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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)