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HomeMy WebLinkAboutJanuary 7, 2009 Regular Session Backup Town of Trophy Club Municipal Utility District No.1 Meeting Agenda 100 Municipal Drive Trophy Club, Texas 76262 Wednesday, January 7, 2009 5:00 P.M. A.1 Call to Order and Announce a Quorum. A.2 Public Comments or Presentations. B.1 Discuss and take appropriate action concerning consolidation of MUDs 1 and 2. B.2 Discuss and take appropriate action concerning amendment of the 2008 Master District Contract between MUD 1 and MUD 2. Pages 7 ‐ 16  B.3 Receive Update on Status of New Fire Station. B.4 Discuss and take appropriate action regarding submission of Bond Application to TCEQ for new Fire Station. C.1 Receive District Manager's Report a. Audit b. Items for future agendas C.2 Receive Update ~ Communications Process a. Director Cantrell - Town of Westlake b. Director White - Town of Trophy Club D.1 Review and Approve Minutes a. November 22, 2008 - Joint Session – Pages 22 ‐ 29 b. December 9, 2008 - Regular Session – Pages 30 ‐ 33 c. December 16, 2008 - Special Session – Pages 34 ‐ 35 D.2 Review Monthly Tax Collection Report a. November 2008 – Page 37 D.3 Set Next Meeting Date – Page 39 Next regularly scheduled meeting date: Tuesday, February 10, 2009, 6:00 p.m. D.4 Items for Future Agendas – Page 40 1. Further review of McLain's study relating to organizational costs for MUD 1. (Twomey) 2. Establish MUD 1 reserves policy. (February - Committee Members Twomey and Hase to provide report/update.) 1 3. Research ramifications should Town take over MUD 2. (12/08) F.1 Adjourn. 2 3 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 1-7-2009 Subject: Agenda Item No.A.1 Call to Order and Announce a Quorum. (mm) 4 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 1-7-2009 Subject: Agenda Item No.A.2 Public Comments or Presentations. (mm) 5 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District 1 Date: 1-7-2009 Subject: Agenda Item No.B.1 Discuss and take appropriate action concerning consolidation of MUDs 1 and 2. EXPLANATION: MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District 1 Date: 1-7-2009 Subject: Agenda Item No.B.2 Discuss and take appropriate action concerning amendment of the 2008 Master District Contract between MUD 1 and MUD 2. EXPLANATION: RECOMMENDATION: (Initials) Attachments: 1. 2008 Master District Contract 6 2008 MASTER DISTRICT CONTRACT 1. Parties. This 2008 Master District Contract (the “Contract”) is between the following parties: Trophy Club Municipal Utility District No. 1 (“MUD1") 100 Municipal Drive Trophy Club, Texas 76262 Trophy Club Municipal Utility District No. 2 (“MUD2") 100 Municipal Drive Trophy Club, Texas 76262 MUD1 and MUD2 are each Municipal Utility Districts (MUDs) created and operating under the provisions of Article XVI, Section 59, of the Texas Constitution, and the general laws of the State of Texas including, particularly, Chapter 54 of the Texas Water Code, as amended, and located in Denton and Tarrant Counties, Texas. MUD1 is located partly in Denton County and partly in Tarrant County, Texas. MUD2 is located entirely in Denton County, Texas. 2. Background and Purposes. A. General Information Regarding MUDs. MUDs are political subdivisions of the State of Texas created and operating under the provisions of Article XVI, Section 59, of the Texas Constitution and the general laws of the State of Texas including, particularly, Chapter 54 (relating specifically to MUDs) and Chapter 49 (relating to most types of general law districts, including MUDs) of the Texas Water Code, as amended. MUDs were created in Texas primarily to provide water and sewer service in areas where no local governmental entity existed, or where the local governmental entity that did exist was unable or unwilling to provide water and sewer infrastructure for new development. MUDs operate under the supervision and regulation of the Texas Commission on Environmental Quality (TCEQ). MUDs allow a developer to finance infrastructure and provide municipal services with a board of directors initially appointed by the developer. As land within the boundaries of the MUD is developed and sold to other property owners, who become residents and voters of the MUD, the members of the board of directors are eventually elected by the residents of the MUD. The MUD issues public bonds payable out of property taxes and/or operating revenues and generally pays for its operations through user fees for the services it provides, such as tap fees for new connections and water and sewer use fees. B. General History of MUDs in Trophy Club. When the Trophy Club real estate development was being initially planned and developed in the early to mid1970s, most of the land for the project was in the Town of Westlake and was on the north side 7 of State Highway 114. Westlake did not wish to finance the construction of infrastructure for the development, and acted in 1974 to disannex the land in the Trophy Club Project pursuant to an agreement with the developer, which allowed development to occur in the Trophy Club Project under a Town of Westlake Ordinance that set certain minimum standards for development within the Trophy Club Project. The initial developer of Trophy Club (Johnson-Loggins, Inc., dba Trophy Club Estates) planned to use up to five separate MUDs for the development of the 2,000-plus acre project. Early development was entirely within the boundaries of MUD1 and by May 1978 all five seats on the MUD1 board of directors were held by residents of MUD1. In November 1982, with the consent of the Town of Westlake and the property owner, MUD1 annexed additional land on the south side of State Highway 114 within the area of Westlake now known as “Solana - Westlake.” MUD2 as it currently exists is the result of a merger in 1990 of two MUDs originally known as Denton County Municipal Utility District No. 2 (organized by the developer in 1980 with land in the western part of the Trophy Club Project) and Denton County Municipal Utility District No. 3 (organized by the developer in 1980 with land in the northeastern part of the Trophy Club Project). To provide water and sewer service to the two new MUDs, the developer (Gibraltar Savings Association, as the successor to the initial developer, Johnson-Loggins, Inc.) entered into negotiations with MUD1 to utilize and expand the central water and sewer systems already in place for MUD1 and which at that time had been owned, operated, and maintained by MUD1 for several years. The result of these lengthy negotiations was the execution of a Contract for the Provision, Operation, and Maintenance of Water Supply and Waste Disposal Facilities (the “Master District Contract”) dated as of the 1st day of December, 1982, by and between MUD1 (the official name of which at that time was Denton County Municipal Utility District No. One, of Denton County, Texas) and Gibraltar Savings Association (“Gibraltar”), a Texas Savings And Loan Association, doing business as Trophy Club (referred to in that earlier contract as the "Developer"). In 1983, Gibraltar transferred substantially all of its real estate holdings in the Trophy Club Project to Independent American Development Corporation and Independent American Development (Phase II) Corporation, and the Independent American Organization then became the primary real estate developer in Trophy Club, but Gibraltar purported to retain the rights and duties of “Developer” under the original Master District Contract. By the document entitled Amendment No. 1 to Trophy Club Master District Contract, effective as of October 1, 1985, Gibraltar and MUD1 amended the original Master District Contract to establish a budgeting procedure which led to a single Master District Rate Order that was applicable to all customers in MUD1 and in the two other MUDs in existence at that time. By the document entitled Partial Assignment dated December 2, 1987, Gibraltar, as Developer under the original Master District Contract, assigned a portion of its rights 8 and duties under the original Master District Contract to MUD2. By a similar Partial Assignment dated April 11, 1988, Gibraltar assigned another portion of its rights and duties under the original Master District Contract to Trophy Club MUD No. 3 (which later merged with MUD2). Gibraltar was taken over by the Federal Savings & Loan Insurance Corporation and the Resolution Trust Corporation in December 1988. Independent American Development (Phase II) Corporation filed for Chapter 11 Bankruptcy Protection on October 2, 1989. Independent American Development Corporation filed for Chapter 11 Bankruptcy Protection on March 7, 1991. Thomas Merrill Gaubert, the principal owner of the Independent American entities, filed for Chapter 11 Bankruptcy Protection on April 29, 1991. As a result of the defaults, financial failures, and bankruptcy proceedings involving the principal real estate developers within the Trophy Club Project, the rights of “Developer” under the original Master District Contract have been abandoned and the duties of “Developer” under the original Master District Contract have not been performed for many years, forcing the MUDs to operate the water and sewer systems in Trophy Club without the benefit of the financial and other assistance or input from a Developer as was contemplated by the original Master District Contract. C. On March 13, 1979, MUD1 entered into a Contract for Water Service with the City of Fort Worth, Texas, enabling MUD1 to connect with the water supply system of Fort Worth. That contract was subsequently replaced and superseded by a revised Contract for Water Service with the City of Fort Worth dated September 22, 1992, which is still in effect. The contract with Fort Worth established a Service Area in which MUD1 may provide water service using the water it purchases from Fort Worth. A map of the current Service Area established by the contract with Fort Worth is attached to this Contract as Exhibit A, as further referred to in Paragraph 6 below. D. The Town of Trophy Club (“the Town”) is a home-rule municipality organized and operating pursuant to the Constitution and laws of the State of Texas and located in Denton County, Texas. The Town was established in 1985, but the MUDs have remained in place as the governmental entities responsible for the water and sewer services within the Town of Trophy Club. The MUDs and the Town are parties to several existing Interlocal contracts regarding the sharing of employees, equipment, and facilities, but those existing agreements are not intended to be affected by the approval of this 2008 Master District Contract between the two MUDs. E. This Contract is to supersede and replace the New Master District Contract that was effective October 4, 2000, as amended. F. This Contract also is to confirm the agreements of MUD1 and MUD2 to continue to provide the governmental functions and services allowed by law for Municipal Utility Districts on a joint and cooperative basis for the mutual benefit of both Districts and their respective residents and customers. The Districts believe that, by cooperating and contracting with each other for the use of the “Master District” (as 9 established by this Contract) as the jointly controlled entity to own, operate, and maintain the works, improvements, facilities, plants, equipment and appliances providing water and sewer utility services to the residents and customers of both MUD1 and MUD2, their governmental functions and services will be provided more efficiently, effectively, and economically. G. MUD2 has increased its investment in the central water and sewer system infrastructure by paying MUD1 for facilities that were initially acquired and paid for by MUD1 but with the expectation of later reimbursement from MUD2, and which additional share of facilities are now needed by MUD2 to provide for further development in MUD2. In exchange for such payment, MUD2 has acquired an increased role in the joint management with MUD1 of the central water and sewer system so that MUD1 and MUD2 are equal participants in the management of the Master District. H. This Contract is executed by the parties as an Interlocal contract among local governments under Chapter 791 (the Interlocal Cooperation Act) of the Texas Government Code to jointly provide governmental functions and services that the parties to the contract are authorized to perform individually, as allowed by Section 791.011(c)(2) and Section 791.013 of the Texas Government Code. I. This Contract is also entered into by the parties pursuant to the provisions of Section 49.213 of the Texas Water Code. J. This Contract has been authorized by the governing body of each party to this Contract. The governing body of each party to this Contract has determined that the terms and provisions of this Contract are desirable, fair, and advantageous for that party. 3. Effective Date. This Contract shall be effective immediately upon the date approved by the second District to sign, as shown below. 4. Term. This Contract shall remain in effect perpetually without any set term, unless and until terminated as provided in Paragraph 15 below. 5. Master District. The Districts hereby agree that a separate entity has been established in October 2000 known as the Trophy Club Master District (the “Master District”) (the role and title of “Master District” has previously been held by MUD1 under the terms of the original Master District Contract). This separate entity has been established and operated as a joint venture, with the two Districts being the equal controlling owners of the new entity. 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 10 two participating Districts, as authorized by Section 49.213 of the Texas Water Code. To the fullest extent practical and allowed by law (including Section 49.213 of the Texas Water Code), the new entity has its own identity and operates as a separate entity or agency for providing and performing water and sewer services for the Service Area described in this Contract. The Master District may also perform any other purposes or functions permitted by a Municipal Utility District and may exercise any other rights, powers and duties granted to a Municipal Utility District, provided that the formal action of both Districts is first expressly given to such other purposes, functions, rights, powers or duties. MUD1 and MUD2 will each continue to exist as a separate District with its own board of directors and its own tax rate, bonds, and district administrative operations, and as an owner entity of the Master District with responsibility to fund its respective share of the expenses of the Master District, but all field operations of the water and sewer systems (both central operations and operations within the individual Districts and individual subdivisions) and administration of the field operations shall be handled by the Master District. 6. Service Area. This Contract shall apply to all territory within the boundaries of MUD1 and MUD2, as though all such territories were a single entity and service area, including any territory legally annexed by one of the Districts subsequent to the effective date of this Contract. A map of the Service Area covered by this Contract is attached to and made a part of this Contract as Exhibit A, which is the same Service Area in which MUD1 is authorized to sell the water it receives under its Contract for Water Service with the City of Fort Worth. Parties or territory outside the boundaries of MUD1 and MUD2 may be added to this Contract only upon the prior written consent of both MUD1 and MUD2, and (if required) consent from the City of Fort Worth. MUD 1 and MUD 2 agree that, if land not already within a District is to be annexed into either of the two Districts, such land shall be annexed by and into MUD 2 until such time that the tax rates of MUD 1 and MUD 2 are equal. 7. Equipment and Facilities. All works, improvements, facilities, plants, equipment, and appliances (other than the real estate assets) of the Districts, used for water and sewer service in the Service Area and existing as of the effective date of this Contract, shall be and are hereby dedicated to the Master District under this Contract as of the effective date of this Contract, but legal ownership of such assets shall not change. The real estate assets of each District used to provide or support the water and sewer services in the Service Area (including but not limited to the Jerome Svore Administration Building, the central water plant, the water well sites, the elevated water tank site, the wastewater treatment plant site, and easements and rights-of-way relating to the water and sewer services) are hereby leased by the District that owns such real estate or facility to the Master District at a rental rate of one dollar ($1.00) per year, plus 11 the Master District will pay all operating costs, utilities, and maintenance relating to the improvements and facilities on such tracts of real estate during the term of this Contract. At such time as the Master District Board determines that a particular tract of real estate or facility is no longer necessary for the performance of the duties of the Master District, the Master District may terminate the lease of such tract or facility and possession of such tract or facility will revert to the entity that owns such tract or facility. As under the preceding Master District Contract, effective October 4, 2000, on and after the effective date of this Contract; any new works, improvements, facilities, plants, equipment, and appliances relating to water and sewer services in the Service Area shall be acquired in the name of the Master District with funds provided by the parties to this Contract as part of the annual budget or special capital contributions, unless the Districts expressly agree otherwise at the time of such acquisition. 8. Employees. The Master District may employ a District Manager, administrative staff, and field staff as appropriate to perform the work of the Master District or may enter into contracts with independent contractors, service companies, or other parties for such purposes. As of the effective date of this Contract, all employees with job responsibilities primarily for water and sewer services under the control of the Master District, and other administrative staff shall be paid by the Master District and out of its budget but through the Town of Trophy Club, pursuant to existing contracts between the Districts and the Town, and such employees shall receive benefits administered by the Town subject to existing contracts. The Master District Board in its discretion, and subject to the approval of the governing bodies of the Districts, may alter this method of providing payment and benefits to employees, or may enter into contracts with independent contractors, service companies, or other parties for such purposes. 9. Master District Board. The operation of the Master District under this Contract shall be supervised by a Master District Board of Directors (the “Master District Board”). The Master District Board shall consist of all members of the Board of Directors of MUD 1 and MUD 2, holding office at the time of the meetings or other action of the Master District Board, each serving a term of one year beginning October 1 and ending the following September 30. At any and all Master District meetings, each MUD Board shall have the same number of votes. The number of votes shall be determined by the number of directors present from the individual board with the fewest members present at the time of the vote and then that number shall be matched by votes from the other Board. Therefore, if four (4) members of one individual Board are in attendance at the time of the vote and five (5) members from the other individual board are in attendance at the time of the vote, each individual Board would have four (4) votes at the time of the vote. The individual boards shall establish their own policies to determine which members are to exercise their votes. 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 12 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. In the event that a member of the Master District Board resigns or is not able to complete his or her term for any reason, a successor shall be appointed by the Board of Directors of the MUD of which the resigning person was a Director and the successor shall fill that position for the remaining term that was vacated. The District Manager of the Trophy Club MUDs and the Town Manager from the Town of Trophy Club shall be advisory but non-voting ex-officio members of the Master District Board. The voting members of the Master District Board shall select one (1) Board member to serve as Chairman, to serve for a one (1) year term. The Chairmanship shall rotate between MUD1 and MUD2 on an annual basis. The members of the Master District Board will not be paid by the Master District for any service on the Master District Board, but each District may pay director fees and cost reimbursements allowed by law for its directors serving on 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. In the event of a tie vote on the same agenda item at two (2) consecutive meetings of the Master District Board, the dispute will be submitted to a joint meeting of the Boards of Directors of the two (2) Districts. If the joint meeting does not resolve the dispute, the dispute will then be submitted to binding arbitration by a single independent arbitrator selected through the Dallas office of the American Arbitration Association and using the rules of commercial arbitration of the AAA, and with MUD1 and MUD2 each paying one- half the expenses of the arbitration. The Master District Board shall have authority to set policies and procedures for the Master District, subject to the review and approval of the governing bodies of the parties to this Contract. Until such time as new policies and procedures are adopted by the Master District Board, the policies and procedures in effect on the effective date of this Contract shall be in effect for the Master District. 10. Control. This Contract is intended to provide for the furnishing of governmental functions and services by the Districts through the Master District. Each District retains all right, power, and control that it has by law to set policies and to make decisions regarding the performance of work for the area of its jurisdiction, but the District shall attempt to adopt, follow, and enforce uniform policies and procedures for the operation of the Master District. Nothing in this Contract shall be interpreted as an abdication by either District of its 13 governmental rights, powers, and duties with regard to services provided by the Master District. 11. Budget and Funding. 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. The individual parties hereto agree that the above-referred-to Rate Order shall set rates that are equal for similar categories of users in both Districts. Different rates may be charged to customers outside the boundaries of the Districts, as determined by the Master District Board. In addition to the rates set by the Master District Board, each District retains the right to charge its customers a separate fee or surcharge as needed to support the administrative operations of that District or for other purposes allowed by law. Any capital funding proposed by the annual budget or by any supplemental budget during the year, or any budget shortfall that must be covered by the Districts, may be raised by the individual Districts in the manner determined by the separate Board of Directors of that District. The Master District Board shall not have any taxing authority as a separate entity. Any amount due from a District to the separate entity that is the Master District that is not paid when due shall bear interest at the rate of eighteen percent (18%) per annum from the date due and until paid to the Master District. If either District does not pay its share of the budget when due, the other District may (but is not required to) pay the amount required from the defaulting party and recover the interest on the funds advanced for the defaulting party at the rate of eighteen percent (18%) per annum from the date paid and until reimbursed by the defaulting party. The Master District Board and the individual Districts agree to cooperate as reasonably necessary to plan, discuss, and make decisions on major capital projects such as expansion or renovation of the central water and sewer systems and other major projects needed for the proper and efficient operation and maintenance of the systems operated by the Master District or to comply with regulatory requirements. The Districts and the Master District Board may also involve other governmental entities, property owners, or developers as needed to formulate, implement, and finance such major capital projects. 14 12. Audit; Legal Counsel; Advisors. A separate independent audit of the Master District shall be performed following the close of each fiscal year of the Master District by an auditing firm selected by the Master District Board. The Master District Board also may employ separate legal counsel or other professional advisors, within the limits set by the approved annual budget. The Master District may employ professional advisors that are also performing services for one or both of the individual Districts, but each professional advisor shall be responsible for determining whether there is a conflict of interest on services to be done for the Master District. 13. Liability; Insurance. The Master District Board shall obtain insurance coverages as it deems appropriate and with an insurance carrier selected by the Master District Board to insure the work done by the Master District Board members and employees under this Contract, with all parties named as insured parties under such insurance policies. No party to this Contract waives or shall be deemed by this Contract to waive any immunity or defense that would otherwise be available to it against claims arising from the exercise of governmental powers and functions. 14. Further Cooperation. The parties to this Contract agree to cooperate to sign and deliver any other documents that may be necessary or appropriate to implement the provisions of this Contract. 15. Termination. This Contract may be terminated by any party as of September 30 of any year by written notice to all other parties delivered at least two (2) years in advance. This Contract may be terminated at any other time or upon shorter notice only upon consent of both Districts. Upon termination of this Contract, each asset dedicated to the Master District pursuant to this Contract shall be returned to the District that originally dedicated such asset to the Master District. Assets that were acquired by the Master District during the term of this Contract shall be divided by the Districts and conveyed to the individual Districts as they may agree among themselves, but on a pro rata basis based upon the relative funding contributions made by the Districts during the three (3) year period immediately prior to the effective date of the termination. The value of particular assets shall be determined by a current appraisal of the assets of the Master District to be divided, to be prepared by a mutually agreeable appraiser. If the Districts cannot agree to a division of the assets, or to an appraiser to perform the appraisal of assets to be divided, then the dispute will be submitted to binding arbitration by a single independent arbitrator selected through the Dallas office of the American Arbitration Association and using the rules of commercial arbitration of the AAA, with MUD1 and MUD2 each paying one-half of the expenses of the arbitration. Before any distribution of an asset to a District, that party must have paid its share of all budgets and any interest assessed on budget payments made on its behalf by the other District. 15 16. Other Agreements Not Affected. This Contract is not intended to alter the existing contracts of the Districts with the Town of Trophy Club, or the Town of Westlake, or any other existing contracts to which MUD1 or MUD2 is a party. 17. Entire Agreement; Amendments. This Contract represents the entire and integrated agreement between the Districts relating to these matters and supersedes all prior negotiations, representations and/or agreements, either written or oral. This Contract may be amended only by written instrument signed by both districts. 18. Applicable Law; Venue. The validity of this Contract and of any of its terms or provisions, as well as the rights and duties of the parties to the Contract, shall be governed by the laws of the State of Texas. This Contract is performable in Denton and Tarrant County, Texas, and venue of any dispute arising under or relating to this Contract shall be in either Denton or Tarrant County, Texas. 19. Partial Invalidity. If any clause, paragraph, section or portion of this Contract is found to be illegal, unlawful, unconstitutional or void for any reason, the balance of the Contract remains in full force and effect and the districts shall be deemed to have contracted as if that clause, section, paragraph, or portion had not been in the Contract. 20. Authorization of Contract. Each party hereby certifies to the other parties that the execution of this Contract has been authorized by the governing board of the certifying party in accordance with applicable law and the rules of such party and that the undersigned officers and/or agents of the certifying party are the properly authorized officials and have the necessary authority to execute this Contract on behalf of such party. 21. Execution and Date. This Contract is signed by the parties in multiple counterparts. This Contract is dated and effective as of June 12, 2008, as provided in Paragraph 3 above. TROPHY CLUB MUNICIPAL UTILITY TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 DISTRICT NO. 2 By: ________________________________ By:________________________ Dean Henry Jim Budarf President, Board of Directors President, Board of Directors Attest: Attest: By: _________________________________ By: _____________________________ Constance S. White Jim Thomas Secretary, Board of Directors Secretary, Board of Directors 16 17 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District 1 Date: 1-7-2009 Subject: Agenda Item No.B.3 Receive Update on Status of New Fire Station. EXPLANATION: For discussion only. 18 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District 1 Date: 1-7-2009 Subject: Agenda Item No.B.4 Discuss and take appropriate action regarding submission of Bond Application to TCEQ for new Fire Station. EXPLANATION: For discussion and action as necessary. RECOMMENDATION: (dt) 19 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 1-7-2009 Subject: Agenda Item No.C.1 Receive District Manager's Report a. Audit b. Items for future agendas (RS) 20 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District 1 Date: 1-7-2009 Subject: Agenda Item No.C.2 Receive Update ~ Communications Process a. Director Cantrell - Town of Westlake b. Director White - Town of Trophy Club EXPLANATION: From the December 8th MUD 1 meeting: Director Cantrell requested to add an update on the communications process; Cantrell - Westlake and Director White - Town Council. MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District 1 Date: 1-7-2009 Subject: Agenda Item No.D.1 Review and Approve Minutes a. November 22, 2008 - Joint Session b. December 9, 2008 - Regular Session c. December 16, 2008 - Special Session EXPLANATION: (mm) Attachments: 1. November 22, 2008 - Joint Session 2. December 9, 2008 - Regular Session 3. December 16, 2008 - Special Session 21 MINUTES OF SPECIAL JOINT SESSION BETWEEN TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 and TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 2 LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS Saturday, November 22, 2008 9:00 a.m. The Board of Directors of Trophy Club Municipal Utility District No. 1 (MUD1) and the Board of Directors of Trophy Club Municipal Utility District No. 2 (MUD2) met in a Special Joint Session on Saturday, November 22, 2008 at 9:00 a.m. in the Boardroom of the Administration Building, 100 Municipal Drive, Trophy Club, Texas. The meeting was held within the boundaries of Trophy Club Municipal Utility District No. 1 and outside the boundaries of Trophy Club Municipal Utility District No. 2 and was open to the public. MUD1 DIRECTORS PRESENT: Dean Henry President Gary Cantrell Vice President Connie White Secretary/Treasurer Jim Hase Director Neil Twomey Director MUD2 DIRECTORS PRESENT: Jim Budarf President Carol Borges Vice President Jim Thomas Secretary/Treasurer Kevin Carr Director Steven Kohs Director STAFF AND GUESTS PRESENT: Robert Scott District Manager Danny Thomas Fire Chief Bob West Attorney for MUD1 Pam Liston Attorney for MUD2 Brandon Emmons Manager, Town of Trophy Club Nick Sanders Mayor, Town of Trophy Club Lou Opipare 32 Crestwood Dave Edstrom 269 Oak Hill Peggy Sweeney 51 Meadowbrook Dave Glaser 16 Overhill Greg Lamont 15 Avalon Bob Radder 1 Lee Court A.1 MUD2 Chairperson Jim Budarf called MUD2 to order at 9:02 a.m. and announced a quorum. MUD1 Chairperson Dean Henry called MUD1 to order at 9:02 a.m. and announced a quorum. A.2 Public Comments or Presentations. Dave Edstrom of 269 Oak Hill Drive spoke in favor of holding an election regarding the building of a new fire station and against incurring any new debt for financing the new fire station. 22 Lou Opipare of 32 Crestwood spoke in favor of movement toward one government. Bob Radder of 1 Lee Court inquired regarding the recording of the meeting. B.1 Review and discuss MUD 2’s financing options for new Fire Station. Director Budarf recommended waiting until cash is in hand to build the fire station. Director White questioned whether to hold an election. Director Budarf reminded the group that it would take eighteen months to be ready for an election and would rather wait the thirty-six months until the money is in the bank. Director Twomey questioned whether seeking bonds would be the best route. Director Thomas indicated that the soft costs are too high to hold an election to go out for bonds. Director Hase questioned whether a bond can be paid off in two years. Director Twomey informed that bonds are broken up and bought in a trunch. Payments on bonds are slightly different every year according to Director Twomey. Town of Trophy Club Mayor Nick Sanders was allowed to make comment to the Boards and suggested that the Town could seek issuance of the bonds and build the fire station. He spoke for himself, and not on behalf of the council, but stated that the Town already has to go out for bonds for the police department. Mayor Sanders stated that he is in favor of a new fire station but at a site different from the current station. B.2 Discuss and take appropriate action regarding payment for McLain Study. Director Henry believed that McLain should not be paid the remaining $7,500.00. Director Thomas informed the Boards that he is disappointed with McLain and that McLain did not deliver the product Director Thomas expected. Director Cantrell read the list of McLain’s objectives for the study and asked the directors to consider whether the promised reviews and recommendations were received from McLain. Director Cantrell reminded the Board that what was received from McLain was an editorial review not the product for which the MUDs and Town had contracted with McLain. Director White read a prepared statement (which is attached to these minutes) regarding why McLain should not be paid. She submitted to the Boards that McLain was not objective and did not provide real figures but rather provided a fiction that has exacerbated animosity. Director Thomas informed the Boards that he had attended only two meetings with McLain and that Director White had attended only three meetings (two with McLain and one with the finance director), and therefore, McLain’s comments that he had experienced too much oversight was unfounded. Director Thomas reminded the board members that they had budgeted for a financial report on what should be done to merge the entities. Director Budarf was in favor of not taking back any money in response to McLain’s offer to refund the money he had already been paid, but Director Budarf was not in favor of paying McLain an additional sum of money. Mayor Sanders was allowed to address the Boards and informed that McLain had told the Town Council that he had done the financial spreadsheets required under the contract, but he had not turned them over yet. The Town Council had directed the Town Manager, Brandon Emmons; to see what data would be useful and what price McLain might charge to get the data. (i.e. the final work product). Mayor Sanders believed 23 that there is a value in paying a price to get the financial data which was compiled by McLain. He believed that the Council would be willing to pay some amount for some product, but he was not sure what that would be. If the entities want the data, according to the mayor, McLain will complete the contract and wants to be paid the balance of $7,500.00. Mayor Sanders reminded the Boards that the MUDs only paid half of the original $7,500.00. Director Carr stated that it is premature to decide the issue of payment because the entities paid for a financial study but haven’t yet received the full study. Director Carr was in favor of waiting until the final product is received to make payment at the appropriate amount. Director Hase was expecting thirty charts, and he wants these charts. If the entities were to receive the thirty charts, he would vote for spending the money to make payment. Director Hase reminded the Boards that in the first study that McLain’s brother did (the Robert McLain Study) twelve charts were provided and those were great. Lewis McLain did a disservice to the town in his report. Lewis McLain didn’t understand the $2,300.00 permit fee number. Director Henry wanted to table the item. Director Twomey was concerned about the amount of staff time it took to create the study. The money that has been sunk into the project is substantial. Director Cantrell believed that the entities needed to actually see the information that McLain has to see if it has value. Mayor Sanders again addressed the Boards and stated that McLain has finished spreadsheets that are linked together so that if one changes, the others also change. McLain wants the rest of the money to provide the spreadsheets. Director Budarf stated that the consensus of the discussion was that no action would be taken on this agenda item at this time and until the directors can see the rest of the data from Lewis McLain. Director Budarf asked Director Thomas and Director White to look at whatever information is available from Lewis McLain. The discussion ended with no action taken. B.3 Discuss and take appropriate action concerning public relations. Director Budarf stated that he wants to merge with the Town when it makes sense to do so. According to Director Budarf, Lewis McLain’s Study needs to be clarified for the public on issues such as the tax rate (3 ½ cents per $100.00 valuation) implications on the residents if the Town takes over MUD2. Director Henry wanted to know if the MUDs want to go to the public to refute Lewis McLain’s claims in his study. Director White wants the public relations committee to go beyond the Lewis McLain Study. Director White states that the MUDs need to communicate to the public what MUDs are and provide question and answer (Q and A) information regarding how MUDs operate. Director White would like to see the MUDs work with the newspaper and the Town on this. Director Borges asked if Director White’s prepared comments regarding payment for the McLain Study should be put into the newspaper. Director Borges believed it would be a good idea to do so. Director Budarf reminded the Boards that the MUDs held up consolidation discussions at the request of the Town Council until the Lewis McLain study was completed. Director Carr was in favor of a joint document being prepared for the residents containing comprehensive 24 facts regarding the Town and MUDs. Director Cantrell stated that consolidation has been the most discussed item the MUDs have engaged in over the last four years while he’s been on the MUD1 Board. He is in favor of consolidation of the two MUDs when the time is right. Director Budarf suggested that public relations should be conducted as a single voice from the MUDs and the Town. Director Twomey added that it should be one voice that puts out the facts. Attorney West reminded the Boards that the MUDs have a unique story to tell. Mayor Sanders addressed the Boards to agree with the suggestion that the Town work together with the MUDs on what should be published to the residents. He reminded the Boards that Lisa Hennek is the point of contact with the media because she is the Public Information Officer for the Trophy Club Entities. Lou Opipare addressed the Boards with his impression that there is a perception that the Council and the MUDs are engaged in an all-out war and states that the entities need to work as a team. Bob Radder addressed the Boards, offering to work with Director White on the public relations campaign citing previous experience in this field. Dave Glaser of the EDC 4B and Park Boards addressed the Boards to suggest that greater communication needs to exist between the various entities and to applaud the efforts of the MUD Boards in this area. The discussion ended with no action taken. MUNICIPAL UTILITY DISTRICTS 1 AND 2 TO CONVENE INTO CLOSED SESSION Boards convened into Closed Session at 10:27 a.m. CLOSED SESSION C.1 MUD2 President Jim Budarf and MUD1 President Dean Henry announced that the Boards would convene into executive session pursuant to section 551.071 of the Texas Government Code regarding consultations with attorney, to conduct a private consultation with the Districts’ attorneys on matters in which it is the duty of the attorneys to advise the governmental bodies and on which the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflict with the Open Meetings Act: a. Legal implications regarding Water Code and Local Government Code provisions regarding consolidation and/or dissolution of MUDs, including legal issues raised by existing water services and related contracts. b. Legal issues raised in 2008 Intergovernmental Contract for Employee Services. MUNICIPAL UTILITY DISTRICTS 1 AND 2 TO RECONVENE INTO SPECIAL JOINT SESSION Boards reconvened into Special Joint Session at 11:48 a.m. SPECIAL JOINT SESSION D.1 Discuss and take appropriate action regarding discussions held in Closed Session. a. Consolidation and/or dissolution of MUDs. 25 For MUD1: Director Hase moved that MUDs1 and 2 plan to present at the May 2009 election the planned proposal to consolidate the two MUDs. Director Twomey seconded. The vote carried unanimously with five in favor and none against. (Hase, Twomey, White, Henry, and Cantrell all voted in favor of the motion.) For MUD2: Director Thomas moved that MUDs 1 and 2 plan to present at the May 2009 election the planned proposal to consolidate the two MUDs. Director Kohs seconded. The vote carried unanimously with five in favor and none against. (Thomas, Kohs, Borges, Carr, and Budarf all voted in favor of the motion.) For MUD1: Director White moved that a task force to define the terms of the consolidation be created with Neil Twomey and Jim Hase assigned to the task force on behalf of MUD1. Director Twomey seconded. The vote carried unanimously with five in favor and none against. (Hase, Twomey, White, Henry, and Cantrell all voted in favor of the motion.) For MUD2: Director Thomas moved that a task force to define the terms of the consolidation be created with Jim Thomas and Steven Kohs assigned to the task force on behalf of MUD2. Director Kohs seconded. The vote carried unanimously with five in favor and none against. (Thomas, Kohs, Borges, Carr, and Budarf all voted in favor of the motion.) b. 2008 Intergovernmental Contract for Employee Services It was the consensus of the two Boards to leave the employee services agreement in place. It is not the intention of the Master District to pull out of the contract. The shared employees will not lose their jobs. D.2 Adjourn. MUD1 and MUD2 adjourned at 11:56 a.m. _______________________________________ Dean Henry, MUD 1 President (SEAL) _______________________________________ Constance S. White, MUD 1 Secretary/Treasurer _______________________________________ Jim Budarf, MUD 2 President (SEAL) ______________________________________ James C. Thomas, MUD 2 Secretary/Treasurer ____________________________________ Mary Moore, MUD Secretary 26 Comments regarding McLain Report – Connie White – 11/22/08 I have been quoted in more than one newspaper as saying I was “disappointed” with Mr. McClain’s study. This is quite true, but not for the reasons many assume. When we hired Mr. McClain, he assured us that he would do an objective study of all entities and provide an objective analysis. We trusted in that and signed a contract to that effect. However, while topics were openly discussed in meetings during the study, his final product was, in my opinion, not at all objective. It was extremely biased, failed to address issues we all had discussed, and in some cases, blatantly misleading. There were multiple other options which were brought up at various times and might have also been proposed here, but he chose to listen to one set of individuals and term all others as being ‘buried in history’. This process could have been so much more productive if he had actually remained objective. Rather than providing the real figures that we hoped would help us look toward a more positive future, he provided distortions that serve to further exacerbate the animosity. Since I understand that is a rather strong statement, I feel it important to provide the basis and facts to support it. I will do that by going through specifics of his document. Page 2 MUD 1 is the oldest part of the Town Entities and will deteriorate and need major rehab and replacement earlier than MUD 2 and, of course, the new PID area. We discussed with Mr. McClain the number of things that have been done in both MUDs to continuously maintain lines, to replace older lines and to perform preventive maintenance. We have long-term contracts, for example, for the water storage tanks to ensure they are maintained properly and to stabilize our costs. One of the tanks is actually only a few years old. The sewer plant was just recently expanded and refurbished. None of this was mentioned as he here and in other paragraphs stresses the age of the infrastructure. MUD 2 your housing values are slightly higher than in MUD 1 and, as such, MUD 1 is being subsidized by MUD 2 to a certain extent since MUD 1 is or will be needing more attention to water, sewer, roadway and drainage infrastructure. This is another area which shows he is not really doing a careful, objective analysis. Later in the document, he says MUD 1 is subsidizing MUD 2! The major point here, however, is that he continues to lump issues that have nothing to do with the MUDs – ie. Roadway and drainage infrastructure belong to the city and are unrelated to financial issues between the MUDs. PID: Look at the closing documents. It will explain why you are paying an enormous amount for your infrastructure when you buy your house – thousands of dollars for infrastructure, plus another $2,300. 27 This whole section on the PID is the most biased and misleading of anything in the document. Yes, the PIDs will pay thousands for infrastructure (roads, medians, water and sewer lines (normally paid by a developer) and then have to pay taxes to the city. However, since they are not in a MUD district, the builder will pay a one-time fee of $2300 in lieu of ongoing MUD taxes. They will pay no future MUD taxes for water and sewer service. They will pay the same water rates – rather than the higher rates originally proposed by the city, and they will pay an assessment equivalent to the tax the other entities pay for the fire department. While Mr. McClain has painted a very different picture, the MUDs have actually struggled to keep things as fair as possible for the PID residents. The original plan for TC called for all new property to be in a MUD. Since the city chose to do a PID instead, they could have actually been charged double water and sewer rates as would any other entity outside of a MUD district. You will note that there are complex budget transfers that take place for the sole purpose of pumping up the Fire O&M rate so that you will pay as much as possible Again, significant distortion. MUDs 1 and 2 are committing to funds to pay for a fire station, MUD 1 through bonds and MUD 2 through other financing. Since the new fire station will be for the entire community, it is appropriate that everyone share in the cost. The method set up to do this was developed because of issues with PID funding and in order to satisfy the needs of the town. It was also developed in a joint session in which Mr. McClain participated and was asked for his opinion and he agreed with the method! Now he accuses us of doing something underhanded! Page 5 “MUD 1……Commercial properties tend to subsidize residential properties” Mr. McClain keeps bringing this forth as a negative, however he also discussed with us that part of the financial problem with the city is that there is so little commercial. Why would we want to jettison that which is helpful to us, especially when it is also positive to the customer (Solana)? Master MUD - do ok to the extent that revenues will grow due to the PID and the MUD1 commercial while incremental utility costs will be minimal until capacity expansion or replacement events occur. Again, he has chosen to disregard all input that pointed out that our water and sewer infrastructure had been designed and developed to take us to buildout, and has been maintained to minimize ongoing costs. Also, revenues will grow based on any demand growth, whether it be in MUD 1, MUD2 or in the PID, and we are well positioned to meet that demand. 28 Intermediate and Long Term View In this entire section, he once more continues to lump all infrastructure into MUDs, disregards any future planning which has been done and does not even attempt to look at anything in the relationship as positive. He also in multiple places says we are taking advantage of Solana, while at the same time says the city should establish a ‘revenue neutral’ agreement with Westlake. That makes no sense. Additionally, he does not consider the limitations of the city in spending water and sewer revenues which do not apply to MUDs. Working together in synergy could be significantly more beneficial to all residents. In closing, I find it interesting that while he talks about how people talk about our complicated structure, I have also been in conferences which talk about our uniquely positive intergovernmental cooperation! We should build on those positives, not the negatives. 29 MINUTES OF REGULAR SESSION TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 December 9, 2008 The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties met in Regular Session on Tuesday, December 9, 2008, at 6:00 p.m., in the Boardroom of the Administration Building, 100 Municipal Drive, Trophy Club, Texas 76262. DIRECTORS PRESENT: Gary Cantrell Vice President Connie White Secretary/Treasurer Jim Hase Asst. Secretary/Treasurer Neil Twomey Director DIRECTORS ABSENT: Dean Henry President STAFF AND GUESTS PRESENT: Robert Scott District Manager Danny Thomas Fire Chief Stephanie Gohlke Interim Finance Director Mary Moore MUD Secretary Bob West Attorney Peggy Sweeney 51 Meadowbrook Bob Radder 1 Lee Court Steven Kohs MUD 2 Director REGULAR SESSION A.1 Call to Order and Announce a Quorum. Vice President Cantrell announced a quorum and called the meeting to order at 6:01 p.m. A.2 Public Comments or Presentations. No public comments. B.1 Discuss and take appropriate action concerning Order 2008-1209, the 2009 Rate Order. Director Cantrell moved to adopt Order 2008-1209, the 2009 Rate Order. Director White seconded the motion. Motion passed unanimously. B.2 Discuss and take appropriate action concerning funding for new Fire Station. Director Hase distributed a document entitled, Proposed Submission of Fire Bonds to TCEQ, and explained same. Hase feels that we need to move on this due to the current condition of the existing fire station. Hase would like to submit for two sites by early next week provided that there is no delay; if there is a delay, he recommends going with the original site. 30 Director Hase moved to authorize the submission the Bond Application to TCEQ early next week for two sites provided we are assured there is no delay in the 90-day expedited process and if there is a delay then we agree to go with the original-current site. Director Cantrell seconded the motion. Floor opened for discussion. Director White stated she would like to speak with TCEQ to clarify some issues to ensure that we are not penalized for submitting for two sites. If the Town goes ahead and purchases land and leases the Fire Station to the MUDs or trades land for land, the MUDs would still need a bond, or if Town builds everything, which would be after an election, the MUDs will not need a bond. White added that we will need to determine the MUDs’ cost for the second site for TCEQ. Motion carried unanimously. Director Twomey presented his PowerPoint Presentation entitled New MUD Fire Station – Alternate Funding Proposals, explaining the two different proposals. Director Twomey moved that pending the Master District establish a Master District Fire House Construction Fund Account, MUD 1 will transfer the targeted funds from this finance plan to the newly created Master District Fire House Construction Fund account. Director White seconded the motion. Floor opened for discussion. Motion carried unanimously. Director Twomey moved that MUD 1 Board adopt Proposal 2 of the PowerPoint Presentation as the Fire Station Finance Plan. Director White seconded the motion. Motion carried unanimously. B.3 Discussion concerning potential consolidation of MUDs 1 and 2. Director Twomey asked for the Board’s suggestions regarding different scenarios he should run on the model he has developed for the MUD consolidation and have those scenarios/suggestions available for Thursday’s Master District meeting. Director Twomey advised that his current scenarios do not include numbers for the new proposed hotels, or the development scheduled for Solana. Twomey talked with NWISD, and their projections are staying flat for next year. Director Cantrell advised that there is quite a bit of commercial potential still remaining over at Solana. Director White asked if we should ask Maguire Partners for their projections for the next few years. Director Twomey asked Counsel to talk with Bond Attorneys to ensure that there is no glitch in the bond language that causes a problem with the bond holders regarding consolidation of the two MUD debts and keeping the debt separate and to get that understanding in writing. Attorney West advised of his recent conversations with Bond Counsel Pete Tart about the consolidation, stating Tart will be drafting the bond language. Director Cantrell directed District Manager Scott and MUD Secretary Moore to attend any MUD consolidation meetings. 31 Director Hase advised that our objective by January 31st is to have all the financial data associated with regards to MUD consolidation as well as Town taking over MUD 2. Basically it’s a question of defeasance, the basic rule of defeasance is if you cannot duplicate in the open market a revenue bond that’s equal to or less than your ad valorem bonds then defeasance costs you money, and if you can do it lower, then it saves you money. Right now the market is higher. Merging of the MUDs will save money. Director Twomey stated that each MUD will have to look at the political practicality of getting something passed, should we merge the debt for the life of the existing bonds, Discussion held; no action taken. B.4. Discussion regarding Interlocal Agreement (ILA) for Fire Protection Services. Director Hase advised that a meeting was held on Monday, and this ILA was preliminarily approved. Hase would like to attach a memorandum to the ILA explaining that once the PID is built out, that the PID will be paying a large portion of the fire tax payment. Director White stated that there needs to be language in the ILA that the Town/PID is responsible for paying their portion of the budget, and budget includes both the operating and the building expense, adding that it does not have to say “rent.” Discussion held; no action taken. C.1 Receive District Manager's Report a. Trinity Well Update District Manager Scott advised the Board there will be a PowerPoint Presentation available at the Master District meeting on Thursday, and there was a maintenance malfunction at the wastewater treatment plant with estimated repair costs of $11,000. C.2 Receive Finance Director's Report a. Update - Agriculture Rollback Interim Finance Director Gohlke updated the Board. D.1 Review and Approve Minutes a. November 11, 2008 – Regular Session Director White moved to approve the minutes for November 11, 2008. Director Twomey seconded the motion. Motion carried unanimously. D.2 Review and Approve Disbursements and Variance Report a. October 2008 Director Twomey moved to approve the disbursements and variance report for October 2008. Director Cantrell seconded the motion. Floor opened for discussion. Motion carried unanimously. D.3 Review Monthly Tax Collection Report a. October 2008 Board reviewed the October Tax Collection Report; no action taken. D.4 Set Next Meeting Date Next regularly scheduled meeting date: Tuesday, January 13, 2009, 6:00 p.m. or Thursday, January 8th at 5:00 p.m. – before start of Master District meeting at 6 pm 32 The Board agreed to meet on Tuesday, January 13, 2009 at 6:00 p.m. D.5 Items for Future Agenda 1. Further review of McLain's study relating to organizational costs for MUD 1. (Twomey) 2. 2008 Certified Appraisal Analysis (Finance) 3. Establish MUD 1 reserves policy. (February – Committee Members Twomey and Hase to provide report/update.) Director Twomey suggested Director Hase and Attorney West research ramifications should Town take over MUD 2. Director Cantrell requested to add an update on the communications process; Cantrell - Westlake and White - Town Council. F.1 Adjourn. Meeting adjourned at 7:38 p.m. _________________________________ Dean Henry, President (SEAL) ____________________________________ Constance S. White, Secretary/Treasurer ______________________________________ Mary Moore, MUD Secretary 33 MINUTES OF SPECIAL SESSION TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 December 16, 2008 The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties met in Special Session on Tuesday, December 16, 2008, at 4:00 p.m., in the Boardroom of the Administration Building, 100 Municipal Drive, Trophy Club, Texas 76262. DIRECTORS PRESENT: Dean Henry President Connie White Secretary/Treasurer Jim Hase Asst. Secretary/Treasurer Neil Twomey Director DIRECTORS ABSENT: Gary Cantrell Vice President STAFF AND GUESTS PRESENT: Robert Scott District Manager Shannon DePrater Deputy Town Secretary / RMO *SPECIAL SESSION A.1 Call to Order and Announce a Quorum. President Henry announced a quorum and called the meeting to order at 4:01 p.m. A.2 Public Comments or Presentations. No public comments. B.1 Discuss and take appropriate action concerning 2008 Interlocal Agreement for Fire Protection Services between Trophy Club Municipal Utility District No. 1 and Trophy Club Municipal Utility District No. 2 and Town of Trophy Club. Director Hase stated that under B. Funding, 3 “construction costs” needed to be changed to “rent expense.” Director Henry moved to approve the 2008 Interlocal Agreement for Fire Protection Services between Town of Trophy Club Utility District No. 1, Trophy Club Municipal Utility District No. 2 and the Town of Trophy Club. Director Hase seconded the motion. Motion passed unanimously. B.2 Discuss and take appropriate action regarding Resolution 2008-1216, a Resolution authorizing application to the Texas Commission On Environmental Quality for approval of project and bonds. Director White moved to approve submitting the bond application with recommended revisions. Director Twomey seconded the motion. Director Twomey asked if the furniture should be removed from the application because it is listed as under contractual obligation. Motion passed unanimously. 34 F.1 Adjourn. Meeting adjourned at 4:25 p.m. _________________________________ Dean Henry, President (SEAL) ____________________________________ Constance S. White, Secretary/Treasurer ______________________________________ Shannon DePrater, Deputy MUD Secretary 35 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 1-7-2009 Subject: Agenda Item No.D.2 Review Monthly Tax Collection Report a. November 2008 EXPLANATION: (mm) Attachments: 1. Nov 08 Tax Collection Report 36 37 38 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 1-7-2009 Subject: Agenda Item No.D.3 Set Next Meeting Date Next regularly scheduled meeting date: Tuesday, February 10, 2009, 6:00 p.m. EXPLANATION: (mm) Attachments: 1. Calendar 39 40 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 1-7-2009 Subject: Agenda Item No.D.4 Items for Future Agendas 1. Further review of McLain's study relating to organizational costs for MUD 1. (Twomey) 2. Establish MUD 1 reserves policy. (February - Committee Members Twomey and Hase to provide report/update.) 3. Research ramifications should Town take over MUD 2. (12/08) EXPLANATION: 1. Further review of McLain's study relating to organizational costs for MUD 1. (Twomey) 2. Establish MUD 1 reserves policy. (February – Committee Members Twomey and Hase to provide report/update.) RECOMMENDATION: ACTION BY MUD1: (mm) 41 MUNICIPAL UTILITY DISTRICT #1 From: The Office of the Municipal Utility District#1 Date: 1-7-2009 Subject: Agenda Item No.F.1 Adjourn. (mm)