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HomeMy WebLinkAboutJuly 11, 2006 Regular Session BackupTown of Trophy Club Municipal Utility District No.1 Meeting Agenda 100 Municipal Drive Trophy Club, Texas 76262 Tuesday, July 11, 2006 6:00 P.M. A.1 Call to Order and Announce a Quorum. A.2 Public Comments or Presentations. B.1 Discuss and take appropriate action regarding FY 2006-2007 MUD 1 budget (Roger Unger) B.2 Discuss and take appropriate action regarding Resolution 2006-0711, a Code of Ethics Policy for MUD 1 Directors. D.1 Review and Approve Minutes a. June 6, 2006 D.2 Review and Approve Disbursements a. May 2006 b. June 2006 D.3 Review Monthly Tax Collection Report a. May 2006 D.4 Set Next Meeting Date a. August 8th or September 12th, 2006 at 6:00 p.m. F.1 Adjourn. 1 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 7-11-2006 Subject: Agenda Item No.A.1 Call to Order and Announce a Quorum. (mm) 2 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 7-11-2006 Subject: Agenda Item No.A.2 Public Comments or Presentations. (mm) 3 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 7-11-2006 Subject: Agenda Item No.B.1 Discuss and take appropriate action regarding FY 2006-2007 MUD 1 budget (Roger Unger) (rau) Attachments: 1. Projected Bank Balances and Tax Rates 2. Comparison of Annual Expenses/Revenues and Tax Rates 3. MUD 1 Operations and Maintenance Budget 4. MUD 1 Interest and Sinking Budget 4 5 6 7 8 9 10 11 12 13 14 15 16 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 7-11-2006 Subject: Agenda Item No.B.2 Discuss and take appropriate action regarding Resolution 2006-0711, a Code of Ethics Policy for MUD 1 Directors. (wrf) Attachments: 1. Resolution 2006-0711, addressing Code of Ethics 17 TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1 RESOLUTION NO. 2006-0711 RESOLUTION ADOPTING AN AMENDED CODE OF ETHICS, FEES AND EXPENSE POLICY, POLICIES AND PROCEDURES FOR SELECTION AND REVIEW OF CONSULTANTS, POLICIES CONCERNING THE USE OF MANAGEMENT INFORMATION INCLUDING THE FORMATION OF AN AUDIT COMMITTEE, AND CERTAIN OTHER MATTERS WHEREAS, Trophy Club Municipal Utility District No. 1 (the “District”) is a water district operating pursuant to Chapter 54 of the Texas Water Code; and WHEREAS, Tex. Water Code Ann. §49.199 requires that the Board of Directors of the District adopt certain policies and procedures in writing, including a code of ethics, an expense policy, policies and procedures for selection and review of consultants, and policies concerning the use of management information and the formation of an audit committee. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 THAT: I. The Board of Directors hereby adopts Attachments A through D hereof as its written policies and procedures required by Tex. Water Code Ann. §49.199. II. The President and the Secretary of the Board of Directors are authorized to evidence adoption of this Resolution on behalf of the Board of Directors and to do all other things proper and necessary to carry out the intent hereof. This resolution supersedes all previous Resolutions adopting any of the following: a Code of Ethics, a Travel Expense Policy, Policies and Procedures for Selection and Review of Consultants, or Policies Concerning the Use of Management Information Including the Formation of an Audit Committee. 18 ATTACHMENT A CODE OF ETHICS SECTION 1. Purpose. The purpose of this Code of Ethics is to set forth the standards of conduct and behavior for the members of the Board of Directors of Trophy Club Municipal Utility District No. 1 (the “District”), and its officers, and employees of the District (collectively with the Directors, the “District Officials”). SECTION 2. Conflicts of Interest. The District adopts Chapter 171, Government Code, as its Conflict of Interest Policy, the principal provisions of which are as follows: Except where a majority of the Board of Directors is required to abstain from participation in a vote because of conflict of interest, a Director will abstain from participating in a decision of the Board of Directors which either (1) confers an economic benefit on a business in which the Director or a close relative has a substantial interest, or (2) affects the value of property in which the Director or a close relative has a substantial interest differently from how it affects other real property in the District. For these purposes, a person is considered to have a “substantial interest” in a business if (1) he owns 10% or more of the voting stock or shares of the business entity or owns either 10% or more or $5,000 or more of the fair market value of the business entity; or (2) funds received from the business exceed 10% of his gross income for the previous year. A Person has a substantial interest in real property if the interest is an equitable or legal interest with a market value of $2,500 or more. A “close relative” of a Director for these purposes is a person related to the Director within the first degree of affinity or consanguinity. SECTION 3. Conduct of District Business. Each District Official will conduct all business of the District in a manner consistent with the requirements of applicable law. SECTION 4. Acceptance of Gifts. No District Official shall accept any benefit as consideration for any decision, opinion, recommendation, vote, or other exercise of discretion in carrying out his official acts for the District. No District Official shall solicit, accept, or agree to accept any benefit from a person known to be interested in or likely to become interested in any contract, purchase, payment, claim, or transaction involving the exercise of the District’s Official’s discretion. As used herein, “benefit” shall not include: (1) A fee prescribed by law to be received by a public servant or any other benefit to which the District Official is lawfully entitled or for which he gives legitimate consideration in a capacity other than as a District Official; (2) A gift or other benefit conferred on account of kinship or a personal, professional, or business relationship independent of the status of the recipient as a District Official; (3) A political contribution, as defined by the Election Code; (4) A benefit consisting of food, lodging, transportation, or entertainment accepted as a guest; or (5) A benefit to a District Official required to file a financial statement under the Texas Election Code that is derived from a function in honor or appreciation of the recipient if: 19 (A) The benefit and the source of any benefit in excess of $50.00 is reported in the required financial statement; (B) The benefit is used solely to defray the expenses that accrue in the performance of duties or activities in connection with its official duties for the District which are non-reimbursable by the District; or (6) An item with value of less than $50, excluding cash or a negotiable instrument; or (7) An item issued by a governmental entity that allows the use of property or facilities owned, leased, or operated by the governmental entity. 20 ATTACHMENT B FEES AND EXPENSE POLICY SECTION 1. Purpose. The purpose of this Expense Policy is to set forth the policies of Trophy Club Municipal Utility District No. 1 (the “District”) concerning per diem and travel expenses for members of the Board of Directors of the District. SECTION 2. Per Diem for Directors. The Directors are entitled to receive as fees of office $100 a day for each day of service necessary to discharge their duties; provided the fees shall not exceed a sum of $6,000 per annum. SECTION 3. Attendance at Meetings and Conduct of Other District Business. Board members may attend conferences and meetings of the Association of Water Board Directors, at the District’s expense, whether within or outside the Town of Trophy Club. Attendance at other conferences, hearings, or other meetings outside of Trophy Club by the members of the Board of Directors must be sanctioned by the Board of Directors; attendance at local meetings or conduct of other local District business will be at each Director’s discretion. Directors attending any meeting or conducting any District business shall report to the Board concerning the meeting or activity. SECTION 4. Expenses Outside of Trophy Club. The District will pay a reasonable room rate for a director’s hotel room, if District business requires that the director be out of Trophy Club, reasonable tips incurred in making the trip, roundtrip mileage at the current IRS mileage rate and parking, if any, for travel by car or roundtrip airfare at current commercial rates for standard (not first class) air fare and reasonable rental car or taxi charges. The District will pay for meals actually eaten and paid for by the Director on a sanctioned trip outside of Trophy Club; provided, however, reimbursement for meals will be limited to $50 per day. SECTION 5. Expenses for Local Meetings and Activities. The District will pay for roundtrip mileage at the current IRS rate for travel by car, parking, and will pay meals directly related to the meeting or activity. Reimbursement for meals will be limited to $50 per day. SECTION 6. Reimbursement. Directors attending meetings or other activities and wishing to receive a per diem and/or expenses must submit a verified statement showing the number of days actually spent in service to the District and a general description of the duties performed for each day of service. To receive reimbursement for expenses, a Director must also submit an itemized expense report to the Senior Accountant before reimbursement is approved by the Board’s District Manager. Items on the expense report shall include lodging, meals, tips, parking and transportation. Directors sharing expense items may split reported expenses in any matter they deem equitable, but the Board will pay no more than 100% of the actual total cost of reimbursable items. SECTION 7. Extraordinary Expenses. Any extraordinary expenses for a Director attending a sanctioned activity of the District must be approved by the Board prior to incurring the expense. 21 ATTACHMENT C POLICY CONCERNING SELECTION, MONITORING, REVIEW AND EVALUATION OF PROFESSIONAL CONSULTANTS SECTION 1. Purpose. The purpose of this Policy Concerning Selection, Monitoring, Review, and Evaluation of Professional Consultants is to set guidelines for the Board of Directors for Trophy Club Municipal Utility District No. 1 (the “District”) concerning its Professional Consultants. SECTION 2. Definition of Professional Consultant. “Professional Consultant” shall include the District’s attorney, auditor, bookkeeper, financial advisor, and tax assessor/collector, and such other consultants other than employees that the District may hereafter engage. SECTION 3. Selection of Consultants. Whenever the Board of Directors of the District decides to terminate the services of one or more of its Professional Consultants, the Board shall request one or more proposals as required by the Professional Services Procurement Act, Section 2254.001 et seq., Government Code, except where selection of professional consultants is to be conducted by the Board in an open meeting, shall appoint a committee of one or two Directors to review any proposals received by the Board, to interview applicants, and to make a recommendation to the entire Board of Directors concerning the selection. SECTION 4. Monitoring of Professional Consultants. For those Professional Consultants with annual contracts, the Board of Directors of the District will review the performance of the Professional Consultants for the prior year at the time the contract is renewed. The Board of Directors shall review the performance of its other Professional Consultants, upon the request of one or more Directors. 22 ATTACHMENT D POLICIES RELATING TO USE OF MANAGEMENT INFORMATION AND FORMATION OF AN AUDIT COMMITTEE SECTION 1. Purpose. The purpose of this Policy Relating to the Use of Management Information and Formation of an Audit Committee for Trophy Club Municipal Utility District No. 1 (the “District”) is to provide written policies concerning the use of management information. SECTION 2. Annual Budget. Prior to each fiscal year, the Board of Directors of the District shall adopt an annual budget for the next fiscal year for use in planning and controlling of costs. SECTION 3. Audit Committee. The District hereby appoints its Board of Directors as an audit committee to review the annual audit prepared by the District Auditor. The Board may designate a lesser number than the entire Board, but not less than two (2) Directors to serve as its audit committee. SECTION 4. Accounting Standards. The District hereby directs its auditor to adopt uniform auditing reporting requirements that use “Audits of State and Local Governmental Units” as a guide on audit working papers and that uses “Governmental Accounting and Financial Reporting Standards” for final audit reports (subject to the standards for audits prescribed by applicable Texas Commission on Environmental Quality Rules). PASSED AND APPROVED by the Board of Directors of the Trophy Club Municipal Utility District No. 1, Trophy Club, Texas, this, the 11th day of July 2006. _____________________________ President, Trophy Club MUD No. 1 (SEAL) ATTEST: _____________________________ Secretary, Trophy Club MUD No. 1 23 CERTIFICATE OF RESOLUTION (2006-0711) THE STATE OF TEXAS } COUNTY OF DENTON } COUNTY OF TARRANT} I, the undersigned member of the Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties, Texas (the "District"), hereby certify as follows: 1. That I am the duly qualified and acting Secretary of the Board of Directors of the District, and that as such, I have custody of the minutes and records of the District. 2. That the Board of Directors of the District convened in Open Session at a Regular Meeting on July 11, 2006, at the regular meeting place thereof, and the roll was called of the duly constituted officers and members of the Board of Directors, to wit: Dean Henry President Gary Cantrell Vice President Connie White Secretary/Treasurer Jim Hase Asst. Secretary/Treasurer Neil Twomey Director and Directors Henry, Cantrell, White, Hase and Twomey were present, thus constituting a quorum, whereupon, among other business, the following was transacted at such meeting: a written RESOLUTION (2006-0711) ADOPTING AN AMENDED CODE OF ETHICS, FEES AND EXPENSE POLICY, POLICIES AND PROCEDURES FOR SELECTION AND REVIEW OF CONSULTANTS, POLICIES CONCERNING THE USE OF MANAGEMENT INFORMATION INCLUDING THE FORMATION OF AN AUDIT COMMITTEE, AND CERTAIN OTHER MATTERS was duly introduced for the consideration of the Board of Directors. It was then duly moved and seconded that such Resolution be adopted and, after due discussion, such motion, carrying with it the adoption of such Resolution prevailed and carried by the following vote: AYES: NOES: 24 Resolution (2006-0711) Certificate Trophy Club Municipal Utility District No. 1 3. That a true, full and correct copy of such Resolution adopted at such meeting is attached to and follows this certificate; that such Resolution has been duly recorded in the minutes of the Board of Directors for such meeting; that the persons named in the above and foregoing Paragraph 2 were the duly chosen, qualified and acting officers and members of the Board of Directors as indicated therein, that each was duly and sufficiently notified officially and personally, in advance, of the time, place and purpose of such meeting, and that such Resolution would be introduced and considered for adoption at such meeting, and that each consented, in advance, to the holding of such meeting for such purpose; that the canvassing of the officers and members of the Board of Directors present at and absent from such meeting and of the votes of each on such motion, as set forth in the above and foregoing Paragraph 2, is true and correct; and that sufficient and timely notice of the hour, date, place and subject of such meeting was given and posted as required by Chapter 551, Texas Gov. Code. SIGNED AND SEALED the 11th day of July 2006. Secretary, Board of Directors (SEAL) 25 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 7-11-2006 Subject: Agenda Item No. D.1 Review and Approve Minutes a. June 6, 2006 (mm) Attachments: 1. June minutes 26 MINUTES OF REGULAR SESSION TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 JUNE 6, 2006 The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Tarrant and Denton Counties met in Regular Session on Tuesday, June 6, at 6:00 p.m., in the Boardroom of the Trophy Club Administration Building, 100 Municipal Drive, Trophy Club, Texas 76262. DIRECTORS PRESENT: Dean Henry President Connie White Secretary/Treasurer Jim Hase Asst. Secretary/Treasurer Gary Cantrell Director Neil Twomey Director STAFF AND GUESTS PRESENT: Walter Fitzpatrick District Manager Mary Moore Recording Secretary Roger Unger Interim Town Manager Bob West Attorney Ted Neidenberger 1033 Sunset Drive Ruth Frost 1129 Sunset Drive Adelaide Marano 103 Summit Cove Barbara Nash 102 Oak Village Lane Marc Richards 6 Muirfield Court Grace Richards 6 Muirfield Court Steve Kochs 116 Overhill Drive Susan Moss 979 Trophy Club Drive Jim Moss 979 Trophy Club Drive Susan Edstrom 269 Oak Hill Drive Alysia Edstrom 269 Oak Hill Drive Bob Radder 1 Lee Court REGULAR SESSION A.1 Call meeting to order. President Henry announced a quorum and called the meeting to order at 6:00 p.m. A.2 Public Comments or Presentations. No public comments. President Henry made a presentation to outgoing Vice President MUD 1 Director Ted Neidenberger and thanked him for his years of service. B.1 Oath of Office to be administered a. Gary Cantrell b. Neil Twomey c. Connie White Recording Secretary Mary Moore administered the Oath of Office to MUD 1 Directors Gary Cantrell, Neil Twomey, and Connie White. 27 B.2 Discuss and take appropriate action regarding election of a Vice President, to replace Ted Neidenberger. President Henry asked for nominations for MUD 1 Vice President. Director Hase moved to nominate Director Cantrell. President Henry asked for additional nominations for Vice President. Lacking any additional nominations, President Henry declared Director Cantrell as Vice President for MUD 1 by unanimous vote. B.3 Discuss and take appropriate action to consider MUD 1's fund allocation for annual 4th of July Festivities. The Board agreed to have this item discussed by the Board of the Master District. No action taken. B.4 Discuss and take appropriate action regarding FY 2006-2007 MUD 1 budget. (Roger Unger) Finance Director Unger discussed with the Board the FY 2006-2007 budget as presented to the Board. President Henry stated that the Board would review the budget presented and take action at a future meeting. No action taken. B.5 Discuss and take appropriate action regarding Resolution 2006-0606, a Code of Ethics Policy for MUD 1 Directors. The Board agreed to table this agenda item to further review this Resolution. Finance Director Unger will look into having the Board review the current Investment Policy and the possibility of incorporating the existing investment policy in the Code of Ethics Resolution. D.1 Receive District Manager's Report a. Items to be placed on future agendas District Manager Fitzpatrick had nothing to report. D.2 Review and Approve Minutes a. May 18, 2006 - Regular Session minutes Director White moved to approve the minutes for May 18, 2006. Director Cantrell seconded the motion; motion passed 4-0-1, with Director Twomey abstaining. D.3 Set Next Meeting Date a. Tuesday, July 11th or August 8, 2006 at 6:00 p.m. The Board agreed to meet on Tuesday, July 11, 2006 at 6:00 p.m. F.1 Adjourn. Meeting adjourned at 6:40 p.m. _________________________________ Dean Henry, President (SEAL) ____________________________________ Constance S. White, Secretary/Treasurer ____________________________________ Mary Moore, Recording Secretary 28 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 7-11-2006 Subject: Agenda Item No. D.3 Review Monthly Tax Collection Report a. May 2006 (mm) Attachments: 1. May Tax Collection report 29 30 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 7-11-2006 Subject: Agenda Item No. D.4 Set Next Meeting Date a. August 8th or September 12th, 2006 at 6:00 p.m. (mm) Attachments: 1. Calendar 31 32 33 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 7-11-2006 Subject: Agenda Item No.F.1 Adjourn. (mm) 34