HomeMy WebLinkAboutDecember 13, 2007 Regular Session BackupTown of Trophy Club
Municipal Utility District No.1 Meeting Agenda
100 Municipal Drive
Trophy Club, Texas 76262
Thursday, December 13, 2007
5:30 P.M.
A.1 Call to Order and Announce a Quorum.
A.2 Public Comments or Presentations.
B.1 Open Public Hearing
B.2 Trophy Club Municipal Utility District No. 1 to conduct a Public Hearing, regarding
the taxation of tangible personal property in transit which would otherwise be
exempt pursuant to Texas Tax Code, Section 11.253.
B.3 Close Public Hearing
B.4 Discuss and take appropriate action to approve a resolution of Trophy Club
Municipal Utility District No.1 to tax tangible personal property in transit which
would otherwise be exempt pursuant to Texas Tax Code, Section 11.253.
B.5 Discuss and take appropriate action to consider the advisability and method of
financing for the new/improved fire station.
C.1 Receive District Manager's Report
a. Update regarding ILA between Town and Master District for Fire Protection
(Highlands)
B. Items to be placed on future agendas
C.2 Receive Finance Director's Report
a. Sakura Dedrick out from December 3 to December 14, to return December 17.
D.1 Review and Approve Minutes
a. October 31, 2007
b. November 8, 2007
c. November 20, 2007
D.2 Review and Approve Disbursements and Variance Report
1. October financials and variance report.
D.3 Review Monthly Tax Collection Report
a. October 2007
D.4 Set Next Meeting Date
Next regularly scheduled meeting date: Tuesday, January 8 or February 12,
2008, 6:00 p.m.
F.1 Adjourn.
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 12-13-2007
Subject: Agenda Item No.A.1
Call to Order and Announce a Quorum.
(mm)
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 12-13-2007
Subject: Agenda Item No.A.2
Public Comments or Presentations.
(mm)
Open Public Hearing1B12-13-2007
Trophy Club Municipal Utility District No. 1 to conduct a Public Hearing,
regarding the taxation of tangible personal property in transit which would
otherwise be exempt pursuant to Texas Tax Code, Section 11.253.
2B12-13-2007
Close Public Hearing3B12-13-2007
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 12-13-2007
Subject: Agenda Item No.B.4
Discuss and take appropriate action to approve a resolution of Trophy Club
Municipal Utility District No.1 to tax tangible personal property in transit which
would otherwise be exempt pursuant to Texas Tax Code, Section 11.253.
EXPLANATION:
Please see below and attached memo for further explanation. This must be approved
prior to Jan 1, 2008 for this to remain in effect and then provided to the Denton County
Appraisal District.
HB621 – Goods in Transit Exemption
HB621 authorized what has been called a “super Freeport” exemption. The current
Freeport exemption is for goods shipped out of Texas within 175 days of arrival. Once
an entity adopted the Freeport exemption, it cannot be repealed. HB621 exempts
goods shipped within Texas and a governmental body must take action by December
31, 2007 to continue taxation of these type goods.
As opposed to the “old” Freeport exemption, HB621 authorizes governing bodies to
change the taxability or tax exemption status of goods by resolution. For example: the
governing body can, by resolution, exempt the goods described and then choose to tax
this property in subsequent years.
Action is needed by December 31, 2007 if these goods are to remain taxable. If your
governmental body wishes to exempt these, no action is needed.
RECOMMENDATION:
Finance recommends the approval of this resolution to tax tangible personal property in
transit.
ACTION BY MUD1:
(smd)
Attachments: 1. Attorney Memo “New Exemption of Goods in Transit”
2. Resolution
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
RESOLUTION NO. 2007-1204
A RESOLUTION TO TAX TANGIBLE PERSONAL PROPERTY IN TRANSIT
A RESOLUTION OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT
NO. 1 (TCMUD No. 1), OF DENTON AND TARRANT COUNTIES,
TEXAS; APPROVING THE TAXATION OF TANGIBLE PERSONAL
PROPERTY IN TRANSIT WHICH WOULD OTHERWISE BE EXEMPT
PURSUANT TO TEXAS TAX CODE, SECTION 11.253; PROVIDING A
SEVERABILITY CLAUSE, AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the 80th Texas Legislature in Regular Session has enacted House
Bill 621 to take effect on January 1, 2008, which added Tex. Tax Code §11.253 to
exempt from taxation certain tangible personal property held temporarily at a location in
this state for assembling, storing, manufacturing, processing or fabricating purposes
(goods-in-transit) which property has been subject to taxation in the past; and
WHEREAS, Tex. Tax Code §11.253(j) as amended allows the governing body of
a taxing unit, after conducting a public hearing, to provide for the continued taxation of
such goods-in-transit; and
WHEREAS, the Board of Directors of Trophy Club M.U.D. No. 1, having
conducted a public hearing as required by Section 1-n (d), Article VIII, Texas
Constitution, is of the opinion that it is in the best interests of the District to continue to
tax such goods-in-transit;
NOW THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1:
Section 1. The goods-in-transit, as defined by Tex. Tax Code 11.253(a)(2), as
amended by House Bill 621, enacted by the 80th Texas Legislature in Regular
Session, shall remain subject to taxation by the Trophy Club M.U.D. No. 1,
Texas.
Section 2. That if any word, sentence, section, subsection, subdivision,
paragraph, clause, phrase or provision of this Resolution shall be adjudged
invalid or held unconstitutional, the same shall not affect the validity of this
resolution as a whole or any part of the provision hereof other than the part so
decided to be invalid or unconstitutional.
Section 3. That all provisions of the resolutions of the District’s Board of
Directors in conflict with the provisions of this resolution shall be and the same
are hereby repealed and all other provisions of the resolutions of the TCMUD No.
1 Board not in conflict with the provisions of this resolution shall remain in full
force and effect.
Section 4. That this resolution shall become effective immediately upon its
passage.
PASSED AND APPROVED by the Board of Directors of Trophy Club Municipal
Utility District No. 1, this the 4th day of December, 2007.
___________________________
Dean Henry, President
Trophy Club MUD No. 1
(SEAL)
ATTEST:
_____________________________
Constance S. White, Secretary
Trophy Club MUD No. 1
CERTIFICATE OF RESOLUTION (2007-1204)
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 December 4, 2007, 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
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 (2007-1204) TO TAX
TANGIBLE PERSONAL PROPERTY IN TRANSIT
was duly introduced for the consideration of the Board of Directors of the District. 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:
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 Government Code, as amended.
SIGNED AND SEALED the 4th day of December 2007.
_________________________________
Constance S. White
Secretary, Board of Directors
(SEAL)
Discuss and take appropriate action to consider the advisability and method
of financing for the new/improved fire station.5B12-13-2007
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 12-13-2007
Subject: Agenda Item No.C.1
Receive District Manager's Report
a. Update regarding ILA between Town and Master District for Fire Protection
(Highlands)
B. Items to be placed on future agendas
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a. Sakura Dedrick out from December 3 to December 14, returning December
17.Receive Finance Director's Report2C12-13-2007
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 12-13-2007
Subject: Agenda Item No. D.1
Review and Approve Minutes
a. October 31, 2007
b. November 8, 2007
c. November 20, 2007
(mm)
Attachments: 1. Minutes
MINUTES OF REGULAR SESSION
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
October 31, 2007
The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and
Tarrant Counties met in Regular Session on Wednesday, October 31, 2007, at 4:00
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 Vice President
Neil Twomey Director
STAFF AND GUESTS PRESENT:
Walter Fitzpatrick District Manager
Sakura Dedrick Finance Director
Mary Moore Recording Secretary
Bob West Attorney
Brandon Emmons Town Manager
Nick Sanders Town Mayor
Danny Thomas Fire Chief
REGULAR SESSION
A.1 Call Meeting to Order.
President Henry announced a quorum and called the meeting to order at 4:00 p.m.
A.2 Public Comments or Presentations.
No public comments.
B.1 Discuss and take appropriate action regarding Order 2007-1031, approving
the 2007-2008 MUD 1 Rate Order.
Director Twomey moved to approve Order 2007-1031, the 2007-2008 MUD 1 Rate
Order. Director White seconded the motion. Motion to approve Order 2007-1031
carried unanimously.
B.2 Discuss and take appropriate action relative to the Interlocal Agreement
between Trophy Club MUD No. 1 and Trophy Club MUD No. 2 and the Town
of Trophy Club to provide water supply and wastewater treatment services
to the Town of Trophy Club (money contract).
District Manager Fitzpatrick distributed a handout to the Board regarding a recent
change by Town Attorney Adams to the “Money” contract under Article 4.1.B.
Director Cantrell moved to approve the Interlocal Agreement to provide water supply
and wastewater treatment services to the Town of Trophy Club. Director Twomey
seconded the motion. Floor was opened for discussion.
Director Hase suggested that the letter of credit needs to be negotiated between MUDs
1 and 2 and Mehrdad, and should be an addendum to the money contract.
Questions were raised regarding verbiage stating that the Town has control of the other
“type” of financial security, and the Board wishes to have that control.
Attorney West comments regarding the letter of credit were that the unpaid portion of
the remaining $3.26 million, then we want a letter of credit, payable in one year; work on
an annual basis; suggest to Mehrdad that we get a sample to attach to contract as an
addendum.
The Board decided to have Directors Henry and Cantrell meet with District Manager
Fitzpatrick tomorrow (Wednesday) to talk with Centurion American about a letter of
credit, its verbiage and inclusion as part of the contract.
Director Cantrell added that would like to strike the following from the contract “or other
type of financial security.”
Attorney West was directed by the Board to research “term” of contract.
Motion failed.
The Board deferred this to their next meeting.
B.3 Discuss and take appropriate action relative to the Interlocal Agreement
between Trophy Club MUDs (Trophy Club MUD 1, Trophy Club MUD 2, and
Trophy Club Master District) and the Town of Trophy Club to provide water
supply and wastewater treatment operational services to the Town of
Trophy Club (operations contract).
Deferred to next meeting.
B.4 Discuss and take appropriate action to consider the advisability and
method of financing for the new/improved fire station.
The Board discussed various options, one of which is that MUD 2 will pay cash for their
portion, and MUD 1 pays by public bonds.
Director Hase commented that MUD 1 should pay bonds to pay to take them out of the
roll-back problem. Adding, that the Highlands can pay their portion whatever way they
want.
Director Twomey advised that February 12 is the timeline for bond election. He
suggested obtaining legal advice, and to set up a committee to find out what needs to
be done if the Board needs to go out for bond for monies to pay for fire dept renovation.
Director Cantrell wants to have this ready by December’s meeting, and suggested the
committee members as Jim Hase and Neil Twomey, with himself as the alternate. The
first thing that should be done is talk with Bond Counsel Pete Tart.
Board agreed on committee.
Discussion only; no action taken.
C.1 Receive District Manager's Report
a. Items to be placed on future agendas:
District Manager Fitzpatrick had nothing to report at this time, adding he will provide a
full report at the Master District meeting.
C.2 Receive Finance Director's Report
Finance Director Dedrick updated the Board.
D.1 Review and Approve Minutes
a. October 9, 2007 - Regular Session minutes
President Director Twomey moved to approve the minutes for October 9, 2007.
Director White seconded the motion. Motion to approve the minutes for October 9,
2007 carried unanimously.
D.2 Review and Approve Disbursements and Variance Report
a. August 2007 – Disbursements
b. September 2007 – Disbursements and Variance Report
Director Hase moved to approve the disbursements and variance reports for August
and September 2007. Director Hase seconded the motion. Motion carried unanimously
to approve the disbursements for August and September.
D.3 Review Monthly Tax Collection Report
a. September 2007
The Board reviewed the September Tax Collection Report with no action taken.
D.4 Set Next Meeting Date
Next regularly scheduled meeting date: Tuesday, December 4, 2007, 6:00 p.m.
The Board agreed to meet on Thursday, November 8, 2007 at 4:00 p.m.
F.1 Adjourn.
Meeting adjourned at 5:42 p.m.
_________________________________
Dean Henry, President
(SEAL)
____________________________________
Constance S. White, Secretary/Treasurer
______________________________
Mary Moore, Recording Secretary
MINUTES OF SPECIAL SESSION
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
November 8, 2007
The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and
Tarrant Counties met in Special Session on Thursday, November 8, 2007, at 4:00 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 Vice President
Neil Twomey Director
DIRECTORS ABSENT:
STAFF AND GUESTS PRESENT:
Walter Fitzpatrick District Manager
Sakura Dedrick Finance Director
Mary Moore Recording Secretary
Bob West Attorney
REGULAR SESSION
A.1 Call Meeting to Order.
President Henry announced a quorum and called the meeting to order at 4:00 p.m.
A.2 Public Comments or Presentations.
No public comments.
B.1 Discuss and take appropriate action on the Settlement Agreement between
Trophy Club MUD 1 and Trophy Club MUD 2 regarding Centurion American
funds.
Director White moved to approve the Settlement Agreement between TCMUD 1 and
TCMUD 2 regarding Centurion American Funds. Director Hase seconded the motion.
Floor opened for discussion. Motion to approve the Settlement Agreement carried
unanimously.
B.2 Discuss and take appropriate action relative to the Interlocal Agreement
between Trophy Club MUD No. 1 and Trophy Club MUD No. 2 and the Town
of Trophy Club to provide water supply and wastewater treatment services
to the Town of Trophy Club (money contract).
District Manager Fitzpatrick updated the Board regarding recent changes to the
ILA/Money Contract since its inclusion in the Board’s packet, which reflects
recommended changes from the Board’s last meeting. Recording Secretary Mary
Moore distributed to the Board a copy of the recent updates to the ILA/Money contract
and a sample letter of credit, which is to be “Exhibit C” to the Money Contract.
Director Cantrell moved to adopt the Interlocal Agreement/Money Contract under 5.1,
four lines down, until May 7, 2013, or is to be stricken. Then on the fifth line down,
whichever shall come first, is to be stricken. Director Twomey seconded the motion.
Floor was opened for discussion. Director Cantrell amended the above motion to
approve as is with no changes. Director Twomey agreed to the amended motion.
Motion failed 2-3-0.
Director Cantrell moved to authorize the MUD 1 President to investigate the above
terms in question. Director Twomey seconded the motion. Floor opened for discussion.
Director Twomey suggested that the Board try to reach Town Attorney Adams to clarify
the above italicizations. Motion failed.
Board agreed to take a five-minute recess at 5:00 p.m.
Board came back into Regular Session at 5:05.
While the Board was in recess, Attorney West was speaking on the telephone with
Town Attorney Adams, who was off duty. Upon coming back into session, Attorney
West advised that there is a conference call scheduled for Monday between himself,
Town Attorney Adams and MUD 2 Attorney Pam Liston. Attorney Adams suggested the
Board approve the agreement in concept and have the lawyers work out the above
verbiage; which would state in part that the contract could extend on a year-to-year
basis, but not beyond five (5) years. The Town does not yet have that agreement in
writing with the developer. Attorney West did advise that Attorney Adams wants a
definite end date to the money contract. Approve with that technical correction.
Director Cantrell amended his motion to approve the ILA/Money Contract as submitted,
with an amendment to Section 5.1, as mutually agreed upon by all three attorneys (Bob
West for MUD 1, Pam Liston for MUD 2, and Patricia Adams for Town of Trophy Club)
to be adjusted to clarify that the contract continues on a year-to-year basis after May
2013, until paid, but no longer than 2018. Director Twomey seconded the amended
motion. Motion carried unanimously.
B.3 Discuss and take appropriate action relative to the Interlocal Agreement
between Trophy Club MUDs (Trophy Club MUD 1, Trophy Club MUD 2, and
Trophy Club Master District) and the Town of Trophy Club to provide water
supply and wastewater treatment and operational services to the Town of
Trophy Club (operations contract).
Director White moved to approve the Interlocal Agreement/Operations Contract to
provide water supply, wastewater treatment and operational services to the Town of
Trophy Club. Director Twomey seconded the motion. Floor was opened for discussion.
Motion carried unanimously.
B.4 Discuss and take appropriate action regarding a resolution to amend the
Trophy Club Municipal Utility District No. 1 budget for fiscal year October 1,
2006 through September 30, 2007.
Director Hase moved to approve Resolution 2007-1108, to amend the TCMUD 1 FY
2006-07 budget. Director Cantrell seconded the motion. Floor opened for discussion.
Motion carried to amend the FY 06-07 MUD 1 budget.
C.1 Receive District Manager's Report
a. Items to be placed on future agendas:
District Manager Fitzpatrick had nothing to report at this time, adding he will provide a
full report at the Master District meeting.
D.1 Set Next Meeting Date
Next regularly scheduled meeting date: Tuesday, December 4, 2007, 6:00 p.m.
The Board agreed to meet on Tuesday, December 4, 2007 at 6:00 p.m.
F.1 Adjourn.
Meeting adjourned at 5:17 p.m.
_________________________________
Dean Henry, President
(SEAL)
____________________________________
Constance S. White, Secretary/Treasurer
______________________________
Mary Moore, Recording Secretary
MINUTES OF SPECIAL SESSION
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
November 20, 2007
The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and
Tarrant Counties met in Special Session on Thursday, November 20, 2007, at 4:00
p.m., in the Boardroom of the Trophy Club Administration Building, 100 Municipal Drive,
Trophy Club, Texas 76262.
DIRECTORS PRESENT:
Dean Henry President
Jim Hase Asst. Secretary/Treasurer
Gary Cantrell Vice President
Neil Twomey Director
DIRECTORS ABSENT:
Connie White Secretary/Treasurer
STAFF AND GUESTS PRESENT:
Walter Fitzpatrick District Manager
Mary Moore Recording Secretary
Kevin Carr MUD 2 Director
Andy Hayes MUD 2 Director
James C. Thomas MUD 2 Director
Kirk Wilson Representative, 831 Trophy
SPECIAL SESSION
A.1 Call Meeting to Order.
President Henry announced a quorum and called the meeting to order at 4:00 p.m.
A.2 Public Comments or Presentations.
Mr. Kirk Wilson thanked the Board for meeting to address these contracts.
B.1 Discuss and take appropriate action relative to the Interlocal Agreement
between Trophy Club MUD No. 1 and Trophy Club MUD No. 2 and the Town
of Trophy Club to provide water supply and wastewater treatment services
to the Town of Trophy Club (money contract).
Director Cantrell moved to approve the Interlocal Agreement/Money Contract, as
written, between MUD 1 and the Town for water supply and wastewater treatment
services to the Town of Trophy Club. Director Twomey seconded the motion. Floor
opened for discussion. Motion carried unanimously to approve the contract.
B.2 Discuss and take appropriate action relative to the Interlocal Agreement
between Trophy Club MUDs (Trophy Club MUD 1, Trophy Club MUD 2, and
Trophy Club Master District) and the Town of Trophy Club to provide water
supply and wastewater treatment and operational services to the Town of
Trophy Club (operations contract).
Director Henry moved to approve the Interlocal Agreement/Operations Contract, as
written, between MUD 1 and the Town for water supply, wastewater treatment and
operational services to the Town of Trophy Club. Director Hase seconded the motion.
Motion carried unanimously to approve the contract.
D.1 Set Next Meeting Date
Next regularly scheduled meeting date: Tuesday, December 4, 2007, at 6 p.m.
or Tuesday, January 8th, 2008 at 6 p.m.
Board agreed to meet on Tuesday, December 4, 2007 at 6:00 p.m.
F.1 Adjourn.
Meeting adjourned at 4:06 p.m.
_________________________________
Dean Henry, President
(SEAL)
____________________________________
Constance S. White, Secretary/Treasurer
______________________________
Mary Moore, Recording Secretary
1. October financials and variance report.Review and Approve Disbursements
and Variance Report2D12-13-2007
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 12-13-2007
Subject: Agenda Item No. D.3
Review Monthly Tax Collection Report
a. October 2007
(mm)
Attachments: 1. October’s Tax Collection report
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 12-13-2007
Subject: Agenda Item No. D.4
Set Next Meeting Date
Next regularly scheduled meeting date: Tuesday, January 8 or February 12,
2008, 6:00 p.m.
(mm)
Attachments: 1. Calendar
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 12-13-2007
Subject: Agenda Item No.F.1
Adjourn.
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