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HomeMy WebLinkAboutJune 3,2009 Regular Session PacketTrophy Club Municipal Utility District No. 1 Trophy Club Entities Meeting Agenda 100 Municipal Drive Trophy Club, TX 76262 Svore Municipal Building Boardroom6:00 PMWednesday, June 3, 2009 REGULAR SESSION Call to order and announce a quorum. Citizen Presentation Citizens are allowed three (3) minutes to address the Board regarding an item over which the Board has policy or oversight authority as provided by Texas law, the ethics order, or other policy order. 1. 09-93-m1 Discuss and take appropriate action regarding request by Mr. Engelbrecht of 5 Avalon Drive, who seeks relief for repairs to his domestic sewer line where it intersects with the MUD's sewer line. Request Mr Engelbrecht.pdfAttachments: 2. 09-79-M1 Review and discuss the 2009-2010 FY budget for TCMUD No. 1 (Consolidated). (Twomey) 3. 09-57-MD Discuss and take appropriate action regarding a Resolution to amend the Trophy Club Master District budget for fiscal year October 1, 2008 through September 30, 2009. (DuBose) MD Resolution 2009-0603-AmndBdgtnAmndmnt.pdfAttachments: 4. 09-80-M1 Review and Approve Disbursements and Variance Report a. March and April 2009 - Master District b. April 2009 - MUD 1 & MUD 2 MDMarch 09 Financials - Variance Report.pdf MD April 09 Financials - Variance Report.pdf M1- Financial Report-Variances-April2009 .pdf M2-Financials Variance Report April 2009.pdf Attachments: 5. 09-78-M1 Receive Finance Director's Update a. Monthly Update TCMUD 1 Page 1 of 200 Meeting Date: JUNE 3, 2009 June 3, 2009Trophy Club Municipal Utility District No. 1 Meeting Agenda 6. 09-48-MD Discuss and take appropriate action concerning establishing Temporary Offsite Fire Station Facilities (employees and equipment) at Trophy Club Country Club during construction of the new fire station. 7. 09-46-MD Receive Update from Fire Chief Thomas a. To provide Board with a monthly update and address the Board's questions. April 09 Fire Report.pdf May Fire Report.pdf Attachments: 8. 09-53-MD Receive District Manager's Report a. Water pumped vs. billed b. Monthly Revenue for Wastewater Treatment Plant c. Update on Fort Worth Meter Vault d. Update on Wastewater Treatment Plant generator purchase e. Update on Fort Worth Water meeting f. Update on Water Plant Booster Pump (formerly VFD) g. Update on Trinity Well Water Billed.pdf PlantBoosterPump-ScopeSvcs.pdf Attachments: 9. 09-43-MD Review and Discuss Previous Month's Action Items a. Update/report from Directors Twomey and Hase outlining a review of MUD's Debt versus Expenses 10. 09-92-M1 Discuss and take appropriate action concerning amendment of the Consolidation Agreement between MUD 1 and MUD 2. (Budarf) MUD Consolidation Agreement.pdf WATER CODE.pdf Attachments: 11. 09-84-M1 Discussion regarding election of officers. (Budarf) Water Code-Consolidation.pdfAttachments: 12. 09-89-M1 Discuss and take appropriate action to accept Director Connie White's resignation and take action to appoint a director to fill the vacancy left by Director White, as mandated by the Texas Water Code Section 49.105. (Henry) White Resignation.pdfAttachments: 13. 09-47-MD Discuss and take appropriate action to accept/reject engineer's recommended bid for Disc Filter Installation at Trophy Club Wastewater Treatment Plant. (Scott) EngineersBidRecommend-WWTP Filters0409.pdfAttachments: TCMUD 1 Page 2 of 200 Meeting Date: JUNE 3, 2009 June 3, 2009Trophy Club Municipal Utility District No. 1 Meeting Agenda 14. 09-90-M1 Discuss and take appropriate action regarding status of PID access fees due from the Town of Trophy Club. (Twomey) 15. 09-81-M1 Discuss and take appropriate action to create or amend the Ethics Policy for TCMUD No. 1. (Budarf) TCMUD 1 Code of Ethics and Conduct.pdf M1-Order-2006-0711-Ethics.pdf Attachments: 16. 09-87-M1 Discuss and take the appropriate action to create an Executive Committee. (Twomey) 17. 09-86-M1 Discuss and take appropriate action to adopt existing TCMUD No. 1 Order 2009-0204, the 2009-1 TCMUD No. 1 Rate Order. (Twomey) M1-M2 Rate Order Inspection Fees.pdf TCMD 1-Order-2009-0204-2009-1 RateOrder060309.pdf Attachments: 18. 09-63-M1 Discuss and take appropriate action regarding Order 2009-0603, establishing Mary Moore as the Records Management Officer for TCMUD No. 1. (Staff) TCMUD 1-Order-2009-0603-RMO.pdfAttachments: 19. 09-64-M1 Discuss and take appropriate action regarding acceptance of TCMUD No. 1 Records Management Plan and new Records Retention Schedule for Utility Records. 2009 RECORDS MANAGEMENT PLAN.pdf M1-NewRetentionSched-UtilityRecords051209.pdf Attachments: 20. 09-83-M1 Discuss and take appropriate action regarding Amendment to the Information Form for TCMUD No. 1 (Consolidated). (Staff) 21. 09-70-M1 Discuss and take action to establish a regular meeting day and time for TCMUD No. 1 (Consolidated) a. First Wednesday at 6 or 7 p.m. - July 1, 2009 b. Second Tuesday at 6 or 7 p.m. - July 7, 2009 c. Second Thursday at 6 or 7 p.m. - July 9th, 2009 22. 09-85-m1 Review and Approve Minutes a. May 12, 2009 - Regular Joint Session Minutes - MUD 1 & MUD 2 b. April 14 2009 - Last Regular Session Minutes for Trophy Club Master District carried over from canceled May MD Meeting. Joint M1-M2 Mins 051209.pdf MD Minutes 041409.pdf Attachments: TCMUD 1 Page 3 of 200 Meeting Date: JUNE 3, 2009 June 3, 2009Trophy Club Municipal Utility District No. 1 Meeting Agenda 23. 09-69-M1 Review Monthly Tax Collection Report a. April 2009 April Tax Reports.pdfAttachments: 24. 09-71-M1 Items for Future Agendas a. Discuss and take appropriate action regarding clarification of assets for 2008-2009 fiscal year audit. b. Amendment of New Intergovernmental Contract for Employee Services. c. Update on MUD 1's water contract with Fort Worth d. Funding of Future Capital Projects; i.e., 2 MG Storage Tank e. Rate Order modification and possibility of Water Study (Twomey) f. Disaster Planning CONVENE INTO CLOSED SESSION *CLOSED SESSION Pursuant to Section 551.071 (a) & (b) of the Texas Government Code regarding consultations with attorney, to conduct a private consultation with the district's attorney on a matter in which the duty of the attorney to the governmental body under the Texas disciplinary rules of professional conduct of the State Bar of Texas clearly conflicts with the Open Meetings Act regarding the following: A.Receive legal advice regarding status of the pending litigation with the Town of Trophy Club. RECONVENE INTO REGULAR SESSION 25. 09-43-M1 Discuss and take appropriate action relative to discussions held in Closed Session. Adjourn Notice is hereby given that a quorum of the Town Council may be in attendance at this meeting. * THE BOARD RESERVES THE RIGHT TO ADJOURN INTO A CLOSED SESSION AT ANY TIME DURING THE MEETING FOR THE PURPOSE OF SEEKING THE ADVICE OF ITS ATTORNEY ABOUT ANY ITEM ON THE AGENDA OR THAT ARISES AT THE MEETING, PURSUANT TO SECTION 551.071 OF THE TEXAS GOVERNMENT CODE. TCMUD 1 Page 4 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-93-m1 File ID: Type: Status: 09-93-m1 M1 Agenda Item Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 05/29/2009File Created: Final Action: *File Name: Title: Discuss and take appropriate action regarding request by Mr. Engelbrecht of 5 Avalon Drive, who seeks relief for repairs to his domestic sewer line where it intersects with the MUD's sewer line. Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: Request Mr Engelbrecht.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-93-m1 Discuss and take appropriate action regarding request by Mr. Engelbrecht of 5 Avalon Drive, who seeks relief for repairs to his domestic sewer line where it intersects with the MUD's sewer line. [Enter body here.] TCMUD 1 Page 5 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 6 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-79-M1 File ID: Type: Status: 09-79-M1 M1 Agenda Item Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 05/22/2009File Created: Final Action: *File Name: Title: Review and discuss the 2009-2010 FY budget for TCMUD No. 1 (Consolidated). (Twomey) Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: Attachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-79-M1 Review and discuss the 2009-2010 FY budget for TCMUD No. 1 (Consolidated). (Twomey) [Enter body here.] TCMUD 1 Page 7 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-57-MD File ID: Type: Status: 09-57-MD MD Resolution Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 05/05/2009File Created: Final Action: *File Name: Title: Discuss and take appropriate action regarding a Resolution to amend the Trophy Club Master District budget for fiscal year October 1, 2008 through September 30, 2009. (DuBose) Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: MD Resolution 2009-0603-AmndBdgtnAmndmnt.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 05/14/2009Trophy Club Master District 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-57-MD Discuss and take appropriate action regarding a Resolution to amend the Trophy Club Master District budget for fiscal year October 1, 2008 through September 30, 2009. (DuBose) As discussed at the April Master District meeting, Finance Director DuBose is bringing forth budget amendments to the Master District budget. TCMUD 1 Page 8 of 200 Meeting Date: JUNE 3, 2009 TROPHY CLUB MASTER DISTRICT RESOLUTION NO. 2009-0603 A RESOLUTION TO APPROVE FY2008-2009 BUDGET AMENDMENT FOR TROPHY CLUB MASTER DISTRICT A RESOLUTION OF TROPHY CLUB MASTER DISTRICT (TCMD), OF DENTON AND TARRANT COUNTIES, TEXAS; AMENDING THE FISCAL YEAR OCTOBER 1, 2008 THROUGH SEPTEMBER 30, 2009 BUDGET; PROVIDING FOR AN AMENDMENT; PROVIDING A SEVERABILITY CLAUSE, AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the TCMD annual budget for the fiscal year beginning October 1, 2008 and ending September 30, 2009, was approved and adopted within the time and in accordance with Section 49.057(b) of the Texas Water Code; and WHEREAS, TCMD hereby finds and determines that it is prudent to amend the line items due to unforeseen situations that have occurred in the District; and WHEREAS, TCMD further finds that these amendments will serve in the public interest and are necessary to support District operations; and WHEREAS, TCMD finds and determines that the change in the Budget for the stated district purpose serves the bests interests of the taxpayers, is necessary, and warrants action at this time; NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MASTER DISTRICT: Section 1. That the Fiscal Year 2008-2009 Budget is hereby amended to fund the line items as stated in Exhibit “A.” This Amendment No. 1 to the Original Budget of the Trophy Club Master District, for the Fiscal Year 2008-2009, shall be attached to and made part of the Original Budget and said budget amendment shall be on file for public inspection in the office of the District. Furthermore, this Amendment No. 1 (Exhibit “A”) is attached, incorporated into and made a permanent portion of this Resolution. This Resolution is hereby approved and shall constitute the first budget amendment that has occurred since the October 1, 2008 effective date of the Trophy Club Master District Budget. TCMUD 1 Page 9 of 200 Meeting Date: JUNE 3, 2009 Section 2. That if any word, sentence, section, subsection, subdivision, paragraph, clause, phrase or provision of this Resolution shall be adjudged invalid or held unconstitutional, the same shall not affect the validity of this resolution as a whole or any part of the provision hereof other than the part so decided to be invalid or unconstitutional. Section 3. That all provisions of the resolutions of the District’s Board of Directors in conflict with the provisions of this resolution shall be and the same are hereby repealed and all other provisions of the resolutions of the TCMD Board not in conflict with the provisions of this Resolution shall remain in full force and effect. Section 4. That this Resolution shall become effective immediately upon its passage. PASSED AND APPROVED by the Board of Directors of Trophy Club Master District, this the 3rd day of June, 2009. ___________________________ Carol Ann Borges, Vice Chair Trophy Club Master District (SEAL) ATTEST: _____________________________ James C. Thomas, Secretary Trophy Club Master District TCMUD 1 Page 10 of 200 Meeting Date: JUNE 3, 2009 CERTIFICATE OF RESOLUTION (2009-0603) THE STATE OF TEXAS } COUNTY OF DENTON } COUNTY OF TARRANT} I, the undersigned member of the Board of Directors of the Trophy Club Master District of Denton and Tarrant Counties, Texas (the "District"), hereby certify as follows: 1. That I am the duly qualified and acting Secretary of the Board of Directors of the District, and that, as such, I have custody of the minutes and records of the District. 2. That the Board of Directors of the District convened in Open Session at a Regular Meeting on June 3, 2009, at the regular meeting place thereof, and the roll was called of the duly constituted officers and members of the Board of Directors, to wit: Carol Borges Vice Chair James Thomas Secretary-Treasurer James Budarf Director Gary Cantrell Director Kevin Carr Director Jim Hase Director Dean Henry Director Steven Kohs Director Neil Twomey Director and Directors Borges, Thomas, Budarf, Cantrell, Carr, Hase, Henry, Kohs and Twomey were present, thus constituting a quorum, whereupon, among other business, the following was transacted at such meeting: a written RESOLUTION (2009-0603) APPROVING FY2008-2009 BUDGET AMENDMENT FOR TROPHY CLUB MASTER DISTRICT was duly introduced for the consideration of the Board of Directors of the District. It was then duly moved and seconded that such Resolution be adopted and, after due discussion, such motion, carrying with it the adoption of such Resolution, prevailed and carried by the following vote: AYES: NOES: TCMUD 1 Page 11 of 200 Meeting Date: JUNE 3, 2009 3. That a true, full and correct copy of such Resolution adopted at such meeting is attached to and follows this certificate; that such resolution has been duly recorded in the minutes of the Board of Directors for such meeting; that the persons named in the above and foregoing Paragraph 2 were the duly chosen, qualified and acting officers and members of the Board of Directors as indicated therein, that each was duly and sufficiently notified officially and personally, in advance, of the time, place and purpose of such meeting, and that such Resolution would be introduced and considered for adoption at such meeting, and that each consented, in advance, to the holding of such meeting for such purpose; that the canvassing of the officers and members of the Board of Directors present at and absent from such meeting and of the votes of each on such motion, as set forth in the above and foregoing Paragraph 2, is true and correct; and that sufficient and timely notice of the hour, date, place and subject of such meeting was given and posted as required by Chapter 551, Texas Government Code, as amended. SIGNED AND SEALED the 3rd day of June, 2009. _________________________________ James C. Thomas Secretary, Board of Directors (SEAL) TCMUD 1 Page 12 of 200 Meeting Date: JUNE 3, 2009 TCMD   Resolution 2009 ‐ 0514  EXHIBIT A  Trophy Club Master District  Budget Amendment No. 1      Fiscal Year 2008‐2009 Expenditure Increase Budget Amendment of $ 500,000  for loan to Municipal Utility District (MUD) 2                                                    Original Budget    Amendment      Amended Budget  Loan to MUD 2                        $          ‐0‐                 $   500,000               $     500,000    Total Master Dist                   $   4,627,723           $   500,000               $   5,127,723    TCMUD 1 Page 13 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-80-M1 File ID: Type: Status: 09-80-M1 M1 Agenda Item Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 05/22/2009File Created: Final Action: *File Name: Title: Review and Approve Disbursements and Variance Report a. March and April 2009 - Master District b. April 2009 - MUD 1 & MUD 2 Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: MDMarch 09 Financials - Variance Report.pdf ,MD April 09 Financials - Variance Report.pdf ,M1- Financial Report-Variances-April2009 .pdf ,M2-Financials Variance Report April 2009.pdf Attachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-80-M1 Review and Approve Disbursements and Variance Report a. March and April 2009 - Master District b. April 2009 - MUD 1 & MUD 2 The March 2009 disbursements and variance report for the Master District is carried over from the canceled May Master District meeting. TCMUD 1 Page 14 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 15 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 16 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 17 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 18 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 19 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 20 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 21 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 22 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 23 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 24 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 25 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 26 of 200 Meeting Date: JUNE 3, 2009 D Municipal Utility District 1 - O&M April 2009 7/12 Months (58.3% of Fiscal Year) CURRENT FISCAL YEAR, 2008-09 April Year-to- Budget*2009 Date Y-T-D Y-T-D FY 2008-09 Actual Actual Variance % of Budget REVENUES PROPERTY TAXES - MUD 1 77,927$ 324$ 79,333$ 1,406$ 101.8% PROPERTY TAXES - MUD FIRE 607,148 2,601 619,379 12,231 102.0% UTILITY FEES 86,250 3,450 37,950 (48,300) 44.0% INTEREST INCOME 10,000 222 2,889 (7,111) 28.9% RENT INCOME FROM MUD FIRE 154,000 - 154,000 - 100.0% TOTAL REVENUES 935,325 6,597 893,551 (41,774) 95.5% EXPENDITURES SALARIES & BENEFITS 10,084 13 7,844 (2,240) 77.8% LEGAL SERVICES 10,800 2,536 34,793 23,993 322.2% PROFESSIONAL FEES 27,001 - 16,071 (10,930) 59.5% OPERATIONS & MAINTENANCE 10,663 58 5,789 (4,874) 54.3% ELECTION EXPENSE - - 2,803 2,803 0.0% TRANSFER TO MUD 1 INTEREST &SINKING FUN 90,169 - 90,169 - 100.0% TRANSFER TO FIRE DEPARTMENT 607,148 - 430,970 (176,178) 71.0% LOAN TO MUD 2 - - 240,250 240,250 0.0% MUD 2 WATER PLANT RENOVATION 29,379 - 29,379 - 100.0% TOTAL EXPENDITURES 785,244 2,607 858,068 72,824 109.3% EXCESS/(DEFICIT)150,081$ 3,990$ 35,483$ * A budget amendment was approved at the May 12, 2009 Board Meeting. TCMUD 1 Page 27 of 200 Meeting Date: JUNE 3, 2009 Municipal Utility District 1 - O&M April 2009 7/12 Months (58.3% of Fiscal Year) R EVENUES Property Taxes – Property taxes are billed and due in October. Most payments are received in December and January before they become delinquent on February 1st. During the fiscal year, supplemental assessments are billed and paid allowing collections to exceed budget which was based on the July, 2008 certified appraisal roll. Utility Fees – PID Utility fees of $2,300 per lot are assessed and paid as lots are sold. These fees are allocated 25% to MUD 1 and 75% to MUD 2, or $575 and $1,725 respectively. The 2008-2009 fiscal year revenue through April, 2009 reflects 66 lots. Interest Income – The budget for investment interest is based on prior year trends. Current low interest rates are reflected in the variance from budget. In addition, the estimated balance available for investment did not reflect the unbudgeted additional transfer to the Fire Department, nor the $240,250 loan to MUD 2. Rent Income from MUD Fire – The MUD Fire Department pays $308,000 for annual rent. Fifty percent of the payment is made to MUD 1 and fifty percent to MUD 2, or $154,000 each. The annual payment for fiscal year 2008-2009 was made in January, 2009. EXPENDITURES Salaries and Benefits – The budget includes a base allocation of $100 per meeting for each MUD 1 director, and was estimated based on a normal annual meeting schedule. For the 2008-2009 fiscal year, the directors have met more than anticipated during the budget process. Legal Services – Fiscal year to date expenditures include the cost of outside legal services associated with the May consolidation election. A budget amendment of $85,000 was approved at the May 12, 2009 board meeting to increase the 2008-2009 budget to $95,800. Election Expense – The costs of the May, 2009 election were not originally budgeted. A budget amendment of $2,805 was approved at the May 12, 2009 board meeting. Transfer to MUD 1 Interest & Sinking Fund – The budgeted transfer to the Interest and Sinking Fund was made in March, 2009. Transfer to MUD Fire Department – The budget includes the transfer to the Fire Department of property taxes received, as necessary, to cover departmental operation and maintenance expenses. Loan to MUD 2 – The loan to MUD 2 of $240,250 was not originally budgeted. A budget amendment of $240,250 was approved at the May 12, 2009 board meeting. MUD 2 Water Plant Renovation – The budget reflects the transfer to the MUD 2 Interest and Sinking fund to cover the portion of the debt service associated with MUD 1’s allocation of the cost of the water plant renovation. The transfer was made in March, 2009. TCMUD 1 Page 28 of 200 Meeting Date: JUNE 3, 2009 Municipal Utility District 1 - I & S April 2009 7/12 Months (58.3% of Fiscal Year) CURRENT FISCAL YEAR, 2008-09 April Year-to- Budget 2009 Date Y-T-D Y-T-D FY 2008-09 Actual Actual Variance % of Budget REVENUES PROPERTY TAXES - MUD 1 493,634$ 2,233$ 505,016$ 11,382$ 102.3% INTEREST INCOME 12,000 206 1,271 (10,729) 10.6% TRANSFER FROM MUD 1 - O & M 90,169 - 90,169 - 100.0% PRIOR YEAR RESERVES 60,000 - - (60,000) 0.0% TOTAL REVENUES 655,803 2,439 596,456 (59,347) 91.0% EXPENDITURES BOND PRINCIPAL 580,000 - - (580,000) 0.0% BOND INTEREST 74,893 - 37,446 (37,447) 50.0% PAYING AGENT FEES 910 - - (910) 0.0% TOTAL EXPENDITURES 655,803 - 37,446 (618,357) 5.7% EXCESS/(DEFICIT)-$ 2,439$ 559,010$ TCMUD 1 Page 29 of 200 Meeting Date: JUNE 3, 2009 Municipal Utility District 1 – I & S April 2009 7/12 Months (58.3% of Fiscal Year) R EVENUES Property Taxes – Property taxes are billed and due in October. Most payments are received in December and January before they become delinquent on February 1st. During the fiscal year, supplemental assessments are billed and paid allowing collections to exceed budget which was based on the July, 2008 certified appraisal roll. Interest Income – The budget for investment interest is based on prior year trends. Current low interest rates are reflected in the variance from budget. Transfer from MUD 1 O & M – The budget includes a transfer of $90,169 from the MUD 1 Operating Fund to cover bond debt service payments. Prior Year Reserves – The budget includes the anticipated drawdown of $60,000 of the fund balance from prior year reserves. The amount represents the excess of budgeted expenditures over budgeted revenues for the 2008-2009 fiscal year. EXPENDITURES Bond Principal – The budget represents the annual bond principal debt service payment due September 1, 2009. Bond Interest – The budget represents the two bond interest payments due March 1, 2009 and September 1, 2009. Paying Agent Fees – The budget represents the fees associated with the annual debt services payments charged by the bond paying agent. TCMUD 1 Page 30 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 31 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 32 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 33 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 34 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-78-M1 File ID: Type: Status: 09-78-M1 M1 Agenda Item Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 05/08/2009File Created: Final Action: *File Name: Title: Receive Finance Director's Update a. Monthly Update Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: Attachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-78-M1 Receive Finance Director's Update a. Monthly Update [Enter body here.] TCMUD 1 Page 35 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-48-MD File ID: Type: Status: 09-48-MD MD Agenda Item Draft 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 04/29/2009File Created: Final Action: *File Name: Title: Discuss and take appropriate action concerning establishing Temporary Offsite Fire Station Facilities (employees and equipment) at Trophy Club Country Club during construction of the new fire station. Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: Attachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 05/14/2009Trophy Club Master District 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-48-MD Discuss and take appropriate action concerning establishing Temporary Offsite Fire Station Facilities (employees and equipment) at Trophy Club Country Club during construction of the new fire station. Tabled from April 14th Master District meeting. TCMUD 1 Page 36 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-46-MD File ID: Type: Status: 09-46-MD MD Agenda Item Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 04/29/2009File Created: Final Action: *File Name: Title: Receive Update from Fire Chief Thomas a. To provide Board with a monthly update and address the Board's questions. Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: April 09 Fire Report.pdf ,May Fire Report.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 05/14/2009Trophy Club Master District 1 05/14/2009Trophy Club Master District 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-46-MD Receive Update from Fire Chief Thomas a. To provide Board with a monthly update and address the Board's questions. [Enter body here.] TCMUD 1 Page 37 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 38 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 39 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 40 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 41 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 42 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 43 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 44 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 45 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 46 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 47 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 48 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 49 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 50 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 51 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 52 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 53 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 54 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 55 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 56 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 57 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-53-MD File ID: Type: Status: 09-53-MD MD Agenda Item Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 04/29/2009File Created: Final Action: *File Name: Title: Receive District Manager's Report a. Water pumped vs. billed b. Monthly Revenue for Wastewater Treatment Plant c. Update on Fort Worth Meter Vault d. Update on Wastewater Treatment Plant generator purchase e. Update on Fort Worth Water meeting f. Update on Water Plant Booster Pump (formerly VFD) g. Update on Trinity Well Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: Water Billed.pdf ,PlantBoosterPump-ScopeSvcs.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 05/14/2009Trophy Club Master District 1 05/14/2009Trophy Club Master District 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-53-MD Receive District Manager's Report a. Water pumped vs. billed b. Monthly Revenue for Wastewater Treatment Plant c. Update on Fort Worth Meter Vault d. Update on Wastewater Treatment Plant generator purchase e. Update on Fort Worth Water meeting TCMUD 1 Page 58 of 200 Meeting Date: JUNE 3, 2009 Continued (09-53-MD) f. Update on Water Plant Booster Pump (formerly VFD) g. Update on Trinity Well TCMUD 1 Page 59 of 200 Meeting Date: JUNE 3, 2009 October November December January February March April May June July August Septembe Total for year 2005 59,999 34,380 24,293 27,140 24,052 25,169 47,252 59,373 69,095 118,023 90,661 85,679 665,116 2006 74,441 56,296 41,272 54,171 37,626 35,714 55,429 60,800 88,899 113,904 122,820 81,806 823,178 2007 73,757 44,297 35,905 31,695 25,671 40,516 43,121 31,204 42,191 43,717 72,462 76,138 560,674 2008 63,250 47,082 33,371 37,194 31,472 30,766 40,313 48,829 78,091 91,664 115,042 75,494 692,568 2009 63,730 48,170 35,215 35,759 32,240 39,331 46,151 Totals 335,177 230,225 170,056 185,959 151,061 171,496 232,266 200,206 278,276 367,308 400,985 319,117 3,042,132 October November December January February March April May June July August 79,297 48,609 36,966 32,915 26,974 25,771 31,755 46,747 70,315 69,134 92,539 84,849 51,836 38,869 32,850 24,742 25,111 32,240 47,364 75,755 68,715 82,007 90,400 55,063 40,772 32,785 22,510 24,451 32,726 47,980 81,195 68,296 71,476 95,952 58,290 42,675 32,721 20,278 23,791 33,211 48,597 86,636 67,878 350,497 213,799 159,281 131,271 94,504 99,122 129,932 190,688 313,900 274,022 246,022 Oct.Nov.Dec.Jan Feb.March April May June July August Sept.Total for year 2005 49,100 30,004 28,090 28,164 23,810 34,250 52,902 64,760 71,776 115,450 92,540 91,800 682,646 2006 74,585 55,405 42,852 52,100 33,247 39,250 64,455 73,048 93,187 118,353 127,450 76,301 850,233 2007 72,460 49,249 34,203 28,257 31,492 43,900 41,770 37,340 41,215 43,136 75,480 72,087 570,589 2008 64,370 50,090 35,320 36,610 34,630 34,750 42,900 63,116 78,399 114,256 98,670 72,551 725,662 2009 65,110 48,570 36,411 36,587 36,385 44,120 48,881 Totals 325,625 233,318 176,876 181,718 159,564 196,270 250,908 238,264 284,577 391,195 394,140 312,739 3,145,194 Water Billed 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 OctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJune July AugustSeptemberMonthsGallons 2005 2006 2007 2008 2009 Water Pumped 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 123456789101112 MonthsGallons 2005 2006 2007 2008 2009 TCMUD 1 Page 60 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 61 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 62 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-43-MD File ID: Type: Status: 09-43-MD MD Agenda Item Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 04/29/2009File Created: Final Action: *File Name: Title: Review and Discuss Previous Month's Action Items a. Update/report from Directors Twomey and Hase outlining a review of MUD's Debt versus Expenses Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: Attachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 05/14/2009Trophy Club Master District 1 05/14/2009Trophy Club Master District 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-43-MD Review and Discuss Previous Month's Action Items a. Update/report from Directors Twomey and Hase outlining a review of MUD's Debt versus Expenses Tabled from April and May meetings. TCMUD 1 Page 63 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-92-M1 File ID: Type: Status: 09-92-M1 M1 Agenda Item Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 05/27/2009File Created: Final Action: *File Name: Title: Discuss and take appropriate action concerning amendment of the Consolidation Agreement between MUD 1 and MUD 2. (Budarf) Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: MUD Consolidation Agreement.pdf ,WATER CODE.pdf Attachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-92-M1 Discuss and take appropriate action concerning amendment of the Consolidation Agreement between MUD 1 and MUD 2. (Budarf) [Enter body here.] TCMUD 1 Page 64 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 65 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 66 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 67 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 68 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 69 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 70 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 71 of 200 Meeting Date: JUNE 3, 2009 WATER CODE  CHAPTER 54.   MUNICIPAL UTILITY DISTRICTS  SUBCHAPTER A. GENERAL PROVISIONS  SUBCHAPTER H. ADDING AND EXCLUDING TERRITORY;   CONSOLIDATING AND DISSOLVING DISTRICTS  § Sec. 54.728 CONSOLIDATION OF DISTRICTS. Two or more districts governed by the provisions of this chapter may consolidate into one district as provided by Sections 54.729-54.733 of this code. Added by Acts 1971, 62nd Leg., p. 810, ch. 84, Sec. 1. § Sec. 54.729. ELECTIONS TO APPROVE CONSOLIDATION. (a) After the board of each district has agreed on the terms and conditions of consolidation, which may include the assumption by each district of the bonds, notes, or other obligations and voted but unissued bonds of the other consolidating districts payable in whole or in part from taxation, the levy of taxes to pay for the bonds, and adoption of a name for the consolidated district, the board shall order an election in each district to determine whether the districts should be consolidated. (b) The directors of each district shall order the election to be held on the same day in each district and shall give notice of the election for the time and in the manner provided by law for bond elections. (c) The districts may be consolidated only if the electors in each district vote in favor of the consolidation. Added by Acts 1971, 62nd Leg., p. 810, ch. 84, Sec. 1. Amended by Acts 1995, 74th Leg., ch. 715, Sec. 19, eff. Sept. 1, 1995. § Sec. 54.730. GOVERNING CONSOLIDATED DISTRICTS. (a) After two or more districts are consolidated, they become one district and are governed as one district, except for the payment of debts created before consolidation if the conditions of consolidation do not provide for the assumption by each district of the bonds, notes, or other obligations and voted but unissued bonds of the other consolidating districts. (b) During a period of 90 days after the date of the election to approve consolidation, the officers of each district shall continue to act jointly as officers of the original districts to settle the affairs of their respective districts. TCMUD 1 Page 72 of 200 Meeting Date: JUNE 3, 2009 (c) The consolidation agreement may provide that the officers of the original districts shall continue to act jointly as officers of the consolidated district until the next general election or name persons to serve as officers of the consolidated district until the next general election if all officers of the original districts agree to resign. At the next general election, directors will be elected for the consolidated district in the same manner and for the same term as directors elected at a confirmation election. (d) New officers of the consolidated district must qualify as officers of the district within the period of 90 days after the election and shall assume their offices at the expiration of the 90-day period. (e) The current board shall approve the bond of each new officer. Added by Acts 1971, 62nd Leg., p. 810, ch. 84, Sec. 1. Amended by Acts 1995, 74th Leg., ch. 715, Sec. 20, eff. Sept. 1, 1995. TCMUD 1 Page 73 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-84-M1 File ID: Type: Status: 09-84-M1 M1 Agenda Item Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 05/22/2009File Created: Final Action: *File Name: Title: Discussion regarding election of officers. (Budarf) Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: Water Code-Consolidation.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-84-M1 Discussion regarding election of officers. (Budarf) [Enter body here.] TCMUD 1 Page 74 of 200 Meeting Date: JUNE 3, 2009 WATER CODE  CHAPTER 54.   MUNICIPAL UTILITY DISTRICTS  SUBCHAPTER A. GENERAL PROVISIONS  SUBCHAPTER H. ADDING AND EXCLUDING TERRITORY;   CONSOLIDATING AND DISSOLVING DISTRICTS  § Sec. 54.728 CONSOLIDATION OF DISTRICTS. Two or more districts governed by the provisions of this chapter may consolidate into one district as provided by Sections 54.729-54.733 of this code. Added by Acts 1971, 62nd Leg., p. 810, ch. 84, Sec. 1. § Sec. 54.729. ELECTIONS TO APPROVE CONSOLIDATION. (a) After the board of each district has agreed on the terms and conditions of consolidation, which may include the assumption by each district of the bonds, notes, or other obligations and voted but unissued bonds of the other consolidating districts payable in whole or in part from taxation, the levy of taxes to pay for the bonds, and adoption of a name for the consolidated district, the board shall order an election in each district to determine whether the districts should be consolidated. (b) The directors of each district shall order the election to be held on the same day in each district and shall give notice of the election for the time and in the manner provided by law for bond elections. (c) The districts may be consolidated only if the electors in each district vote in favor of the consolidation. Added by Acts 1971, 62nd Leg., p. 810, ch. 84, Sec. 1. Amended by Acts 1995, 74th Leg., ch. 715, Sec. 19, eff. Sept. 1, 1995. § Sec. 54.730. GOVERNING CONSOLIDATED DISTRICTS. (a) After two or more districts are consolidated, they become one district and are governed as one district, except for the payment of debts created before consolidation if the conditions of consolidation do not provide for the assumption by each district of the bonds, notes, or other obligations and voted but unissued bonds of the other consolidating districts. (b) During a period of 90 days after the date of the election to approve consolidation, the officers of each district shall continue to act jointly as officers of the original districts to settle the affairs of their respective districts. TCMUD 1 Page 75 of 200 Meeting Date: JUNE 3, 2009 (c) The consolidation agreement may provide that the officers of the original districts shall continue to act jointly as officers of the consolidated district until the next general election or name persons to serve as officers of the consolidated district until the next general election if all officers of the original districts agree to resign. At the next general election, directors will be elected for the consolidated district in the same manner and for the same term as directors elected at a confirmation election. (d) New officers of the consolidated district must qualify as officers of the district within the period of 90 days after the election and shall assume their offices at the expiration of the 90-day period. (e) The current board shall approve the bond of each new officer. Added by Acts 1971, 62nd Leg., p. 810, ch. 84, Sec. 1. Amended by Acts 1995, 74th Leg., ch. 715, Sec. 20, eff. Sept. 1, 1995. TCMUD 1 Page 76 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-89-M1 File ID: Type: Status: 09-89-M1 M1 Agenda Item Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 05/26/2009File Created: Final Action: *File Name: Title: Discuss and take appropriate action to accept Director Connie White's resignation and take action to appoint a director to fill the vacancy left by Director White, as mandated by the Texas Water Code Section 49.105. (Henry) Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: White Resignation.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-89-M1 Discuss and take appropriate action to accept Director Connie White's resignation and take action to appoint a director to fill the vacancy left by Director White, as mandated by the Texas Water Code Section 49.105. (Henry) § 49.105. VACANCIES. (a) Except as otherwise provided in this code, a vacancy on the board and in other offices shall be filled for the unexpired term by appointment of the board not later than the 60th day after the date the vacancy occurs. (b) If the board has not filled a vacancy by appointment before the 61st day after the date the vacancy occurs, a petition, signed by more than 10 percent of the registered voters of the district, requesting the board to fill the vacancy by appointment may be presented to the board. (c) If the number of directors is reduced to fewer than a majority or if a vacancy continues beyond the 90th day after the date the vacancy occurs, the vacancy or vacancies shall be filled by appointment by the commission if the district is required by Section 49.181 to obtain commission approval of its bonds or by the county commissioners court if the district was created by the county commissioners court, regardless of whether a petition has been presented TCMUD 1 Page 77 of 200 Meeting Date: JUNE 3, 2009 Continued (09-89-M1) to the board under Subsection (b). An appointed director shall serve for the unexpired term of the director he or she is replacing. Sec.A54.102.AAQUALIFICATIONS FOR DIRECTORS.A To be qualified to serve as a director, a person shall be at least 18 years old, a resident citizen of the State of Texas, and either own land subject to taxation in the district or be a qualified voter within the district. Sec. 54.103.AALIMITATION ON FILLING VACANCIES.A A board may not appoint a person to fill a vacancy on the board if the person: (1)Aresigned from the board: (A)Ain the two years preceding the vacancy date; or (B)Aon or after the vacancy date but before the vacancy is filled; or (2)AAwas defeated in a directors election held by the district in the two years preceding the vacancy date. TCMUD 1 Page 78 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 79 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-47-MD File ID: Type: Status: 09-47-MD MD Bids Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 04/29/2009File Created: Final Action: *File Name: Title: Discuss and take appropriate action to accept/reject engineer's recommended bid for Disc Filter Installation at Trophy Club Wastewater Treatment Plant. (Scott) Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: EngineersBidRecommend-WWTP Filters0409.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 05/14/2009Trophy Club Master District 1 05/14/2009Trophy Club Master District 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-47-MD Discuss and take appropriate action to accept/reject engineer's recommended bid for Disc Filter Installation at Trophy Club Wastewater Treatment Plant. (Scott) See attached letter as well as bid tab report and supporting documentation from Deltatek Engineering, recommending J.S. Haren Company, as the qualified low bidder. TCMUD 1 Page 80 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1Page 81 of 200Meeting Date: JUNE 3, 2009 TCMUD 1Page 82 of 200Meeting Date: JUNE 3, 2009 TCMUD 1Page 83 of 200Meeting Date: JUNE 3, 2009 TCMUD 1Page 84 of 200Meeting Date: JUNE 3, 2009 TCMUD 1Page 85 of 200Meeting Date: JUNE 3, 2009 TCMUD 1Page 86 of 200Meeting Date: JUNE 3, 2009 TCMUD 1Page 87 of 200Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-90-M1 File ID: Type: Status: 09-90-M1 M1 Agenda Item Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 05/26/2009File Created: Final Action: *File Name: Title: Discuss and take appropriate action regarding status of PID access fees due from the Town of Trophy Club. (Twomey) Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: Attachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-90-M1 Discuss and take appropriate action regarding status of PID access fees due from the Town of Trophy Club. (Twomey) [Enter body here.] TCMUD 1 Page 88 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-81-M1 File ID: Type: Status: 09-81-M1 M1 Agenda Item Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 05/22/2009File Created: Final Action: *File Name: Title: Discuss and take appropriate action to create or amend the Ethics Policy for TCMUD No. 1. (Budarf) Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: TCMUD 1 Code of Ethics and Conduct.pdf ,M1-Order-2006-0711-Ethics.pdf Attachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-81-M1 Discuss and take appropriate action to create or amend the Ethics Policy for TCMUD No. 1. (Budarf) Attached is a revised version of the Town's Ethics policy for Board's review. TCMUD 1 Page 89 of 200 Meeting Date: JUNE 3, 2009 Trophy Club MUD No. 1 Code of Ethics and Conduct For MUD Directors Statement of Purpose The citizens and the businesses that Trophy Club MUD No. 1 serves are entitled to have a fair, ethical and accountable District, which earns the public’s full confidence for integrity. The strong desire of the MUD District to fulfill this expectation therefore requires that the MUD Directors: • Comply with both the letter and sprit of the laws and policies affecting the operations of the District; • Be independent, impartial and fair in their judgment and actions; and • Use their respective office or position for the public good, not for personal gain. To this end, the MUD Directors have adopted this Code of Ethics and Conduct in order to assure public confidence in the integrity of its government and its effective and fair operation. Definitions The following words, terms and phrases, when used in this section, shall have the following meanings subscribed to them: Business. A corporation, partnership, sole proprietorship, firm, holding company, joint stock company, receivership, trust or any other for profit or non-profit entity. MUD Board. The legislative and governing body of the District consisting of the five members; MUD President, Vice-President, Secretary/Treasurer, and two Directors. [During the interim period between May 9, 2009 and the date of the election of the five member board at the May 2010 election, the MUD Board will consist of ten members acting jointly per the Texas Water Code. This provision regarding the ten members will expire at the canvassing of the May 2010 election.] Employee. Any person employed by the District, including those individuals on a part-time basis, including independent contractors hired by the District for repetitive performance of services, but not independent contractors engaged for occasional services. TCMUD 1 Page 90 of 200 Meeting Date: JUNE 3, 2009 Nepotism. Showing favoritism toward a relative. The practice of hiring personnel or awarding contracts which favor a relative is prohibited by the District. Exclusions to this prohibition are: a. Employees who have been continuously employed by the District for more than two (2) years prior to the lection or appointment of the Director. b. Individuals who are employees of the District as of the effective date of this policy. 1. Act in the Public Interest Recognizing that stewardship of the public interest must be their primary concern, MUD Directors shall work for the common good of the people the District serves and not for any private or personal interest, and they shall assure fair and equal treatment of all persons, claims and transactions coming before the District. 2. Comply with the Law MUD Directors shall comply with the laws of the nation, the State of Texas, and the Town of Trophy Club in the performance of their public duties. These laws include, but are not limited to: the United States and Texas Constitutions; laws pertaining to conflicts of interest, election campaigns, financial disclosures, employer responsibilities, and open processes of government; and Town ordinances, MUD Orders, resolutions and policies; Water Code; TCEQ – Texas Commission on Environmental Quality. 3. Conduct of MUD Directors The professional and personal conduct of MUD Directors must be above reproach and avoid even the appearance of impropriety. MUD Directors shall refrain from abusive conduct, personal charges or verbal attacks upon the character or motives of other MUD Director(s), employees, citizen advisory group members and the public. 4. Respect for Process MUD Directors shall perform their duties in accordance with the processes and rules of order established by the MUD Board. 5. Conduct of Public Meetings MUD Directors have an obligation to attend meetings and to be prepared for public issues; to listen courteously and attentively to all public discussions before the body; and to focus on the business at hand. They shall refrain from interrupting other speakers, making personal comments not germane to the business of the body, or otherwise interfering with the orderly conduct of meetings. 6. Decisions Based on Merit It is expected and required that MUD Directors review material, participate in discussion and base their decision on the merits and substance of the matter at hand. TCMUD 1 Page 91 of 200 Meeting Date: JUNE 3, 2009 7. Communication Prior to permitting final action on a matter under consideration, MUD Directors shall publicly share substantive information, which they may have received from sources outside the public decision-making process that is relevant to such action by the MUD Board. 8. Conflicts of Interest and Disclosure MUD Directors shall familiarize themselves with and abide by the following conflicts of interest and disclosure statutes and principles: a. Chapter 171 of the Local Government Code which requires an officer, whether elected, appointed, paid, or unpaid, of a district exercising responsibilities beyond those that are advisory in nature, to file an affidavit disclosing a substantial interest in a business entity or property that would be beneficially affected by a decision of the governing body or of any other board or commission upon which the member serves and thereafter to abstain from participation in discussion and voting on the matter. Once the disclosure is made, the MUD Director is to remove himself from the meeting area to ensure his presence does not hinder the discussion of the item or influence the vote. b. Section 176 of the Local Government Code which requires MUD Directors and the District Manager to file a conflicts disclosure statement disclosing any business relationship with a person or business doing business with the District or being considered by the District for a business relationship. c. Section 176.003(a)(2)(B) of the Local Government Code which requires the disclosure of gifts of an aggregate value of more than $250.00 in the twelve (12) month period preceding the date that a Director becomes aware of a transaction described in Section 176, other than gifts of food, lodging, transportation, or entertainment accepted as a guest. d. Sections 553.001-553.003 of the Government Code which requires the filing of an affidavit before the date the District will acquire a property in which public servants has a legal or equitable interest. e. In order to assure their independence and impartiality on behalf of the public good, MUD Directors are prohibited from using their positions to influence government decisions in which they have a personal interest. 9. Corruption MUD Directors shall familiarize themselves with and abide by the Texas Penal Code mandates concerning corruption, including without limitation, Section 36.02 prohibiting receipt of prohibited gifts, Section 39.02 concerning abuse of official capacity and Section 39.06(a) concerning misuse of official information and all other applicable state laws regulating or related to public service. TCMUD 1 Page 92 of 200 Meeting Date: JUNE 3, 2009 10. Political Advocacy MUD Directors shall not utilize the District’s name or logo for purposes of endorsing any political candidate or business. 11. Confidential Information MUD Directors shall respect the confidentiality of information concerning District property, personnel or proceedings of the District. They shall neither disclose confidential information without proper legal authorization, nor use such information to advance their personal interests. 12. Use of Public Resources Directors shall not use public resources generally unavailable to the public, such as District staff time, equipment, supplies or facilities, for private gain or personal purposes. 13. Representation of Private Interests In keeping with their role as stewards of the public interest, Directors shall not appear on behalf of private interests of third parties before the MUD Board or any board, commission, committee, or proceeding of the District. 14. Advocacy Directors shall represent the official policies or positions of the MUD Board to the best of their ability when designated as delegates for this purpose. When presenting their individual opinions and positions, MUD Directors shall explicitly state that they do not represent their body or the MUD District, nor will they allow the inference that they do. 15. Policy Role of Directors MUD Directors shall respect and adhere to the District’s structure as outlined in the Texas Water Code and the District’s policies and procedures. In this structure, the MUD Directors determine the policies of the District with the advice, information and analysis provided by the public, and District staff. Except as provided by District Order, MUD Directors therefore shall not interfere with the administrative functions of the District or the professional duties of the District staff; nor shall they impair the ability of Staff to implement MUD Board policy decisions. 16. Independence of Boards, Commissions, and Committees Because of the value of the independent advice of boards, commissions, committees and advisory groups to the public decision-making process, MUD Directors shall refrain from using their position to influence unduly the deliberations or outcomes of any board, commission, committee, and advisory group proceedings. 17. Positive Work place Environment MUD Directors shall support the maintenance of a positive and constructive work place environment for District employees and for citizens and businesses dealing with the District. MUD Directors shall recognize their special role in dealing with District employees and refrain from creating the perception of inappropriate direction to Staff. TCMUD 1 Page 93 of 200 Meeting Date: JUNE 3, 2009 18. Implementation As an expression of the standards of conduct for MUD Directors expected by the District, this Code of Ethics and Conduct is intended to be self-enforcing. It therefore becomes most effective when MUD Directors are thoroughly familiar with it and embrace its provisions. Ethical standards shall be included in the regular orientations for candidates for the MUD Board, and newly elected and appointed MUD Directors. MUD Directors entering office, shall sign a statement affirming they have read and understood the Trophy Club MUD No. 1 Code of Ethics and Conduct and agree to be bound by its terms. In addition, the Code of Ethics and Conduct shall be reviewed periodically by the MUD Directors, and the MUD Board shall consider recommendations for revision as it becomes necessary. 19. Compliance and Enforcement The Trophy Club MUD No. 1 Code of Ethics and Conduct expresses standards of ethical conduct expected for Trophy Club No. 1 MUD Directors MUD Directors themselves have the primary responsibility to assure that ethical standards are understood and met, and that the public can continue to have full confidence in the integrity of government. The Chairman of the MUD Board has the additional responsibility to intervene when a MUD Director’s’ actions appear to be in violation of the Code of Ethics and Conduct and are brought to their attention. The MUD Board may impose sanctions, such as reprimand, formal censure or loss of appointment, on a MUD Director whose conduct does not comply with the District’s ethical standards. The MUD Board also may act to remove a MUD Director from office in accordance with the procedures and subject to the limitations set forth in Section 20 if this policy. The MUD Board finds and determines that the ethics and standards of conduct contained in this Handbook are necessary and appropriate in order to serve the legitimate goal of orderly governance, integrity and public confidence in government. 20. Procedure for Enforcement Upon good faith and belief that a MUD Director has violated any term or provision of this Code of Ethics and Conduct, a party having such good faith and belief that a violation has occurred and wishing to initiate a formal review of the alleged violation shall file a written complaint with the MUD Secretary. The written complaint shall contain 1) the name of the complaining party (hereinafter “Complainant”); 2) the name of the party against whom the complaint is being filed (hereinafter “Respondent”); 3) the specific sections allegedly violated; 4) Specific dates, approximate time of day, locations and other facts evidencing the alleged violations; and 5) any documentation evidencing that a violation of the Code of Ethics and Conduct occurred. Upon receipt of a written complaint meeting all of the requirements set forth in the preceding paragraph, the MUD Secretary shall place the complaint on the next available regular District meeting agenda for which posting requirements may legally and procedurally be met. Alternatively, if the complaint does not meet all of the requirements set forth in the preceding paragraph, the MUD Secretary shall notify the Complainant in writing of the nature of the deficiency and no further action by the MUD Secretary or MUD Board shall be necessary, until such time the MUD TCMUD 1 Page 94 of 200 Meeting Date: JUNE 3, 2009 Secretary can determine that the complaint meets the requirements of this section. Once placed upon the District agenda, the scope of the MUD Board review shall be limited to a determination of whether the complaint on its face presents a violation of this Code of Ethics and Conduct for which sanctions, such as reprimand, formal censure, or loss of appointment would be appropriate in order to serve the legitimate goal of orderly governance, integrity, and public confidence in government. Upon a majority vote of the MUD Board that the complaint merits further review and investigation, an item shall be placed on the next available regular District meeting agenda for which posting requirements may be legally and procedurally met. Additionally, upon majority vote, the MUD Board may specify any and all individual items of grievance from the Complaint that merit such review and investigation and that will be considered by the MUD Board at a subsequent hearing on the matter. At least seven (7) days prior to the hearing date, the MUD Secretary shall notify the respondent in writing of the date, time and place at which the MUD Board will conduct a hearing on the merits of the alleged complaint, and if MUD Board has by majority vote specified individual items for review and investigation at the hearing, such notice shall advise the Respondent of the scope of the hearing. Alternatively, if upon review of the complaint on its face a majority vote of MUD Board determines that further review and investigation is not warranted, then the Complainant shall be notified in writing of such vote, the written complaint shall be returned to the Complainant, and no further action shall be required by the MUD Secretary or MUD Board. At the subsequent MUD Board hearing, the Complainant and Respondent may present testimonial and or documentary evidence regarding the allegations contained within the Complaint. If the MUD Board determines that substantial evidence has been presented to support the allegation that a violation of the Code of Ethics and Conduct has occurred and that the violation is detrimental to orderly governance, integrity, and public confidence in the District government, then MUD Board may by majority vote impose sanctions, such as reprimand, formal censure, or loss of appointment, as determined appropriate to serve the legitimate goals of this policy. All procedural rules of the MUD Board shall apply to proceedings conducted pursuant to this Section. The complaint procedure specified in this Section shall only be applicable to those MUD Directors who are appointed and/or elected and for the conduct of such official that occurs during the official’s term of office on a MUD board. TCMUD 1 Page 95 of 200 Meeting Date: JUNE 3, 2009 TCMUD No. 1 2009 Code of Ethics & Conduct Page 7 of 7 STATEMENT OF COMMITMENT As a member of the Trophy Club MUD No. 1 Board, I agree to uphold the Code of Ethics and Conduct myself by the following model of behavior. I will: • Recognize the worth of individual MUD Directors and appreciate their individual talents, perspectives and contributions; • Help create an atmosphere of respect and civility where individual MUD Directors, MUD staff and the public are free to express their ideas and work to their full potential; • Conduct my personal and public affairs with honesty, integrity, fairness and respect for others; • Respect the dignity and privacy of individuals and organizations; • Keep the common good as my highest purpose and focus on achieving constructive solutions for public benefit; • Avoid and discourage conduct which is divisive or harmful to the best interests of Trophy Club MUD No. 1; • Treat all people with whom I come in contact in a manner I wish to be treated; • Before I speak or act I will ask myself the following questions: 1. Is it the truth? 2. Is it fair to all concerned? 3. Will it build goodwill and better relationships? 4. Will it be beneficial to all concerned? I affirm that I have read and that I understand, accept and support the Trophy Club MUD No. 1 Code of Ethics and Conduct. _____________________________________________ Print Name _____________________________________________ Position/Title _________________________________ _______________ Signature and Date TCMUD 1 Page 96 of 200 Meeting Date: JUNE 3, 2009 TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1 ORDER NO. 2006-0711 AN ORDER ADOPTING AN AMENDED CODE OF ETHICS, FEES AND EXPENSE POLICY, POLICIES AND PROCEDURES FOR SELECTION AND REVIEW OF CONSULTANTS, POLICIES CONCERNING THE USE OF MANAGEMENT INFORMATION INCLUDING THE FORMATION OF AN AUDIT COMMITTEE, AND CERTAIN OTHER MATTERS WHEREAS, Trophy Club Municipal Utility District No. 1 (the “District”) is a water district operating pursuant to Chapter 54 of the Texas Water Code; and WHEREAS, Tex. Water Code Ann. §49.199 requires that the Board of Directors of the District adopt certain policies and procedures in writing, including a code of ethics, an expense policy, policies and procedures for selection and review of consultants, and policies concerning the use of management information and the formation of an audit committee. NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 THAT: I. The Board of Directors hereby adopts Attachments A through D hereof as its written policies and procedures required by Tex. Water Code Ann. §49.199. II. The President and the Secretary of the Board of Directors are authorized to evidence adoption of this Order on behalf of the Board of Directors and to do all other things proper and necessary to carry out the intent hereof. This Order supersedes all previous Orders adopting any of the following: a Code of Ethics, a Travel Expense Policy, Policies and Procedures for Selection and Review of Consultants, or Policies Concerning the Use of Management Information Including the Formation of an Audit Committee. TCMUD 1 Page 97 of 200 Meeting Date: JUNE 3, 2009 ATTACHMENT A CODE OF ETHICS SECTION 1. Purpose. The purpose of this Code of Ethics is to set forth the standards of conduct and behavior for the members of the Board of Directors of Trophy Club Municipal Utility District No. 1 (the “District”), and its officers, and employees of the District (collectively with the Directors, the “District Officials”). SECTION 2. Conflicts of Interest. The District adopts Chapter 171, Government Code, as its Conflict of Interest Policy, the principal provisions of which are as follows: Except where a majority of the Board of Directors is required to abstain from participation in a vote because of conflict of interest, a Director will abstain from participating in a decision of the Board of Directors which either (1) confers an economic benefit on a business in which the Director or a close relative has a substantial interest, or (2) affects the value of property in which the Director or a close relative has a substantial interest differently from how it affects other real property in the District. For these purposes, a person is considered to have a “substantial interest” in a business if (1) he owns 10% or more of the voting stock or shares of the business entity or owns either 10% or more or $5,000 or more of the fair market value of the business entity; or (2) funds received from the business exceed 10% of his gross income for the previous year. A Person has a substantial interest in real property if the interest is an equitable or legal interest with a market value of $2,500 or more. A “close relative” of a Director for these purposes is a person related to the Director within the first degree of affinity or consanguinity. SECTION 3. Conduct of District Business. Each District Official will conduct all business of the District in a manner consistent with the requirements of applicable law. SECTION 4. Acceptance of Gifts. No District Official shall accept any benefit as consideration for any decision, opinion, recommendation, vote, or other exercise of discretion in carrying out his official acts for the District. No District Official shall solicit, accept, or agree to accept any benefit from a person known to be interested in or likely to become interested in any contract, purchase, payment, claim, or transaction involving the exercise of the District’s Official’s discretion. As used herein, “benefit” shall not include: (1) A fee prescribed by law to be received by a public servant or any other benefit to which the District Official is lawfully entitled or for which he gives legitimate consideration in a capacity other than as a District Official; (2) A gift or other benefit conferred on account of kinship or a personal, professional, or business relationship independent of the status of the recipient as a District Official; (3) A political contribution, as defined by the Election Code; (4) A benefit consisting of food, lodging, transportation, or entertainment accepted as a guest; or (5) A benefit to a District Official required to file a financial statement under the Texas Election Code that is derived from a function in honor or appreciation of the recipient if TCMUD 1 Page 98 of 200 Meeting Date: JUNE 3, 2009 (A) The benefit and the source of any benefit in excess of $50.00 is reported in the required financial statement; (B) The benefit is used solely to defray the expenses that accrue in the performance of duties or activities in connection with its official duties for the District which are non-reimbursable by the District; or (6) An item with value of less than $50, excluding cash or a negotiable instrument; or (7) An item issued by a governmental entity that allows the use of property or facilities owned, leased, or operated by the governmental entity. TCMUD 1 Page 99 of 200 Meeting Date: JUNE 3, 2009 ATTACHMENT B FEES AND EXPENSE POLICY SECTION 1. Purpose. The purpose of this Expense Policy is to set forth the policies of Trophy Club Municipal Utility District No. 1 (the “District”) concerning per diem and travel expenses for members of the Board of Directors of the District. SECTION 2. Per Diem for Directors. The Directors are entitled to receive as fees of office $100 a day for each day of service necessary to discharge their duties; provided the fees shall not exceed a sum of $6,000 per annum. SECTION 3. Attendance at Meetings and Conduct of Other District Business. Board members may attend conferences and meetings of the Association of Water Board Directors, at the District’s expense, whether within or outside the Town of Trophy Club. Attendance at other conferences, hearings, or other meetings outside of Trophy Club by the members of the Board of Directors must be sanctioned by the Board of Directors; attendance at local meetings or conduct of other local District business will be at each Director’s discretion. Directors attending any meeting or conducting any District business shall report to the Board concerning the meeting or activity. SECTION 4. Expenses Outside of Trophy Club. The District will pay a reasonable room rate for a director’s hotel room, if District business requires that the director be out of Trophy Club, reasonable tips incurred in making the trip, roundtrip mileage at the current IRS mileage rate and parking, if any, for travel by car or roundtrip airfare at current commercial rates for standard (not first class) air fare and reasonable rental car or taxi charges. The District will pay for meals actually eaten and paid for by the Director on a sanctioned trip outside of Trophy Club; provided, however, reimbursement for meals will be limited to $50 per day. SECTION 5. Expenses for Local Meetings and Activities. The District will pay for roundtrip mileage at the current IRS rate for travel by car, parking, and will pay meals directly related to the meeting or activity. Reimbursement for meals will be limited to $50 per day. SECTION 6. Reimbursement. Directors attending meetings or other activities and wishing to receive a per diem and/or expenses must submit a verified statement showing the number of days actually spent in service to the District and a general description of the duties performed for each day of service. To receive reimbursement for expenses, a Director must also submit an itemized expense report to the Senior Accountant before reimbursement is approved by the Board’s District Manager. Items on the expense report shall include lodging, meals, tips, parking and transportation. Directors sharing expense items may split reported expenses in any matter they deem equitable, but the Board will pay no more than 100% of the actual total cost of reimbursable items. SECTION 7. Extraordinary Expenses. Any extraordinary expenses for a Director attending a sanctioned activity of the District must be approved by the Board prior to incurring the expense. TCMUD 1 Page 100 of 200 Meeting Date: JUNE 3, 2009 ATTACHMENT C POLICY CONCERNING SELECTION, MONITORING, REVIEW AND EVALUATION OF PROFESSIONAL CONSULTANTS SECTION 1. Purpose. The purpose of this Policy Concerning Selection, Monitoring, Review, and Evaluation of Professional Consultants is to set guidelines for the Board of Directors for Trophy Club Municipal Utility District No. 1 (the “District”) concerning its Professional Consultants. SECTION 2. Definition of Professional Consultant. “Professional Consultant” shall include the District’s attorney, auditor, bookkeeper, financial advisor, and tax assessor/collector, and such other consultants other than employees that the District may hereafter engage. SECTION 3. Selection of Consultants. Whenever the Board of Directors of the District decides to terminate the services of one or more of its Professional Consultants, the Board shall request one or more proposals as required by the Professional Services Procurement Act, Section 2254.001 et seq., Government Code, except where selection of professional consultants is to be conducted by the Board in an open meeting, shall appoint a committee of one or two Directors to review any proposals received by the Board, to interview applicants, and to make a recommendation to the entire Board of Directors concerning the selection. SECTION 4. Monitoring of Professional Consultants. For those Professional Consultants with annual contracts, the Board of Directors of the District will review the performance of the Professional Consultants for the prior year at the time the contract is renewed. The Board of Directors shall review the performance of its other Professional Consultants, upon the request of one or more Directors. TCMUD 1 Page 101 of 200 Meeting Date: JUNE 3, 2009 ATTACHMENT D POLICIES RELATING TO USE OF MANAGEMENT INFORMATION AND FORMATION OF AN AUDIT COMMITTEE SECTION 1. Purpose. The purpose of this Policy Relating to the Use of Management Information and Formation of an Audit Committee for Trophy Club Municipal Utility District No. 1 (the “District”) is to provide written policies concerning the use of management information. SECTION 2. Annual Budget. Prior to each fiscal year, the Board of Directors of the District shall adopt an annual budget for the next fiscal year for use in planning and controlling of costs. SECTION 3. Audit Committee. The District hereby appoints its Board of Directors as an audit committee to review the annual audit prepared by the District Auditor. The Board may designate a lesser number than the entire Board, but not less than two (2) Directors to serve as its audit committee. SECTION 4. Accounting Standards. The District hereby directs its auditor to adopt uniform auditing reporting requirements that use “Audits of State and Local Governmental Units” as a guide on audit working papers and that uses “Governmental Accounting and Financial Reporting Standards” for final audit reports (subject to the standards for audits prescribed by applicable Texas Commission on Environmental Quality Rules). PASSED AND APPROVED by the Board of Directors of the Trophy Club Municipal Utility District No. 1, Trophy Club, Texas, this, the 11th day of July 2006. _____________________________ President, Trophy Club MUD No. 1 (SEAL) ATTEST: _____________________________ Secretary, Trophy Club MUD No. 1 TCMUD 1 Page 102 of 200 Meeting Date: JUNE 3, 2009 CERTIFICATE OF ORDER (2006-0711) THE STATE OF TEXAS } COUNTY OF DENTON } COUNTY OF TARRANT} I, the undersigned member of the Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties, Texas (the "District"), hereby certify as follows: 1. That I am the duly qualified and acting Secretary of the Board of Directors of the District, and that as such, I have custody of the minutes and records of the District. 2. That the Board of Directors of the District convened in Open Session at a Regular Meeting on July 11, 2006, at the regular meeting place thereof, and the roll was called of the duly constituted officers and members of the Board of Directors, to wit: Dean Henry President Gary Cantrell Vice President Connie White Secretary/Treasurer Jim Hase Asst. Secretary/Treasurer Neil Twomey Director and Directors Henry, Cantrell, White, Hase and Twomey were present, thus constituting a quorum, whereupon, among other business, the following was transacted at such meeting: a written ORDER (2006-0711) ADOPTING AN AMENDED CODE OF ETHICS, FEES AND EXPENSE POLICY, POLICIES AND PROCEDURES FOR SELECTION AND REVIEW OF CONSULTANTS, POLICIES CONCERNING THE USE OF MANAGEMENT INFORMATION INCLUDING THE FORMATION OF AN AUDIT COMMITTEE, AND CERTAIN OTHER MATTERS was duly introduced for the consideration of the Board of Directors. It was then duly moved and seconded that such Order be adopted and, after due discussion, such motion, carrying with it the adoption of such Order prevailed and carried by the following vote: AYES: NOES: TCMUD 1 Page 103 of 200 Meeting Date: JUNE 3, 2009 Order (2006-0711) Certificate Trophy Club Municipal Utility District No. 1 3. That a true, full and correct copy of such Order adopted at such meeting is attached to and follows this certificate; that such Order has been duly recorded in the minutes of the Board of Directors for such meeting; that the persons named in the above and foregoing Paragraph 2 were the duly chosen, qualified and acting officers and members of the Board of Directors as indicated therein, that each was duly and sufficiently notified officially and personally, in advance, of the time, place and purpose of such meeting, and that such Order would be introduced and considered for adoption at such meeting, and that each consented, in advance, to the holding of such meeting for such purpose; that the canvassing of the officers and members of the Board of Directors present at and absent from such meeting and of the votes of each on such motion, as set forth in the above and foregoing Paragraph 2, is true and correct; and that sufficient and timely notice of the hour, date, place and subject of such meeting was given and posted as required by Chapter 551, Texas Gov. Code. SIGNED AND SEALED the 11th day of July 2006. Secretary, Board of Directors (SEAL) TCMUD 1 Page 104 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-87-M1 File ID: Type: Status: 09-87-M1 M1 Agenda Item Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 05/26/2009File Created: Final Action: *File Name: Title: Discuss and take the appropriate action to create an Executive Committee. (Twomey) Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: Attachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-87-M1 Discuss and take the appropriate action to create an Executive Committee. (Twomey) The Executive Committe will consist of a certain number of TCMUD No. 1 Directors for the purpose of obtaining legal advice from the MUD attorney(s) or designee(s) and/or any discussion of MUD-related personnel issues in Executive Session. The Executive Committee would then report its recommendations to the entire TCMUD No. 1 Board. TCMUD 1 Page 105 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-86-M1 File ID: Type: Status: 09-86-M1 M1 Order Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 05/26/2009File Created: Final Action: *File Name: Title: Discuss and take appropriate action to adopt existing TCMUD No. 1 Order 2009-0204, the 2009-1 TCMUD No. 1 Rate Order. (Twomey) Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: M1-M2 Rate Order Inspection Fees.pdf ,TCMD 1-Order-2009-0204-2009-1 RateOrder060309.pdf Attachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-86-M1 Discuss and take appropriate action to adopt existing TCMUD No. 1 Order 2009-0204, the 2009-1 TCMUD No. 1 Rate Order. (Twomey) There is one discrepancy between MUD 1's and MUD 2's Rate Orders, and it is the Water Tap Inspection Fee. MUD 1's inspection fee is $50.00 and MUD 2's inspection fee is $200. Staff recommends adopting the existing 2009-01 MUD 1 Rate Order ( Order 2009-0204) with the $50.00 Water Tap Inspection Fee. TCMUD 1 Page 106 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 107 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1 Page 108 of 200 Meeting Date: JUNE 3, 2009 2009-1 RATE ORDER TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1 ORDER No. 2009-0204 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 December 9, 2008 (the “2009 Rate Order”), several additional modifications are needed at this time, and the District desires to establish all of its rate policies in a single new Rate Order; and WHEREAS, the Board of Directors of the District has carefully considered the terms of this 2009-1 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. TCMUD 1 Page 109 of 200 Meeting Date: JUNE 3, 2009 A. Certification of System. Connections shall not be made to the District’s System or portions of the System until the District’s engineer or Water/Wastewater Superintendent has certified that the System or applicable portion thereof is operable. B. Backflow Prevention. No water connections from any public drinking water supply system shall be allowed to any commercial establishment where an actual or potential contamination hazard exists unless the public water facilities are protected from contamination. At any commercial establishment where an actual or potential contamination hazard exists, protection shall be required at the meter in the form of a backflow prevention assembly. The type of assembly required shall be the one known as “Reduced Pressure Zone” (RPZ) unless otherwise specified by the District through its Superintendent. The existence of potential contamination hazards without installation having been made of the means of control and prevention as set out in the preceding paragraph; or, the same having been installed, there is a failure to properly maintain the same, shall be considered sufficient grounds for immediate termination of water service. Service can be restored only when the health hazard no longer exists, or when the health hazard has been isolated from the public water system in accordance with the foregoing requirements. All backflow prevention assemblies that are required according to this section shall be tested upon installation by a recognized backflow prevention assembly tester and certified to be operating within specifications. Backflow prevention assemblies that are installed to provide protection against health hazards must also be tested and certified to be operating within specifications at least annually by a recognized backflow prevention assembly tester. The Customer shall, at his expense, properly install, test, and maintain any backflow prevention device required by this Rate Order. Copies of all testing and maintenance records shall be provided to the MUD not later than a date to be fixed by the MUD. If the Customer fails to comply with the terms of this Order, the MUD shall, at its option, either terminate service or properly install, test, and maintain an appropriate backflow prevention device at the service connection. Any expenses associated with the enforcement of this agreement shall be billed to the Customer. TCMUD 1 Page 110 of 200 Meeting Date: JUNE 3, 2009 C. Availability of Access/Obstructions. By application for connection to the District’s System, the customer shall be deemed to be granting to the District and its representatives a right of ingress and egress to and from the meter or point of service for such installation, maintenance and repair as the District, in its judgment, may deem reasonably necessary. The customer shall also be deemed to be granting to the District and its representatives a right of ingress and egress to the customer’s property, including the exterior of the customer’s premises, for the purpose of performing the inspections and completing the customer‘s Service Inspection Certifications required by the District’s rules and regulations. Taps and connections will not be made when, in the opinion of the District, building materials or other debris obstructs the work area or the work area is not completed or finished to grade. When sidewalks, driveways or other improvements have been constructed prior to application for service, such application shall be construed and accepted as the customer’s waiver of a claim for any damages to such improvements resulting from the reasonable actions of the District in installation of the connection. Section 1.02. Residential Fire Lines, Connections, and Fees. A residence of six-thousand (6,000) square feet and less than eight-thousand (8,000) square feet shall have installed on its one-inch (1”) water service line, for fire protection, and as part of said line, a one-inch (1”) U-branch, with a separate meter and meter-box. The cost of said U-branch, meter, and meter-box shall be in the amount of five-hundred-twenty-five dollars ($525.00), payable at the time of permitting. A residence of more than eight-thousand (8,000) square feet, in addition to its regular one-inch (1”) water service line, shall have installed a separate one- and one-half inch (1½”) water service line for fire protection with its own meter and meter-box. The cost of connection and installation of said separate line, meter and meter-box shall be either $975.00 if the home is on the same side of the street as the waterline; or, if it is on the opposite side of the street from the waterline, necessitating boring, then the charge shall be two-thousand-three- hundred-fifty dollars ($2,350.00), payable at the time of permitting. Section 1.03. Connections by District. All connections to the District’s sewer system shall be made in accordance with the District’s Plumbing Code and its rules and regulations. No person except the District Manager or his/her authorized agent shall be permitted to tap or make any connection to the mains or distribution piping of the District’s water system, except for emergency firefighting purposes, or make any repairs or additions to or alterations in any meter, box, tap, pipe, cock or other fixture connected with the water service or any manhole, main, trunk or appurtenance of the District’s sanitary sewer system, unless otherwise specified by the Board of Directors of the District. No sewer connection shall be covered in the ground before a representative of the TCMUD 1 Page 111 of 200 Meeting Date: JUNE 3, 2009 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. 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 TCMUD 1 Page 112 of 200 Meeting Date: JUNE 3, 2009 building or other structure within the District, less any amounts forfeited as provided herein. The District shall deduct from the deposit the cost to repair any damage caused to the District’s property by the builder or the builder’s employees, contractors, subcontractors or agents and shall deduct any delinquent water and sewer service bills of the builder. In the event any amounts are so deducted from the builder’s deposit, it will be incumbent on the builder to reinstate the original amount of the deposit, and failure to do so will result in the suspension of any additional water taps for the builder. B. Swimming Pool Discharge into Sanitary Sewer System. Any backwash or drainage from a swimming pool shall discharge into the sanitary sewer system. An indirect connection shall be made by means of an air break, discharging into a tailpiece installed a minimum of 6” (or 152 mm) above adjacent grade. The tailpiece shall be connected to a minimum 3” (or 76 mm) p-trap not less than 12” (304 mm) below grade which discharges into the yard cleanout riser. Backwash systems shall not flow onto neighboring properties or into the storm sewer. The tie-in and inspection fee shall be $75.00 to be paid at the time of issuance of the pool permit. Section 1.06. Temporary Water Service. A. Construction Meters. The District shall be authorized to make a temporary connection to any fire hydrant or flushing valve upon request for temporary water service. All temporary service shall be metered and billed to the temporary customer as provided herein. All unauthorized withdrawal of water from flushing valves, fire hydrants, or other appurtenances of the District’s System without prior approval of the District, except for emergency fire-fighting purposes, is prohibited. B. Application and Deposit. Each temporary customer desiring temporary water service shall be required to execute an application for such temporary service and shall provide a minimum security deposit of $1,875.00 for a three-inch (3”) meter and RPZ; $650.00 for a smaller meter and smaller RPZ. The deposit shall be made by cashier’s check or money order payable to the District. The deposit shall be used by the District to secure the payment for temporary water supplied by the District, the installation fee, and the cost of repair of any damages caused by the temporary customer. The balance of the security deposit, if any, shall be refunded after disconnection from the District’s System. C. Fees and Rates. A fee of $100.00 for costs of installation, plus the cost of the metered water, shall be charged for temporary water service. The following rate for the sale of water for each temporary water TCMUD 1 Page 113 of 200 Meeting Date: JUNE 3, 2009 service connection shall be in effect from the effective date hereof until such time as the Board amends said rate: Gallons Used Rate Any amount $3.02 per each 1,000 gallons D. Temporary Meter Use Constraints. To avoid damages resulting from freezing weather, all temporary construction and irrigation meters shall be removed from fire hydrants at the end of each day and no later than 4:00 p.m. beginning November 1 and through the following March 15. Any irrigation and/or construction meter found still attached to a fire hydrant after 4 p.m. beginning November 1 and through the following March 15, will be removed at a service charge fee of $75.00. Should any irrigation and/or construction meter attached to a fire hydrant cause damage as a result of being attached to a meter during freezing conditions beginning November 1 and through the following March 15, renter will be responsible for all costs associated with repair of damaged fire hydrant, to include labor costs. 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 Trophy Club Park at Lake Grapevine is specifically exempted from the doubling provision of the preceding paragraph. Section 1.08. Water Meter and Water Tap Fees. Domestic one-inch (1”) meter: $ 256.00 Fee for MUD-made Water Tap: $1,000.00 Inspection Fee for Water Tap: $ 50.00 The $1,000.00 fee must be received by the District before any residential connection is initially made by MUD personnel to the District’s water system, which includes the cost for a one-inch (1”) meter. When taps have been made by someone other than MUD personnel, there is an installation/inspection fee of $50.00 plus the cost of the appropriate meter. TCMUD 1 Page 114 of 200 Meeting Date: JUNE 3, 2009 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: (1) Single-Family Homes. Each single family home shall be billed as follows: Basic Charge Fee (Does not include water usage) $11.50 0-6,000 gallons per month $2.25/1,000 gal 7,000 to 12,000 gallons per month $2.71/1,000 gal 13,000 to 25,000 gallons per month $2.92/1,000 gal 26,000-plus gallons per month $3.02/1,000 gal (2) Commercial. Each business service connection shall be deemed to be a single-family home for purposes of water service. (3) Clubs. Each club shall be deemed to be a single- family home for purposes of water service. TCMUD 1 Page 115 of 200 Meeting Date: JUNE 3, 2009 (4) Golf Course. Each meter shall be deemed to be a single-family home for the purposes of water service. (5) Multi-Family Buildings. (i) Single Meter. Each multi-family building or complex of buildings which is served by a single meter shall be billed for water at the same rate as a single-family home, with an Basic Charge Fee of $11.50 times the number of units in the building or complex. (ii) Multiple Meters. If a multi-family building or complex of buildings is served by more than one meter, then water delivered through each meter shall be billed at the same rate as a single family home, with a Basic Charge Fee of $11.50 times the number of units served by the meter. (6) Public Access Parks. Any water or sewer services utilized by the Town of Trophy Club in public access parks for the operation and maintenance of such parks will be billed at the in-district rate. Such water and sewer services shall be for the benefit of the residents of the Town of Trophy Club. Use for any other purpose shall require the services to be billed at double the rate. B. Golf Course Irrigation Water to the Lakes. In addition to water usage charges, when the customer requests fresh water on the day that established the District’s peak draw from the City of Fort Worth, the customer shall be required to pay its respective portion of any demand rate and/or minimal payment rate as specified in the District’s 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: TCMUD 1 Page 116 of 200 Meeting Date: JUNE 3, 2009 A. Single-Family Homes and Cottages. Each single-family home and cottage shall be billed based upon the treated water used by such unit that month, as follows: Basic Charge Fee (Does not include sewer usage) $11.50 0-6,000 gallons per month $2.25/1,000 gal 7,000-12,000 gallons per month $2.71/1,000 gal 12,000 gallons maximum per month for residential B. Commercial Buildings (including Clubs). Each commercial building shall be billed for sewer service at the same rate as single-family homes, based on the treated water used by such unit that month as follows: Basic Charge Fee (Does not include sewer usage) $11.50 0-6,000 gallons per month $2.25/1,000 gal 7,000-12,000 gallons per month $2.71/1,000 gal 13,000-25,000 gallons per month $2.92/1,000 gal 26,000-plus gallons per month $3.02/1,000 gal C. Multi-Family Buildings. Each unit in a multi-family building or complex of buildings shall be billed at the same rate as a single-family home, with a Basic Charge Fee of $11.50 times the number of units in the building or complex. Section 2.03. Effluent Charge. The effluent from the District’s wastewater treatment plant will be sold pursuant to separate contracts entered into with the District and approved by its Board of Directors. The District has contracted to sell effluent to the Trophy Club Country Club and discharge said effluent into golf course lakes at a charge $.55 per thousand gallons for the year 2008-2009. Section 2.04. Stand-by Charge. For those lots subject to recorded restrictive covenants that require or authorize the District to charge a stand-by fee for water and sewer service where the lot has water and sewer service available but the lot is not yet connected to the District’s system, the stand-by fee shall be $6.00 per month. Unless otherwise provided by the terms of the recorded restrictive covenant applicable to a particular lot, the stand-by charge shall commence on the first day of the month 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. TCMUD 1 Page 117 of 200 Meeting Date: JUNE 3, 2009 Section 2.05. Master Meter (Cooling Tower Calculation). The water usage from the master meter reading less the reading from the “Blow Down” meter equals the “evaporation.” Water usage less “evaporation” equals sewer usage for billing purposes. Section 2.06. Regulatory Assessment. Pursuant to Section 5.235, Texas Water Code, and 30 TAC291.76, the District shall pay a regulatory assessment to the Texas Commission on Environmental Quality (“TCEQ”) annually in the amount required by law on the total charges for retail water and sewer service billed to its customers annually. At the end of each year, the District shall prepare a written statement indicating (i) the total charges for retail water and sewer service for the year and (ii) the regulatory assessment due and payable to the TCEQ. Section 2.07. No Reduced Rates or Free Service. All customers receiving water and/or sewer service from the District shall be subject to the provisions of this Order and shall be charged the rates established in this Order, and no reduced rate or free service shall be furnished to any customer whether such user be a charitable or eleemosynary institution, a political subdivision, or municipal corporation; provided, however, this provision shall not prohibit the District from establishing reasonable classifications of customers for which rates differing from the rates stated herein may be adopted. ARTICLE III SERVICE POLICY Section 3.01. Security Deposits. Security deposits shall be required as follows: A. Builders. A $75.00 security deposit shall be required of builders for each tap made by the District for such service connection, payable at or prior to the time that such tap is made, and the security deposit is refundable to the builder when the account is later transferred to an owner if that account and all other accounts of the builder are current at the time of the transfer; but, if that account or any other account of the same builder is not current at the time of such transfer to an owner, then the security deposit shall be applied against the outstanding balance of the builder’s account(s) at the time of such transfer. B. Residential Owners. A security deposit of $50.00 shall be required from each residential owner customer for a single-family home connected to the District’s system. The security deposit is refundable to TCMUD 1 Page 118 of 200 Meeting Date: JUNE 3, 2009 the customer when the account is later closed if that account is current at the time it is closed. However, if the account is not current at the time it is closed, then the security deposit shall be applied against the outstanding balance of the customer’s account at that time. C. Residential Lessees. A security deposit of $150.00 shall be required from each residential lessee customer for a single-family home. D. Construction Meters. See Paragraph 1.06 above. E. Other customers. A security deposit equal to two months’ estimated average monthly water and sewer bill shall be required of all other customers. Currently, the MUD/District does not pay interest on deposits. The interest drawn by the MUD/District on customer deposits is returned into the operating budget of the water/sewer fund to help in providing the lowest possible water and sewer rates for our citizens. Section 3.02. Billing Procedures. All accounts shall be billed in accordance with the following: A. Due Date and Delinquency. Charges for water service, sewer service, and standby fees shall be billed monthly. Payment shall be due on or before the twentieth (20th) day of the month in the month in which the bill was received. Unless payment is received on or before the twentieth (20th) day of the month, such account shall be considered delinquent. If the due date falls on a holiday or weekend, the due date for payment purposes shall be the next working day after the due date. The District shall charge a penalty on past due accounts calculated at the rate of ten percent (10%) per month on water, sewer and standby charges. The rates for water and sewer service shall depend upon the type of user and upon whether the water used has been chemically treated, as provided in this Rate Order. All accounts not paid by the due date shall be deemed delinquent and failure to make payment thereafter may result in the termination of water and sewer service. B. Notice and Appeal. Prior to termination of service, a customer who is delinquent in payment shall be sent a notice that service will be discontinued on the fifteenth (15th) day after the date of such notice unless payment in full is received by such day. Notice shall be sent by first class United States mail and will provide the customer with an opportunity to appear in person or by written correspondence at a scheduled meeting of the Board of the District to contest, explain, or correct the charges, services, or disconnection. The notice shall inform the customer of the amount of the delinquent bill, the date service will be TCMUD 1 Page 119 of 200 Meeting Date: JUNE 3, 2009 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 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 TCMUD 1 Page 120 of 200 Meeting Date: JUNE 3, 2009 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. 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. TCMUD 1 Page 121 of 200 Meeting Date: JUNE 3, 2009 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 Section 4.01. Policy. The following policy regarding industrial waste shall be effective: A. Definition. “Industrial waste” shall mean the water-borne solids, liquids, and/or gaseous wastes (including Cooling Water), resulting from any industrial, manufacturing, trade, business, commercial, or food processing operation or process, or from the development of any natural resource, or any mixture of such solids, liquids, or wastes with water or domestic sewage. The Clean Water Act of 1977, as amended, and the General Pretreatment Regulations contained in 40 C.F.R. §403 contain the requirements for user’s discharge of industrial waste into wastewater facilities. B. Industrial Waste Discharge-Charges and Rates. If any customer of the District’s sanitary sewer system proposes to discharge industrial waste into such system, the Board of Directors of the District shall request the recommendation of the District Engineer and shall establish rates and charges to provide for an equitable assessment of costs whereby such rates and charges for discharges of industrial waste correspond to the cost of waste treatment, taking into account the volume and strength of the industrial, domestic, commercial waste, and all other waste discharges treated and techniques of the treatment required. Such rates shall be an equitable system of cost recovery which is sufficient to produce revenues, in proportion to the percentage of industrial wastes TCMUD 1 Page 122 of 200 Meeting Date: JUNE 3, 2009 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 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 TCMUD 1 Page 123 of 200 Meeting Date: JUNE 3, 2009 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 “2009-1 Rate Order” (Order 2009- 0204) 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 February 5, 2009. ARTICLE IX PUBLIC MEETING It is hereby found that the meeting at which this Order is adopted is open to the public as required by law, and that public notice of the time, place, and subject matter of said meeting and of the proposed adoption of this Order was given as required by law. TCMUD 1 Page 124 of 200 Meeting Date: JUNE 3, 2009 Trophy Club MUD 1 2009-1 Rate Order 2009-0204 17 PASSED, ADOPTED, ORDERED, AND APPROVED this 3rd day of June 2009. ___________________________ _____________________________ DEAN HENRY, Joint President JIM BUDARF, Joint President TCMUD No. 1 TCMUD No. 1 ATTEST: (Seal) ____________________________ _____________________________ JIM HASE, Joint Secretary JAMES C. THOMAS, Joint Secretary TCMUD No. 1 TCMUD No. 1 APPROVED AS TO FORM: ____________________________ ATTORNEY, TCMUD No. 1 TCMUD 1 Page 125 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-63-M1 File ID: Type: Status: 09-63-M1 M1 Order Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 04/23/2009File Created: Final Action: *File Name: Title: Discuss and take appropriate action regarding Order 2009-0603, establishing Mary Moore as the Records Management Officer for TCMUD No. 1. (Staff) Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: TCMUD 1-Order-2009-0603-RMO.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 05/12/2009Trophy Club Municipal Utility District No. 1 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-63-M1 Discuss and take appropriate action regarding Order 2009-0603, establishing Mary Moore as the Records Management Officer for TCMUD No. 1. (Staff) This agenda item was tabled at the Joint Meeting between MUD 1 and 2 on April 14 and May 12, 2009. TCMUD 1 Page 126 of 200 Meeting Date: JUNE 3, 2009 TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1 ORDER NO. 2009-0603 AN ORDER OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1, (the “DISTRICT”) REPEALING ORDER NO. 2007-0306, ESTABLISHING A RECORDS MANAGEMENT PROGRAM, AND ADOPTING A NEW ORDER BY DESIGNATING THE TROPHY CLUB MUD SECRETARY AND SUCCESSIVE HOLDERS AND DESIGNEES OF THAT POSITION AS THE RECORDS MANAGEMENT OFFICER FOR THE DISTRICT; REQUIRING THE DEVELOPMENT OF A RECORDS MANAGEMENT PLAN UNDER THE DIRECTION OF THE DISTRICT MANAGER; AND REQUIRING SUBMISSION OF THE PLAN TO THE TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 BOARD OF DIRECTORS (“BOARD OF DIRECTORS”) FOR APPROVAL; SPECIFYING DUTIES OF THE RECORDS MANAGEMENT OFFICER AND OTHER REGULATIONS RELATED TO THE MAINTENANCE, DESTRUCTION, AND STORAGE OF RECORDS; PROVIDING FOR THE INCORPORATION OF PREMISES; PROVIDING A SAVINGS AND REPEALER CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Trophy Club Municipal Utility District No. 1 (the “District”) is a Municipal Utility District operating pursuant to Chapter 54 of the Texas Water Code; and WHEREAS, the District’s Board of Directors (“Board of Directors”), as the governing body of the Municipal Utility District, is charged with establishing and maintaining a program for the efficient and economical management of all local government records; and WHEREAS, the Board of Directors is required to cause policies and procedures to be developed for the administration of a Records Management Program under the direction of a Records Management Officer; and WHEREAS, Chapter 203 of the Texas Local Government Code establishes duties of the Records Management Officer and requires the Board of Directors to prescribe rules and procedures for the establishment and operation of the records management program; and WHEREAS, the Board of Directors has determined that the Trophy Club MUD Secretary shall serve as the Records Management Officer for the District, and a Records Management Plan for the District shall be developed under the direction of the District Manager. TCMUD 1 Page 127 of 200 Meeting Date: JUNE 3, 2009 NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1: SECTION 1. INCORPORATION OF PREMISES That the above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. SECTION 2. AMENDMENT 1. Policy A. It is hereby declared to be the policy of the District to provide for efficient, economical, and effective controls over the creation, distribution, organization, maintenance, use, and disposition of all district records through a comprehensive system of integrated procedures for the management of records from their creation to their ultimate disposition, consistent with the requirements of the Texas Local Government Records Act and accepted Records Management Practice. 2. Definitions A. Commission: The Texas State Library and Archives Commission. B. Custodian of Records: The appointed public officer(s) who by Order or administrative policy is in charge of an office that creates or receives local government records. C. Director and Librarian: The executive and administrative officer of the Texas State Library and Archives Commission. D. Essential Record: Any local government record of the District necessary to the resumption or continuation of operations of the District in an emergency or disaster, to the re-creation of the legal and financial status of the District, or to the protection and fulfillment of obligations to the people of the state. E. District Record: Any documents, papers, letters, books, maps, photographs, sound or video recordings, microfilm, magnet tape, electronic media, or other information recordings media, regardless of physical form or characteristic and regardless of whether public access to it is open or restricted under the laws of the state, created or received by District or any of its officers or employees pursuant to law or in the transaction of public business are hereby declared to be the records of the District and shall be created, maintained, and disposed of in accordance with the provisions of TCMUD 1 Page 128 of 200 Meeting Date: JUNE 3, 2009 this Order or procedures authorized by it and in no other manner. The term does not include: 1. Extra identical copies of documents created only for convenience of reference or research by officers or employees of the District; 2. Notes, journals, diaries, and similar documents created by an officer or employee of the District for the officer’s or employee’s personal convenience; 3. Blank forms; 4. Stocks of publications; 5. Library and museum materials acquired solely for the purposes of reference or display; 6. Copies of documents in any media furnished to members of the public to which they are entitled under Chapter 552, Government Code, or other state law; or 7. Any records, correspondence, notes, memoranda, or documents, other than a final written agreement described by Section 2009.054(c), Government Code, associated with a matter conducted under an alternative dispute resolution procedure in which personnel of a state department or institution, local government, special district, or other political subdivision of the state participated as a party, facilitated as an impartial third party, or facilitated as the administrator of a dispute resolution system or organization. F. Permanent Records: Or “Record of Permanent Value” means any record of the District for which the retention period on a Records Retention Schedule issued by the Texas State Library and Archives Commission is given as permanent. G. Records Control Schedule: A document prepared by or under the authority of the Records Management Officer listing the records maintained by the District, their retention periods, and other records disposition information that the District’s Records Management Program may require. H. Records Management: The application of management techniques to the creation, use, maintenance, retention, preservation, and disposal of records for the purposes of reducing the costs and improving the efficiency of recordkeeping. The term includes the development of Records Control Schedules, the management of filing and information retrieval systems, the protection of essential and permanent records, the economical and space- TCMUD 1 Page 129 of 200 Meeting Date: JUNE 3, 2009 effective storage of inactive records, control over the creation and distribution of forms, reports, and correspondence, and the management of micrographics and electronic and other records storage systems. I. Records Liaison Officers: The persons designated by the District Manager to interface with other departments, “Master District,” and Town, and the public and to perform such other duties as assigned. J. Records Management Officer: The person or position designated in this Order as the Records Management Officer and his or her successor. K. Records Management Plan: A plan developed under Section 5 of this Order. L. Records Retention Schedule: A document issued by the Texas State Library and Archives Commission under authority of the Texas Government Code, as amended, establishing mandatory retention periods for local government records. M. Retention Period: The minimum time that must pass after the creation, recording, or receipt of a record, or fulfillment of certain actions associated with a record, before it is eligible for destruction. 3. District Records Declared Public Property A. All District Records as defined in this Order are hereby declared to be the property of the District. No District official or employee has, by virtue of his or her position, any personal or property right to such records even through he or she may have developed or compiled them. The unauthorized destruction, removal from files, or use of such records is prohibited. 4. Designation of Records Management Officer A. The Trophy Club MUD Secretary, and successive holders and designees of said position, shall serve as Records Management Officer. As provided by state law, each successive holder of the office shall file his or her name with the director and librarian of the Texas State Library within thirty (30) days of the initial designation or of taking up the office, as applicable. The Board of Directors designation of the name, office, or position of the Records Management Officer shall be entered into the minutes of the District’s meeting at which such designation is made. TCMUD 1 Page 130 of 200 Meeting Date: JUNE 3, 2009 5. Records Management Plan to be Developed; Approval of Plan; Authority of Plan A. The Records Management Officer, under the direction of the District Manager, shall develop a Records Management Plan for the District for submission to and approval by the Board of Directors. The plan shall be adopted by Order and must provide methods and procedures to enable the Board of Directors, Custodian of Records, and Records Management Officer to fulfill the duties and responsibilities set out in the Texas Local Government Code, Sections 203.021, 203.022, and 203.023, as amended, concerning the management and preservation of records. A copy of the Order shall be filed by the Records Management Officer with the Director and Librarian within thirty (30) days after the date of its adoption. The plan shall also contain policies and procedures designed to reduce the costs and improve the efficiency of recordkeeping, to adequately protect the essential records of the District, and to properly preserve those records of the District that are of historical value. The plan must be designed to enable the Records Management Officer to carry out his or her duties prescribed by state law and this Order effectively. B. Once approved by the Board of Directors, the Records Management Plan shall be binding on all offices, departments, divisions, programs, commissions, bureaus, boards, committees, or similar entities of the District and records shall be created, maintained, stored, microfilmed. C. State law relating to the duties, other responsibilities, or recordkeeping requirements of a Custodian of Records does not exempt him or her or the records in his or her care from the application of this Order and the Records Management Plan adopted under it, nor may it be used by the Custodian of Records as a basis for refusal to participate in the Records Management Program of the District. 6. Duties of Records Management Officer A. In addition to other duties assigned in this Order and state law, the Records Management Officer shall: 1. Assist in establishing and developing policies and procedures for a Records Management Program; and 2. Administer the Records Management Program and provide assistance to Staff for the purposes of reducing the costs and improving the efficiency of recordkeeping; and 3. In cooperation with the Custodian of Records shall: TCMUD 1 Page 131 of 200 Meeting Date: JUNE 3, 2009 a. Prepare and file the records control schedules and amended schedules required by Section 203.041 and the list of obsolete records as provided by Section 203.044 as amended, of the Texas Local Government Code; and b. Prepare or direct the preparation of requests for authorization to destroy records not on an approved control schedule as provided by this Order; and c. Identify and take adequate steps to preserve District Records that are of permanent value; and d. Identify and take adequate steps to protect essential District Records; and e. Ensure that the maintenance, preservation, microfilming, destruction, or other disposition of records is carried out in accordance with the policies and procedures of the District’s Record Management Program and the requirements of state law, including rules and policies adopted under that Program; and f. Disseminate to the Board of Directors and Custodians of Records information concerning state laws, administrative rules, and the policies of the District relating to District records; and g. Establish procedures to ensure that the handling of records in any context of the Records Management Program by the Records Management Office or those under the officer’s authority is carried out with due regard for: i. The duties and responsibilities of Custodians that may be imposed by law; and ii. The confidentiality of information in records to which access is restricted by law. 7. Records Control Schedules to be Developed; Approval; Filing with State A. The Records Management Officer, acting under the direction of the District Manager, shall prepare Records Control Schedules on a department-by- department basis, listing all records created or received by the department, and the retention period for each record. Records Control Schedules shall also contain such other information regarding the disposition of District Records as the Records Management Plan may require. TCMUD 1 Page 132 of 200 Meeting Date: JUNE 3, 2009 B. Each Records Control Schedule shall be monitored and amended as needed by the Records Management Officer on a regular basis to ensure that it is in compliance with records retention schedules issued by the state and that it continues to reflect the recordkeeping procedures and needs of the department and the Records Management Program of the District. C. Before its adoption, a Records Control Schedule or amended schedule for a department must be approved by the District Manager. D. Before its adoption, a Records Control Schedule must be submitted and accepted for filing by the Director and Librarian as provided by state law. If a Schedule is not accepted for filing, the Schedule shall be amended to make it acceptable for filing. The Records Management Officer shall submit the Records Control Schedules to the Director and Librarian. 8. Implementation of Records Control Schedules; Destruction of Records Under Schedule A. A Records Control Schedule for a department that has been approved and implemented in accordance with the policies and procedures of the Records Management Plan. B. A record whose retention period has expired on a Records Control Schedule shall be destroyed unless an open records request is pending on the record, the subject matter of the record is pertinent to a pending lawsuit, or a department head requests in writing to the Records Management Officer that the record be retained for an additional period. C. Prior to the destruction of a record under an approved Records Control Schedule, authorization for the destruction must be obtained by the Records Management Officer from the District Manager. 9. Destruction of Unscheduled Records A. A record that has not yet been listed on an approved Records Control Schedule may be destroyed if its destruction has been approved in the same manner as a record destroyed under an approved schedule and the Records Management Officer has submitted to and received back from the Director and Librarian an approved destruction authorization request. 10. Records Center A. A records center, developed pursuant to the plan required by this Order, shall be under the direct control and supervision of the Records TCMUD 1 Page 133 of 200 Meeting Date: JUNE 3, 2009 Management Officer. Policies and procedures regulating the operations and use of the records center shall be contained in the Records Management Plan developed hereunder. 11. Alternative Storage Methods A. All electronic, digital or other storage of records authorized under the Records Management Plan shall be centralized and under the direct supervision of the Records Management Officer. The Records Management Plan shall establish policies and procedures for the storage of District Records, including policies to ensure that any alternative storage method is utilized in accordance with standards and procedures for the District Records established in rules of the Texas State Library and Archives Commission. The plan shall also establish criteria for determining the eligibility of records for alternative storage methods and protocols for exempting records from the centralized process; provided however, that exempted records are still subject to periodic review by the Records Management Officer as to cost-effectiveness, administrative efficiency, and compliance with commission rules SECTION 3. SAVINGS AND REPEALER That this Order shall be cumulative of all other Orders of the District affecting Records Management and shall not repeal any of the provisions of such Orders except in those instances where provisions of those Orders are in direct conflict with the provisions of this Order and all other provisions of the Orders of the District, not in conflict with the provisions of this Order, shall remain in full force and effect. Notwithstanding the foregoing, any complaint, action, cause of action or claim which prior to the effective date of this Order has been initiated or has arisen under or pursuant to such repealed Order shall continue to be governed by the provisions of that Order and for that purpose the Order shall be deemed to remain and continue in full force and effect. SECTION 4. SEVERABILITY If any section, article, paragraph, sentence, clause, phrase or word in this Order, or application thereof to any person or circumstance, is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of the Order, and the Board of Directors hereby declare it would have passed such remaining of the Order despite such invalidity, which remaining portions shall remain in full force and effect. TCMUD 1 Page 134 of 200 Meeting Date: JUNE 3, 2009 TCMUD No. 1 Order 2009-0603 9 SECTION 5. EFFECTIVE DATE This Order shall take effect from and after its date of passage in accordance with law, and it is so ordained. PASSED AND APPROVED by the Board of Directors of Trophy Club Municipal Utility District No. 1, this the 3rd day of June, 2009. _______________________________ DEAN HENRY, Joint President TCMUD No. 1 _______________________________ JIM BUDARF, Joint President TCMUD No. 1 ATTEST: ______________________________ JIM HASE, Joint Secretary TCMUD No. 1 [SEAL] ______________________________ JAMES C. THOMAS, Joint Secretary TCMUD No. 1 APPROVED AS TO FORM: _________________________________________ Attorney TCMUD No. 1 TCMUD 1 Page 135 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-64-M1 File ID: Type: Status: 09-64-M1 M1 Agenda Item Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 04/23/2009File Created: Final Action: *File Name: Title: Discuss and take appropriate action regarding acceptance of TCMUD No. 1 Records Management Plan and new Records Retention Schedule for Utility Records. Notes: Agenda Date: 05/12/2009 Sponsors: Enactment Date: 2009 RECORDS MANAGEMENT PLAN.pdf ,M1-NewRetentionSched-UtilityRecords051209.pdf Attachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 Tabled05/12/2009Trophy Club Municipal Utility District No. 1 This matter was Tabled Action Text: 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-64-M1 Discuss and take appropriate action regarding acceptance of TCMUD No. 1 Records Management Plan and new Records Retention Schedule for Utility Records. At the Joint Meeting on April 14, 2009, the Board requested Staff bring forth an updated Records Management Plan as well as an updated Records Retention Schedule. Attached is a Records Management Plan to TCMUD 1 and a new Retention Schedule specifically for Water & Wastewater records. Staff will submit a revised Records Retention Schedule to the State for TCMUD No. 1, which will be essentially the same as what the State currently has on file for each of the individual MUDs. TCMUD 1 Page 136 of 200 Meeting Date: JUNE 3, 2009 2009 RECORDS MANAGEMENT PLAN    for    TROPHY CLUB   MUNICIPAL UTILITY DISTRICT   No. 1       Dated:  June 3, 2009  TCMUD 1 Page 137 of 200 Meeting Date: JUNE 3, 2009 TABLE OF CONTENTS    Section 1 –Purpose .......................................................................................3  Section 2 – M.U.D. Orders ......................................................................4 ‐ 11  Section 3 ‐ Definitions and Abbreviations.............................................12 ‐ 13  Section 4 ‐ Departmental Responsibilities.................................................14  Departmental .................................................................................14  Records Management Officer..................................................14 ‐ 15  Records Liaison Officers................................................................15  Section 5 – Records Processes...................................................................16  Records Retention..........................................................................16  Storage......................................................................................16 ‐ 17  Destruction................................................................................17 ‐ 18  Retrieval of Box From Storage......................................................18  Annual Review................................................................................18  Routine Filing Tips....................................................................18 ‐ 19  Historical Documents: ....................................................................19  Section 6 ‐ Retention Schedules ………………........................................20  Section 7 – Disaster Recovery.....................................................................21  Records Identification....................................................................21  Identified Vital Records: ................................................................22  Supplies Needed..............................................................................22  Salvage Steps ..................................................................................22  Water Damage...........................................................................22 ‐ 23  Fire Damage...............................................................................23 ‐ 24  Computer Disk Packs ......................................................................24  Section 8 ‐ Other Important Aspects ..........................................................25  Ownership of Records ....................................................................25  Designation of Record Types as Confidential................................25   Section 9 ‐ Open Records Requests For Information.................................26  Records Affected by Public Information Act .................................26  Open Records Requests ..................................................................26  Purpose …………………………………………………………….26  Process …………………………………………………………26 ‐ 27  Timing Issues ..............................................................................27 ‐ 29  Attorney General Ruling..................................................................29  Inquiries to Determine the Intent of the Requestor .....................29  Fees Associated with Open Records Request.................................29  Appendix A ‐ Designated Record Liaison Officers ....………………....................30  Appendix B – Fees Schedule for Open Records Requests …………………………..31  Appendix C – Approved Retention Schedules ………………………………… …32 ‐ 72  Appendix D – Water – Wastewater Retention Schedule ………………………...73 ‐ 80  TCMUD 1 Page 138 of 200 Meeting Date: JUNE 3, 2009 Section 1 ‐ Purpose    The purpose of the Records Management Plan and a Records Retention Schedule is  to develop a systematic policy for Trophy Club MUD Personnel to follow and  reference when dealing with District records. The objectives of this plan are:    • Control the creation and growth of records  • Improve efficiency and productivity  • Assimilate new records management technology  • Ensure regulatory compliance  • Minimize litigation risks  • Safeguard vital information  • Support better management decision making  • Preserve the District memory  • Foster professionalism in the governance process    The benefits are efficiency, accountability improved protection of valuable records,  improved public service, time and cost savings, and avoidance of unnecessary usage  in space, equipment, procedures, and supplies.     Records retention support several values to governmental operations. Records are  the official documentation of legally binding decisions and actions of government.  Records are the memory of the government. Finally, records are evidence of the  government’s stewardship of the responsibilities entrusted to them by the citizenry.  These values should be important to every department head, manager, and staff  member.    The Plan is divided into several different sections: M.U.D. Orders, Definitions and  Abbreviations, Departmental Responsibilities, Records Processes, Departmental  Retention Schedules, Disaster Recovery, Forms Utilized, Other Important Aspects  and Open Records Requests.  TCMUD 1 Page 139 of 200 Meeting Date: JUNE 3, 2009 Section 2 –M.U.D. Order  TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1 ORDER NO. 2009-0603 AN ORDER OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1, (the “DISTRICT”) REPEALING ORDER NO. 2007-0306, ESTABLISHING A RECORDS MANAGEMENT PROGRAM, AND ADOPTING A NEW ORDER BY DESIGNATING THE TROPHY CLUB MUD SECRETARY AND SUCCESSIVE HOLDERS AND DESIGNEES OF THAT POSITION AS THE RECORDS MANAGEMENT OFFICER FOR THE DISTRICT; REQUIRING THE DEVELOPMENT OF A RECORDS MANAGEMENT PLAN UNDER THE DIRECTION OF THE DISTRICT MANAGER; AND REQUIRING SUBMISSION OF THE PLAN TO THE TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 BOARD OF DIRECTORS (“BOARD OF DIRECTORS”) FOR APPROVAL; SPECIFYING DUTIES OF THE RECORDS MANAGEMENT OFFICER AND OTHER REGULATIONS RELATED TO THE MAINTENANCE, DESTRUCTION, AND STORAGE OF RECORDS; PROVIDING FOR THE INCORPORATION OF PREMISES; PROVIDING A SAVINGS AND REPEALER CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Trophy Club Municipal Utility District No. 1 (the “District”) is a Municipal Utility District operating pursuant to Chapter 54 of the Texas Water Code; and WHEREAS, the District’s Board of Directors (“Board of Directors”), as the governing body of the Municipal Utility District, is charged with establishing and maintaining a program for the efficient and economical management of all local government records; and WHEREAS, the Board of Directors is required to cause policies and procedures to be developed for the administration of a Records Management Program under the direction of a Records Management Officer; and WHEREAS, Chapter 203 of the Texas Local Government Code establishes duties of the Records Management Officer and requires the Board of Directors to prescribe rules and procedures for the establishment and operation of the records management program; and WHEREAS, the Board of Directors has determined that the Trophy Club MUD Secretary shall serve as the Records Management Officer for the District, and a Records Management Plan for the District shall be developed under the direction of the District Manager. NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1: TCMUD 1 Page 140 of 200 Meeting Date: JUNE 3, 2009 SECTION 1. INCORPORATION OF PREMISES That the above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. SECTION 2. AMENDMENT 1. Policy A. It is hereby declared to be the policy of the District to provide for efficient, economical, and effective controls over the creation, distribution, organization, maintenance, use, and disposition of all district records through a comprehensive system of integrated procedures for the management of records from their creation to their ultimate disposition, consistent with the requirements of the Texas Local Government Records Act and accepted Records Management Practice. 2. Definitions A. Commission: The Texas State Library and Archives Commission. B. Custodian of Records: The appointed public officer(s) who by Order or administrative policy is in charge of an office that creates or receives local government records. C. Director and Librarian: The executive and administrative officer of the Texas State Library and Archives Commission. D. Essential Record: Any local government record of the District necessary to the resumption or continuation of operations of the District in an emergency or disaster, to the re-creation of the legal and financial status of the District, or to the protection and fulfillment of obligations to the people of the state. E. District Record: Any documents, papers, letters, books, maps, photographs, sound or video recordings, microfilm, magnet tape, electronic media, or other information recordings media, regardless of physical form or characteristic and regardless of whether public access to it is open or restricted under the laws of the state, created or received by District or any of its officers or employees pursuant to law or in the transaction of public business are hereby declared to be the records of the District and shall be created, maintained, and disposed of in accordance with the provisions of this Order or procedures authorized by it and in no other manner. The term does not include: 1. Extra identical copies of documents created only for convenience of reference or research by officers or employees of the District; 2. Notes, journals, diaries, and similar documents created by an officer or employee of the District for the officer’s or employee’s personal convenience; TCMUD 1 Page 141 of 200 Meeting Date: JUNE 3, 2009 3. Blank forms; 4. Stocks of publications; 5. Library and museum materials acquired solely for the purposes of reference or display; 6. Copies of documents in any media furnished to members of the public to which they are entitled under Chapter 552, Government Code, or other state law; or 7. Any records, correspondence, notes, memoranda, or documents, other than a final written agreement described by Section 2009.054(c), Government Code, associated with a matter conducted under an alternative dispute resolution procedure in which personnel of a state department or institution, local government, special district, or other political subdivision of the state participated as a party, facilitated as an impartial third party, or facilitated as the administrator of a dispute resolution system or organization. F. Permanent Records: Or “Record of Permanent Value” means any record of the District for which the retention period on a Records Retention Schedule issued by the Texas State Library and Archives Commission is given as permanent. G. Records Control Schedule: A document prepared by or under the authority of the Records Management Officer listing the records maintained by the District, their retention periods, and other records disposition information that the District’s Records Management Program may require. H. Records Management: The application of management techniques to the creation, use, maintenance, retention, preservation, and disposal of records for the purposes of reducing the costs and improving the efficiency of recordkeeping. The term includes the development of Records Control Schedules, the management of filing and information retrieval systems, the protection of essential and permanent records, the economical and space-effective storage of inactive records, control over the creation and distribution of forms, reports, and correspondence, and the management of micrographics and electronic and other records storage systems. I. Records Liaison Officers: The persons designated by the District Manager to interface with other departments, “Master District,” and Town, and the public and to perform such other duties as assigned. J. Records Management Officer: The person or position designated in this Order as the Records Management Officer and his or her successor. K. Records Management Plan: A plan developed under Section 5 of this Order. L. Records Retention Schedule: A document issued by the Texas State Library and Archives Commission under authority of the Texas Government Code, as amended, establishing mandatory retention periods for local government records. TCMUD 1 Page 142 of 200 Meeting Date: JUNE 3, 2009 M. Retention Period: The minimum time that must pass after the creation, recording, or receipt of a record, or fulfillment of certain actions associated with a record, before it is eligible for destruction. 3. District Records Declared Public Property A. All District Records as defined in this Order are hereby declared to be the property of the District. No District official or employee has, by virtue of his or her position, any personal or property right to such records even through he or she may have developed or compiled them. The unauthorized destruction, removal from files, or use of such records is prohibited. 4. Designation of Records Management Officer A. The Trophy Club MUD Secretary, and successive holders and designees of said position, shall serve as Records Management Officer. As provided by state law, each successive holder of the office shall file his or her name with the director and librarian of the Texas State Library within thirty (30) days of the initial designation or of taking up the office, as applicable. The Board of Directors designation of the name, office, or position of the Records Management Officer shall be entered into the minutes of the District’s meeting at which such designation is made. 5. Records Management Plan to be Developed; Approval of Plan; Authority of Plan A. The Records Management Officer, under the direction of the District Manager, shall develop a Records Management Plan for the District for submission to and approval by the Board of Directors. The plan shall be adopted by Order and must provide methods and procedures to enable the Board of Directors, Custodian of Records, and Records Management Officer to fulfill the duties and responsibilities set out in the Texas Local Government Code, Sections 203.021, 203.022, and 203.023, as amended, concerning the management and preservation of records. A copy of the Order shall be filed by the Records Management Officer with the Director and Librarian within thirty (30) days after the date of its adoption. The plan shall also contain policies and procedures designed to reduce the costs and improve the efficiency of recordkeeping, to adequately protect the essential records of the District, and to properly preserve those records of the District that are of historical value. The plan must be designed to enable the Records Management Officer to carry out his or her duties prescribed by state law and this Order effectively. B. Once approved by the Board of Directors, the Records Management Plan shall be binding on all offices, departments, divisions, programs, commissions, bureaus, boards, committees, or similar entities of the District and records shall be created, maintained, stored, microfilmed. C. State law relating to the duties, other responsibilities, or recordkeeping requirements of a Custodian of Records does not exempt him or her or the records in his or her care from the application of this Order and the Records Management Plan adopted under it, nor may it be used by the Custodian of Records as a basis TCMUD 1 Page 143 of 200 Meeting Date: JUNE 3, 2009 for refusal to participate in the Records Management Program of the District. 6. Duties of Records Management Officer A. In addition to other duties assigned in this Order and state law, the Records Management Officer shall: 1. Assist in establishing and developing policies and procedures for a Records Management Program; and 2. Administer the Records Management Program and provide assistance to Staff for the purposes of reducing the costs and improving the efficiency of recordkeeping; and 3. In cooperation with the Custodian of Records shall: a. Prepare and file the records control schedules and amended schedules required by Section 203.041 and the list of obsolete records as provided by Section 203.044 as amended, of the Texas Local Government Code; and b. Prepare or direct the preparation of requests for authorization to destroy records not on an approved control schedule as provided by this Order; and c. Identify and take adequate steps to preserve District Records that are of permanent value; and d. Identify and take adequate steps to protect essential District Records; and e. Ensure that the maintenance, preservation, microfilming, destruction, or other disposition of records is carried out in accordance with the policies and procedures of the District’s Record Management Program and the requirements of state law, including rules and policies adopted under that Program; and f. Disseminate to the Board of Directors and Custodians of Records information concerning state laws, administrative rules, and the policies of the District relating to District records; and g. Establish procedures to ensure that the handling of records in any context of the Records Management Program by the Records Management Office or those under the officer’s authority is carried out with due regard for: i. The duties and responsibilities of Custodians that may be imposed by law; and ii. The confidentiality of information in records to which access is TCMUD 1 Page 144 of 200 Meeting Date: JUNE 3, 2009 restricted by law. 7. Records Control Schedules to be Developed; Approval; Filing with State A. The Records Management Officer, acting under the direction of the District Manager, shall prepare Records Control Schedules on a department-by- department basis, listing all records created or received by the department, and the retention period for each record. Records Control Schedules shall also contain such other information regarding the disposition of District Records as the Records Management Plan may require. B. Each Records Control Schedule shall be monitored and amended as needed by the Records Management Officer on a regular basis to ensure that it is in compliance with records retention schedules issued by the state and that it continues to reflect the recordkeeping procedures and needs of the department and the Records Management Program of the District. C. Before its adoption, a Records Control Schedule or amended schedule for a department must be approved by the District Manager. D. Before its adoption, a Records Control Schedule must be submitted and accepted for filing by the Director and Librarian as provided by state law. If a Schedule is not accepted for filing, the Schedule shall be amended to make it acceptable for filing. The Records Management Officer shall submit the Records Control Schedules to the Director and Librarian. 8. Implementation of Records Control Schedules; Destruction of Records Under Schedule A. A Records Control Schedule for a department that has been approved and implemented in accordance with the policies and procedures of the Records Management Plan. B. A record whose retention period has expired on a Records Control Schedule shall be destroyed unless an open records request is pending on the record, the subject matter of the record is pertinent to a pending lawsuit, or a department head requests in writing to the Records Management Officer that the record be retained for an additional period. C. Prior to the destruction of a record under an approved Records Control Schedule, authorization for the destruction must be obtained by the Records Management Officer from the District Manager. 9. Destruction of Unscheduled Records A. A record that has not yet been listed on an approved Records Control Schedule may be destroyed if its destruction has been approved in the same manner as a record destroyed under an approved schedule and the Records Management Officer has submitted to and received back from the Director and Librarian an approved destruction authorization request. TCMUD 1 Page 145 of 200 Meeting Date: JUNE 3, 2009 10. Records Center A. A records center, developed pursuant to the plan required by this Order, shall be under the direct control and supervision of the Records Management Officer. Policies and procedures regulating the operations and use of the records center shall be contained in the Records Management Plan developed hereunder. 11. Alternative Storage Methods A. All electronic, digital or other storage of records authorized under the Records Management Plan shall be centralized and under the direct supervision of the Records Management Officer. The Records Management Plan shall establish policies and procedures for the storage of District Records, including policies to ensure that any alternative storage method is utilized in accordance with standards and procedures for the District Records established in rules of the Texas State Library and Archives Commission. The plan shall also establish criteria for determining the eligibility of records for alternative storage methods and protocols for exempting records from the centralized process; provided however, that exempted records are still subject to periodic review by the Records Management Officer as to cost-effectiveness, administrative efficiency, and compliance with commission rules SECTION 3. SAVINGS AND REPEALER That this Order shall be cumulative of all other Orders of the District affecting Records Management and shall not repeal any of the provisions of such Orders except in those instances where provisions of those Orders are in direct conflict with the provisions of this Order and all other provisions of the Orders of the District, not in conflict with the provisions of this Order, shall remain in full force and effect. Notwithstanding the foregoing, any complaint, action, cause of action or claim which prior to the effective date of this Order has been initiated or has arisen under or pursuant to such repealed Order shall continue to be governed by the provisions of that Order and for that purpose the Order shall be deemed to remain and continue in full force and effect. SECTION 4. SEVERABILITY If any section, article, paragraph, sentence, clause, phrase or word in this Order, or application thereof to any person or circumstance, is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of the Order, and the Board of Directors hereby declare it would have passed such remaining of the Order despite such invalidity, which remaining portions shall remain in full force and effect. TCMUD 1 Page 146 of 200 Meeting Date: JUNE 3, 2009 SECTION 5. EFFECTIVE DATE This Order shall take effect from and after its date of passage in accordance with law, and it is so ordained. PASSED AND APPROVED by the Board of Directors of Trophy Club Municipal Utility District No. 1, this the 3rd day of June, 2009. _______________________________ DEAN HENRY, Joint President TCMUD No. 1 _______________________________ JIM BUDARF, Joint President TCMUD No. 1 ATTEST: ______________________________ JIM HASE, Joint Secretary TCMUD No. 1 [SEAL] ______________________________ JAMES C. THOMAS, Joint Secretary TCMUD No. 1 APPROVED AS TO FORM: _________________________________________ Attorney TCMUD No. 1 TCMUD 1 Page 147 of 200 Meeting Date: JUNE 3, 2009 Section 3 ‐ Definitions and Abbreviations    Active record – Records needed to carry out an organization’s day‐to‐day business;  record subject to frequent use.    Custodian of Record ‐ The staff person designated to be responsible for compliance  with the Records Management Plan for their department.    Historical value – Records which are retained for purposes of history and not  necessarily for business purposes.    Important record – A record that contains information that cannot be dispensed  when lost. Expenditure of time and money would be required if lost.    Inactive record – A record that does not have to be readily available but which must  be kept for legal, fiscal, or historical purposes.    Non‐record – All material not usually included within the definition of records, such  as unofficial copies of documents that are kept only for reference or convenience.  Stocks of publications and processed documents, and library material intended solely  for reference or exhibition.    Non‐vital record – A record that does not contain information essential for  emergency operations during a disaster; the resumption and/or continuation of  operations; the reestablishment of the legal, financial, and/or functional status of the  organization; and the determination of the rights and obligations of individuals and  corporate bodies with respect to the organization. Examples of a non‐vital record are  convenience files or internal memorandum. A non‐vital record may be referred to as a  non‐essential record.    Permanent record – Information which is required by law to be retained indefinitely  or which has been designated for continuous preservation because of reference,  historical, or administrative significance to the organization.    Record – Recorded information, regardless of the medium or characteristics, made or  received by an organization that is useful in the operation of the organization.    Useful record – A record that contains information that would create difficulty in the  daily duties if lost, but could be easily replaced.    TCMUD 1 Page 148 of 200 Meeting Date: JUNE 3, 2009 Vital record – A record containing information essential for emergency operations  during a disaster; the resumption and/or continuation of operations; the  reestablishment of the legal, financial, and/or functional status of the organization;  and the determination of the rights and obligations of individuals and corporate  bodies with respect to the organization. A vital record may be referred to as an  essential record.      Abbreviations Defined:    AV – As long as administratively valuable  CE – Calendar year end  FE – Fiscal year end  LA – Life of asset  RLO – Records Liaison Officer  RMO – Records Management Officer  TSLAC – Texas State Library and Archive Commission  US – Until superseded  TCMUD 1 Page 149 of 200 Meeting Date: JUNE 3, 2009 Section 4 ‐ Departmental Responsibilities    Departmental  The Custodian of Records will cooperate with the Records Management Officer  (RMO) in carrying out established policies and procedures for the efficient and  economical management of records and in carrying out the requirements of this  policy. The Custodian of Records will adequately document the transaction of  government business and the services, programs, and duties for which the Custodian  of Records and his/her staff are responsible. Finally, the Custodian of Records will  maintain the records in his/her care and carry out their preservation, destruction,  microfilming, or other disposition only in accordance with the policies and  procedures of the Records Management Plan. Department heads will designate a  member of his/her staff to serve as a Records Liaison Officer (RLO) for the  implementation of the Records Management Process in the department.     Records Management Officer (RMO)  The RMO will administer the Records Management Program and provide assistance  to Department Heads / Custodian of Records in its implementation; plan, formulate,  and prescribe records disposition, policies, systems, standards, and procedures; in  cooperation with department heads, identify vital records and establish a disaster  plan to ensure maximum availability of the records in order to re‐establish operations  as quickly and with minimal disruption and expense; develop procedures to ensure  the permanent preservation of historically valuable records; establish standards for  filing and storage and record‐keeping supplies; study the feasibility of and, if  appropriate, establish a uniform filing system and forms design and control system  for the Trophy Club Municipal Utility Districts; provide records management advice  and assistance to all departments by preparation of a manual of procedure and  policy; monitor records retention schedules and administrative rules issued by the  Texas State Library and Archive Commission (TSLAC) to determine if the Records  Management Program and Retention Schedules are in compliance with state  regulations; disseminate to departments and M.U.D. Directors information  concerning state laws and administrative rules relating local government records;  direct Records Liaison Officers (RLO’s), Custodian of Records, or other personnel in  the proper conduct of records inventories in preparation for the development of  Records Control Schedules, as required by state law and by MUD Order 2009‐0512;  ensure that the maintenance, preservation, microfilming, destruction, or other  disposition of MUD records is carried out in accordance with the policies and  procedures of the Records Management Program and the requirements of state law;  maintain documentation of the records destroyed under approved records control  schedules, records stored electronically, and microfilmed; report annually to the  District on the implementation of the Records Management Plan in each department  of the District, including summaries of the statistical and fiscal data compiled under  the proceeding item, and bring to the attention of the M.U.D. District Manager non‐ TCMUD 1 Page 150 of 200 Meeting Date: JUNE 3, 2009 compliance by department heads or other personnel with the policies and  procedures of the Records Management Program or the Local Government Records  Act.    Records Liaison Officers  Persons assigned as Records Liaison Officers will be thoroughly familiar with the  records created and maintained by their department and will have access to all of the  documents within their department.     Duties of the RLO are as follows:    ™ To conduct or supervise inventories of the records of the department in  preparation for the development of records retention schedules;     ™ Coordinate and implement the policies and procedures of the Records  Management Program in their department (in cooperation with the RMO)    ™ Disseminate information to their staff concerning the Records Management  Program.   TCMUD 1 Page 151 of 200 Meeting Date: JUNE 3, 2009 Section 5 – Records Processes    Records Retention  The life cycle of records is divided into three cycles: creation, maintenance, and  disposition.     The first cycle, creation of a record, entails all activities that are involved in  originating and generating forms, reports, correspondences, receiving records from  the outside, filing, indexing, and other development duties.     The second cycle, maintenance, involves activities such as retrieval, filing, storage,  space and equipment allocation, inactive records maintenance, and alternatives to  paper storage. The critical issue in this cycle involves obtaining needed records. Too  much information can create problems because of inefficient or expanded and  impractical retention of unneeded documents.      The final phase, disposition, the records are (1) destroyed either when a record has  no value or has reached the end of its retention period, (2) stored long term, or (3)  transferred to historical archives.     The Records Retention Schedule is the key management tool during this phase, as it  provides direction to the RLO on how to deal with the record in question and its final  disposition.  Problems arise when space issues surface because of inefficient cabinet  use or when records are misfiled and lost.    Storage  Records should be placed in long‐term storage facilities when they are no longer  active or valuable to the department, but have not reached the end of their retention  period. More recent records will be placed in the vault (fireproof file) by the RMO,  and older records requiring long‐term retention will be placed in remote storage.  After deciding to place records in storage, one should perform the following simple  procedures:    Contact the RMO for an approved box, label, and form entitled: “Inventory of  Records Transfer to Records Center”. When placing documents in the box, the  RLO/Custodian of Record should inventory and record the documents to be placed in  the box. This is your record of the contents of the box. The label should list  information that will be useful to the RLO/Custodian of Record in the event that a  record is needed in the future. If possible, limit the contents of any box to a single  record series. Generally this is a group of records, filed together in a unified  arrangement, which results from or relates to the same function or activity. If  this is impractical, because of low volume of the same series, please limit the  contents of a single box to a series having the same retention period. Leave  TCMUD 1 Page 152 of 200 Meeting Date: JUNE 3, 2009 approximately one to two inches in the box to facilitate ease of access. If future  filling is needed, there will be space. Packing records too tightly can result in  damaged boxes. Use only approved boxes; this allows more uniform storage and  better packing in the storage locations. Please do not place hanging file folders or  three ring binders in the storage box. The contents of the box should be removed  from these filing supplies and placed in folders. Both binders and hanging files  damage your records and the boxes and will prevent efficient usage of storage  space. Binders and folders can be recycled. After the inventory is complete, the  RLO/Custodian of Record will place a departmental box number on the inventory  form and label and then affix the label to the storage box. After these steps are  completed, the RMO is contacted.    In short, the steps for storage are:    1. Obtain an approved storage box, label, and inventory form from the RMO  and/or from the Intranet site.  2. Inventory and record the documents to be placed in the box, record this on  the supplied form  3. Record a brief description of the contents on the supplied label  4. Number the box and record this number on your inventory form and the  box label  5. Contact the RMO to transfer the box to long‐term storage  Destruction  When the documents contained within a box reach the end of their retention period,  the RMO generates a form titled, “Certificate of Records Destruction.” This form  requests permission from the Custodian of the Records/RLO/Department Head for  destruction of the documents to be carried out. This form also lists the record series  enclosed in the box along with its state‐approved retention period. If the Custodian  of the Records/RLO/Department Head and/or District Manager concurs with the  destruction, he/she should sign the form and return signed form to the RMO. The  documents will be destroyed in accordance with state law (burning, shredding,  pulping, burial in a landfill or by sale or donation for recycling purposes). Documents  should not be destroyed in any other manner.     A record cannot be destroyed if any litigation, claim, negotiation, audit, open records  request, administrative review, or other action involving the record is initiated before  the expiration of the retention period for the record set by TSLAC or, whichever is  later.    TCMUD 1 Page 153 of 200 Meeting Date: JUNE 3, 2009 In short, the steps for destruction are:    1. The RMO will submit the “Certificate of Records Destruction” form to the  Custodian of the Record/RLO/Department Head;    2. If the Custodian of the Record/RLO/Department Head concurs with the  request for destruction, he/she should sign the document, and return the signed  original to the RMO.    3. When all governing bodies have agreed and concur, the documents will be  destroyed in an approved manner.    Retrieval of Box(es) From Storage  When there is a need for a document that is stored in remote storage, contact the  RMO to obtain the box that contains the document referencing the copy of the  “Inventory of Records Transfer to Records Center” form for the appropriate box  number for retrieval. A “Box Retrieval Form” requesting the box will be completed  and submitted to the RMO, who see that the appropriate box is retrieved from  storage.      Annual Review  Each department should have a departmental record “clean‐up day” led by their  designated RLO. The goals are to identify documents that are no longer valuable to  the department, move them to storage or prepare for destruction, organize the  cabinet, and make space for new files. Removal of old and useless documents allows  for easier and faster access to files. This creates a more cost‐effective and efficient  practice that supports the District’s stated objectives. Additional benefits are  improved public service, sound usage of scarce equipment, procedures, supplies,  space and equipment, and protection of valuable records.     Routine Filing Tips  There are two (2) primary filing systems, alphabetical and numerical. Alphabetical  filing places files in alphabetical order. Numerical filing has several options. A file can  be ordered by sequential order filing, date order filing, or coded numerical filing. Each  should be easy, consistent, and uniform.  Other ways to file records are by subject.  Subjects can be contained in a hanging file folder. Subjects may be Community Park,  Harmony Park, and McCombs Fields. These subjects should be alphabetized in a file  cabinet with all documents within the subject files also placed in either a numerical or  alphabetical manner.     A numerical arrangement may have a file for Community Park budget and within this  file you my have the following files: FY1999, FY2000, and FY2001. These files are in a  TCMUD 1 Page 154 of 200 Meeting Date: JUNE 3, 2009 numerical format. Filing documents in one of the above methods will help retrieve  needed information efficiently.     Historical Documents:  Documents that have historical significance will be retained permanently by the  District. Trophy Club MUDs adhere to the TSLAC retention schedules. When the  record has not been designated with a permanent retention, and a record has  historical significance, please contact the RMO for further guidance.  TCMUD 1 Page 155 of 200 Meeting Date: JUNE 3, 2009 Section 6 ‐ Retention Schedules    TCMUD 1 filed its Local Government – Records Control Schedule in May of 1994 and all  were accepted by the Texas State Library in July of 1994.  The Retention Schedules filed  were for Administration Records and Tax Records and they are still very applicable. The  approved Retention Schedules are attached as Appendix C.    Also attached is a Retention Schedule for Water / Wastewater Records for submittal to  the Texas State Library as Appendix D.  TCMUD 1 Page 156 of 200 Meeting Date: JUNE 3, 2009 Section 7 – Disaster Recovery  A fire, tornado, flood or any other calamity may occur at any time of the day, week,  month, or year. Any of the above events could create a loss of some records that can  cause dire consequences, or extreme disruption to the operation of government.  Other issues to consider are the loss of records, which could make the District  vulnerable to litigation, create revenue losses, create revenue costs, and create  inefficient operations. No plan can prevent these events from happening; a Plan can,  however, reduce the likelihood of these undesirable outcomes.    Records Identification  Prevention and planning are key tools to be utilized when reducing the chance of a  disaster and loss of records. Ideally, each department will identify records that are  nonvital, useful, important and vital.    Non‐vital record is a document that, if destroyed, would not pose a serious  dilemma to the District. Convenience files or internal memorandum are examples of  this category.    Useful record is a document that would create difficulty, if lost, but could be easily  replaced. Examples of this category would be schedule books.    Important records are those which cannot be dispensed and expenditure of time  and money would be required to replace the document.    Vital record contains information that is crucial or cannot be replaced. These types  of records are not always permanent. These documents contain information critical  to the continuation of operations or the protection of the rights of the government  or of individual citizens. Examples of vital records are records that give authority for  the operation of the government (such as minutes, ordinances, and resolutions).  Other vital records are records that document obligations owed to the government  (such as financial records), blueprints of water systems or other documents vital for  the daily operation of the District. Obligations of the government to its employees  such as personnel records, retirement, and accrued benefits are more examples of a  vital record. Finally, records that document civil or property rights of citizens (such as  deeds) or ownership of government property are vital records. In advance, each  department should inventory their environment and identify the location of each  type of the above‐mentioned records. Special attention should be placed on the  location of important and vital records. Knowing the location of these two types of  records is significant because when a disaster strikes, there will not to be enough  time to recover all records. The person conducting the recovery attempt will recover  the vital and then, if time permits, important documents. Non‐vital and useful files  will be recovered after more important files are recovered, if possible.  TCMUD 1 Page 157 of 200 Meeting Date: JUNE 3, 2009   Identified Vital Records:    Finance/Accounting: Accounts receivable, ledgers, payroll records, and general  insurance policies.    MUD Administration: Minutes, ordinances, and resolutions, contracts and/or  agreements.    Human Resources: Personnel records, personnel insurance files.    Public Works: Maps and engineering drawings.    Fire: Emergency management plans (Denton and Tarrant County, and Town of  Trophy Club)    Supplies Needed  To conduct a recovery process, a person will need the following equipment: plastic  crates, a designated off‐site dry location, rubber gloves and boots, waxed paper, and  absorbent towels.    Salvage Steps  First, ensure that the scene of the disaster is safe to enter. Electrical sources should  be turned off, fire should be extinguished, and any other hazard to life should be  contained.    Second, the size and the scope of the salvage operation should be considered. If the  disaster is large, expert firms may be needed to help recover the documents. If the  disaster scene is small, the above‐mentioned equipment may be adequate.    Third, identify the vital and important documents first. Recover the records in the  following manner: vital, then important, then useful and lastly non‐vital.    Water Damage  Water damage is the most frequent type of disaster. Some authorities claim that  water events account for up to ninety‐five percent (95%) of disasters. The documents  from a water disaster are usually recoverable. Most damage to vital records can be  avoided by not placing these type of documents in the bottom areas of a filing  cabinets or shelves.  Problems with mildew and mold contribute to the deterioration  of a document. If restoration cannot be started immediately, the records should be  frozen. Ideally, the environment for freezing will be zero degrees. In other cases, the  TCMUD 1 Page 158 of 200 Meeting Date: JUNE 3, 2009 documents should be carefully removed to non‐humid rooms. The documents will be  fragile and care must be taken to avoid tearing. If possible, maintain the records  arrangement or order. Plastic crates may be used to move water soaked records.  Books should be placed in crates with their spine down. Waxed paper should be  placed between books to avoid sticking.  When large volumes of vital records are  damaged they may dried commercially, with administrative approval. These  commercial companies can dry the documents by vacuum freeze‐drying or use of  vacuum chambers. When small volumes of records are damaged, they can be dried  by spreading them out on tables or the floor. Use of fans should be undertaken to  circulate the air through the room. These documents should be periodically turned to  facilitate drying on both sides. The ideal room temperature is below sixty degrees.  Permanently valuable books should be frozen. Another method includes drying the  covers and placing absorbent towels between the pages. When the towel becomes  wet, it should be replaced. Books should have their spines placed down. Documents  that are mud covered can be washed off with a low‐pressure sprayer and then dried.     Do not, under any circumstance:  • Enter an area until it has been declared safe  • Attempt to open a wet book  • Attempt to close an open book that is swollen  • Use mechanical presses on wet materials  • Attempt to separate books that are stuck together  • Write on wet paper  • Use bleaches, detergents, water soluble fungicides, adhesive tapes, paper  clips, or staples on wet material  • Use colored paper of any kind during salvage and recovery operations  • Pack newly‐dried materials in boxes or leave them unattended for more  than two (2) days  Blackmon‐Mooring Steamatic Catastrophic, Inc. (BMS CAT) is a local company (Fort  Worth) that can provide the above‐mentioned expert services. The phone number  for this company is (817) 332‐2770 or (800) 433‐2940 (24‐hour hotline). Prior to  utilizing this company, approval must be obtained from the District Manager.    Fire Damage  When fire occurs, many documents will be lost. Recovery of these may be impossible.   Tightly packed volumes often do not burn completely. The edges of the volume may  be charred. These records can be salvaged with little effort. Duplication can be  undertaken through photocopying or microfilming. If the document is severely  TCMUD 1 Page 159 of 200 Meeting Date: JUNE 3, 2009 scorched or brittle, salvage may not be possible. Vital records should be stored in  fireproof cabinets or the vault.    Computer Disk Packs  Computer disk packs and other magnetic media that have become wet are  sometimes not recoverable and a professional restoration firm should only conduct  salvage attempts. Do not place these disks in a computer. The Information Services  Director should be contacted to obtain further direction.    TCMUD 1 Page 160 of 200 Meeting Date: JUNE 3, 2009 Section 8 – Other Important Aspects    Ownership of Records  All records created by a department shall remain the property of the District. The  department is the legal custodian of its records. All records transferred to the  Records Management Officer shall remain the legal custody of the department  sending them.    Designation of Record Types as Confidential  A designated confidential records type may be defined as that material containing  such information that if released indiscriminately poses a legal or financial threat to  the District. A record type may be designated as confidential by a department head  upon written request. Security measures designed to safeguard the integrity of  confidential records while in the possession of the RMO will be implemented when a  confidential record is designated. A confidential designation causes certain security  measures to be implemented. Restricted access and anonymity of the records will be  used. Documents will be under the control and surveillance of an authorized person  at all times when being processed. Access to remote storage will be limited and this  will help ensure the security of the documents.    TCMUD 1 Page 161 of 200 Meeting Date: JUNE 3, 2009 Section 9 – Open Records Requests for Information    Records Affected by Public Information Act  Public records include any information that is collected, assembled, or maintained by  or for a governmental entity. The Act applies to records regardless of their format. It  includes information that is maintained in paper, tape, microfilm, video, electronic  data held in computer memory, as well as other mediums.    Open Records Requests for Information  Requests for public information can come in following formats: faxed, emailed, or  written. The District can only provide information when it is requested in writing,  faxed, or emailed. Verbal requests will not and cannot be accepted. Every attempt  should be made by staff to get the requestor to submit the “Trophy Club MUD  Request For Information” document. The requestor is not required to use the  District’s form.  The requestor can request the format of the information. The District  is only required to provide to the requestor the requested format if it has the  technological ability. The District has no obligation to purchase software or hardware  to fulfill the request.    An Open Records Request does not generally require the District to produce  information that does not exist. If the information can be easily produced, it is  expected that the District will make such effort. The District will not provide standing  requests for information.     Purpose  In order to ensure compliance with state law governing requests for public  information (Open Records Requests), the following procedures have been  established for the processing of all Open Records Requests for Public Information  received by the District.    Process  The RMO is responsible for oversight of Open Records Requests for Public  Information and for ensuring timely compliance with state law requirements for  response to those requests.  The District has a maximum of ten (10) business days to  respond.  We are required either (1) to timely fill the response within that maximum  ten (10) business day period or (2) request a legal opinion from the Texas Attorney  General regarding the requirement to disclose the requested information.  The  request to the Attorney General must specify the legal basis for nondisclosure and  must be completed within the ten (10) business day period.      The same day that an Open Records Request for Public Information is received, the  recipient shall immediately forward the original copy of the request, or forward the  TCMUD 1 Page 162 of 200 Meeting Date: JUNE 3, 2009 email request where applicable, to the RMO for processing and tracking.  If the  recipient of the request is the person who has access to or possession of the  requested documents, then the recipient should make a copy so that he/she can  gather the documents necessary to comply with the request; however, the original  shall always be forwarded to the RMO. After gathering all of the responsive  documents, those documents shall be forwarded to the RMO who will complete the  process and provide the documents to the requestor. All responsive documents shall  be submitted to the RMO within four (4) business days of receipt of the request.     When the recipient can immediately fill the request, the recipient is to provide the  copy to the requestor and then send both a copy of the request and a copy of the  responsive information provided to the RMO.     Upon receipt of an Open Records Request for Public Information, the RMO will  calendar the request and work with appropriate staff members to obtain THE  responsive documents.  The Records Management Officer will make all copies and  provide the responsive documents to the requestor.    Departments that keep multiple copies of orders or resolutions available in their  respective work areas for members of the public may continue to provide copies of  those documents to the public without requiring a written request for records.   If a  department is providing a copy of an order or resolution that the department does  not normally keep multiple copies of for distribution to the public, then the requestor  should be required to complete an Open Records Request form.  This ensure the  request was filled within the time limits.      Staff does not have the authority to refuse to accept an Open Records Request or to  require that a requestor return on or resubmit a request on a subsequent date when  either the RMO or other staff member is available.  If the request is given verbally,  Staff should advise the Requestor that the District cannot accept verbal requests.   There are NO circumstances under which an open records request may be refused.   Even if the District does not maintain the requested records, the request must be  processed through the RMO.     If there are any questions, contact the RMO or the District Manager.  In their  absence, always take the Requestors Request of Information and forward to the  RMO.    Timing Issues  The District must “promptly produce” the requested information. What is considered  reasonable and prompt will vary depending on the number of documents sought by  the requestor. In some cases, the request may take weeks to fulfill. If it will take  longer than ten (10) business days to provide the records, the District must indicate  (in a written format) a set date and hour within a reasonable time that the  information will be available. The amount of time that the District has to produce  TCMUD 1 Page 163 of 200 Meeting Date: JUNE 3, 2009 copies of records will vary depending on the amount of information that is  requested. There are six (6) situations that present timing deadlines for the  municipality, which are:    1) Notice to requestor that the District needs additional time to produce records. If  the District is unable to produce the requested record in ten (10) days, the District  must certify that fact in writing to the requestor and set a date and hour within a  reasonable time that the information will be available.    2) Notice to requestor that the District needs additional time to produce records that  are in active use or in storage. If the District needs additional time because the  records are in active use or in storage, the District must notify the requestor of this  fact. This notice must be given within ten (10) business days of the request. The  notice must set a date and hour within reasonable time that the information will be  available.    3) Notice to requestor of programming or manipulation costs. If production of the  requested information in a particular format would require additional computer  programming or manipulation of data, the District must provide written notice of this  fact. The notice must indicate that the information is not available in the requested  format. It must also state an estimated cost and the time that it would take to  provide the information in that format. The notice must include a description of the  forms in which the information is available and a description of any contract or  services that would be required to provide the information in the requested format.  This notice must be provided to the requestor within twenty (20) days of the receipt  of the request.    4) Request by a District for open records ruling from the Attorney General. If a  District plans to withhold certain documents or information, it must (in most cases)  request a ruling on the ability to withhold such information. The written request for  an Attorney General ruling must be made within ten (10) days of the receipt of the  request.    5) Notice to requestor that District sought an Attorney General ruling. The District  must provide written notice to a requestor if the District seeks an Attorney General  open records ruling on the request. This notice must be given within ten (10) business  days of the receipt of the request for records.    6) Notice to person or entity with proprietary interest in information of Attorney  General open record ruling request. If an open record request may result in the  release of proprietary information, the District must make a good faith attempt to  notify the person or entity that had such an interest of the open record ruling  request. The written notice must be sent within ten (10) business days of the date  TCMUD 1 Page 164 of 200 Meeting Date: JUNE 3, 2009 that the original request for information. This type of notice must include the written  request for information and a statement that the person is entitled to submit a letter  to the Attorney General in support of withholding the information. The author must  inform the person that any such briefing must state each reason the person has as to  why the information should be withheld and the legal rationale supporting such an  assertion. This note must be provided within ten (10) days of the date the person  receives the written notice from the District.    Attorney General Ruling  The District is required to ask the Attorney General for an open records ruling in  almost all cases if the District wants to withhold the requested records or  information. If one believes that a particular document falls within one of the  statutory exceptions, this fact does not eliminate the need to request a ruling. If you  believe that your information is confidential, contact the RMO immediately. There are  four (4) items that must be provided with a request for an Attorney General’s ruling.  • The legal rationale for withholding the information;   • A copy of the open records request;  • A marked copy of the requested District record (reflecting the statutory or  common exemptions claimed);  • A signed statement or other evidence of when the District received the open  records request.    If an Attorney General ruling is sought, the District must provide notice to the  requestor within ten (10) days of the Open Records Request. This notice must include  a copy of the written communication that outlines the District’s rationale for  withholding the information.    The Attorney General has forty‐five (45) days to determine if the information should  be exempted from disclosure.    Inquiries to Determine the Intent of the Requestor  Staff cannot inquire as to the motives of the request for information. The District can  clarify the type of information that is actually being sought. The District can ask for  proper identification of the requestor.    Fees Associated with Open Records Request  Attached as Appendix B is a Fee Schedule from the Texas State Library for Open  Records Requests. Please refer to this schedule when charging for records or  information.    TCMUD 1 Page 165 of 200 Meeting Date: JUNE 3, 2009 Appendix A    Designated Record Liaison Officers    Accounting/Finance ~ Renae Gonzales    Fire Department ~ Danny Thomas    Human Resources ~ Tammy Ard    MUD Administration ~ Mary Moore    Utility Billing ~ Dana McMahon  TCMUD 1 Page 166 of 200 Meeting Date: JUNE 3, 2009 Appendix B  Open Records Request Fee Schedule Supplies, postage, shipping and third-party access or use charges will be billed at actual costs. The minimum fee for any service requiring an invoice is $1.00. Sources for the following quoted amounts may be found at: 13 TAC 2.51 and 1 TAC 111.61 – 111.70 Photocopies Standard-size (8.5 inches by 14 inches or smaller) copies: .10 cents/page Over-size (larger than 8.5 inches by 14 inches) copies: .50 cents/page Certification of copies: $1.00/instrument FAX Local: $.10 cents/page Long-distance, same area code: $.50 cents/page Long-distance, different area code: $1.00/page Other Diskette: $1.00 Magnetic Tape: $10.00/roll VHS Videocassette: $2.50/each Audiocassette: $1.00/each Color Transparencies: 4 inches by 5 inches (90 day rental) $30.00/each Duplicates of Archival Photographs $5.00/each (not including reproduction costs) TCMUD 1 Page 167 of 200 Meeting Date: JUNE 3, 2009 APPENDIX C    TCMUD 1 Page 168 of 200 Meeting Date: JUNE 3, 2009 TCMUD No. 1 RECORDS MANAGEMENT PLAN ~ 2009 33 APPENDIX D  TCMUD 1 Page 169 of 200 Meeting Date: JUNE 3, 2009 5000-02 COMPLAINTS Final settlement of complaint + 2 years. AV after indication made. 5000-03 CONFIDENTIALITY REQUESTS A. If indication of confidentiality is made in a customer account history. CONFIDENTIALITY REQUESTS B. If indication of confidentiality is not made in a customer account history. Until destruction of all records that contain personal information about the customer. Exempt from destruction request requirement 5000-04 CUSTOMER BILLING RECORDS (All other government utilities, if records document the payment of any monies remittable to the State Comptroller of Public Accounts. FE + 5 years. 5000-06 CUSTOMER USAGE REPORTS AND PLANS 3 years. 5000-07 DISCONTINUANCE OF SERVICE RECORDS 1 year. Exempt from destruction request requirement TCMUD 1Page 170 of 200Meeting Date: JUNE 3, 2009 US + 1 year. 5000-09 EQUIPMENT INVENTORY RECORDS A. For a complete inventory that is periodically revised and reprinted. EQUIPMENT INVENTORY RECORDS B. For an inventory that is maintained on cards or similar discrete media. PERMANENT - Records of individual items may be pulled from a card or similar file and destroyed when the item is junked or salvaged. Exempt from destruction request requirement 5000-10 MAPS AND PLATS US Review before disposal; some maps may merit permanent retention for historical reasons. Exempt from destruction request requirement 5000-11 METER READING RECORDS 3 years. 5000-12 OPERATION AND MAINTENANCE MANUALS US Exempt from destruction request requirement TCMUD 1Page 171 of 200Meeting Date: JUNE 3, 2009 PERMANENT. 5000-13 PLANNING STUDIES AND REPORTS A. Special planning studies or reports prepared by order or request of the governing body or considered by the governing body (as reflected in its minutes) or ordered or requested by a state or federal agency or a court. PLANNING STUDIES AND REPORTS B. All other planning reports or studies. 10 years Review before disposal; many records of this type may merit permanent or long-term retention for administrative or historical reasons. See also item number 1000-39 in Local Schedule GR (Records Common to All Local Governments) 5000-15 RATE SCHEDULES, REGULATIONS, AND CHANGE DOCUMENTATION a. Maintained by a local government as operator of a utility. PERMANENT 1 year. Exempt from destruction request requirement. 5000-16 SERVICE APPLICATION AND DEPOSIT RECORDS a) Service applications, unless needed for (b). SERVICE APPLICATION AND DEPOSIT RECORDS b) Receipts, refund cards, and related records documenting customer deposits and refunds. FE of refund of deposit or its credit to unpaid balance + 3 years. TCMUD 1Page 172 of 200Meeting Date: JUNE 3, 2009 SERVICE APPLICATION AND DEPOSIT RECORDS c) Records of unclaimed deposits. 4 years. By regulation - 30 TAC 91.84(f)(3) for water utilities. 5000-17 SERVICE INTERRUPTION RECORDS 3 years. 5000-18 STANDARDS AND SPECIFICATIONS FILES AV Exempt from destruction request requirement 5000-19 WORK ORDERS 2 years 5025-01 BACTERIOLOGICAL ANALYSIS RECORDS 5 years 5025-02 CHEMICAL ANALYSIS RECORDS 10 years 5025-03 GROUNDWATER MONITORING RECORDS 3 years 5025-05 LEAD AND COPPER COMPLIANCE RECORDS 12 years TCMUD 1Page 173 of 200Meeting Date: JUNE 3, 2009 5025-06 OPERATIONAL PERMITS AND APPROVALS Expiration, cancellation, revocation, or denial + 5 years. 5025-07 OPERATIONS RECORDS 3 years. 3 years. 5025-08 REPORTS TO REGULATORY AUTHORITIES a) Periodic reports compiled and submitted on less than an annual basis. REPORTS TO REGULATORY AUTHORITIES b) Annual and biennial reports or special reports ordered or required by a regulatory authority. PERMANENT 5025-09 SANITARY SURVEYS 10 years 5025-10 TAP AND HOOK-UP LOGS PERMANENT TCMUD 1Page 174 of 200Meeting Date: JUNE 3, 2009 5025-11 VIOLATION REPORTS 3 years after last action taken with respect to the particular violation. Expiration, cancellation, revocation, or denial of the permit + 5 years. 5025-12 WATER AND WASTEWATER PERMIT FILES a) Applications for and similar records relating to the issuance and renewal of permits by a local government for the installation of septic tanks, water and sewer taps and hook-ups, and water meters; for waste discharge; and for other water or wastewater-related installations or activities required by ordinance, regulation, or statute (for logs of such permits see item numbers 5025-10 and 5025-13). WATER AND WASTEWATER PERMIT FILES b) Records concerning variances or exemptions. Expiration of variance or exemption + 5 years. 5025-13 WATER AND WASTEWATER PERMIT LOGS PERMANENT. TCMUD 1Page 175 of 200Meeting Date: JUNE 3, 2009 Government TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1 Office (if Applicable) Department (If Applicable) Address 100 MUNICIPAL DRIVE LOCAL GOVERNMENT RECORDS CONTROL SCHEDULE Pursuant to Local Government Code § 203.041 Texas State Library and Archives Commission SLR 500 (2/93) City TROPHY CLUB Zip 76262 Telephone 682-831-4685 Records Management Officer ORIGINAL FILING AMENDED FILING Date ___5/8/2009____ Page ____7____ of ____7____ RETENTION PERIOD RECORD NUMBER RECORD TITLE OFFICE STORAGE TOTAL DISPOSITION X 5025-14 WATER AND WASTEWATER TREATMENT SLUDGE RECORDS c) Monitoring information relating to sewage sludge use and disposal activities. WATER AND WASTEWATER TREATMENT SLUDGE RECORDS d) Trip tickets completed by transporter and retained by generator of sludge. 5 years 5025-15 WATER POLLUTION CONTROL AND ABATEMENT FILES 5 years TCMUD 1Page 176 of 200Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-83-M1 File ID: Type: Status: 09-83-M1 M1 Agenda Item Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 05/22/2009File Created: Final Action: *File Name: Title: Discuss and take appropriate action regarding Amendment to the Information Form for TCMUD No. 1 (Consolidated). (Staff) Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: Attachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-83-M1 Discuss and take appropriate action regarding Amendment to the Information Form for TCMUD No. 1 (Consolidated). (Staff) With the consolidation of the two MUDs, it is now necessary to do another Amendment to the Information Form. The amendment was not ready when packets went out; however, it will be forwarded prior to meeting date. TCMUD 1 Page 177 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-70-M1 File ID: Type: Status: 09-70-M1 M1 Agenda Item Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 04/29/2009File Created: Final Action: *File Name: Title: Discuss and take action to establish a regular meeting day and time for TCMUD No. 1 (Consolidated) a. First Wednesday at 6 or 7 p.m. - July 1, 2009 b. Second Tuesday at 6 or 7 p.m. - July 7, 2009 c. Second Thursday at 6 or 7 p.m. - July 9th, 2009 Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: Attachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 05/12/2009Trophy Club Municipal Utility District No. 1 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-70-M1 Discuss and take action to establish a regular meeting day and time for TCMUD No. 1 (Consolidated) a. First Wednesday at 6 or 7 p.m. - July 1, 2009 b. Second Tuesday at 6 or 7 p.m. - July 7, 2009 c. Second Thursday at 6 or 7 p.m. - July 9th, 2009 [Enter body here.] TCMUD 1 Page 178 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-85-m1 File ID: Type: Status: 09-85-m1 M1 Agenda Item Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 05/26/2009File Created: Final Action: *File Name: Title: Review and Approve Minutes a. May 12, 2009 - Regular Joint Session Minutes - MUD 1 & MUD 2 b. April 14 2009 - Last Regular Session Minutes for Trophy Club Master District carried over from canceled May MD Meeting. Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: Joint M1-M2 Mins 051209.pdf ,MD Minutes 041409.pdf Attachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-85-m1 Review and Approve Minutes a. May 12, 2009 - Regular Joint Session Minutes - MUD 1 & MUD 2 b. April 14 2009 - Last Regular Session Minutes for Trophy Club Master District carried over from canceled May MD Meeting. TCMUD 1 Page 179 of 200 Meeting Date: JUNE 3, 2009 MINUTES OF REGULAR JOINT SESSION TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 & TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 2 May 12, 2009 The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties and the Board of Directors of Trophy Club Municipal Utility District No. 2 of Denton County met in Regular Joint Session on Tuesday, May 12, 2009, at 6:00 p.m., in the Boardroom of the Administration Building, 100 Municipal Drive, Trophy Club, Texas 76262. MUD 1 DIRECTORS PRESENT: Dean Henry President Gary Cantrell Vice President Jim Hase Asst. Secretary/Treasurer Neil Twomey Director MUD 1 DIRECTOR(S) ABSENT: Connie White Secretary/Treasurer MUD 2 DIRECTORS PRESENT: Jim Budarf President Kevin Carr Vice-President James C. Thomas Secretary/Treasurer Carol Borges Director Steven Kohs Director STAFF AND GUESTS PRESENT: Robert Scott District Manager Danny Thomas Fire Chief Kathy DuBose Finance Director Mary Moore MUD Secretary Bob West Attorney Pam Liston Attorney Brandon Emmons Town Manager Larry Hoover 1118 Brookshire Shirley Hase 209 Inverness Drive Betty Ann Henry 308 Oakmont Drive Bob Radder 1 Lee Court REGULAR JOINT SESSION Call to Order and Announce a Quorum. a. Municipal Utility District No. 1 Vice President Cantrell announced a quorum and called the meeting to order at 6:00 p.m. b. Municipal Utility District No. 2 President Budarf announced a quorum and called the meeting to order at 6:01 p.m. 1. Discuss and take appropriate action regarding a Resolution to amend the fiscal year October 1, 2008 through September 30, 2009 budget for Trophy Club Municipal Utility District No. 1 and Trophy Club Municipal Utility District No. 2. TCMUD 1 Page 180 of 200 Meeting Date: JUNE 3, 2009 MUD 1: Director Cantrell moved to approve the Resolution, amending the MUD 1 budget for fiscal year 2008-2009, as presented by Finance Director DuBose. Director Henry seconded the motion. Floor opened for discussion. Motion carried unanimously. MUD 2: Director Borges moved to approve the Resolution, amending the MUD 2 budget for fiscal year 2008-2009, as presented by Finance Director DuBose. Director Carr seconded the motion. Motion carried unanimously. 2. Review and Approve Disbursements & Variance Report a. March 2009 MUD 1: Director Henry moved to approve the March 2009 disbursements and variance report. Director Cantrell seconded the motion. Motion carried unanimously. MUD 2: Director Thomas moved to approve the March 2009 disbursements and variance report. Director Borges seconded the motion. Floor opened for discussion. Motion carried unanimously. 3. Consider canvassing the returns of the Consolidation Election held within the District on May 9, 2009, and the adoption of an Order in connection herewith. Board agreed with attorneys’ advice to postpone discussion and action until after discussions are held in Closed Session. Action: See below. 4. Discuss and take appropriate action regarding the passage, adoption, entering, approval, and recording of an order, resolution, or other document as may be necessary to evidence the consolidation of Trophy Club Municipal Utility District No. 1 and Trophy Club Municipal Utility District No. 2 into one Municipal Utility District to be known as Trophy Club Municipal Utility District No. 1. Discussion held with no action. Action: None 5. Discuss and take appropriate action concerning the Town’s Plan to Abolish and Absorb MUD2. No discussion held. Action: None 6. Discuss and take appropriate action concerning shared employees. MUD 1 & MUD 2: Director Budarf advised that it was never the intent of the MUDs to wholesale out the employee services contract. Budarf added that Mayor Elect White has asked the MUD Board to give her some time to work on this issue. TCMUD 1 Page 181 of 200 Meeting Date: JUNE 3, 2009 Director Hase stated we may want to have a joint meeting with the Town to re-negotiate the employee services contract, as the agreement was between the Master District and the Town. Action: Discussion held; no action. 7. Discuss and take appropriate action regarding Order 2009-0512-A, establishing Mary Moore as the Records Management Officer for MUD 1 and MUD 2. MUD 1 & MUD 2: Director Carr suggested making sure that the policy be reviewed to ensure that it is a strong policy and one that works with the Town, as the entry point, and that there is interaction between Town and MUDs for ORRs and other applicable requests. Boards agreed to table this item to the June meeting. Action: Tabled to June meeting. 8. Discuss and take appropriate action to accept the revised MUD Records Retention Schedule and a revised MUD Records Management Plan. MUD 1 & MUD 2 Boards discussed this item along with Agenda Item 7 and agreed to table this Item to the June meeting. Action: Tabled to June meeting. 9. Discuss and take appropriate action regarding Order 2009-0512-B, adopting a revised Drought Contingency Plan. MUD 1: Director Cantrell moved to approve Order 2009-0512-B, adopting the revised Drought Contingency Plan for MUD 1. Director Henry seconded the motion. Floor opened for discussion. Attorney West advised that the attorneys have reviewed this plan and recommends approval. Motion carried unanimously. MUD 2: Director Thomas moved to approve Order 2009-0512-B, adopting the revised Drought Contingency Plan for MUD 2. Director Carr seconded the motion. Motion carried unanimously. 10. Review and Approve Minutes MUD 1: a. April 14, 2009 - Regular Session minutes b. April 14, 2009 - Joint Session minutes Director Henry moved to approve the April 14th meeting minutes (both). Director Hase seconded the motion. Motion carried unanimously. MUD 2: a. April 1, 2009 - Regular Session minutes b. April 14, 2009 - Joint Session minutes Director Carr moved to approve the April 1st and the April 14th meeting minutes. Director Thomas seconded the motion. Motion carried unanimously. 11. Review Monthly Tax Collection Report TCMUD 1 Page 182 of 200 Meeting Date: JUNE 3, 2009 a. March 2009 MUD 1: Board reviewed report; no action. MUD 2: Board reviewed report (handed out at meeting) with no action. 12. Set Next Meeting Date MUD 1 – MUD 2: a. Tuesday, June 9, 2009 at 6:00 p.m. b. Possible special meeting before end of May Director Twomey suggested having a Budget Workshop on Tuesday, June 2 with a regular meeting on Thursday, June 4. Twomey suggested giving guidance to the Finance Director to build into next year’s budget the issuance of a $2 million fire construction bond, given the current timetable for construction of the new Fire Station. Director Cantrell recommended having Director Twomey work with District Manager Scott in preparation of the Budget Workshop. Both Boards agreed to meet on Wednesday, June 3, 2009 at 6:00 p.m. for a Budget Meeting/Workshop and to have a regular meeting on Thursday, June 4th, 2009 at 7:00 p.m. 13. Items for Future Agendas MUD 1: a. Research ramifications should Town take over MUD 2. (12/08) b. Discuss and take appropriate action regarding clarification of assets for 2008-2009 fiscal year audit. (Joint meeting with MUD 2) c. Amendment of New Intergovernmental Contract for Employee Services. (per Attorney West 3/24/09) No discussion held. CONVENE INTO CLOSED SESSION (JOINT) *CLOSED SESSION Both Boards convened into Closed Session at 6:50 p.m. with the MUD 2 Board inviting the MUD 1 Board to address Item D. Pursuant to Section 551.071 (a) & (b) of the Texas Government Code regarding consultations with attorney, to conduct a private consultation with the district's attorney on a matter in which the duty of the attorney to the governmental body under the Texas disciplinary rules of professional conduct of the State Bar of Texas clearly conflicts with the Open Meetings Act regarding the following: A. Receive legal advice regarding Consolidation of MUDs 1 and 2. B. Receive legal advice regarding the Town Plan to Abolish and Absorb MUD2. C. Receive legal advice regarding status of the pending litigation with the Town. D. Pursuant to section 551.074 (a) and (b) of the Texas Government Code regarding personnel matters, to deliberate the appointment, evaluation, duties, or discipline of a public officer or to hear a complaint or charge against a public officer: MUD2 Director Steven Kohs TCMUD 1 Page 183 of 200 Meeting Date: JUNE 3, 2009 RECONVENE INTO REGULAR SESSION Both Boards reconvened into Open/Regular Session at 7:50 p.m. Boards took a five-minute break at 7:55 p.m., resuming at 8:00 p.m. MUD 2: D. MUD 2 Director Steven Kohs Director Budarf moved that we as MUD 2 Board, censure Steven Kohs for providing false, misleading and inflammatory information pertaining to and affecting MUD affairs. Director Budarf then asked Director Kohs for his resignation. Director Kohs advised he would not give his resignation. Director Borges seconded the motion. Floor opened for discussion. Motion carried 4-1-0, with Director Kohs voting against. Both Boards agreed to address Agenda Item No. 3: 3. Consider canvassing the returns of the Consolidation Election held within the District on May 9, 2009, and the adoption of an Order in connection herewith. MUD 1: Director Cantrell moved to approve the Order, canvassing the returns of the Consolidation Election. Director Hase seconded the motion. Motion carried unanimously. MUD 2: Director Budarf moved to approve the Order, canvassing the returns of the Consolidation Election. Director Thomas seconded the motion. Floor opened for discussion. Motion carried unanimously. 14. Discuss and take appropriate action relative to discussions held Closed Session. MUD 1 (Consolidated): C. Receive legal advice regarding status of the pending litigation with the Town. Director Hase moved to instruct the MUD attorneys to prepare a written agreement to be presented to the Town for joint signature to cancel all legal actions currently in process including but not limited to, a provision advising our legislators to oppose any new legislative changes affecting Trophy Club MUD No. 1. Director Thomas seconded the motion. Motion carried unanimously. TCMUD 1 Page 184 of 200 Meeting Date: JUNE 3, 2009 MUD 1 – MUD 2 Regular Joint Minutes - May 12, 2009 6 Adjourn. Meeting adjourned at 8:15 p.m. ____________________________________ Dean Henry, President TCMUD No. 1 (SEAL) ____________________________________ Jim Hase, Asst. Secretary/Treasurer TCMUD No. 1 ___________________________________ Jim Budarf, President TCMUD No. 2 (SEAL) ___________________________________ Jim Thomas, Secretary/Treasurer TCMUD No. 2 ____________________________________ Mary Moore, MUD Secretary TCMUD 1 Page 185 of 200 Meeting Date: JUNE 3, 2009 MINUTES OF REGULAR SESSION of TROPHY CLUB MUNICIPAL UTILITY DISTRICT 1 and TROPHY CLUB MUNICIPAL UTILITY DISTRICT 2 dba TROPHY CLUB MASTER DISTRICT BOARD April 14, 2009 The Board of Directors of the Trophy Club Master District met in Regular Session on Tuesday, April 14, 2009, at 6:00 p.m., in the Boardroom of the Administration Building, 100 Municipal Drive, Trophy Club, Texas 76262. Master District Directors Present: Connie White Chair Carol Borges Vice Chair James Thomas Secretary/Treasurer James Budarf Board Member Gary Cantrell Board Member Kevin Carr Board Member Jim Hase Board Member Dean Henry Board Member Steven Kohs Board Member Neil Twomey Board Member Staff and Guests Present: Robert Scott District Manager Kathy DuBose Finance Director Danny Thomas Fire Chief Mary Moore MUD Secretary Bob West MUD 1 Attorney Pam Liston MUD 2 Attorney Brandon Emmons Town Manager Adam Adams Parks and Recreation Director Jasmine Lee Recreation Supervisor Mike Pastor IT Manager Pauline Twomey 203 Oakmont Greg Lamont 15 Avalon Drive Bill Rose 219 Inverness Peggy Sweeney 51 Meadowbrook REGULAR SESSION Call to Order and Announce a Quorum. Chair White announced a quorum and called the meeting to order at 6:20 p.m. Citizen Presentation No citizen comments. 1. Parks and Recreation Staff to give a presentation on upcoming events and request a sponsorship donation in the amount of $10,000.00 from the Master District. TCMUD 1 Page 186 of 200 Meeting Date: JUNE 3, 2009 Recreation Supervisor Jasmine Lee gave a presentation to the Board, outlining recently held events and in-kind donations received. For the 4th of July Event Sponsorship, P&R is expecting a contribution in the neighborhood of $5,000 to $7,000 from Centurion American. Parks and Recreation Director Adams advised that approximately $6,000 was saved by booking our fireworks early (last August). Director Budarf asked how, if at all, the Town’s budget cuts may affect the July 4th celebration. Adams advised to date there has been no effect. The July 4th event will again be held at the Trophy Club Pool parking lot. Several of the Board members complimented Jasmine on her presentation as well as her Sponsorship letter/agreement. Director Thomas moved to approve the payment and immediate transfer of $10,000 as the MUDs’ sponsorship donation for the 2009 4th of July Event. Director Carr seconded the motion. Floor opened for discussion. Motion carried unanimously with Directors Kohs abstaining as a member of the Parks and Rec Board and Director Cantrell abstaining pursuant to Master District equal-voting procedure. Voting Directors: Borges, Budarf, Carr, Hase, Henry, Kohs, Thomas, Twomey and White. Directors not voting pursuant to Master District equal-voting procedure: Cantrell Directors absent: n/a 2. Review and Discuss Previous Month's Action Items a. Update/report from Directors Cantrell/Twomey/Hase outlining a Review Debt versus Expenses Board requested this be carried over to the May meeting. Director Cantrell advised he is an alternate on this report. Action: Tabled to May meeting. 3. Discuss and take appropriate action to authorize the publication and distribution of factual information to residents relative to the election and/or consolidation, to include the possibility of creation of a Trophy Club Municipality Utility District website. Director Budarf advised that at the present moment the MUDs have no say as to what goes on the website. Director Carr believes it is easier to resolve the issue than put out additional money and would like to table this issue until after the election. Director Kohs asked for an explanation as to the issues with MUDs not being allowed to put items on the website. Chair White stated that Town Manager Emmons would not allow a link to be placed on the first/front page of the website to the Consolidation Task Force Report. Town Manager Emmons advised that he felt it was not appropriate to put the Consolidation Task Force Information on the front page. TCMUD 1 Page 187 of 200 Meeting Date: JUNE 3, 2009 Information Technology Manager Pastor stated the domain names, www.tcmud.org and www.tcmud.com are both currently active, and they go directly to the MUDs’ homepage. Chair White clarified there is no additional cost at this time for these domain names. Action: Discussion only; no action taken. 4. Discuss and take appropriate action concerning recommendations from the Master District to the Town of Trophy Club for the compensation and benefits of each Town employee performing services for the Master District and the funding thereof. Chair White stated that this is for the Board to consider giving our shared employees their merit raises. Due to the Town’s financial situation, merit raises were frozen for all Town employees, including “shared” employees. The MUDs’ estimated cost for merit raises is $13,655 and the Town’s estimated cost for merit raises is $12,874 for a total of $25,939, and recommends action be taken at the May meeting – after the election. Town Manager Emmons commented that merit raises are for job performance that exceeds what is expected, and it has become an issue where it is an expectation and that is not the intent. All of our employees deserve more money than what they receive, and all employees receive their cost of living raise in October. Emmons stated that merit raises have become almost an obligation. Emmon’s position is that merit raises are temporarily frozen, until we progress through our budget to make a determination to provide a merit increase to those performers who excel. Chair White stated she had discussed with Town Manager Emmons the funding of all Town employees; however, that, too, was also not well received by Town Manager Emmons. White explained that it was never the MUD’s intent to give out raises unless they were well-deserved. Director Budarf stated that the MUDs understand the Town’s budget problems; the MUDs are offering to help out and pay the merit raises this year; the MUDs are stepping up. Let’s ensure we keep our good employees, and we’re still being greeted with a brick wall. Chair White restated that the reason she did not bring forth the request to pay merit raises for all employees was that Town Manager Emmons was reluctant to agree to it. Director Thomas asked counsel if we can even do that. Attorney West advised that if it has the ability of retaining good employees, then it would be considered a prudent move toward retaining our good employees and is within the Board’s discretion. District Manager Scott advised that a certain amount would be offered to the Town Manager Emmons for Emmons to distribute to those employees whom he deemed as deserving of the raise. Director Kohs asked Town Manager Emmons if offered, would he accept it. Town Manager Emmons stated yes, he would; however, with no strings attached. Director Borges requested Town Manager Emmons and District Manager Scott work together to come up with a number for those employees who would receive/deserve a merit raise and bring that before the Board. TCMUD 1 Page 188 of 200 Meeting Date: JUNE 3, 2009 Town Manager Emmons added that we need to look at how this raise impacts future years. While we calculate these changes, what the impact could be on next year’sbudget, which may reduce or alter amounts that are given. Emmons advised the Town’s budgeted portion for merit raises is approximately $73,000. Director Cantrell asked the Board to look short term and long term and to consider what it would cost if we lose employees. Action: Tabled to May meeting. 5. Discuss and take appropriate action regarding First Financial Bank Resolution, amending Authorized Representatives on signature accounts. Director Cantrell moved to approve amending the authorized representatives on the First Financial Bank Resolution to Robert Scott, Mary Moore, Kathy DuBose, Dean Henry and Jim Thomas. Director Borges seconded the motion. Floor opened for discussion. Motion carried unanimously. Voting Directors: Borges, Budarf, Cantrell, Carr, Hase, Henry, Kohs, Thomas, Twomey and White. Directors not voting pursuant to Master District equal-voting procedure: n/a Directors absent: n/a 6. Discuss and take appropriate action regarding contract renewal with Trophy Club Country Club for sale of effluent. District Manager Scott stated this is before the Board for their consideration. Director Thomas asked if we sell 100% of the effluent; and District Manager Scott advised that we do not. Town Manager Emmons advised that the Town would not be using effluent. The Town will be constructing wells versus using effluent. It would cost $1.4 million to get water from WWTP to holding ponds, and then back down to the medians, and then $400,000 for both wells, $200,000 per well, operational costs of wells is $90,000 annually; plus the irrigation system. The more economical route was to dig wells. Director Carr stated he would prefer to stay with past practice and go with a three-year contract. Director Henry advised that Trophy Club Country Club has been a good customer, followed up on their obligations, very helpful with easement rights. The Country Club is proposing a contract for five years. Henry recommends District Manager Scott make a recommendation, and then request the Board’s vote. Director Budarf moved to renew the contract with Trophy Club Country Club for the sale of effluent, as presented (six-year contract). Director Twomey seconded the motion. Floor opened for discussion. Director Kohs advised for the record that he supports a three-year contract. Peggy Sweeney addressed the Board. Motion carried unanimously. Voting Directors: Borges, Budarf, Cantrell, Carr, Hase, Henry, Kohs, Thomas, Twomey and White. Directors not voting pursuant to Master District equal-voting procedure: n/a Directors absent: n/a TCMUD 1 Page 189 of 200 Meeting Date: JUNE 3, 2009 7. Discuss and take appropriate action concerning the Town's Plan to Absorb MUD 2. Director Hase advised he had questions regarding the statement on Page 20, there is no revenue loss. Hase clarified that if the MUDs consolidate, Solana will pay 21% of MUD 2’s debt versus if the Town takes over MUD 2, the revenue from Solana stays within MUD 1. Director Borges commented that she feels very strongly that MUD 2 residents need to realize the impact the Town is proposing in their plan to abolish MUD 2. If MUD 2’s water bill goes up $35.00 a month and residents lose their tax write off, it will affect those residents who may have lost their jobs, families with children, those on a limited income, and retirees. Director Carr asked for clarification from Town Manager Emmons; currently taxes are based on valuation of a home’s appraised value. A $600,000 home is taxed differently than a $200,000 home. Are you proposing that now both customers pay the same admin fee? Town Manager Emmons responded that depending on what the final action of Council takes in the event the abolition of MUD 2 occurs, it would either be placed on the actual usage, per thousand-gallon usage, or an administrative fee. We’re attaching the debt back to the product that they are using, water and wastewater. The largest product user would pay a larger portion versus a property tax valuation, because a $600,000 home could use less water and a $200,000 home could use twice that amount of water. Different methodology; the more you use the more you pay for that debt service. Director Carr asked how long would it take to make up the property tax shortfall of that tax money coming in versus the admin fee? Town Manager Emmons advised it’s all based on debt service, and the ability to pay back the existing debt service for MUD 2. Currently, the debt service tax rate for MUD 2 has already been levied; it has already been collected to pay the sufficient amount for this year. When Town takes over the operations, we will begin the assessment on the properties, and start building back that debt service requirement. We will have sufficient time to make those obligations. Director Budarf asked if the Town takes over MUD 2, won’t MUD 2 residents being paying double, due to Town implementing an increased fee in June as the residents have already paid their property taxes for the year? With our bonds, tax-based bonds, how are you going to do that? Chair White clarified that as soon as Council approves the methodology of an increased water cost or admin fee, then MUD 2 residents from that point on will be paying twice. Director Cantrell stated his property taxes are paid on calendar year not by the Town’s fiscal year, so the taxes have been paid for 2009. The Town’s plan is to begin in June, which will cause MUD 2 to pay over and above their taxes for at least six (6) months. Director Carr asked Town Manager Emmons what was the backup plan to pay off/down MUD 2’s bonded indebtedness should the Fire District Plan fail. Town Manager Emmons stated it is the intent that the Fire District will be approved. In that event (it fails), then we will address that sufficiently. The backup plan is, if there is an obligation to pay, then the Town is going to take the proper steps to make sure we fulfill those obligations. Director Carr verified that MUD 1 could be affected. Town Manager Emmons stated MUD 1 could be affected; but that is not the primary plan right TCMUD 1 Page 190 of 200 Meeting Date: JUNE 3, 2009 now. Director Thomas stated the bonded indebtedness is tax-based, and would require the full year’s cash be deposited on October 1st, and that the Town cannot have that cash available by October 1st. Town Manager Emmons replied that the Town has provisions they can utilize that will guarantee they will remain tax-based bonds. Director Thomas clarified that this proposal states you are going to replace those with a water fee. Town Manager Emmons replied that we are backing the debt with a tax and then supplementing the loss in the operational tax the Town currently has with another revenue stream. Director Thomas clarified that the revenue stream will not come in on time, by October 1st, and would not be sufficient to cover the debt. Thomas has asked MUD 2 residents if they would vote for a Fire District when he explained that a “Yes” vote would require MUD 2 residents to pay 100% of a 10% tax or a “No” vote would require MUD 2 residents only pay 50% of a 10% tax. 100% of the residents Thomas questioned voted to pay only the 50%, which is a “No” vote for the Fire District. Town Manager Emmons stated that they will not use funds allocated for the Fire Station. Director Budarf stated he has concerns regarding the Fire District. There are so many hurdles to get over. We’re forecasting a fire tax over 10 cents. What happens if we need something and need to increase the fire tax? This Fire District hinges on Denton County Commissioners authorizing it and voters approving it, and then requires a five-person board appointed by the County. So if we’re trying to reduce governance, it seems that this process does not do it. What happens if the vote fails to implement a Fire District? The taxes need to be set in October, however, the Fire District cannot be voted on until November. What happens to the taxes October 1st? No one is going into the details. Director Hase referred to Page 25, where it states all assets of MUD 2 would be absorbed by Town, and clarified that it also includes MUD 2’s debts. Town Manager Emmons agreed. Greg Lamont addressed the Board. Director Hase clarified that when you add up all the contributions from the consolidation of MUD 1 (Solana) and MUD 2 (PID Money, 200 lots in Eagles Ridge development, payment towards Fire station, etc.), and when the Task Force added up all the contributions over the 20-year period, there was a difference of 0.0080 between MUD 1’s rate and the combined rate. The Board could raise the commercial rate to make up the eight-tenths of one cent so MUD 1 residents would realize no increase. Peggy Sweeney addressed the Board. Director Cantrell advised that if the MUDs consolidate, Solana’s contributions will be spread over a larger base. Director Twomey stated that the Board is considering raising the commercial water rates to buy TCMUD 1 Page 191 of 200 Meeting Date: JUNE 3, 2009 down the differences between an unconsolidated MUD and the consolidated MUD. Bill Rose addressed the Board. Director Cantrell advised that the debts between the two MUDs are as close as they’ll ever be and this is the best time for consolidation. Cantrell explained that much of the current debt is from expansion of the wastewater treatment plant to serve the whole town, including the new development, which is why it is appropriate for the $3.8 million from the Highlands to go towards the debt. Action: No action; discussion only. 8. Discuss and take appropriate action regarding planning the consolidation of Trophy Club MUD 1 and Trophy Club MUD 2. Discussed in conjunction with Agenda Item No. 7. Action: None. This agenda item to be carried forward until resolved. 9. Discuss and take appropriate action regarding possible effects on other contracts if the Master District is terminated. No discussion held. Action: None 10. Receive and discuss PowerPoint Presentation by Fire Chief Thomas regarding Temporary Offsite Fire Station Facilities (employees and equipment) at Trophy Club Country Club and take appropriate action concerning same. Chair White advised that at the MUD 1 meeting, the Board learned that approval for the Bond Application has been delayed, and we have been put on the 180-day schedule, and there are several applications before our bond application. District Manager Scott will contact TCEQ to pursue this further. Action: Board agreed to table this agenda item to date uncertain. 11. Receive District Manager's Report a. Water pumped vs. billed b. Monthly Revenue for Wastewater Treatment Plant c. Update on Fort Worth Meter Vault d. Update on Installation of Membrane Disc Filters e. Update on Fort Worth Water Contract f. Generator for Wastewater Treatment Plant g. High-service pump - Water Plant (formerly VFD) District Manager Scott updated the Board. 12. Receive Finance Update a. Finance Director DuBose to provide update, as necessary b. March 2009 PID Connection Fee Report c. Budget Calendar Finance Director DuBose updated the Board. 13. Receive Update from Fire Chief Thomas TCMUD 1 Page 192 of 200 Meeting Date: JUNE 3, 2009 a. To update Board with a Monthly Activity Report and address the Board's questions. b. Update on New Fire Station Fire Chief Thomas updated the Board. 14. Review and Approve Minutes a. March 12, 2009 – Regular Session Minutes Director Thomas moved to approve the March 12, 2009 minutes, as amended. Director Cantrell seconded the motion. Motion carried unanimously. Voting Directors: Borges, Budarf, Cantrell, Carr, Hase, Henry, Kohs, Thomas, Twomey and White. Directors not voting pursuant to Master District equal-voting procedure: n/a Directors absent: n/a The March 12th, 2009, minutes now read as follows: Page 9, Agenda No. 20, Director Thomas moved to approve the December 2008 disbursements and variance report. Director Hase seconded the motion. Floor opened for discussion. Motion carried unanimously. Director Cantrell moved to approve the January 2009 disbursements and variance reports. Director Hase seconded the motion. Floor opened for discussion. Motion carried unanimously. 15. Review and Approve Financials and Variance Report. a. February 2009 Director Thomas moved to approve the February 2009 financials and variance report. Director Budarf seconded the motion. Motion carried unanimously. Voting Directors: Borges, Budarf, Cantrell, Carr, Hase, Henry, Kohs, Thomas, Twomey and White. Directors not voting pursuant to Master District equal-voting procedure: n/a Directors absent: n/a 16. Set Next Master District Meeting Date a. Thursday, May 14, 2009 at 6:00 p.m. The Board agreed to meet on Thursday, May 14, 2009 at 6:00 p.m. 17. Review and Discuss Items for Future Agendas a. Update on MUD1's contract with Fort Worth for water. (Director Twomey) b. Funding of Future Capital Projects; i.e., 2 MG Storage Tank - $2 million c. Rate Order - how it is structured, future capital projects, possibility of a Water Study (Director Twomey) (12/08) d. Disaster planning e. Consider offering services and/or infrastructure to NISD at the new Byron Nelson High School in exchange for recognition. (Director Kohs) f. Amendment of New Intergovernmental Contract for Employee Services. g. New Trinity Well. h. Staffing of Finance Department. (July 2009) Board requested no additions or deletions. TCMUD 1 Page 193 of 200 Meeting Date: JUNE 3, 2009 April 14, 2009 Master District Meeting Minutes 9 Adjourn Meeting adjourned at 9:08 p.m. __________________________________________ Carol Ann Borges, Vice Chair (SEAL) __________________________________________ James C. Thomas, Secretary __________________________________________ Mary Moore, Recording Secretary TCMUD 1 Page 194 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-69-M1 File ID: Type: Status: 09-69-M1 M1 Agenda Item Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 04/29/2009File Created: Final Action: *File Name: Title: Review Monthly Tax Collection Report a. April 2009 Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: April Tax Reports.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 05/12/2009Trophy Club Municipal Utility District No. 1 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-69-M1 Review Monthly Tax Collection Report a. April 2009 [Enter body here.] TCMUD 1 Page 195 of 200 Meeting Date: JUNE 3, 2009 TCMUD 1Page 196 of 200Meeting Date: JUNE 3, 2009 TCMUD 1Page 197 of 200Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-71-M1 File ID: Type: Status: 09-71-M1 M1 Agenda Item Regular Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 04/29/2009File Created: Final Action: *File Name: Title: Items for Future Agendas a. Discuss and take appropriate action regarding clarification of assets for 2008-2009 fiscal year audit. b. Amendment of New Intergovernmental Contract for Employee Services. c. Update on MUD 1's water contract with Fort Worth d. Funding of Future Capital Projects; i.e., 2 MG Storage Tank e. Rate Order modification and possibility of Water Study (Twomey) f. Disaster Planning Notes: Agenda Date: 06/03/2009 Sponsors: Enactment Date: Attachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 05/12/2009Trophy Club Municipal Utility District No. 1 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-71-M1 Items for Future Agendas a. Discuss and take appropriate action regarding clarification of assets for 2008-2009 fiscal year audit. b. Amendment of New Intergovernmental Contract for Employee Services. c. Update on MUD 1's water contract with Fort Worth d. Funding of Future Capital Projects; i.e., 2 MG Storage Tank e. Rate Order modification and possibility of Water Study (Twomey) TCMUD 1 Page 198 of 200 Meeting Date: JUNE 3, 2009 Continued (09-71-M1) f. Disaster Planning TCMUD 1 Page 199 of 200 Meeting Date: JUNE 3, 2009 Trophy Club Entities 100 Municipal Drive Trophy Club, TX 76262 File Number: 09-43-M1 File ID: Type: Status: 09-43-M1 M1 Agenda Item Executive Session 1Version: Reference: In Control: Trophy Club Municipal Utility District No. 1 02/23/2009File Created: Final Action: *File Name: Title: Discuss and take appropriate action relative to discussions held in Closed Session. Notes: Agenda Date: 03/04/2009 Sponsors: Enactment Date: Attachments: Enactment Number: Hearing Date: Contact: Effective Date: *Entered by: mmoore@trophyclub.org History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 Discussion only - No action taken 03/04/2009Trophy Club Municipal Utility District No. 1 This matter was Discussion only - No action taken Action Text: 1 05/12/2009Trophy Club Municipal Utility District No. 1 1 06/03/2009Trophy Club Municipal Utility District No. 1 Text of Legislative File 09-43-M1 Discuss and take appropriate action relative to discussions held in Closed Session. TCMUD 1 Page 200 of 200 Meeting Date: JUNE 3, 2009