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HomeMy WebLinkAboutDecember 9, 2008 Regular Session Backup 1 Town of Trophy Club Municipal Utility District No.1 Meeting Agenda 100 Municipal Drive Trophy Club, Texas 76262 Tuesday, December 9, 2008 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 concerning Order 2008-1209, the 2009 Rate Order. B.2 Discuss and take appropriate action concerning funding for new Fire Station. B.3 Discussion concerning potential consolidation of MUDs 1 and 2. C.1 Receive District Manager's Report a. Trinity Well Update C.2 Receive Finance Director's Report a. Update - Agriculture Rollback D.1 Review and Approve Minutes a. November 11, 2008 - Regular Session minutes D.2 Review and Approve Disbursements and Variance Report a. October 2008 D.3 Review Monthly Tax Collection Report a. October 2008 D.4 Set Next Meeting Date Next regularly scheduled meeting date: Tuesday, January 13, 2009, 6:00 p.m. D.5 Items for Future Agendas 1. Further review of McLain's study relating to organizational costs for MUD 1. (Twomey) 2. 2008 Certified Appraisal Analysis (Finance) 3. Establish MUD 1 reserves policy. (February - Committee Members Twomey and Hase to provide report/update.) F.1 Adjourn. 2 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 12-9-2008 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: 12-9-2008 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: 12-9-2008 Subject: Agenda Item No.B.1 Discuss and take appropriate action concerning Order 2008-1209, the 2009 Rate Order. EXPLANATION: We have amended Section 1.08 (see below) by adding the fee for a Water Meter to Rate Order. Section 1.08. Water Meter and Water Tap Fees. Domestic one-inch (1”) meter: $ 256.00 Fee for MUD-made Water Tap: $1,000.00 Inspection Fee for Water Tap: $ 50.00 The $1,000.00 fee must be received by the District before any residential connection is initially made by MUD personnel to the District’s water system, which includes the cost for a one-inch (1”) meter. When taps have been made by someone other than MUD personnel, there is an installation/inspection fee of $50.00 plus the cost of the appropriate meter. Any request by a customer for service from an oversized connection line or from a meter larger than a one-inch (1”) standard meter shall be granted by the District only if the customer agrees and makes suitable arrangements to pay the increased costs for such larger line and/or meter as set out above in Paragraph 1.02. RECOMMENDATION: Staff recommends approval. (mm) Attachments: 1. Order 2008-1209 Formatted: No underline Formatted: No underline Formatted: Highlight Formatted: Highlight Deleted: Deleted: A fee of $1,000.00 must be received by the District before any residential connection is initia Deleted: lly made by MUD personnel to the District’s water system, which tap fee will include a one-inch (1”) meter. Should the tap have been made by other than MUD personnel then instead of the foregoing tap fee, the cost of the appropriate meter and an installation / inspection fee of $50.00 must be received by the District. Deleted: 5 2009 RATE ORDER TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1 ORDER No. 2008-1209 AN ORDER ESTABLISHING POLICIES, PROCEDURES, AND RATES FOR WATER AND SEWER SERVICE; PROVIDING FEES FOR CONNECTION, RECONNECTION, INSPECTION, ACCURACY READINGS, AND RETURNED CHECKS; REQUIRING DEPOSITS FOR SERVICE; PROVIDING A PENALTY FOR DELINQUENT PAYMENTS; AND CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT. WHEREAS, Trophy Club Municipal Utility District No. 1 (the “District”) is the owner and/or operator of a water and sewer system designed to serve present and future inhabitants within the District and the Trophy Club development; and WHEREAS, the District’s most recent Rate Order was adopted on October 7, 2008 (the “2008-2009 Rate Order”), several additional modifications are needed at this time, and the District desires to establish all of its rate policies in a single new Rate Order; and WHEREAS, the Board of Directors of the District has carefully considered the terms of this 2009 Rate Order and is of the opinion that the following conditions and provisions should be established as the policies, procedures, and rates for obtaining service from the District’s water and sewer system; THEREFORE, IT IS ORDERED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 THAT: ARTICLE I TAP FEES AND CONNECTION POLICY Section 1.01. Initiation of Water and Sanitary Sewer Connections. Each person desiring a water and sanitary sewer service connection to the District’s System shall be required to pay such fees as set forth in this Order. No service shall be established or re-established until such fees are paid. All service connections are subject to all other rules, regulations, and policies of the District. Deleted: 8-0 Deleted: 0 Deleted: 7 Deleted: July 8 Deleted: New Deleted: 8-0 6 A. Certification of System. Connections shall not be made to the District’s System or portions of the System until the District’s engineer or Water/Wastewater Superintendent has certified that the System or applicable portion thereof is operable. B. Backflow Prevention. No water connections from any public drinking water supply system shall be allowed to any commercial establishment where an actual or potential contamination hazard exists unless the public water facilities are protected from contamination. At any commercial establishment where an actual or potential contamination hazard exists, protection shall be required at the meter in the form of a backflow prevention assembly. The type of assembly required shall be the one known as “Reduced Pressure Zone” (RPZ) unless otherwise specified by the District through its Superintendent. The existence of potential contamination hazards without installation having been made of the means of control and prevention as set out in the preceding paragraph; or, the same having been installed, there is a failure to properly maintain the same, shall be considered sufficient grounds for immediate termination of water service. Service can be restored only when the health hazard no longer exists, or when the health hazard has been isolated from the public water system in accordance with the foregoing requirements. All backflow prevention assemblies that are required according to this section shall be tested upon installation by a recognized backflow prevention assembly tester and certified to be operating within specifications. Backflow prevention assemblies that are installed to provide protection against health hazards must also be tested and certified to be operating within specifications at least annually by a recognized backflow prevention assembly tester. The Customer shall, at his expense, properly install, test, and maintain any backflow prevention device required by this Rate Order. Copies of all testing and maintenance records shall be provided to the MUD not later than a date to be fixed by the MUD. If the Customer fails to comply with the terms of this Order, the MUD shall, at its option, either terminate service or properly install, test, and maintain an appropriate backflow prevention device at the service connection. Any expenses associated with the enforcement of this agreement shall be billed to the Customer. 7 C. Availability of Access/Obstructions. By application for connection to the District’s System, the customer shall be deemed to be granting to the District and its representatives a right of ingress and egress to and from the meter or point of service for such installation, maintenance and repair as the District, in its judgment, may deem reasonably necessary. The customer shall also be deemed to be granting to the District and its representatives a right of ingress and egress to the customer’s property, including the exterior of the customer’s premises, for the purpose of performing the inspections and completing the customer‘s Service Inspection Certifications required by the District’s rules and regulations. Taps and connections will not be made when, in the opinion of the District, building materials or other debris obstructs the work area or the work area is not completed or finished to grade. When sidewalks, driveways or other improvements have been constructed prior to application for service, such application shall be construed and accepted as the customer’s waiver of a claim for any damages to such improvements resulting from the reasonable actions of the District in installation of the connection. Section 1.02. Residential Fire Lines, Connections, and Fees. A residence of six-thousand (6,000) square feet and less than eight-thousand (8,000) square feet shall have installed on its one-inch (1”) water service line, for fire protection, and as part of said line, a one-inch (1”) U-branch, with a separate meter and meter-box. The cost of said U-branch, meter, and meter-box shall be in the amount of five-hundred-twenty-five dollars ($525.00), payable at the time of permitting. A residence of more than eight-thousand (8,000) square feet, in addition to its regular one-inch (1”) water service line, shall have installed a separate one-and one-half inch (1½”) water service line for fire protection with its own meter and meter-box. The cost of connection and installation of said separate line, meter and meter-box shall be either $975.00 if the home is on the same side of the street as the waterline; or, if it is on the opposite side of the street from the waterline, necessitating boring, then the charge shall be two-thousand-three-hundred-fifty dollars ($2,350.00), payable at the time of permitting. Section 1.03. Connections by District. All connections to the District’s sewer system shall be made in accordance with the District’s Plumbing Code and its rules and regulations. No person except the District Manager or his/her authorized agent shall be permitted to tap or make any connection to the mains or distribution piping of the District’s water system, except for emergency firefighting purposes, or make any repairs or additions to or alterations in any meter, box, tap, pipe, cock or other fixture connected with the water service or any manhole, main, trunk or appurtenance of the District’s sanitary sewer system, unless otherwise specified by the Board of Directors of the District. No sewer connection shall be covered in the ground before a representative of the District has inspected the sewer connection. No house lead shall be covered in the ground before the water connection has been inspected and approved by a licensed plumbing inspector with jurisdiction of the site. 8 Section 1.04. Inspections and Fees. Fees for permits and for plumbing inspections (other than for sewer and backflow inspections referred to below in subparagraphs A and B) should be paid to the city or town in which the property is located or to the District if the property is not located within a city or town. A. Sewer Inspection and Fees. Sewer connections and house service lines shall be inspected by the District. An inspection fee of $150.00 shall be paid to the District for each connection to the District sanitary sewer system. Installations that fail to conform at any time to the rules and regulations shall be disconnected. Any customer whose connection is disconnected for such failure shall be notified as to the basis for such disconnection. After noted deficiencies have been corrected, a re-inspection shall be made upon payment to the District of a re-inspection fee of $25.00, plus payment by the customer of all outstanding charges. If subsequent re-inspections are required before the sewer connection and service lines are in compliance with the rules and regulations, a re-inspection fee of $25.00 shall be paid to the District for each subsequent re-inspection. Re- inspections by the District requested after regular business hours will be charged at a minimum of $100.00. B. Backflow Inspections. For all backflow installations (residential and commercial) inspected by the personnel of the District, an inspection fee of $50.00 shall be paid to the District. Inspections that fail to conform at any time to the rules and regulations shall be disconnected. Any customer whose connection is disconnected for such failure shall be notified as to the basis for such disconnection. After noted deficiencies have been corrected, a re- inspection shall be made upon payment to the District of a re-inspection fee of $25.00, plus payment by the customer of all outstanding charges. If subsequent re-inspections are required, a re-inspection fee of $25.00 shall be paid to the District for each subsequent re-inspection. Re-inspections by the District requested after regular business hours will be charged at a minimum of $100.00. Section 1.05. Builder’s Deposit. A. Residence, Commercial Building or Other Structure. Each builder of a residence, commercial building or other structure shall, at the time a request for a water tap is made, pay a deposit of $75.00 for the first lot for which a water tap has been requested, and $75.00 for each additional lot thereafter. The deposit shall be refunded within ninety (90) days after the builder certifies the sale of its last residence, commercial building or other structure within the District, less any amounts forfeited as provided herein. The District shall deduct from the deposit the cost to repair any damage caused to the District’s property by the builder or the builder’s employees, contractors, subcontractors or agents and shall deduct any delinquent water and sewer service bills of the builder. In the event any amounts are so deducted from the builder’s deposit, it will be incumbent on the builder to reinstate the original amount of the deposit, and failure to do so will result in the suspension of any additional water taps for the 9 builder. B. Swimming Pool Discharge into Sanitary Sewer System. Any backwash or drainage from a swimming pool shall discharge into the sanitary sewer system. An indirect connection shall be made by means of an air break, discharging into a tailpiece installed a minimum of 6” (or 152 mm) above adjacent grade. The tailpiece shall be connected to a minimum 3” (or 76 mm) p-trap not less than 12” (304 mm) below grade which discharges into the yard cleanout riser. Backwash systems shall not flow onto neighboring properties or into the storm sewer. The tie-in and inspection fee shall be $75.00 to be paid at the time of issuance of the pool permit. Section 1.06. Temporary Water Service. A. Construction Meters. The District shall be authorized to make a temporary connection to any fire hydrant or flushing valve upon request for temporary water service. All temporary service shall be metered and billed to the temporary customer as provided herein. All unauthorized withdrawal of water from flushing valves, fire hydrants, or other appurtenances of the District’s System without prior approval of the District, except for emergency fire-fighting purposes, is prohibited. B. Application and Deposit. Each temporary customer desiring temporary water service shall be required to execute an application for such temporary service and shall provide a minimum security deposit of $1,875.00 for a three-inch (3”) meter and RPZ; $650.00 for a smaller meter and smaller RPZ. The deposit shall be made by cashier’s check or money order payable to the District. The deposit shall be used by the District to secure the payment for temporary water supplied by the District, the installation fee, and the cost of repair of any damages caused by the temporary customer. The balance of the security deposit, if any, shall be refunded after disconnection from the District’s System. C. Fees and Rates. A fee of $100.00 for costs of installation, plus the cost of the metered water, shall be charged for temporary water service. The following rate for the sale of water for each temporary water service connection shall be in effect from the effective date hereof until such time as the Board amends said rate: Gallons Used Rate Any amount $3.02 per each 1,000 gallons Section 1.07. Service Outside the District. The rates and charges stated in this Rate Order are for service to customers and property located within the boundaries of the District. Any service to a customer or property located outside the boundaries of the District shall be granted only upon special approval by the Board of Directors of the 10 District. Unless other provisions are established by a special contract approved by the Board of Directors of the District, any service to customers or property outside the boundaries of the District shall be at the same rates and terms as specified in this Rate Order, except that regular charges for water, sewer, and tap charges shall be doubled. Service to Trophy Club Park at Lake Grapevine is specifically exempted from the doubling provision of the preceding paragraph. Section 1.08. Water Meter and Water Tap Fees. Domestic one-inch (1”) meter: $ 256.00 Fee for MUD-made Water Tap: $1,000.00 Inspection Fee for Water Tap: $ 50.00 The $1,000.00 fee must be received by the District before any residential connection is initially made by MUD personnel to the District’s water system, which includes the cost for a one-inch (1”) meter. When taps have been made by someone other than MUD personnel, there is an installation/inspection fee of $50.00 plus the cost of the appropriate meter. Any request by a customer for service from an oversized connection line or from a meter larger than a one-inch (1”) standard meter shall be granted by the District only if the customer agrees and makes suitable arrangements to pay the increased costs for such larger line and/or meter as set out above in Paragraph 1.02. Each customer requesting an initial connection to the District’s Water System shall also pay to the District the cost required to be paid by the District to the City of Fort Worth as a “water impact fee” or “water access fee” for the additional customer connection to the Fort Worth Water System. Section 1.09. Sewer Tap Fees. The charge for all taps of sewer lines within the District shall be equal to the cost to the District for making such connections. Section 1.10. Title to Facilities. Title to all water meters, water and sewer taps, and all other appurtenances, including meter boxes, shall lie in the District. ARTICLE II SERVICE RATES Section 2.01. Water Service. The following monthly rates for the sale of water shall be in effect for each Separate Connection within the District from the effective date hereof until such time as the Board of Directors amends said rates: A. Chemically Treated Water. Water from the District’s facilities which has been mixed, chlorinated, or otherwise treated so that it is suitable for human use and consumption shall be at the following rates: Formatted: No underline Formatted: No underline Formatted: Highlight Formatted: Highlight Deleted: Deleted: A fee of $1,000.00 must be received by the District before any residential connection is initia Deleted: lly made by MUD personnel to the District’s water system, which tap fee will include a one-inch (1”) meter. Should the tap have been made by other than MUD personnel then instead of the foregoing tap fee, the cost of the appropriate meter and an installation / inspection fee of $50.00 must be received by the District. Deleted: Deleted: ¶ Deleted: ¶ Page Break 11 (1) Single-Family Homes. Each single family home shall be billed as follows: Basic Charge Fee (Does not include water usage) $11.50 0-6,000 gallons per month $2.25/1,000 gal 7,000 to 12,000 gallons per month $2.71/1,000 gal 13,000 to 25,000 gallons per month $2.92/1,000 gal 26,000-plus gallons per month $3.02/1,000 gal (2) Commercial. Each business service connection shall be deemed to be a single-family home for purposes of water service. (3) Clubs. Each club shall be deemed to be a single-family home for purposes of water service. (4) Golf Course. Each meter shall be deemed to be a single- family home for the purposes of water service. (5) Multi-Family Buildings. (i) Single Meter. Each multi-family building or complex of buildings which is served by a single meter shall be billed for water at the same rate as a single-family home, with an Basic Charge Fee of $11.50 times the number of units in the building or complex. (ii) Multiple Meters. If a multi-family building or complex of buildings is served by more than one meter, then water delivered through each meter shall be billed at the same rate as a single family home, with a Basic Charge Fee of $11.50 times the number of units served by the meter. (6) Public Access Parks. Any water or sewer services utilized by the Town of Trophy Club in public access parks for the operation and maintenance of such parks will be billed at the in-district rate. Such water and sewer services shall be for the benefit of the residents of the Town of Trophy Club. Use for any other purpose shall require the services to be billed at double the rate. B. Golf Course Irrigation Water to the Lakes. In addition to water usage charges, when the customer requests fresh water on the day that established the District’s peak draw from the City of Fort Worth, the customer shall be required to pay its respective portion of any demand rate and/or minimal payment rate as specified in the District’s Deleted: n 12 wholesale water supply contract with the City of Fort Worth. However, if the customer’s demand is absorbed by the District with no additional charges from Fort Worth, the District may in its discretion waive the demand and/or minimal payment charges to the customer. Section 2.02. Sewer Service Rates. The following monthly rates for the collection and disposal of sewage shall be in effect for each Separate Connection within the District from the effective date hereof until such time as the Board of Directors amends said rates: A. Single-Family Homes and Cottages. Each single-family home and cottage shall be billed based upon the treated water used by such unit that month, as follows: Basic Charge Fee (Does not include sewer usage) $11.50 0-6,000 gallons per month $2.25/1,000 gal 7,000-12,000 gallons per month $2.71/1,000 gal 12,000 gallons maximum per month for residential B. Commercial Buildings (including Clubs). Each commercial building shall be billed for sewer service at the same rate as single-family homes, based on the treated water used by such unit that month as follows: Basic Charge Fee (Does not include sewer usage) $11.50 0-6,000 gallons per month $2.25/1,000 gal 7,000-12,000 gallons per month $2.71/1,000 gal 13,000-25,000 gallons per month $2.92/1,000 gal 26,000-plus gallons per month $3.02/1,000 gal C. Multi-Family Buildings. Each unit in a multi-family building or complex of buildings shall be billed at the same rate as a single-family home, with a Basic Charge Fee of $11.50 times the number of units in the building or complex. Section 2.03. Effluent Charge. The effluent from the District’s wastewater treatment plant will be sold pursuant to separate contracts entered into with the District and approved by its Board of Directors. The District has contracted to sell effluent to the Trophy Club Country Club and discharge said effluent into golf course lakes at a charge $.55 per thousand gallons for the year 2008-2009. Section 2.04. Stand-by Charge. For those lots subject to recorded restrictive covenants that require or authorize the District to charge a stand-by fee for water and sewer service where the lot has water and sewer service available but the lot is not yet connected to the District’s system, the stand-by fee shall be $6.00 per month. Unless otherwise provided by the terms of the recorded restrictive covenant applicable to a particular lot, the stand-by charge shall commence on the first day of the month 13 following the date upon which water and sewer service is available at the property line of the lot and the charge shall cease on the first day of the month preceding the date upon which water and sewer use charges become due and payable to the District for water and sewer service supplied to the lot. Section 2.05. Master Meter (Cooling Tower Calculation). The water usage from the master meter reading less the reading from the “Blow Down” meter equals the “evaporation.” Water usage less “evaporation” equals sewer usage for billing purposes. Section 2.06. Regulatory Assessment. Pursuant to Section 5.235, Texas Water Code, and 30 TAC291.76, the District shall pay a regulatory assessment to the Texas Commission on Environmental Quality (“TCEQ”) annually in the amount required by law on the total charges for retail water and sewer service billed to its customers annually. At the end of each year, the District shall prepare a written statement indicating (i) the total charges for retail water and sewer service for the year and (ii) the regulatory assessment due and payable to the TCEQ. Section 2.07. No Reduced Rates or Free Service. All customers receiving water and/or sewer service from the District shall be subject to the provisions of this Order and shall be charged the rates established in this Order, and no reduced rate or free service shall be furnished to any customer whether such user be a charitable or eleemosynary institution, a political subdivision, or municipal corporation; provided, however, this provision shall not prohibit the District from establishing reasonable classifications of customers for which rates differing from the rates stated herein may be adopted. ARTICLE III SERVICE POLICY Section 3.01. Security Deposits. Security deposits shall be required as follows: A. Builders. A $75.00 security deposit shall be required of builders for each tap made by the District for such service connection, payable at or prior to the time that such tap is made, and the security deposit is refundable to the builder when the account is later transferred to an owner if that account and all other accounts of the builder are current at the time of the transfer; but, if that account or any other account of the same builder is not current at the time of such transfer to an owner, then the security deposit shall be applied against the outstanding balance of the builder’s account(s) at the time of such transfer. B. Residential Owners. A security deposit of $50.00 shall be required from each residential owner customer for a single-family home 14 connected to the District’s system. The security deposit is refundable to the customer when the account is later closed if that account is current at the time it is closed. However, if the account is not current at the time it is closed, then the security deposit shall be applied against the outstanding balance of the customer’s account at that time. C. Residential Lessees. A security deposit of $150.00 shall be required from each residential lessee customer for a single-family home. D. Construction Meters. See Paragraph 1.06 above. E. Other customers. A security deposit equal to two months’ estimated average monthly water and sewer bill shall be required of all other customers. Currently, the MUD/District does not pay interest on deposits. The interest drawn by the MUD/District on customer deposits is returned into the operating budget of the water/sewer fund to help in providing the lowest possible water and sewer rates for our citizens. Section 3.02. Billing Procedures. All accounts shall be billed in accordance with the following: A. Due Date and Delinquency. Charges for water service, sewer service, and standby fees shall be billed monthly. Payment shall be due on or before the twentieth (20th) day of the month in the month in which the bill was received. Unless payment is received on or before the twentieth (20th) day of the month, such account shall be considered delinquent. If the due date falls on a holiday or weekend, the due date for payment purposes shall be the next working day after the due date. The District shall charge a penalty on past due accounts calculated at the rate of ten percent (10%) per month on water, sewer and standby charges. The rates for water and sewer service shall depend upon the type of user and upon whether the water used has been chemically treated, as provided in this Rate Order. All accounts not paid by the due date shall be deemed delinquent and failure to make payment thereafter may result in the termination of water and sewer service. B. Notice and Appeal. Prior to termination of service, a customer who is delinquent in payment shall be sent a notice that service will be discontinued on the fifteenth (15th) day after the date of such notice unless payment in full is received by such day. Notice shall be sent by first class United States mail and will provide the customer with an opportunity to appear in person or by written correspondence at a scheduled meeting of the Board of the District to contest, explain, or correct the charges, services, or disconnection. The notice shall inform the customer of the amount of the delinquent bill, the date service will be disconnected if payment is not made, and of the right to contest, explain, or 15 correct the charges, services, or disconnection. Service shall not be disconnected where a customer has informed the District of his or her desire to contest or explain his bill. If the customer appears before the Board, in person or by written correspondence, the Board shall hear and consider the matter and inform the customer of the Board’s determination by sending written notice to the customer by first class United States mail stating whether service will be disconnected. If service is disconnected, it shall be reconnected only upon payment in full of all amounts due, including any late charges, the security deposit set out in Section 3.01, and a reconnection charge of $25.00, if the reconnection is made during the District’s normal business hours. Reconnections made outside of the District’s normal business hours at the customer’s request will be charged at a reconnection fee of $25.00, plus an additional charge of $100.00. C. Business Hours. For purposes of assessing the foregoing charges, “normal” or ”regular” business hours shall mean only the hours between 8 a.m. and 5 p.m., Monday through Friday, and between 7 a.m. and 9 a.m. Saturdays, Sundays, and Holidays. All other times are outside of the District’s normal business hours and will result in the higher charge. D. Returned Checks. A $25.00 charge will be charged to the customer’s account for any check returned by the bank. Any amounts due on an account which have been paid with a check that has been returned by the bank must be paid in full by cash, cashier’s check or money order, including all late charges and returned check charges, within five (5) days from the day the District hangs a notice on the customer’s door or otherwise notified the customer that the check has been returned by the bank. E. Confidentiality Request. A one-time charge of $5.00 shall be made on each confidentiality request as set forth in H.B. 859. F. Same-Day Service. An additional charge of $25.00 shall be made on customer requested same-day service. As an example, this charge will be implemented upon request by a customer for same-day service to start or terminate water and sewer service or to do re-reads the same day as requested. G. Accuracy Reading Fee. A meter accuracy reading fee in the amount of $10.00 shall be charged to a customer by the District for each meter accuracy reading made by the District for such customer when the original reading appears to be accurate. If the original meter reading appears to be in error, no fee will be charged. Each customer will be allowed one accuracy meter reading per calendar year at no charge. Should a customer request that the meter accuracy reading be made by an outside source, then a fee of $35.00 will be charged to the customer. If the original meter reading is found to be in error, then the customer will be given a credit offsetting the amount of the charge. 16 Section 3.03. Entitlement. Customers are not guaranteed a specific quantity or pressure of water or specific capacity in sewer facilities for any purpose whatsoever; furthermore, in no instance shall the District be liable for failure or refusal to furnish water or any particular amount or pressure of water or to provide capacity in sewer facilities. Section 3.04. Unauthorized and Extraordinary Waste. The rates established herein are applicable for Domestic Waste as defined herein. Customers proposing to generate other types of waste will be assessed additional charges as established by the District. Section 3.05. Damage to District Facilities. A. Damage to Meter and Appurtenances. No person other than a duly authorized agent of the District shall open a meter box, tamper with or in any way interfere with a meter, meter box, service line or other water and/or sewer system appurtenance. The District reserves the right, immediately and without notice, to remove the meter or disconnect water service to any customer whose meter has been tampered with and to assess repair charges to the customer, plus a damage fee not to exceed $5,000.00, plus any applicable charge for same day service. B. Repair. It shall be the responsibility of each customer to maintain the water and sewer lines from the point of connection to the District’s water and sewer system to the building served. The District reserves the right to repair any damage to the District’s System and appurtenances without prior notice and to assess against any customer such penalties as are provided by law and such penalties provided for in this Rate Order in addition to those charges necessary to repair the portion of the System so damaged. C. Video. If at any time a resident/customer wishes to have the District video their sewer line to help the resident determine the condition of their sewer line, the fee will be $150.00 payable to the District assessed on the next month’s bill. Section 3.06. Requested Temporary Disconnection. If service is temporarily disconnected at the customer’s request, the charge for such voluntary disconnection shall be $10.00, and the charge for subsequently reconnecting the service shall also be $10.00. These charges apply to connects and disconnects that are completed during normal business hours. Section 3.07. Easements. Before service is begun to any customer, or once begun before reconnection is made, the person requesting such service shall grant an easement of ingress and egress to and from the meter(s) for such maintenance and repair as the District, in its judgment, may deem necessary. 17 Section 3.08. Required Service. No service will be given from the District’s water and sewer system unless the customer agrees to take both water and sewer service, except that permanent irrigation only services may receive water only, and projects under construction may, if they wish, receive water service only during the period of such construction. Section 3.09. Additional Charges. In all cases where services are performed for and equipment or supplies are furnished to a party or entity not within MUD 1, the charge to said party or entity shall be the MUD’s cost of providing such services, equipment and/or supplies, plus 15%. This shall not apply to services; equipment and/or supplies furnished by MUD 1 under an existing Interlocal Agreement nor to the rates MUD 1 charges for out-of-district water and sewer service. ARTICLE IV INDUSTRIAL WASTE Section 4.01. Policy. The following policy regarding industrial waste shall be effective: A. Definition. “Industrial waste” shall mean the water-borne solids, liquids, and/or gaseous wastes (including Cooling Water), resulting from any industrial, manufacturing, trade, business, commercial, or food processing operation or process, or from the development of any natural resource, or any mixture of such solids, liquids, or wastes with water or domestic sewage. The Clean Water Act of 1977, as amended, and the General Pretreatment Regulations contained in 40 C.F.R. §403 contain the requirements for user’s discharge of industrial waste into wastewater facilities. B. Industrial Waste Discharge-Charges and Rates. If any customer of the District’s sanitary sewer system proposes to discharge industrial waste into such system, the Board of Directors of the District shall request the recommendation of the District Engineer and shall establish rates and charges to provide for an equitable assessment of costs whereby such rates and charges for discharges of industrial waste correspond to the cost of waste treatment, taking into account the volume and strength of the industrial, domestic, commercial waste, and all other waste discharges treated and techniques of the treatment required. Such rates shall be an equitable system of cost recovery which is sufficient to produce revenues, in proportion to the percentage of industrial wastes proportionately relative to the total waste load to be treated by the District for the operation and maintenance of the treatment works, for the amortization of the District’s indebtedness for the cost as may be necessary to assure adequate waste treatment on a continuing basis. C. Pretreatment. The Board of Directors of the District shall rely upon the recommendation of the District Engineer and shall require pretreatment of any industrial waste that would otherwise be 18 detrimental to the treatment works or to its proper and efficient operation and maintenance or will otherwise prevent the entry of such industrial waste into the treatment plant. ARTICLE V ENFORCEMENT/CIVIL PENALTIES Section 5.01. Enforcement. A. Civil Penalties. The Board hereby imposes the following civil penalties for breach of any rule of the District: The violator shall pay the District twice the costs the District has sustained due to the violation up to $5,000.00. A penalty under this Section is in addition to any other penalty provided by the laws of this State and may be enforced by complaints filed in the appropriate court of jurisdiction in the county in which the District’s principal office or meeting place is located. If the District prevails in any suit to enforce its rules, it may, in the same action, recover any reasonable fees for attorneys, expert witnesses, and other costs incurred by the District before the court. The court shall fix the amount of the attorneys’ fees. B. Liability for Costs. Any person violating any of the provisions of this Order and/or the rules and regulations governing water and sanitary sewer facilities, service lines, and connections shall become liable to the District for any expense, loss or damage occasioned by the District by reason of such violation, and enforcement thereof shall be in accordance with Paragraph A of Section 5.01 of this Order. Section 5.02. Non-waiver. The failure on the part of the District to enforce any section, clause, sentence, or provision of this Order shall not constitute a waiver of the right of the District later to enforce any section, clause, sentence, or provision of this Order. Section 5.03. Appeal. Any determination by the District of any dispute regarding the terms and provisions of this order may be appealed to the Board of the District, which shall conduct a hearing on the matter. The District shall provide the customer with information regarding appeals and hearing procedures upon the customer’s request. ARTICLE VI MISCELLANEOUS Section 6.01. Amendments. The Board of the District has and specifically reserves the right to change, alter or amend any rate or provision of this Order at any time. 19 Section 6.02. Severability. The provisions of this Order are severable, and if any provision or part of this Order or the application thereof to any person or circumstance shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Order and application of such provision or part of this Order shall not be affected thereby. Section 6.03. Headings. The section and paragraph headings used herein are for reference only and are not to be construed as part of the text of the section or paragraph. ARTICLE VII REPEAL OF PREVIOUS ORDERS This Rate Order shall be known as the “2009 Rate Order” (Order 2008-1209) of the District. All previous Orders adopted by the Board of Directors pertaining to the subject matter hereof are each hereby repealed in their entirety as of the effective date hereof. ARTICLE VIII EFFECTIVE DATE This Order shall be effective January 1, 2009. ARTICLE IX PUBLIC MEETING It is hereby found that the meeting at which this Order is adopted is open to the public as required by law, and that public notice of the time, place, and subject matter of said meeting and of the proposed adoption of this Order was given as required by law. PASSED, ADOPTED, ORDERED, AND APPROVED this 9th day of December 2008. __________________________ DEAN HENRY, President Board of Directors, Trophy Club Municipal Utility District No. 1 ATTEST: (Seal) _____________________________ CONSTANCE S. WHITE, Secretary Board of Directors, Trophy Club Municipal Utility District No. 1 Formatted: Superscript Deleted: 8-0 Deleted: 07 Deleted: November 1 Deleted: 8 Deleted: 7th Deleted: October 20 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District 1 Date: 12-9-2008 Subject: Agenda Item No.B.2 Discuss and take appropriate action concerning funding for new Fire Station. EXPLANATION: Requested by President Henry, for discussion and possible action. RECOMMENDATION: (dh) Attachments: 1. None 21 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District 1 Date: 12-9-2008 Subject: Agenda Item No.B.3 Discussion concerning potential consolidation of MUDs 1 and 2. EXPLANATION: Requested by President Henry for discussion only; no action. (dh) Attachments: 1. None 22 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 12-9-2008 Subject: Agenda Item No.C.1 Receive District Manager's Report a. Trinity Well Update (rs) 23 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District 1 Date: 12-9-2008 Subject: Agenda Item No.C.2 Receive Finance Director's Report a. Update - Agriculture Rollback EXPLANATION: RECOMMENDATION: (sg) 24 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District 1 Date: 12-9-2008 Subject: Agenda Item No.D.1 Review and Approve Minutes a. November 11, 2008 - Regular Session minutes EXPLANATION: (mm) Attachments: 1. November minutes 25 MINUTES OF REGULAR SESSION TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 November 11, 2008 The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties met in Regular Session on Tuesday, November 11, 2008, at 5:30 p.m., in the Boardroom of the Administration Building, 100 Municipal Drive, Trophy Club, Texas 76262. DIRECTORS PRESENT: Dean Henry President Gary Cantrell Vice President Connie White Secretary/Treasurer Jim Hase Asst. Secretary/Treasurer Neil Twomey Director STAFF AND GUESTS PRESENT: Robert Scott District Manager Danny Thomas Fire Chief Stephanie Gohlke Interim Finance Director Mary Moore MUD Secretary Brandon Emmons Town Manager Nick Sanders Mayor Bob West Attorney Arrived at 5:50 p.m. Steven Kohs MUD 2 Director REGULAR SESSION A.1 Call to Order and Announce a Quorum. President Henry announced a quorum and called the meeting to order at 5:34 p.m. A.2 Public Comments or Presentations. No public present. A.3 Receive Finance Director's Report a. Audit b. Tarrant Appraisal District appraised value research Interim Finance Director Gohlke updated the Board regarding the on-going audit process, advising that there have been no issues to date. Interim Finance Director Gohlke advised she has been in contact with Tarrant County Appraisal District (TAD), and they are aware that there are missing accounts. Gohlke is emailing TAD almost daily, and she believes the missing accounts are commercial accounts. 26 Directors Twomey and Cantrell offered Gohlke their assistance, if needed, to pursue the missing accounts at TAD. A.4 Review and Approve Disbursements and Variance Report a. September 2008 Director Twomey moved to approve the September 2008 Disbursements and Variance Report. Director Hase seconded the motion. Floor opened for discussion. Director Twomey asked if the Variance Report ending September 30th should have included the PID utility fees as a variance since it was not budgeted last year, because it was about $14,000. Motion passed unanimously. B.1 Discuss and take appropriate action regarding establishing a policy for MUD 1 reserves. (Director Twomey) Director Twomey explained a PowerPoint presentation regarding establishing a Reserve Policy for MUD 1, and solicited input from the Board. Attorney West arrived at 5:50 p.m. Director Cantrell moved to establish a committee of Directors, Twomey and Hase, to work on establishing a policy for MUD 1 Reserves and to report back no later than February. Director Twomey seconded the motion. Floor opened for discussion. Motion passed unanimously. Director Cantrell amended his motion to add up to three (3) citizens to the committee as needed by the committee. Director Twomey agrees. Amended motion passed unanimously. B.2 Discuss and take appropriate action concerning the 2008 Interlocal Agreement for Fire Protection Services between Trophy Club Municipal Utility District No. 1, Trophy Club Municipal Utility District No. 2 and the Town of Trophy Club, as amended. Directors Hase and White updated the Board as to what has transpired to date with this ILA. The Board discussed subparagraph 5 of Paragraph B, regarding Funding, as to whether it should or should not be included. Director Cantrell recommended this ILA go back to the Committee (Directors Budarf and Hase from MUDs) for further discussion and agreement. Director Twomey stated that he was concerned about using the calendar year for the ILA as the MUD’s budget is based on the fiscal year ending September 30th. How, can you true up the Fire Department’s budget based on the audit and audit adjustments, when you have two different year ends? 27 Director White stated that she was concerned about the sixty-day notice to cancel the contract because the MUD could approve its Fire Department budget in October and the Town could cancel the ILA before January 1st calendar year. Director White stated that because the “rent” is a complicated and somewhat debatable issue, we need to ensure that the contract makes it very clear that we are committing to a split of all of the funds; what’s paying for the building or what’s paying for the budget between the three entities. If the rent does not work, the contract needs to state that we will split the total cost between the three entities, as the building costs may have to be handled in I and S; as it is not covered in the budget. Director Hase suggested changing the first year of the contract to nine months, and thereafter, the following contract years would go fiscal year to fiscal year. No action taken except to have the Committee reconvene for further discussion. B.3 Discussion and take appropriate action regarding establishing a Disaster Plan. Discussion only; no action taken. B.4 Discuss and take appropriate action concerning possible amendment of the existing New Intergovernmental Contract for Employee Services. Director White advised there are still issues with this Contract. She advised the Town’s view is that all employees need to follow the Town’s administrative policies. This Contract states that the MUDs have Standard Operating Procedures that specifically govern MUD employees, which she believes may need updating. Director Hase stated he would like the extent of the Town’s involvement with the District Manager to be for payroll and insurance. He requested Attorney West reconstruct the wording of the Contract, so that the District Manager is a paid employee through the Town payroll with its associated employee benefits; however, he is not under the control of the Town Manager but rather the Master District Board. Attorney West advised that he has had conversations with Town Attorney Adams, who has concerns with Texas Municipal League (TML) and if the position of District Manager as a Town employee poses a conflict with TML. Attorney West provided a history of this existing agreement. We need to be certain that the SOP’s are in order and meet state requirements. Mayor Sanders asked, from TML’s viewpoint, where does the person get direction? From an operational standpoint, the Town has a series of employment policies that need to be maintained. Maintaining those agreed-upon policies that the entities have agreed upon, and then there is one person in the Town who is held accountable to ensure that those policies are maintained. How does the Town handle deviations from Town policies? From an employment issue, the Town has some risk in that issue, and 28 Council is going to hold the Town Manager responsible and to not make exception to those policies. That doesn’t mean that policy has anything to do with the SOPs for the water or wastewater facilities. We’re just trying to make sure that TML doesn’t come back later and say that all that money you paid doesn’t qualify. Director White asked what TML is covering? Town Manager Emmons stated that TML covers insurance. His main concern is TMRS – Texas Municipal Retirement System, that if we have a contractual arrangement where we have an employee who is just an employee on paper for the benefits, and we get audited by TMRS, and they determine that this employee is directly responsible to this outside board which is in no way affiliated to the Town of Trophy Club or any other municipality; therefore that employee is not eligible and may jeopardize coverage of other employees. Director White believes that we looked into this when we originally decided to merge the Town and MUD employees, and found that the MUDs could join TMRS. Town Manager Emmons stated that we need to make sure the wording is done properly so that the proper steps are put in place to protect the other employees. Director Hayes stated that the question should be asked of TMRS, whether they do or do not agree to fund MUD employees as part of the Town’s TMRS coverage. Director Cantrell asked Director White to check with Human Resources and report back at the Master District meeting as to the understanding with TMRS for MUD employees. Discussion held with no action taken. B.5 Discuss and take appropriate action concerning the new Fire Station. Fire Chief Thomas stated we are still working on 9C of TCEQ’s paperwork, which is MUD 2’s funding. There still are some finance issues with MUD 2’s loan. Director Budarf is working on a loan letter from the bank. Director Cantrell moved to recommend the new Fire Station be erected in its existing site. Director Twomey seconded the motion. Floor opened for discussion. Director White asked Town Manager Emmons for an update as to other possible location sites for a new Fire/Police Station. Town Manager Emmons provided an update, advising that discussions are still very preliminary. Adding, the Church would consider selling their property if it is not too much land. The Town has requested a study by consulting engineers for size and currently we are still waiting on minimum size square footage necessary. 29 Director White advised that it will require a special congregational meeting of church members. Director Hase advised Town Manager Emmons that the MUDs will need land for a third water storage tank. President Henry advised that should the Fire Station move, the MUDs were only open to an exchange of property, and definitely would not want to spend any money for land. Director White advised that MUD 1 can submit the bond package with both options for both pieces of property to TCEQ in (current location or otherwise); however, if they submit for one or the other, then change, then they would have to start all over. Director Hase stated he does not want to pay money for land. Motion failed 2-3-0. B.6 Discuss and take appropriate action regarding recent update by Lewis McLain of CityBase.Net regarding Town-MUD Study. President Henry advised this agenda item came before we knew it was known that this would be addressed at Thursday’s Master District meeting. Discussion held with no action taken. B.7 Discuss and take appropriate action regarding email by Town Manager Emmons, dated November 4, 2008 following meeting with Mr. Lewis McLain of CityBase.Net regarding Town-MUD Study. Discussion held with no action taken. C.1 Receive District Manager's Report a. Item(s) for future agenda District Manager Scott advised the Board of TCEQ’s inspection last Friday, and the delay in bidding for the Water Vault until November 20th due to lack of responses. D.1 Review and Approve Minutes a. October 7, 2008 – Regular Session Director Henry moved to approve the minutes for October 7, 2008. Director Twomey seconded the motion. Motion carried unanimously. D.2 Review Monthly Tax Collection Report a. September 2008 Board reviewed the September Tax Collection Report with no action taken. D.3 Set Next Meeting Date Next regularly scheduled meeting date: Tuesday, December 9, 2008, 6:00 p.m. The Board agreed to meet on Tuesday, December 9, 2008, at 6:00 p.m. 30 D.4 Items for Future Agenda 1. Request future review of the remaining MUD 1 organizational costs after receipt of the 2008 Audit Report. (Director Twomey) 2. 2008 Certified Appraisal Analysis (Finance) Discussed with no action to be taken. F.1 Adjourn. Meeting adjourned at 6:58 p.m. _________________________________ Dean Henry, President (SEAL) ____________________________________ Constance S. White, Secretary/Treasurer ______________________________________ Mary Moore, Recording Secretary 31 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 12-9-2008 Subject: Agenda Item No.D.2 Review and Approve Disbursements and Variance Report a. October 2008 EXPLANATION: RECOMMENDATION: (sg) Attachments: 1. October 2008 Variance Report 32 33 34 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 12-9-2008 Subject: Agenda Item No.D.3 Review Monthly Tax Collection Report a. October 2008 EXPLANATION: (mm) Attachments: 1. October’s Tax Collection Report 35 36 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District 1 Date: 12-9-2008 Subject: Agenda Item No.D.4 Set Next Meeting Date Next regularly scheduled meeting date: Tuesday, January 13, 2009, 6:00 p.m. EXPLANATION: This month the regularly scheduled meeting date of January 13th falls AFTER the Master District Meeting on January 8th. If MUD 1 prefers to meet BEFORE Master District, the Board could meet at 5:00pm on January 8, PRIOR to the start of the Master District Meeting at 6pm. RECOMMENDATION: (mm) Attachments: 1. January Calendar 37 38 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 12-9-2008 Subject: Agenda Item No.D.5 Items for Future Agendas 1. Further review of McLain's study relating to organizational costs for MUD 1. (Twomey) 2. 2008 Certified Appraisal Analysis (Finance) 3. Establish MUD 1 reserves policy. (February - Committee Members Twomey and Hase to provide report/update.) EXPLANATION: 39 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 12-9-2008 Subject: Agenda Item No.F.1 Adjourn. (mm)