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