HomeMy WebLinkAboutJuly 8, 2008 Regular Session BackupTown of Trophy Club
Municipal Utility District No.1 Meeting Agenda
100 Municipal Drive
Trophy Club, Texas 76262
Tuesday, July 8, 2008
7:00 P.M.
A.1 Call to Order and Announce a Quorum.
A.2 Public Comments or Presentations.
B.1 Discuss and take appropriate action regarding the election of MUD 1 officers for
2008-2009.
a. President
b. Vice President
c. Secretary/Treasurer
B.2 Discuss and take appropriate action to amend the Water Supply and Wastewater
Treatment Contract between Town of Trophy Club, Trophy Club Municipal Utility
District No. 1 and Trophy Club Municipal Utility District No. 2.
B.3 Discuss and review FY08-09 Preliminary Budget.
B.4 Discuss and take the appropriate action regarding the $2,000,000 Fire Station
Bond and required submission to the Texas Commission on Environmental
Quality (TCEQ) after receiving Fire Committee's recommendations. (Twomey)
a. Tabled from June 12th MUD 1 meeting.
B.5 Discuss and take appropriate action concerning Fee Agreement with Peter M.
Tart (Bond Counsel), referencing the $2,000,000 Trophy Club Municipal Utility
District No. 1 Unlimited Tax Bonds, Series 2008.
B.6 Discuss and take appropriate action regarding Interlocal Cooperation Agreement
with the Town of Trophy Club for Fire Protection Services.
B.7 Discuss and take appropriate action to declare MUD 1’s position that the fire
station, as it is now and as it may be improved in accordance with pending plans,
is to remain in its present location.
B.8 Discuss and take appropriate action to consider an offer by Cobra Petroleum
Company to purchase MUD 1's mineral and royalty interest.
B.9 Discuss and take appropriate action to approve Order 2008-0708, the New 2008
MUD 1 Rate Order.
D.1 Review and Approve Minutes
a. June 12, 2008 - Regular Session
D.2 Review and Approve Disbursements and Variance Report
a. May 2008
D.3 Review Monthly Tax Collection Report
a. May 2008
D.4 Set Next Meeting Date
Next regularly scheduled meeting date: Tuesday, August 12*, 2008, 6:00 p.m.
(*As per Budget Planning Calendar)
D.5 Items for Future Agenda
F.1 Adjourn.
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 7-8-2008
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: 7-8-2008
Subject: Agenda Item No.A.2
Public Comments or Presentations.
(mm)
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 7-8-2008
Subject: Agenda Item No.B.1
Discuss and take appropriate action regarding the election of MUD 1 officers for
2008-2009.
a. President
b. Vice President
c. Secretary/Treasurer
(dh)
Attachments: 1. None
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 7-8-2008
Subject: Agenda Item No.B.2
Discuss and take appropriate action to amend the Water Supply and Wastewater
Treatment Contract between Town of Trophy Club, Trophy Club Municipal Utility
District No. 1 and Trophy Club Municipal Utility District No. 2.
EXPLANATION:
A question has been posed by McLain concerning the amount to be paid by builders at the time of pulling
a permit, in accordance with the "Money Contract "signed in November. Since the contract was between
MUDs One and Two and the Town, it is placed for action on this agenda.
The question raised by Mr. McLain is this: At the time of the signing of the contract, the design standards
for the Town no longer specified 5/8" meters, but rather 1" meters. The terms of the contract state that
the $2,300 is based on a 5/8 " meter, and if a larger one is used, the amount would be raised. This is
where the figure of $3,910 came from. A few builders have already paid this sum.
The problem, pointed out by Mr. McLain, is this: The sum of $2,300 was based on a value of capital
improvements figure, which when divided by the number of proposed homes expected at buildout came
to $2,300. If the builders pay $3,910, the $3,260,000 will be paid out long before buildout.
Then the questions would be as follows: Does the Town continue to collect and pocket the $3,900?
Brandon assures me he would be uneasy in doing so.
If the $3,900 figure is not collected after the $3,260,000 is paid out, then those people coming later pay
nothing to the cost of capital. And those who have paid might very well feel they are entitled to a refund
of the sum over $2,300.
RECOMMENDATION:
Staff recommends approval of the amended Money/Water Contract.
(wrf)
Attachments: 1. Amended Contract
THE STATE OF TEXAS §
COUNTY OF DENTON §
First Modification of Contract for Water Supply and Wastewater
Treatment, Between the Town of Trophy Club, Texas, Trophy Club
Municipal Utility District No. 1 and Trophy Club Municipal Utility District
No. 2
THIS is the first modification of the Contract For Water Supply And Wastewater
Treatment effective November 20, 2007, (hereinafter “Contract”) by and between THE TOWN
OF TROPHY CLUB, TEXAS, a home rule municipality located in Denton and Tarrant Counties
(hereinafter “Town”), TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (hereinafter
“MUD1”), and TROPHY CLUB MUNICIPAL UTILITY NO. 2 (hereinafter “MUD2”), both Districts
created pursuant to Section 59, Article XVI, Texas Constitution and the Texas Water Code,
Chapter 54, hereafter referred to collectively as “MUDs” is made and entered into on this the
_____ day of ____________, 2008, by and between Town and MUDs, (hereinafter “First
Modification”).
W I T N E S S E T H :
WHEREAS, Town, MUD1 and MUD2 entered into a Contract on or about November 20, 2007
after final approval of the respective governing bodies for each of the parties; and
WHEREAS, In June, 2008, the parties determined it necessary to modify the Contract in order
to revise its terms so that references to a five-eighths inch (5/8”) meter would be
changed to a one inch (1”) meter in order to be consistent with Town Design
Standards; and
WHEREAS, Town, MUD1 and MUD2 find such modifications as specifically set forth in this
First Modification to be necessary and to reflect their agreement;
NOW THEREFORE, IN CONSIDERATION of the foregoing, and for other good and valuable
consideration, the parties hereto agree as follows:
I.
Incorporation of Agreement
The Contract is incorporated herein as if written word for word. Except as specifically
provided below, all other terms and conditions of the Contract shall remain unchanged and shall
remain in full force and effect. In the event of any conflict or inconsistency between the
provisions set forth in this First Modification and the Contract, priority of interpretation shall be in
the following order: First Modification; Contract.
II.
Modification of Contract
2.01 Modification of Section 1.2. Effective as of the day and year first written above,
Subsection 1.2 entitled “Definitions” listed under Article I of the Contract entitled “Incorporation /
Definitions / Exhibits” is hereby modified so that the definition of “Utility Fee” shall be and read in
its entirety as follows:
1.2 Definitions. Unless the content indicates otherwise, the following words used in
this Contract shall have the following meanings:
Utility Fee means a payment of $2300 charged to each applicant for a residential
building permit in need of a one inch (1”) meter, which payment shall be to compensate
MUDs for the right of such applicant to access and receive Water Supply Transmission
Services and Wastewater Treatment from Existing Infrastructure. In the case of a
residence requiring a separate fire line having a second meter, the $2,300 charge shall
not apply to such second meter.
2.02 Modification of Section 4.1. Effective as of the day and year first written above,
Subsection B entitled “Utility Fees” listed under Section 4.1 entitled “Consideration” of Article IV
entitled “Compensation to MUDS For Access To Existing Infrastructure” is hereby modified so
that Section 4.1, Subsection B “Utility Fees” shall be and read in its entirety as follows:
B. Utility Fees. Town’s fee schedule provides that an Utility Fee shall be paid to
Town by the applicant for each residential building permit in need of a one inch (1”)
meter, which fee shall be paid by Town to MUDs in accordance with the terms of this
section in order to compensate MUDs for the right to access and receive Water Supply
Transmission Services and Wastewater Services from Existing Infrastructure. Should
applicant refuse to pay the Utility Fee, Water and Wastewater connection and services
will be denied. Upon collection of one or more Utility Fees by Town, such Utility Fees
shall, within ten (10) working days, be deposited by Town into an account designated by
MUDs (hereinafter “MUDs Account”). Town shall continue to collect and to deposit such
Utility Fees into MUDs Account in accordance with the existing agreement between the
MUDs until such time as the total amount paid into that account equals $3,260,000.
Town shall collect and deposit a minimum of one hundred fifty (150) Utility Fees each
year, for a total of five (5) successive years commencing on May 7, 2008 (hereinafter
“Collection Period”). In the event that more than 150 Utility Fees are collected by Town
in any one or more years of the Collection Period, such Utility Fees in excess of the 150
Utility Fees required under this Section shall be carried over to the following year or
years and shall be a credit toward the total Utility Fees due for such subsequent year or
years. In the event that fewer than 150 Utility Fees are collected by Town during any
one or more year(s) of the Collection Period, including those Utility Fees carried over
from any given year in which more than 150 Utility Fees were collected by Town, Town
shall within ten (10) working days of collection of such Utility Fees from Developer, pay
into MUDs Account the difference between the amount that would have been paid had
150 Access Fees been paid at $2,300 each and the amount of Utility Fees actually
collected by Town. On or about May 7, 2013, Town shall calculate the total amount of
Utility Fees paid to MUDs. Town shall provide MUDs written notice of any amount paid
less than $3,260,000 (the "Utility Fee Remainder"). The Utility Fee Remainder shall
either be paid in thirty (30) days of Town’s receipt of that payment from Developer
pursuant to the Development Agreement, or within such thirty (30) day period, a letter of
credit, or other financial security, which secures ten percent (10%) annual rate of interest
of the Utility Fee Remainder, shall be obtained from Developer by Town pursuant to the
Development Agreement. Annually thereafter, Town shall obtain from Developer
pursuant to the Development Agreement, a letter of credit or other financial security, as
approved by Town, for the benefit of the MUDs and securing the ten percent (10%)
annual rate of interest of any remaining amount of Utility Fees paid less than
$3,260,000, until the full $3,260,000 is paid. The parties understand that the Town is not
required to obtain or to provide any additional security for the payments due hereunder;
however, in the event that the Town obtains any letters of credit or other financial
security in addition to those obtained pursuant to this Section, such letters of credit or
security shall be obtained for the benefit of MUDs as security to ensure that payment of
the $3,260,000 plus accrued interest, due to MUDs shall be paid in full. Calculation and
payment of secured interest above referred to shall be as follows:
Interest at ten percent (10%) per annum shall be payable at the end of each year
on the average amount due and unpaid for that year. It shall begin to accrue on May 8,
2013, and shall be payable annually according to the following formula:
Where A equals the Utility Fee Remainder at the beginning of the year, and,
where B equals the Utility Fee Remainder at the end of the year, then A plus B divided
by two (2) and multiplied by ten percent (10%) will be the interest due for the year. If the
foregoing calculation of interest results in interest greater than the maximum amount
allowed by applicable law, then the amount of interest for that period will be reduced to
equal the maximum amount allowed by law.
IN WITNESS WHEREOF, this First Modification shall become effective upon the date first
written above, such date being subsequent to the date of approval of this First Modification by
the respective governing bodies of each of the parties hereinto in accordance with the law.
TOWN OF TROPHY CLUB, TEXAS
Date: ______________ ______________________________
Nick Sanders, Mayor
ATTEST:
Lisa Hennek, Town Secretary
APPROVED AS TO FORM:
____________________________________
Patricia A. Adams, Town Attorney
TROPHY CLUB MUNICIPAL UTILITY DISTRICT
NO. 1
Date: ______________
Dean Henry, President MUD1
ATTEST:
Constance S. White, Secretary MUD 1
APPROVED AS TO FORM:
____________________________________
Bob West, MUD1 Attorney
TROPHY CLUB MUNICIPAL UTILITY DISTRICT
NO. 2
Date: ______________
Jim Budarf, President MUD2
ATTEST:
James C. Thomas, Secretary MUD 2
APPROVED AS TO FORM:
____________________________________
Pamela Liston, MUD2 Attorney
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 7-8-2008
Subject: Agenda Item No.B.3
Discuss and review FY08-09 Preliminary Budget.
EXPLANATION:
(smd)
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 7-8-2008
Subject: Agenda Item No. B.4
Discuss and take the appropriate action regarding the $2,000,000 Fire Station Bond
and required submission to the Texas Commission on Environmental Quality
(TCEQ) after receiving Fire Committee's recommendations. (Twomey)
a. Tabled from June 12th MUD 1 meeting.
(nt)
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 7-8-2008
Subject: Agenda Item No.B.5
Discuss and take appropriate action concerning Fee Agreement with Peter M. Tart
(Bond Counsel), referencing the $2,000,000 Trophy Club Municipal Utility District
No. 1 Unlimited Tax Bonds, Series 2008.
EXPLANATION:
See letter from Pete Tart below.
RECOMMENDATION:
Staff recommends approval.
(wrf)
Attachments: 1. Letter from Pete Tart
2. Fee Agreement
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 7-8-2008
Subject: Agenda Item No.B.6
Discuss and take appropriate action regarding Interlocal Cooperation Agreement
with the Town of Trophy Club for Fire Protection Services.
EXPLANATION:
RECOMMENDATION:
ACTION BY MUD1:
(wrf)
Attachments: 1. ILA for Fire Protection Services
THE STATE OF TEXAS )
)
COUNTY OF DENTON )
INTERLOCAL COOPERATION AGREEMENT
FOR FIRE PROTECTION SERVICES
THIS AGREEMENT is made and entered into this ____ day of _________, 2008,
by and between Trophy Club Municipal Utility District No. 1, Trophy Club Municipal
Utility District No. 2, both districts created pursuant to Section 59, Article XVI, Texas
Constitution and the Texas Water Code, Chapter 54 (hereinafter referred to as “MUDs 1
and 2”) and the Town of Trophy Club, a Home Rule Municipality, (hereinafter referred
to as “Town”).
W I T N E S S E T H :
WHEREAS, MUDs 1 and 2 is a duly organized political subdivision of the State
of Texas engaged in the administration of fire protection and related services for the
benefit of those persons residing, traveling within, or being physically located within the
boundaries of MUDs 1 and 2 and further without limitation, the incorporated and
unincorporated limits of the Town of Trophy Club, Texas; and
WHEREAS, MUD1 and 2 together are owners and operators of certain vehicles
and/or other equipment designed to engage in fire-fighting activities and have in their
employ such trained personnel whose duties are related to the provision of such
services and the operation of necessary vehicles and equipment (hereinafter collectively
referred to as “Fire Functions”); and
WHEREAS, the provision of Fire Functions is a governmental function that
serves the public health and welfare, promotes efficiency and effectiveness of local
governments, and is of mutual concern to the contracting parties; and
WHEREAS, MUDs 1 and 2 are authorized to perform Fire Functions pursuant to
Section 49.351 of the Texas Water Code and the Town is individually authorized to
perform Fire Functions pursuant to its police powers and the parties desire to enter into
this Agreement regarding the performance of Fire Functions; and
WHEREAS, the Interlocal Cooperation Act, Texas Government Code, Chapter
791, et seq., as amended (the “Act”) provides authority for governmental entities of the
State of Texas to enter into interlocal agreements with each other regarding
governmental functions and services as set forth in the Act; and
NOW, THEREFORE, Town and MUDs 1 and 2, for and in consideration of the
recitals set forth above and terms and conditions below, agree as follows:
Deleted: ADMINISTRATION OF
Deleted: 2007
Deleted: N: padams/private/trophy
club/contracts/Interlocal Fire
Protection Services-MUD2.doc
(052803)
I.
Incorporation / Term
1.01 Incorporation of Recitals. The foregoing recitals are agreed upon and
incorporated herein as a part of this Agreement.
1.02 Term. This Agreement shall become effective upon approval by each of the
respective governing bodies of Town and MUDs 1 and 2, and upon execution by their
respective authorized representatives, and shall remain in effect for a term of one (1)
year. Such one (1) year initial term shall renew annually for a total of ten (10) terms of
one (1) year each, unless terminated by either party as provided herein.
II.
Definitions
2.01 As used herein, the words and phrases hereinafter set forth shall have the
meanings as follows:
A. “Eligible Persons” shall mean those persons owning property, residing,
traveling within, or being physically located within the corporate boundaries of the
Town of Trophy Club, Texas and/or MUDs 1 and 2 and shall also include those
persons owning property, residing, traveling within, or being physically located within
the corporate boundaries of another political subdivision of the State of Texas with
whom Town and/or MUD2 and/or MUD1 have a mutual aid agreement to provide fire
protection services.
B. “Fire-fighting Activities”, “Fire Protection Services”, or “Fire Functions”
shall mean any and all of the customary and usual activities of a fire department,
including fire suppression, fire prevention, training, safety education, maintenance,
communications, medical emergency services, photography, and administration.
III.
Obligations and Rights of the Parties
3.01 Budget and Funding
A. Budget The Town Director of Finance together with the Fire Chief shall prepare a
budget for Fire Protection Services. It shall be the responsibility of the Fire Chief to
certify that the budget so prepared meets the Fire Protection needs of the Eligible
Persons and allows an appropriate level of service. The budget shall be presented
to the governing board of the Master District for final approval. The approval of
Master District under this section shall not be unreasonably withheld.
Formatted: Left, Numbered + Level:
1 + Numbering Style: I, II, III, … +
Start at: 4 + Alignment: Left +
Aligned at: 0 pt + Tab after: 18 pt
+ Indent at: 18 pt
Formatted: Bullets and Numbering
Formatted: Indent: First line: 0 pt,
Line spacing: single
Deleted: MUD2
Deleted: Obligations and Rights:
Deleted:
Deleted:
Deleted: N: padams/private/trophy
club/contracts/Interlocal Fire
Protection Services-MUD2.doc
(052803)
B. Funding MUDs 1 and 2 and the Town shall share the funding of all costs
associated with Fire Protection Services provided to Eligible Persons as defined
herein, in accordance with the terms of this Agreement. Said funding shall be
accomplished as follows:
1) MUDs 1 and 2 shall fund their share of all costs associated with Fire
Protection Services provided to Eligible Persons as defined herein, in
accordance with the terms of this Agreement through the assessment and
collection of an annual Fire Tax on the property owners of MUDs 1 and 2.
2) The Town shall fund its share of all costs associated with Fire Protection
Services to Eligible Persons by an annual assessment on and collection from
Eligible Persons not within MUDs 1 or 2; said assessment to be equal to the
Fire Tax paid by the property owners of MUD 1.
3) The proportionate share of costs to be paid by each entity in any given year
shall be arrived at as follows:
Each year, the budget for Fire Protection Services shall consist of the total of the
annual cost of maintenance and operation of the Fire Protection Services and debt
service.. .This total shall be divided by the total of the assessed values of MUD 1,
MUD 2 and the property of Eligible Persons within the corporate boundaries of the
Town but not within MUDs 1 or 2..The proportionate share of the budget attributable
to each shall be the proportion which the assessed valuation of each bears to the
combined assessed valuations of all three.
C. The funds so assessed and collected shall be combined and shall be disbursed
for the Fire Protection of all Eligible Persons, as defined above.
IV.
Consideration
The parties agree that sufficient consideration for this Agreement exists and is
found in the cross promises set forth above. Each party hereto paying for the
performance of Fire Protection Services shall make such payments from current
revenues legally available to the paying party.
V.
Default / Termination
Formatted: Font: Bold, Underline
Formatted: Indent: First line: 0 pt,
Line spacing: single, Numbered +
Level: 1 + Numbering Style: I, II, III,
… + Start at: 4 + Alignment: Left +
Aligned at: 0 pt + Tab after: 18 pt
+ Indent at: 18 pt, Tabs: 0 pt, Left
+ 18 pt, Left + Not at 36 pt + 72
pt
Formatted: Bullets and Numbering
Formatted: Line spacing: single
Formatted: Line spacing: single
Formatted: Font: Bold
Deleted:
Deleted: .
Deleted:
Deleted:
Deleted: together
Deleted: all
Deleted: within the boundaries of
MUDs 1 and 2 as defined herein, in
accordance with the terms of this
Agreement through the assessment
and collection of an annual Fire Tax
on the residents of MUDs 1 and 2.
Deleted: within the corporate
boundaries of the Town, but not
within MUDs 1 or 2
Deleted:
Deleted: residents
Deleted: ¶
Deleted: 4)
Deleted: the annual
Deleted: for the fire station
Deleted:
Deleted: pa
Deleted: amortization
Deleted:
Deleted: ,
Deleted: m
Deleted: nt
Deleted: s
Deleted: and
Deleted: .
Deleted: Highlands,shall determine
Deleted: A.MUDs 1 and 2 together
Deleted: D. MUD1 with the input and
Deleted: N: padams/private/trophy
... [1]
... [2]
... [3]
... [5]
... [4]
... [6]
5.01 In the event that either party hereto breaches any term or condition of this
Agreement, this Agreement may be terminated by the aggrieved party if such default is
not cured within a period of thirty (30) days after receipt of written notice of default by
the party allegedly in breach of its obligations hereunder. At the option of the aggrieved
party, if such default is not cured within the thirty (30) day period, this agreement shall
immediately terminate without further notice.
5.02 Notwithstanding the foregoing, this agreement may be terminated at any
time without cause by either party giving sixty (60) days advance written notice to the
other party.
VI.
Entire Agreement
This Agreement represents the entire and integrated agreement between the
Town and MUDs 1 and 2 and supersedes all prior negotiations, representations and/or
agreements, either written or oral. This Agreement may be amended only by written
instrument signed by both parties.
VII.
Venue
The laws of the State of Texas shall govern this Agreement and each of its terms
and provisions, including but not limited to, the rights and duties of the parties hereto,
and exclusive venue shall be in Denton County, Texas.
VIII.
Severability
In the event that any portion of this Agreement shall be found to be contrary to
law, it is the intent of the parties hereto that the remaining portions shall remain valid
and in full force and effect to the extent possible.
IX.
Non-Waiver
All rights, remedies and privileges permitted or available to either party under this
Agreement or at law or equity shall be cumulative and not alternative, and election of
any such right, remedy or privilege shall not constitute a waiver or exclusive election of
rights, remedies or privileges with respect to any other permitted or available right,
remedy or privilege. Additionally, one instance of forbearance by the either party in the
enforcement of any such right, remedy or privilege against the other party, shall not
Deleted: Page Break
Deleted: N: padams/private/trophy
club/contracts/Interlocal Fire
Protection Services-MUD2.doc
(052803)
constitute a waiver of such right, remedy or privilege by the forbearing party. A default
by either party under this Agreement shall not result in a forfeiture of any rights,
remedies, or privileges under this Agreement by such defaulting party.
X.
Signature Authority
The undersigned officer and/or agents of the parties hereto are the properly
authorized officials and have the necessary authority to execute this agreement on
behalf of the parties hereto and each party hereby certifies to the other that any
necessary resolutions extending such authority have been duly passed and are now in
full force and effect.
EXECUTED in triplicate originals this, the _____ day of ________________,
2008.
TOWN OF TROPHY CLUB, TEXAS
By____________________________
C. Nick Sanders, Mayor
ATTEST:
______________________________
Town Secretary
APPROVED AS TO FORM:
______________________________
Town Attorney
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
By_________________________
Dean Henry, President MUD 1
Formatted: Font: Not Bold
Deleted: 2007
Deleted: ¶
Deleted: N: padams/private/trophy
club/contracts/Interlocal Fire
Protection Services-MUD2.doc
(052803)
ATTEST:
______________________________
MUD 1 Secretary
APPROVED AS TO FORM:
___________________________
MUD 1 Attorney
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 2
By_________________________
Jim Budarf, President MUD 2
ATTEST:
______________________________
MUD 2 Secretary
APPROVED AS TO FORM:
___________________________
MUD 2 Attorney
Formatted: Font: Not Bold
Deleted: ¶
Deleted: N: padams/private/trophy
club/contracts/Interlocal Fire
Protection Services-MUD2.doc
(052803)
ACKNOWLEDGMENTS
STATE OF TEXAS §
COUNTY OF DENTON §
This instrument was acknowledged before me on the ___ day of
________________, 2007 by C. Nick Sanders, Mayor, Town of Trophy Club, Texas,
on behalf of such entity.
______________________________
Notary Public in and for the
State of Texas
STATE OF TEXAS §
COUNTY OF DENTON §
This instrument was acknowledged before me on the ___ day of
__________________, 2007 by _____________, _________ of the TROPHY CLUB
MUNICIPAL UTILITY DISTRICT NO. 1, on behalf of such corporation.
________________________________
Notary Public in and for the
State of Texas
STATE OF TEXAS §
COUNTY OF DENTON §
This instrument was acknowledged before me on the ___ day of
__________________, 2007 by _____________, _________ of the TROPHY CLUB
MUNICIPAL UTILITY DISTRICT NO. 2, on behalf of such corporation.
________________________________
Notary Public in and for the
State of Texas
Formatted: Font: Bold
Deleted: §¶
Deleted: §¶
Deleted: §¶
Deleted: N: padams/private/trophy
club/contracts/Interlocal Fire
Protection Services-MUD2.doc
(052803)
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 7-8-2008
Subject: Agenda Item No.B.7
Discuss and take appropriate action to declare MUD 1’s position that the fire
station, as it is now and as it may be improved in accordance with pending plans, is
to remain in its present location.
EXPLANATION:
RECOMMENDATION:
ACTION BY MUD1:
(wrf)
Attachments: 1. None
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 7-8-2008
Subject: Agenda Item No.B.8
Discuss and take appropriate action to consider an offer by Cobra Petroleum
Company to purchase MUD 1's mineral and royalty interest.
EXPLANATION:
Besides the signing bonus of $3,295, we have received the following amounts from this
interest:
2005-2006 - $19,880
2006-2007 - $ 6,135
2007-2008 to date - $ 5,527
RECOMMENDATION:
ACTION BY MUD1:
(wrf)
Attachments: 1.Correspondence from Cobra
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 7-8-2008
Subject: Agenda Item No.B.9
Discuss and take appropriate action to approve Order 2008-0708, the New 2008
MUD 1 Rate Order.
EXPLANATION:
RECOMMENDATION:
ACTION BY MUD1:
(mm)
Attachments: 1. Amended Rate Order
2008 RATE ORDER
TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1
ORDER No. 2008-0708
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 April 8,
2008 (the “2008 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 New 2008 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.
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.
Formatted: Font: Bold
Formatted: Font: Bold
Deleted: 4
Deleted: October 9, 2007
Deleted: 7
Trophy Club MUD 1 2008 Rate Order 2008-0708
2
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.
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
Trophy Club MUD 1 2008 Rate Order 2008-0708
3
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.
Deleted:
Trophy Club MUD 1 2008 Rate Order 2008-0708
4
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
Trophy Club MUD 1 2008 Rate Order 2008-0708
5
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 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
$1,875.00for 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 $2.94 per each 1,000 gallons
Trophy Club MUD 1 2008 Rate Order 2008-0708
6
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 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 Marshall Creek Park is specifically exempted from the doubling
provision of the preceding paragraph.
Section 1.08. Water Tap Fees. A fee of $1,000.00 must be received by
the District before any residential connection is initially 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. 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:
Trophy Club MUD 1 2008 Rate Order 2008-0708
7
(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 $2.19/1,000 gal
,7,000 to 12,000 gallons per month $2.64/1,000 gal
13,000 to 25,000 gallons per month $2.84/1,000 gal
26,000-plus gallons per month $2.94/1,000 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 administrative 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 an administrative 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.
Deleted: Administrative
Trophy Club MUD 1 2008 Rate Order 2008-0708
8
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 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 $2.19/1,000 gal
7,000-12,000 gallons per month $2.64/1,000 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 $2.19/1,000 gal
7,000-12,000 gallons per month $2.64/1,000 gal
13,000-plus gallons per month $2.64/1,000 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 an administrative 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
Deleted: Administrative
Deleted: Administrative
Trophy Club MUD 1 2008 Rate Order 2008-0708
9
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 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
Trophy Club MUD 1 2008 Rate Order 2008-0708
10
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
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.
Trophy Club MUD 1 2008 Rate Order 2008-0708
11
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 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
Trophy Club MUD 1 2008 Rate Order 2008-0708
12
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.
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.
Trophy Club MUD 1 2008 Rate Order 2008-0708
13
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.
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
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.
Trophy Club MUD 1 2008 Rate Order 2008-0708
14
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 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
Trophy Club MUD 1 2008 Rate Order 2008-0708
15
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.
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 “New 2008 Rate Order” (Order
2008-0708) 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 immediately.
Deleted: 4
Deleted: as of May 1st, 2008
Trophy Club MUD 1 2008 Rate Order 2008-0708
16
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 8th day of July
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
Deleted: April
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 7-8-2008
Subject: Agenda Item No.D.1
Review and Approve Minutes
a. June 12, 2008 - Regular Session
(mm)
Attachments: 1. Minutes
MINUTES OF REGULAR SESSION
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
JUNE 12, 2008
The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant
Counties met in Regular Session on Thursday, June 12, 2008, at 5:00 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:
Walter Fitzpatrick District Manager
Danny Thomas Fire Chief
Sakura Dedrick Finance Director
Stephanie Gohlke Financial Analyst
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 5:02 p.m.
A.2 Public Comments or Presentations.
No public present.
B.1 Discuss and take the appropriate action regarding establishing an agenda item for
all future meetings that list any business items that may be considered at future
MUD 1 meetings. (Twomey)
The Board agreed to Director Twomey’s recommendation to have staff create an agenda item to
address and track items for discussion and/or action at future meetings (Items for Future
Agenda). Board to email Staff with their requests.
B.2 Discuss and take appropriate action to approve the 2008 Interlocal Cooperation
Agreement for property tax collection between MUD 1 and Denton County.
Director White moved to accept the 2008 Interlocal Cooperation Agreement for property tax
collection between Denton County and MUD 1. Director Twomey seconded the motion. Floor
opened for discussion. Mover and seconder agreed to amend the motion to have Finance
Director Dedrick shown to act on behalf of the District and to serve as the liaison for the District.
Motion carried unanimously.
B.3 Discuss and take appropriate action regarding proposed 2008 Master District
Contract. (District Manager)
District Manager updated the Board as to the final changes to 2008 Master District Contract.
1. Paragraph 5 - added the following paragraph:
The purpose of the Master District is to serve as the administrative
agency (as authorized by Section 791.013 of the Texas Government
Code) of the two participating Districts for the joint construction, financing,
ownership, and operation of the central water and wastewater works,
improvements, facilities, plants, equipment, and appliances necessary to
provide water and wastewater services to the customers of the two
participating Districts, as authorized by Section 49.213 of the Texas
Water Code.
2. Paragraph 9 – added the following:
Meetings of the Master District Board shall be held in accordance with the
Texas Open Meetings Act. Only voting members of the Master District
Board may meet in Closed Session for purposes authorized by that Act.
Other agents and representatives of the Master District whose presence
is necessary for the matter to be discussed may be admitted to the
Closed Session at the discretion of the voting members of the Master
District Board.
At least three (3) members from each individual Board shall be
required to establish a quorum of the Master District Board. Any
action by the Master District Board shall require a simple majority of
affirmative votes at the time of the vote.
3. Paragraph 11 – added the following:
The Master District Board shall develop an annual budget for the
operation, maintenance and proposed capital improvements and
expenditures for the Master District. The Master District shall
include all expenses arising therefrom; including personnel costs,
equipment and supplies, training, new facilities and administrative
costs.
The Master District shall propose a Rate Order for adoption by the
individual Districts, and present any request for additional capital
funding as may be required to the governing Boards of the
individual parties not later than August 1 of each year.
Director Henry moved to accept the 2008 Master District Contract, as written. Director Twomey
seconded the motion; motion carried unanimously.
B.4 Discuss and take the appropriate action regarding the $2,000,000 Fire Station
Bond and required submission to the Texas Commission on Environmental
Quality (TCEQ) after receiving Fire Committee's recommendations. (Twomey)
Chair Henry combined Agenda Items B.4 and B.6 to address both items at once.
Director Twomey is requesting a timeline for submitting the Bond Paperwork to TCEQ.
Fire Chief Thomas advised that until a location is determined for the Fire Station, a timeline
cannot be determined and/or established.
Action: Tabled to July’s meeting for further discussion and action.
B.5 Discuss and take appropriate action to renew annual contract with Southwest
Securities. (Danny Thomas)
Director Cantrell moved to renew the annual contract with Southwest Securities. Director Henry
seconded the motion; motion carried unanimously.
B.6 Discuss and take appropriate action to approve contract with BRW Architects for
submittal of Fire Station Bond Application to Texas Commission on
Environmental Quality. (Danny Thomas)
Director Hase moved to approve the $2,500 cost and to approve the contract with BRW
Architects to prepare and submit the Fire Station Bond Application to TCEQ. Director Cantrell
seconded the motion; motion carried unanimously.
C.1 Receive District Manager's Report
a. Water's Edge, Canterbury Hills Phase One, Lot 3
District Manager Fitzpatrick updated the Board. The homeowner of this lot is in two
taxing jurisdictions and will receive tax bills from both entities. The MUDs cannot
disannex as both entities still have outstanding debt; however, the two entities are
allowed to swap property.
C.2 Receive Finance Director's Report
a. Budget Update – MUD 1 residents in Tarrant County did not receive their tax for MUD
1.
b. Gas Well Update ($767.33)
Finance Director Dedrick updated the Board.
D.1 Review and Approve Minutes
a. May 8, 2008 – Regular Session
b. May 20, 2008 – Special Session
Director Henry moved to approve the minutes for May 8, 2008. Director Twomey seconded the
motion. Motion carried unanimously.
Director Henry moved to approve the minutes for May 20, 2008, as amended. Director Hase
seconded the motion. Motion carried unanimously.
May 20, 2008 minutes now read as follows:
Page 1, Agenda Item B.2, second paragraph:
Recording Secretary Mary Moore administered the Oath of Office to Jim Hase and Dean
Henry.
D.2 Review and Approve Disbursements and Variance Report
a. April 2008
Director White moved to approve the April 2008 Disbursements and Variance Report. Director
Twomey seconded the motion. Motion carried unanimously.
D.3 Review Monthly Tax Collection Report
a. April 2008
Board reviewed report with no action taken.
D.4 Set Next Meeting Date
Next regularly scheduled meeting date: Tuesday, June 10, 2008, 6:00 p.m.
Board agreed to meet on Tuesday, June 10, 2008, 6:00 p.m.
MUNICIPAL UTILITY DISTRICT 1 TO CONVENE INTO CLOSED SESSION
Board declined to go into Closed Session.
CLOSED SESSION
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 on the following 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 the Texas Open Meetings Act: To seek advice of the attorney
concerning implementation of the MUD - Town of Trophy Club Operations
and Water Contracts.
MUNICIPAL UTILITY DISTRICT 1 TO RECONVENE INTO REGULAR SESSION
Board declined to go into Closed Session.
*REGULAR SESSION
E.2 Discuss and take appropriate action regarding discussions held in Closed
Session.
a. Town-MUD Operations and Water Contracts
Board discussed in Open Session the Water/Money contract with regard to the payment
of $2,300 for 5/8” meter. With the concurrence of the Town this should be amended to
refer to a 1” meter, as the Town’s Design Standards have changed to a 1” meter.
District Manager Fitzpatrick advised that the Permitting Department is currently
collecting $3900 for permits for homes in the PID. He believes Council will amend the
“Utility Fee” back to $2,300. District Manager Fitzpatrick recommends taking action to
amend the water/money contract accordingly, and to eliminate the language raising the
Utility fee if a larger meter is installed, as soon as possible as permits are presently
being charged at the $3900 rate.
F.1 Adjourn.
Meeting adjourned at 5:58 p.m.
_________________________________
Dean Henry, President
(SEAL)
____________________________________
Constance S. White, Secretary/Treasurer
______________________________________
Mary Moore, Recording Secretary
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 7-8-2008
Subject: Agenda Item No.D.2
Review and Approve Disbursements and Variance Report
a. May 2008
EXPLANATION:
RECOMMENDATION:
ACTION BY MUD1:
(smd)
Attachments: 1. May Variance Report
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 7-8-2008
Subject: Agenda Item No.D.3
Review Monthly Tax Collection Report
a. May 2008
(mm)
Attachments: 1. May Tax Collection Report
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 7-8-2008
Subject: Agenda Item No.D.4
Set Next Meeting Date
Next regularly scheduled meeting date: Tuesday, August 12*, 2008, 6:00
p.m. (*As per Budget Planning Calendar)
EXPLANATION:
MUNICIPAL UTILITY DISTRICT #1
From: The Office of the Municipal Utility District#1 Date: 7-8-2008
Subject: Agenda Item No.F.1
Adjourn.
(mm)