest each year on the difference between the amount of such fees paid to the District and $3,260,000 in accordance with a formula set forth in the 2007 Wholesale Contract. The Parties now acknowledge that there will not be a sufficient number of new service connections within the Property in order for Town to collect and remit to MUD the full amount that was required to be paid under the 2007 Wholesale Contract. As a result, from and after the Effective Date, the Parties agree that Town’s payment obligation of Utility Fees and interest shall be as follows: (a) Town shall collect a fee $2,300 (the “Utility Fee”) for each new standard service connection within the Property to the Town Water Distribution System or Town Wastewater Collection System within the Property and tender such fee to MUD until such time as MUD has received Utility Fees from 1,407 standard service connections within the Property (including those received under the 2007 Wholesale Contract); (b) From and after the Effective Date, Town shall pay to MUD the Utility Fees collected by Town for all new service connections within the Property during the preceding calendar month on or before the end of a calendar month. (c) Until such time as MUD has received Utility Fees from 1,407 new service connections within the Property (including those received under the 2007 Wholesale Contract), Town shall, pursuant to its contract with 831 Trophy LP (“Developer”), entitled “The Highlands at Trophy Club Development and Public Improvement District Agreement” and all prior modifications thereof, notify the Developer of its requirement to directly pay to MUD or to provide a letter of credit for the benefit of MUD to pay interest in accordance with the following methodology: 1) The difference between the total amount of Utility Fees received by MUD as of a specified date and $3,260,000 represents the “Utility Fee Remainder” as of said date; 2) Interest at ten percent (10%) per annum shall be payable to MUD each year based on the Utility Fee Remainder until such time as the MUD has received Utility Fees from 1,407 new service connections within the Property (including those received under the 2007 Wholesale Contract); 3) It is hereby agreed that, as of May 7, 2013, the Utility Fee Remainder was $707,000. Therefore, the initial interest payment, equal to $70,700 (which represents 10% of the Utility Fee Remainder as of May 7, 2013), shall be paid to MUD on or before May 31, 2014; Trophy Club Municipal Utility District No. 1 216 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 20 of 28 4) The amount of interest to be paid to MUD thereafter (commencing May 31, 2015) shall be calculated according to the following methodology: where (A) equals the Utility Fee Remainder as of the preceding May 7th (commencing May 7, 2014) and (B) equals the Utility Fee Remainder as of the subsequent May 7th (commencing May 7, 2015), then (A) plus (B) divided by two (2) and multiplied by ten percent (10%) will be the amount of interest payable for the preceding year; and 5) If the foregoing calculation of interest results in interest greater than the maximum amount allowed by applicable law, then the amount of interest for that period will be reduced to equal the maximum amount allowed by applicable law. 6) Town agrees that no new Town Customer shall be entitled to receive water or wastewater service for which the Utility Fee is not collected and paid to MUD. In the event that payment of the Utility Fee is not collected from any new Town Customer, MUD may immediately disconnect service on behalf of Town until payment is received. In the event interest is not received by MUD by May 31 of each year for so long as such interest is due, no meters shall be set for new service connections within the Property until the interest is paid to the MUD. 7.5 Customer Deposits. Town hereby authorizes the MUD to collect, deposit, administer and refund customer deposits from Town Customers in the same manner, in the same amount, and according to the same procedures as applicable to MUD retail customers. Town acknowledges and agrees that interest will not be paid either to Town or to Town Customers on such deposits. 7.6 Payments by Town Unconditional. Town recognizes that MUD will issue bonds that will be payable and secured by a pledge of the sums of money to be received by MUD from Town under this Contract. Accordingly, Town’s obligation to make the payments required by this Contract is hereby made unconditional. All sums payable hereunder by Town to MUD shall, so long as any part of the MUD bonds are outstanding and unpaid, be paid by Town without set-off, counterclaim, abatement, suspension or diminution except as otherwise expressly provided herein; and so long as any part of MUD bonds are outstanding and unpaid, Town shall not have any right to terminate this Contract nor shall the Town be entitled to the abatement of any payment or any reduction thereof nor shall the obligations of the Town be otherwise affected for any reason, it being the intention of the Parties that so long as any portion of the MUD bonds are outstanding and unpaid, all sums required to be paid by the Town to MUD shall continue to be payable in all events and the obligations of the Town hereunder shall continue unaffected, unless the requirement to pay the same shall be reduced or terminated pursuant to an express provision of the Agreement. Trophy Club Municipal Utility District No. 1 217 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 21 of 28 7.7 Rate Appeals. If the Town at any time disputes the amount to be paid by it to the MUD, the Town shall nevertheless promptly make the disputed payment or payments, but the Town shall have the right to seek a judicial determination whether the rates charged by the MUD are in accordance with the terms of this Contract. 7.8 Other Charges. The Parties mutually acknowledge that each Party currently collects certain charges and fees on behalf of the Party, as follows: (i) MUD collects Town’s solid waste fee and taxes, and drainage fees, on each monthly bill to Town Customers. Payments received from Town Customers are deposited by MUD, and then tendered to Town upon receipt of a monthly invoice for payment. (ii) The Town permitting department collects the MUD service deposit, meter charge, Utility Fee, Fort Worth Impact Fees, a Fire Line Fee, the Fire Plan Review Fee, and Omnicom Fee from new MUD retail customers. Such payments received from MUD customers are deposited by Town, and then tendered to MUD upon receipt of a monthly invoice for payment. Each Party agrees to cooperate in good faith with the other Party to continue collection of fees and charges on behalf of the other Party to lower costs to, and minimize burdens upon, their respective customers. Notwithstanding the foregoing, in the event that it is determined that either Party does not have the authority to collect and/or deposit charges on behalf of the other Party, each Party shall be responsible for billing and collection of its own charges, or the Parties shall otherwise cooperate as necessary to ensure that separate payments are made by customers to the appropriate payee. ARTICLE VIII. TERM 8.1 Term. This Contract shall become effective upon approval by each of the respective governing bodies of Town and MUD and upon execution by their respective authorized representatives, and shall remain in effect for an initial term of 99 years from the Effective Date or until any new bonds issued by the District after the Effective Date (including refunding bonds for such new bonds) are no longer outstanding, whichever is later. Thereafter, this Contract shall renew automatically for additional terms of ten (10) years each unless either Party provides not less than six (6) months prior written notice to the other Party of termination before the expiration of any term. 8.2 Material Breach; Notice and Opportunity to Cure. (a) In the event that one Party believes that another Party has materially breached one of the provisions of this Agreement, the non-defaulting Party will make written demand to cure and give the defaulting Party up to 30 Trophy Club Municipal Utility District No. 1 218 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 22 of 28 days to cure such material breach or, if the curative action cannot reasonably be completed within 30 days, the defaulting Party will commence the curative action within 30 days and thereafter diligently pursue the curative action to completion. This period must pass before the non-defaulting Party may initiate any remedies available to the non-defaulting party due to such breach; provided, however, that neither Party may terminate this Contract as a remedy for default. (b) Any non-defaulting Party will mitigate direct or consequential damage arising from any breach or default to the extent reasonably possible under the circumstances. (c) The Parties agree that they will negotiate in good faith to resolve any disputes and may engage in non-binding mediation, arbitration or other alternative dispute resolution methods as recommended by the laws of the State of Texas. 8.3 Equitable Relief. (a) The Parties acknowledge that MUD is limited in its ability to terminate this Contract in the event of Town’s default, whether a monetary default or otherwise, because MUD has outstanding bonds and because Town may have an obligation to provide continuous and adequate water and wastewater services to its retail customers at the time of the default and may lack alternative sources for service. In recognition of this, and that failure in the performance of Town’s obligations could not be adequately compensated in money damages alone, Town agrees that in the event of any default on its part that the MUD shall have available to it equitable remedies including, without limitation, the right to obtain a writ of mandamus or specific performance or an injunction against the Town requiring the Town to levy and collect rates and charges sufficient to pay the amounts owed to MUD by Town under this Agreement. (b) The Parties acknowledge that Town is limited in its ability to terminate this Contract in the event of MUD’s default because Town may have an obligation to provide continuous and adequate water and wastewater services to its retail customers at the time of the default and may lack alternative sources for service. In recognition of this, and that failure in the performance of MUD’s obligations could not be adequately compensated in money damages alone, MUD agrees that in the event of any default on its part that Town shall have available to it equitable remedies including, without limitation, the right to obtain a writ of mandamus or specific performance or an injunction against MUD requiring it to perform its duties under this Contract. 8.4 Remedies Not Exclusive. The provisions of this Agreement providing remedies in the event of a Party’s breach of this are not intended to be exclusive remedies. The Parties retain, except to the extent released or waived by the express terms of this Agreement, all rights at law and in equity to enforce the Trophy Club Municipal Utility District No. 1 219 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 23 of 28 terms of this Agreement in addition to, and cumulative to, remedies provided in this Agreement. The foregoing shall not be construed to authorize termination. ARTICLE IX. MISCELLANEOUS 9.1 Joint Meetings. The Town Council and the MUD Board of Directors agree to hold joint meetings in each quarter of each calendar year or as the parties mutually agree. The purpose of these joint meeting will be to discuss matters of common interest to Town and MUD, including, but not limited to, amendments or revisions to the MUD Conservation and Drought Contingency Plan, amendments or revisions to the MUD Rate Order, the construction of capital improvements to serve the MUD and the Property, the calculation and collection of the Annual Capital Improvements and Maintenance Charge, and the calculation and collection of any other charges due from Town to MUD under this Contract. 9.2 Immunity. The fact that Town and MUD accept certain responsibilities relating to the provision of Operations Services under this Contract as part of their responsibility for providing Water and Wastewater Services to their respective residents makes it imperative that the performance of these vital services be recognized as a governmental function and that the doctrine of governmental immunity shall be, and it is hereby, invoked to the extent possible under the law. Neither Town nor MUD waive any immunity or defense against third party claims that would otherwise be available to it against claims arising from the exercise of governmental powers and functions. The Parties hereto agree that each respectively waives its sovereign immunity to suit for the limited purpose of adjudication of a claim for breach of this Contract. Notwithstanding the foregoing Contract, remedies in such action shall be limited to those provided by state law. 9.3 Force Majeure. If any Party is rendered unable, wholly or in part, by force majeure to carry out any of its obligations under this Contract, except the obligation to pay amounts owed or required to be paid pursuant to the terms of this Contract, then the obligations of such Party, to the extent affected by such force majeure and to the extent that due diligence is being used to resume performance at the earliest practicable time, shall be suspended during the continuance of any inability so caused to the extent provided but for no longer period. As soon as reasonably possible after the occurrence of the force majeure relied upon, the Party whose contractual obligations are affected thereby shall give notice and full particulars of such force majeure to the other Party. Such cause, as far as possible, shall be remedied with all reasonable diligence. The term “force majeure,” as used herein, shall include without limitation of the generality thereof, acts of God, strikes, lockouts, or other industrial disturbances, acts of the public enemy, orders of any kind of the government of the United States or the State of Texas or any civil or military authority other than a Party to Trophy Club Municipal Utility District No. 1 220 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 24 of 28 this Contract, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, hurricanes, restraint of government and people, civil disturbances, explosions, breakage or accidents to machinery, pipelines or canals, partial or entire failure of water supply resulting in an inability to provide water necessary for operation of the water and sewer systems hereunder or in an inability of MUD to provide Water or receive Wastewater, and any other inabilities of any Party, whether similar to those enumerated or otherwise, which are not within the control of the Party claiming such inability, which such Party could not have avoided by the exercise of due diligence and care. It is understood and agreed that the settlement of strikes and lockouts shall be entirely within the discretion of the Party having the difficulty, and that the above requirement that any force majeure shall be remedied with all reasonable dispatch shall not require the settlement of strikes and lockouts by acceding to the demands of the opposing Party when such settlement is unfavorable to it in the judgment of the Party experiencing such difficulty. 9.4 Applicable Law. This Contract shall be governed by the laws of the State of Texas and no lawsuit shall be prosecuted on this Contract except in a court of competent jurisdiction located in Tarrant or Denton County. 9.5 No Additional Waiver Implied. No waiver or waivers of any breach or default (or any beaches or defaults) by any Party hereto of any term, covenant, condition, or liability hereunder, or the performance by any Party of any duty or obligation hereunder, shall be deemed or construed to be a waiver of subsequent breaches or defaults of any kind, under any circumstances. 9.6 Addresses and Notice. Unless otherwise provided in this Contract, any notice, communication, request, reply, or advice (herein severally and collectively, for convenience, called “Notice”) herein provided or permitted to be given, made, or accepted by any Party to the other (except bills), must be in writing and may be given or be serviced by depositing the same in the United States mail postpaid and registered or certified and addressed to the Party to be notified, with return receipt requested, or by delivering the same to such Party, addressed to the Party to be notified. Notice deposited in the mail in the manner hereinabove described shall be conclusively deemed to be effective, unless otherwise stated in this Contract, from and after the expiration of three (3) days after it is so deposited. Notice given in any such other manner shall be effective when received by the Party to be notified. For the purpose of notice, addresses of the Parties shall, until changed as hereinafter provided, be as follows: If to MUD, to: If to Town, to: MUD Manager Town Manager, 100 Municipal Drive 100 Municipal Drive Trophy Club, Texas 76262 Trophy Club, Texas 76262 Trophy Club Municipal Utility District No. 1 221 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 25 of 28 The Parties shall have the right from time to time and at any time to change their respective addresses and each shall have the right to specify any other address by at least fifteen (15) days' written notice to the other. 9.7 Merger and Modification. This Contract, including the exhibits that are attached hereto and incorporated herein for all purposes, embodies the entire Contract between the Parties relative to the subject matter hereof. This Contract shall be subject to change or modification only with the written mutual consent of all Parties affected by such change or modification. 9.8 Severability. The provisions of this Contract are severable, and if any part of this Contract or the application thereof to any person or circumstances shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Contract and the application of part of this Contract to other persons or circumstances shall not be affected thereby. 9.9 Successors and Assigns. This Contract shall be binding upon and inure to the benefit of the Parties hereto and their successors. This Contract shall not be assigned without the written consent of the governing bodies of the respective entities. 9.10 Benefits of Contract. This Contract is for the benefit of the Parties and their successors and assigns and shall not be construed to confer any benefit on any other person or entity except as expressly provided for herein. 9.11 Consent and Approvals. Whenever this Contract provides for the approval or consent of one of the Parties, such consent or approval shall not be unreasonably withheld or delayed. 9.12 Authority. This Agreement is made and entered into pursuant to the provisions of the Interlocal Cooperation Act, V.T.C.A. Government Code, Chapter 791; V.T.C.A. Local Government Code, Chapter 552; V.T.C.A. Water Code Chapters 30 and 49, and other applicable law. Trophy Club Municipal Utility District No. 1 222 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 26 of 28 TOWN OF TROPHY CLUB, TEXAS By: Name: C. Nick Sanders Title: Mayor Date: ATTEST: By: Name: Holly Fimbres Title: Town Secretary TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 By: Name: Kevin Carr___ Title: President Date: ATTEST: By: Name: Laurie Slaght Title: District Secretary Trophy Club Municipal Utility District No. 1 223 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 27 of 28 EXHIBIT “A” Trophy Club Municipal Utility District No. 1 224 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet I I I I I I I I I i I I k i. 1on o co Z o c Zon Ib nr C Trophy Club Municipal Utility District No. 1 225 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet Page 28 of 28 EXHIBIT “B” Trophy Club Municipal Utility District No. 1 226 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet J' Trophy Club Municipal Utility District No. 1 227 of 227 July 25, 2017 Special Session Joint Meeting Agenda Packet