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HomeMy WebLinkAboutApril 3, 2007 Regular Session BackupTown of Trophy Club Municipal Utility District No.1 Meeting Agenda 100 Municipal Drive Trophy Club, Texas 76262 Tuesday, April 3, 2007 5:30 P.M. A.1 Call to Order and Announce a Quorum. A.2 Public Comments or Presentations. B.1 Discuss and take appropriate action concerning the proper amount of funds to be held as reserves, as recommended by the auditors. B.2 Discuss and take appropriate action concerning request by Economic Development Corporation 4B to designate reinvestment zones for tax abatement purposes within MUD 1. B.3 Discuss and take appropriate action concerning current legislative matters including House Bill No. 536 (by State Rep. Truitt) regarding consent required for a municipality to annex a water or sewer district. B.4 Discuss and take appropriate action concerning proposed contract with Town of Trophy Club for the providing of water and sewer services to the proposed new development by Centurion American. B.5 Discuss and take appropriate action concerning disposition of amounts to be received by the Master District as a result of the contract between the Master District and the Town of Trophy Club for the furnishing water and wastewater services to the new development known as "The Highlands." D.1 Receive District Manager's Report a. Items to be placed on future agendas D.2 Review and Approve Minutes a. March 6, 2007 D.3 Review and Approve Disbursements and Variance Report a. February 2007 D.4 Review Monthly Tax Collection Report a. February 2007 D.5 Set Next Meeting Date Next regularly scheduled meeting date: Tuesday, May 8, 2007, 6:00 p.m. 1 F.1 Adjourn. 2 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 4-3-2007 Subject: Agenda Item No.A.1 Call to Order and Announce a Quorum. (mm) 3 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 4-3-2007 Subject: Agenda Item No.A.2 Public Comments or Presentations. (mm) 4 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 4-3-2007 Subject: Agenda Item No.B.1 Discuss and take appropriate action concerning the proper amount of funds to be held as reserves, as recommended by the auditors. EXPLANATION: On February 21, 2007, Weaver & Tidwell (Managing Partner: Shawn Parker, Senior Manager: John Deburro) met with the Audit Committee from the Master District, Municipal Utility District No. 1 and Municipal Utility District No. 2. During those meetings, the subject of unreserved fund balance arose. Specifically, the auditors were asked what they deem or would deem an appropriate level. The auditors responded first by suggesting we turn to the Government Finance Officers Association’s (GFOA) recommended practices as a guideline for appropriate levels. Second, the auditors also made mention that a range between 25% and 30% of total expenditures would be a solid, healthy level given current expenditures. In an effort to ensure that our understanding was correct, we contacted Weaver & Tidwell. They concurred and to further clarify, mentioned that that their suggested percentage represents a general fund unreserved fund balance as a percentage of general fund expenditures. In addition to Weaver & Tidwell’s mention of a range between 25%-30%, below is a brief history explaining what led to the development of the GFOA’s recommendation on unreserved fund balance. RECOMMENDATION: In 1993, the Government Finance Officers Association (GFOA) Executive Board directed the Association's staff to work with the GFOA Standing Committees to develop a body of recommended practices in the functional areas of public finance to give GFOA members and other state and local governments more guidance on sound financial management practices. This effort represented a fundamental new direction for GFOA and one that is still evolving. This resulting collection of recommended practices has been approved by the GFOA Executive Board after careful development by the Standing Committees. Each practice was developed drawing on the collective wisdom of more than fifty persons with extensive and diverse experience in public finance. The recommended practices are intended to identify enhanced techniques and provide information about effective strategies for state and local government 5 practitioners. The attachment provided below falls under the functional area of Budgeting & Fiscal Policy. ACTION BY MUD1: (sdm) Attachments: 1. Appropriate Level of Unreserved Fund Balance in the General Fund 6 7 8 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 4-3-2007 Subject: Agenda Item No. B.2 Discuss and take appropriate action concerning request by Economic Development Corporation 4B to designate reinvestment zones for tax abatement purposes within MUD 1. EXPLANATION: Town of Trophy Club Office of the Town Manager Memo To: MUDs From: Brandon Emmons Date: March 28, 2007 Re: Tax Abatements The Town Council recently established four (4) reinvestment zones as required by law in order to have the ability to issue property tax abatements within the Town of Trophy Club. In addition, they adopted a policy to the consideration of property tax abatements and approved a schedule of abatements. Property tax abatements are a tool used by Municipalities to attract new commercial development. The MUDs would benefit from the additional property tax revenue and water and wastewater sales that accompany new development. The creation of the reinvestment zones by the MUDs could mirror those of the Town, or be created to address the specific needs of the individual MUDs. Even with the establishment of an Abatement Schedule, it should be noted that the Board is under no obligation to grant any incentives and would have the final determination on the amount and type to be granted. The Municipal Utility District would consider and approve or 9 deny each application on its own merits. However, having the potential for property tax abatements would help the Town attract development. Additionally, abatements will only be applied to new valuation. The existing value of the property at the time of the abatement is granted will still be assessed and required to pay taxes. The existing tax base will not be negatively impacted by the implementation of abatements. RECOMMENDATION: ACTION BY MUD1: (BE/BG) Attachments: 1. Town Resolution 2007-01 2. Reinvestment Zones 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 REINVESTMENT ZONE 1 The proposed Reinvestment Zone 1 is comprised of 9 contiguous parcels described as follows: 1. Generally described as The Village at Trophy Club, Lot 1, being 3.79 acres in the C. Medlin Survey, Abstract No. 823, in the Town of Trophy Club, Denton County, Texas and further described as 2001 – 2003 SH 114, Trophy Club, Texas. 2. Generally described as The Village at Trophy Club, Lot 2, being 1.8 acres in the C. Medlin Survey, Abstract No. 832, in the Town of Trophy Club, Denton County, Texas and further described as 2101 SH 114, Trophy Club, Texas. 3. Generally described as The Village at Trophy Club, Lot 3, being 1.601 acres in the C. Medlin Survey, Abstract No. 832, in the Town of Trophy Club, Denton County, Texas and further described as 93 Trophy Club Dr., Trophy Club, Texas. 4. Generally described as The Village at Trophy Club, Lot 4, being 1.0 acres in the C. Medlin Survey, Abstract No. 832, in the Town of Trophy Club, Denton County, Texas and further described as 95 Trophy Club Dr., Trophy Club, Texas. 5. Generally described as The Village at Trophy Club, Lot 5, being 1.75 acres in the C. Medlin Survey, Abstract No. 832, in the Town of Trophy Club, Denton County, Texas and further described as 99 Trophy Club Dr., Trophy Club, Texas. 6. Generally described as being 3.4096 acres in the C. Medlin Survey, Abstract No. 823A, Tract 19, Old DCAD Tr #3B, in the Town of Trophy Club, Denton County, Texas and further described as being located generally at the southeast corner of SH 114 and Trophy Club Dr. in Trophy Club, Texas. 7. Generally described as being 13.055 acres in the C. Medlin Survey, Abstract No. 823A, Tract 22, Old DCAD Tr #4B, in the Town of Trophy Club, Denton County, Texas and further described as being located generally north of SH 114 and southeast of Trophy Club Dr. in Trophy Club, Texas. 8. Generally described as being 5.612 acres in the C. Medlin Survey, Abstract No. 823A, Tract 21A, in the Town of Trophy Club, Denton County, Texas and further described as being located generally north of SH 114 and southeast of Trophy Club Dr. in Trophy Club, Texas. 9. Generally described as being 4.2614 acres in the C. Medlin Survey, Abstract No. 823A, Tract 21, in the Town of Trophy Club, Denton County, Texas, and further described as 100 Trophy Club Dr. and 100 Indian Creek Dr., Trophy Club, Texas. 25 *Boundaries of zone are highlighted in yellow Property ID Legal Description Acres R185199 THE VILLAGE AT TROPHY CLUB, LOT 1 R185200 THE VILLAGE AT TROPHY CLUB, LOT 2 R185201 THE VILLAGE AT TROPHY CLUB, LOT 3 R185202 THE VILLAGE AT TROPHY CLUB, LOT 4 R185203 THE VILLAGE AT TROPHY CLUB, LOT 5 9.947 R68347 A0823A C. MEDLIN, TRACT 19, ACRES 3.4096, OLD DCAD TR #3B 3.4096 R151108 A0823A C. MEDLIN, TRACT 22, ACRES 13.055, OLD DCAD TR #4B 13.055 R171494 A0823A C. MEDLIN, TRACT 21A, ACRES 5.6120 5.612 R171495 A0823A C. MEDLIN, TRACT 21, ACRES 4.2614 4.2614 26 REINVESTMENT ZONE 2 The proposed Reinvestment Zone 2 is generally described as 300 Trophy Club Drive, Trophy Club, Texas, and is described as: 1. Described as being 2.106 acres of land located in the C. Medlin Survey, Abstract No. 823A, Tract 1A, as recorded in Volume Deed Records of Denton County, in the Town of Trophy Club, Texas, and more generally described as 300 Trophy Club Drive, Trophy Club, Texas. *Boundaries of zone are highlighted in yellow Property ID Legal Description Acres R171493 A0823A C. MEDLIN, TRACT 1A, ACRES 2.106 2.106 27 REINVESTMENT ZONE 3 The proposed Reinvestment Zone 3 is comprised of 5 contiguous parcels described as follows: 1. Generally described as Trophy Club Plaza, Block A, Lot 2, being 1.85 acres situated in the J. Eads Survey, Abstract No. 392, and the J. Sutton Survey, Abstract No. 1154, in the Town of Trophy Club, Denton County, Texas and further described as 541 Trophy Lake Dr, Trophy Club, Texas. 2. Generally described as Trophy Club Plaza, Block A, Lot 3, being 1.16 acres situated in the J. Eads Survey, Abstract No. 392, and the J. Sutton Survey, Abstract No. 1154, in the Town of Trophy Club, Denton County, Texas and further described as 353 Trophy Lake Dr, Trophy Club, Texas. 3. Generally described as Trophy Club Plaza, Block A, Lot 1, being 10.95 acres situated in the J. Eads Survey, Abstract No. 392, and the J. Sutton Survey, Abstract No. 1154, in the Town of Trophy Club, Denton County, Texas and further described as 101, 301 and 501 Trophy Lake Dr, Trophy Club, Texas. 4. Generally described as being 2.705 acres in the J. Sutton Survey, Abstract No. 1154A, Tract 6, Old DCAD Tr #1A(2), in the Town of Trophy Club, Denton County, Texas, and further described as being located generally northeast of the intersection of Trophy Club Dr. and Trophy Lake Dr. in Trophy Club, Texas. 5. Generally described as being 3.50 acres in the Jessie Eads Survey, Abstract No. 392A, Tract 21, Old DCAD Tr #2E, in the Town of Trophy Club, Denton County, Texas, and further described as being located generally at the northeast corner of Trophy Club Lake Dr and Trophy Club Dr. in Trophy Club, Texas. 28 *Boundaries of zone are highlighted in yellow Property ID Legal Description Acres R216467 TROPHY CLUB PLAZA, BLOCK A, LOT 2 R21468 TROPHY CLUB PLAZA, BLOCK A, LOT 3 R216466 TROPHY CLUB PLAZA, BLOCK A, LOT 1 13.96 R133129 A1154A J. SUTTON, TRACT 6, ACRES 2.705, OLD DCAD TR #1A(2) 2.705 R133149 A0392A JESSIE EADS, TRACT 21, ACRES 3.50, OLD DCAD TR 2E 3.5 29 REINVESTMENT ZONE 4 The proposed Reinvestment Zone 4 is comprised of 11 contiguous parcels described as follows: 1. Generally described as Trophy Club Medical Plaza, Block 1, Lot 1, being 7.9384 acres situated in the John Henry Survey, Abstract No. 528 and the W.H. Pea Survey, Abstract No.1045, in the Town of Trophy Club, Denton County, Texas, and further described as 2800 and 2850 SH 114, Trophy Club, Texas. 2. Generally described as being 8.3912 acres in the J. Henry Survey, Abstract No. 528A, Old DCAD Tr 3B, in the Town of Trophy Club, Denton County, Texas, and further described as being located generally to the north of SH 114 and to the west of Trophy Wood Dr., Trophy Club, Texas. 3. Generally described as Trophy Wood Business Center, Block A, Lot 2, being 1.05 acres situated in the J. Henry Survey, Abstract No. 528 (Denton County) and Abstract No. 742 (Tarrant County) and the W. Medlin Survey, Abstract No. 1588 (Denton Co.) and Abstract No. 1958 (Tarrant Co.), in the Town of Trophy Club, Denton and Tarrant County, Texas and further described as being located generally to the north of SH 114 and to the west of Trophy Wood Dr., Trophy Club, Texas. 4. Generally described as Trophy Wood Business Center, Block A, Lot 1, being 0.88 acres situated in the J. Henry Survey, Abstract No. 528 (Denton County) and Abstract No. 742 (Tarrant County) and the W. Medlin Survey, Abstract No. 1588 (Denton Co.) and Abstract No. 1958 (Tarrant Co.), in the Town of Trophy Club, Denton and Tarrant County, Texas and further described as being located generally being located at the northwest corner of SH 114 and Trophy Wood Dr., Trophy Club, Texas. 5. Generally described as Trophy Wood Business Center, Block A, Lot 3, being 2.61 acres situated in the J. Henry Survey, Abstract No. 528 (Denton County) and Abstract No. 742 (Tarrant County) and the W. Medlin Survey, Abstract No. 1588 (Denton Co.) and Abstract No. 1958 (Tarrant Co.), in the Town of Trophy Club, Denton and Tarrant County, Texas and further described as being located generally to the north of SH 114 and to the west of Trophy Wood Dr. in Trophy Club, Texas. 6. Generally described as Trophy Wood Business Center, Block B, Lot 2 (Denton Co. portion), being 1.75 acres situated in the J. Henry Survey, Abstract No. 528 (Denton Co.) and Abstract No. 742 (Tarrant County) and the W. Medlin Survey, Abstract No. 1588 (Denton Co.) and Abstract No. 1958 (Tarrant Co.), in the Town of Trophy Club, Denton and Tarrant County, Texas and further described as being generally located at the northeast corner of Trophy Wood Dr. and SH 114 in Trophy Club, Texas. 7. Generally described as Trophy Wood Business Center, Block B, Lot 2 (MUD 1 portion), being 1.08 acres situated in the J. Henry Survey, Abstract No. 528 (Denton Co.) and Abstract No. 742 (Tarrant County) and the W. Medlin Survey, Abstract No. 1588 (Denton Co.) and Abstract No. 1958 (Tarrant Co.), in the Town of Trophy Club, Denton and 30 Tarrant County, Texas and further described as being generally located at the southwest corner of SH 114 and Plaza Dr. in Trophy Club, Texas. 8. Generally described as Trophy Wood Business Center, Block B, Lot 1 (MUD 1 portion), being 1.219 acres situated in the J. Henry Survey, Abstract No. 528 (Denton County) and Abstract No. 742 (Tarrant County) and the W. Medlin Survey, Abstract No. 1588 (Denton Co.) and Abstract No. 1958 (Tarrant Co.), in the Town of Trophy Club, Denton and Tarrant County, Texas and further described as being generally located to the north of SH 114 and east of Trophy Branch in Trophy Club, Texas. 9. Generally described as Trophy Wood Business Center, Block B, Lot 1 (Denton Co. portion), being 0.9 acres situated in the J. Henry Survey, Abstract No. 528 (Denton County) and Abstract No. 742 (Tarrant County) and the W. Medlin Survey, Abstract No. 1588 (Denton Co.) and Abstract No. 1958 (Tarrant Co.), in the Town of Trophy Club, Denton and Tarrant County, Texas and further described as being generally located at the southeast corner of Plaza Dr. and Trophy Branch, and to the north of SH114 in Trophy Club, Texas. 10. Generally described as Trophy Wood Business Center, Block B, Lot 3, being 3.38 acres situated in the J. Henry Survey, Abstract No. 528 (Denton County) and Abstract No. 742 (Tarrant County) and the W. Medlin Survey, Abstract No. 1588 (Denton Co.) and Abstract No. 1958 (Tarrant Co.), in the Town of Trophy Club, Denton and Tarrant County, Texas and further described as being generally located to the west of T.W. King Dr., east of Trophy Wood Dr. and north of Plaza Dr., Trophy Club, Texas. 11. Generally described as Trophy Wood Business Center, Block B, Lot 4, being 5.819 acres situated in the J. Henry Survey, Abstract No. 528 (Denton County) and Abstract No. 742 (Tarrant County) and the W. Medlin Survey, Abstract No. 1588 (Denton Co.) and Abstract No. 1958 (Tarrant Co.), in the Town of Trophy Club, Denton and Tarrant County, Texas and further described as being generally located to the west of T.W. King Dr., east of Trophy Wood Dr. and north of Plaza Dr., Trophy Club, Texas. 31 *Boundaries of zone are highlighted in yellow Property ID Legal Description Acres R272967 TROPHY CLUB MEDICAL PLAZA, BLOCK 1, LOT 1 (IMP ONLY) R109926 TROPHY CLUB MEDICAL PLAZA, BLOCK 1, LOT 1, ACRES 7.9384 7.9384 R98627 A0528A J. HENRY, TRACT 13, ACRES 8.3912, OLD DCAD TR 3B 8.3912 R263258 TROPHY WOOD BUSINESS CENTER, BLOCK A, LOT 2 R263257 TROPHY WOOD BUSINESS CENTER, BLOCK A, LOT 1 R263259 TROPHY WOOD BUSINESS CENTER, BLOCK A, LOT 3 R263255 TROPHY WOOD BUSINESS CENTER, BLOCK B, LOT 2(DENTON CO PORTION) R263256 TROPHY WOOD BUSINESS CENTER, BLOCK B, Lot 2, (MUD #1) R263254 TROPHY WOOD BUSINESS CENTER, BLOCK B, Lot 1, ( MUD #1) R263253 TROPHY WOOD BUSINESS CENTER, BLOCK B, LOT 1(DENTON CO PORTION) R263260 TROPHY WOOD BUSINESS CENTER, BLOCK B, LOT 3 R263261 TROPHY WOOD BUSINESS CENTER, BLOCK B, LOT 4 22.417 32 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 4-3-2007 Subject: Agenda Item No. B.3 Discuss and take appropriate action concerning current legislative matters including House Bill No. 536 (by State Rep. Truitt) regarding consent required for a municipality to annex a water or sewer district. EXPLANATION: RECOMMENDATION: ACTION BY MUD1: (wrf) Attachments: 1. H.B. 536 33 80R3197 MXM-F By: Truitt H.B. No. 536 A BILL TO BE ENTITLED AN ACT relating to the consent required for a municipality to annex a water or sewer district. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 43.071, Local Government Code, is amended by adding Subsection (g) to read as follows: (g) For an annexation of an area in a water or sewer district that is wholly or partly in the overlapping extraterritorial jurisdiction of two or more municipalities, any one of those municipalities is not required to obtain under Section 42.023 the written consent of any of the other municipalities in order to annex the area if: (1) the area contains less than 100 acres; (2) the annexing municipality, before June 1, 2005, annexed more than 50 percent of the territory of the water or sewer district, as the district existed on the date of its creation; and (3) the entire water or sewer district would be contained in the annexing municipality after completion of the annexation. SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2007. 34 SUBCHAPTER D. ANNEXATION PROVISIONS RELATING TO SPECIAL DISTRICTS § 43.071. AUTHORITY TO ANNEX WATER OR SEWER DISTRICT. (a) In this section, "water or sewer district" means a district or authority created under Article III, Section 52, Subsections (b)(1) and (2), or under Article XVI, Section 59, of the Texas Constitution that provides or proposes to provide, as its principal function, water services or sewer services or both to household users. The term does not include a district or authority the primary function of which is the wholesale distribution of water. (b) A municipality may not annex area in a water or sewer district unless it annexes the entire part of the district that is outside the municipality's boundaries. This restriction does not apply to the annexation of area in a water or sewer district if the district is wholly or partly in the extraterritorial jurisdiction of more than one municipality. (c) An annexation subject to Subsection (b) is exempt from the provisions of this chapter that limit annexation authority to a municipality's extraterritorial jurisdiction if: (1) immediately before the annexation, at least one-half of the area of the water or sewer district is in the municipality or its extraterritorial jurisdiction; and (2) the municipality does not annex in the annexation proceeding any area outside its extraterritorial jurisdiction except the part of the district that is outside its extraterritorial jurisdiction. (d) Area annexed under Subsection (b) is included in computing the amount of area that a municipality may annex under Section 43.055 in a calendar year. If the area to be annexed exceeds the amount of area the municipality would otherwise be able to annex, the municipality may annex the area but may not annex additional area during the remainder of that calendar year, except area subject to Subsection (b) and area that is excluded from the computation under Section 43.055. (e) Subsections (b)-(d) do not apply to the annexation of: (1) an area within a water or sewer district if: (A) the governing body of the district consents to the annexation; (B) the owners in fee simple of the area to be annexed consent to the annexation; and (C) the annexed area does not exceed 525 feet in width at its widest point; (2) a water or sewer district that has a noncontiguous part that is not within the extraterritorial jurisdiction of the municipality; or (3) a part of a special utility district created or operating under Chapter 65, Water Code. (f) To annex the entire part of a water or sewer district that is outside the municipality's boundaries, a general-law municipality incorporated after 1983 that is, after incorporation of the district, incorporated over all or any part of the district may annex territory by ordinance without the consent of the inhabitants or property owners of the territory. (g) Expired Sept. 1, 1990. Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 1, § 4(a), eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 1058, § 3, eff. Sept. 1, 1989. 35 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 4-3-2007 Subject: Agenda Item No.D.1 Receive District Manager's Report a. Items to be placed on future agendas (wrf) 36 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 4-3-2007 Subject: Agenda Item No. D.2 Review and Approve Minutes a. March 6, 2007 (mm) Attachments: 1. Minutes 37 MINUTES OF REGULAR SESSION TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 March 6, 2007 The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Tarrant and Denton Counties met in Regular Session on Tuesday, March 6, 2007, 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 Gary Cantrell Vice President Jim Hase Asst. Secretary/Treasurer Neil Twomey Director DIRECTORS ABSENT: Connie White Secretary/Treasurer STAFF AND GUESTS PRESENT: Walter Fitzpatrick District Manager Sakura Dedrick Finance Director Mary Moore Recording Secretary Shannon DePrater Records Management Officer Jim Buxton Financial Analyst Bob West Attorney Greg Lamont Council Member REGULAR SESSION A.1 Call meeting to order. President Henry announced a quorum and called the meeting to order at 6:02 p.m. A.2 Public Comments or Presentations. No public comments. B.1 Discuss and take appropriate action regarding acceptance of the 2005-2006 fiscal year-end financial audit for Trophy Club Municipal Utility District No. 1. (Jim Buxton) Jim Buxton turned it over to the Audit Committee, Directors Cantrell and Hase. Director Hase advised he had asked the auditors for advice with regard to the amount of reserves we should carry. The auditors recommended 20-30% of one-year’s expenses. 38 Board asked staff for an agenda item to set a policy to establish criteria/plan for saving the proper amount of money in reserves as recommended by the auditors. Director Cantrell stated that there were inconsistencies regarding internal controls. Jim Buxton agreed that there were inconsistencies regarding internal controls; however, all expenditures were found to be a valid purchases and practices have since been put in place to correct the previous inconsistencies. Director Hase moved to accept the 2005-2006 fiscal year-end financial audit for Trophy Club Municipal Utility District No. 1. Director Cantrell seconded the motion; Floor was opened for discussion. Director Hase stated the fees for the audit seem high and asked if we had gone out for competitive bids. Jim Buxton explained that we had; however, we only received two bids, one of which was not even considered. Motion carried unanimously. B.2 Discuss and take appropriate action regarding Order 2007-0306, establishing a records management program. (Shannon DePrater) Shannon DePrater advised that the previous Order was outdated and in need of being updated, and the first process in establishing a Records Management Program is to update this Order. Director Cantrell moved to repeal Order 91-0207 and approve Order 2007-0306, appointing a Records Management Officer and regulating records management by the Board of Directors, designating the Computer Support Specialist as the Records Management Officer. Director Hase seconded the motion. Motion carried unanimously. B.3 Discuss and take appropriate action concerning the amount of directors' fees. (Gary Cantrell) Director Cantrell stated he is looking at ways to save money. Director Cantrell stated MUD 1 could move their meetings to the same day as the Master District meeting date. District Manager Fitzpatrick stated that most directors charged one day’s meeting fee while attending the AWBD conference, another director or two charged for two, and one charged for three days. Director Hase suggested that when attending an AWBD conference, directors only receive their $100/day fee when classes are taught. Director Cantrell seconded the motion. Floor was opened for discussion. Director Henry stated that fees should be paid when performing a service and driving down to and back from the AWBD conference is not performing a service. Director Twomey requested that this be brought before the Master District meeting as an agenda item. Attorney West stated that he has heard of instances of directors being reimbursed for minor services; however, he is not aware if rates for those limited services are pro-rated or not. He is in favor of looking into this further and believes it should be done uniformly, to include MUD 2. Director Hase withdrew his motion and Director Cantrell seconded the withdrawal of the motion. No action. 39 B.4 Discuss and take appropriate action concerning improving the communication between the MUDs and Trophy Club residents. (Neil Twomey) Director Twomey advised he sat down with IT Manager Mike Pastor to work on improving communications with the MUDs. Director Twomey advised the following: There is a way to do surveys. There has been a recommendation of streaming video for those who do not have cable. We would need to have it be digital, which would incur costs to upgrade our video system. Newsletters are another possibility with input from both MUDs. List Serve, there are two separate details for MUDs, agenda notification and water info. There is a possibility of holding public events, maybe at pool. Create links off of website, say to AWBD, etc. Director Cantrell stated that we will be getting a new fire truck, and would like to make it a Town event, and have a “naming” contest where school children name the truck. The last truck was named “Old Smokey.” Action will be to address this at a Master District meeting. B.5 Discuss and take appropriate action concerning proposed contract with Town for the providing of water and sewer services to the proposed new development by Centurion American. Director Cantrell recommended moving this to the Closed Session and have District Manager Fitzpatrick included in the Closed Session meeting. The Board agreed. No action taken. 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. January 9, 2007 - Regular Session minutes Director Hase moved to approve the minutes for January 9, 2007. Director Henry seconded the motion; motion carried unanimously. D.3 Review and Approve Disbursements a. December 2006 b. January 2007 Director Twomey moved to approve the December 2006 and the January 2007 disbursements. Director Henry seconded the motion. The floor was opened for discussion, which there was none. Motion carried unanimously. D.4 Set Next Meeting Date a. Tuesday, April 10, 2007 at 6:00 p.m. Board agreed to not set a date to meet at this time. 40 MUNICIPAL UTILITY DISTRICT 1 TO CONVENE INTO CLOSED SESSION CLOSED SESSION The MUD 1 Board convened into Closed Session at 6:41 p.m. E.1 Closed meeting of the Board of Directors in accordance with Section 551.071 Tex. Gov. Code: Adjourn into closed meeting for the Board to conduct a private consultation with its attorney for the following purposes: A. ON A MATTER IN WHICH THE DUTY OF THE ATTORNEY TO THE DISTRICT UNDER THE TEXAS DISCIPLINARY RULES OF PROFESSIONAL CONDUCT OF THE STATE BAR OF TEXAS CLEARLY CONFLICTS WITH CHAPTER 551 OF THE TEXAS GOVERNMENT CODE, ON THE FOLLOWING MATTER: PROPOSED AGREEMENT BETWEEN TROPHY CLUB MUD NO. 1 AND TROPHY CLUB MUD NO. 2 FOR DIVISION OF FUNDS EXPECTED TO BE RECEIVED FROM CENTURION AMERICAN DEVELOPMENT AS DEVELOPER OF THE AREAS IN THE TOWN OF TROPHY CLUB NOT WITHIN A MUD, FOR WATER AND SEWER SERVICES TO THE PROPOSED NEW DEVELOPMENT AREAS. B. ON A MATTER IN WHICH THE DUTY OF THE ATTORNEY TO THE DISTRICT UNDER THE TEXAS DISCIPLINARY RULES OF PROFESSIONAL CONDUCT OF THE STATE BAR OF TEXAS CLEARLY CONFLICTS WITH CHAPTER 551 OF THE TEXAS GOVERNMENT CODE, ON THE FOLLOWING MATTER: CONCERNING PROPOSED CONTRACT WITH TOWN FOR THE PROVIDING OF WATER AND SEWER SERVICES TO THE PROPOSED NEW DEVELOPMENT BY CENTURION AMERICAN. MUNICIPAL UTILITY DISTRICT 1 TO RECONVENE INTO REGULAR SESSION REGULAR SESSION The MUD 1 Board reconvened into Regular Session at 7:29 p.m. F.1 Discuss and take appropriate action regarding proposed agreement between Trophy Club MUD No. 1 and Trophy Club MUD No. 2 for division of funds expected to be received from Centurion American Development, as developer of the areas of the Town of Trophy Club not within a MUD, for water and sewer services to the proposed new development areas. Director Cantrell moved to have MUD 1 President Henry notify MUD 2 President Budarf and advise him verbally that MUD 1 does not agree with their letter, and that MUD 1 is open to discuss their concerns. Director Hase seconded the motion. Floor was opened for discussion. Director Twomey suggested amending the motion to notify MUD 2 “orally” versus verbally. Movers agreed to amended motion. Motion carried unanimously 41 F.1.a Discussions held in closed session regarding Agenda Item B.5: Discuss and take appropriate action concerning proposed contract with Town for the providing of water and sewer services to the proposed new development by Centurion American. Board received advice from their attorney; no action taken. F.2 Adjourn. Meeting adjourned at 7:31 p.m. _________________________________ Dean Henry, President (SEAL) ____________________________________ Jim Hase, Secretary/Treasurer ____________________________________ Mary Moore, Recording Secretary 42 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 4-3-2007 Subject: Agenda Item No.D.4 Review Monthly Tax Collection Report a. February 2007 (mm) Attachments: 1. February Tax Collection Report 43 44 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 4-3-2007 Subject: Agenda Item No.F.1 Adjourn. (mm) 45