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HomeMy WebLinkAboutSeptember 15,2009 Regular Session Agenda PacketTrophy Club Municipal Utility District No. 1 Trophy Club Entities Meeting Agenda 100 Municipal Drive Trophy Club, TX 76262 Svore Municipal Building Boardroom6:00 PMTuesday, September 15, 2009 REGULAR MEETING Call to order and announce a quorum. 1.09-128-M1 Discuss and take appropriate action to accept Director Borges' resignation. BorgesResignationLetter.pdfAttachments: Presentation to Outgoing MUD Director Borges and former MUD Director White. PUBLIC HEARING Trophy Club Municipal Utility District No. 1 to conduct a Public Hearing regarding: A.Proposed tax rate to increase, decrease, or make no change for the fiscal year beginning October 1, 2009 and ending September 30, 2010. B.TCMUD No. 1 Budget for fiscal year beginning October 1, 2009, and ending September 30, 2010. REGULAR SESSION 2.09-121-M1 Discuss and take appropriate action regarding Resolution 2009-0915, adopting and approving the Budget for Trophy Club Municipal Utility District No. 1 for fiscal year beginning October 1, 2009, and ending September 30, 2010. TCMUD1-R-2009-0915-Aprv Budget.pdfAttachments: 3.09-122-M1 Discuss and take appropriate action regarding Resolution 2009-0915-B, fixing and levying the Trophy Club Municipal Utility District No. 1 tax rate for debt service for the fiscal year beginning October 1, 2009, and ending September 30, 2010. TCMUD1-R-2009-0915-B-DebtSvc.pdfAttachments: TCMUD No. 1 1 of 172 15 September 2009 September 15, 2009Trophy Club Municipal Utility District No. 1 Meeting Agenda 4.09-123-M1 Discuss and take appropriate action regarding Resolution 2009-0915-C, fixing and levying the Trophy Club Municipal Utility District No. 1 tax rate for maintenance and operations, including the portion of such tax rate to support the Fire Department, for the fiscal year beginning October 1, 2009, and ending September 30, 2010. TCMUD1-R-2009-0915-C-OnM.pdfAttachments: 5.09-125-M1 Discuss and take appropriate action regarding Resolution 2009-0915-A, approving the Trophy Club Municipal Utility District No. 1 tax roll of the Denton Central Appraisal District and Tarrant Appraisal District for 2009. Resolution-2009-0915-A-Aprv Tax Roll.pdfAttachments: 6.09-78-M1 Receive Finance Director's Update a. Monthly Update b. Consolidation of MUD Financial Accounts 7.09-46-MD Receive Update from Fire Chief Thomas a. To provide Board with a monthly update and address the Board's questions. b. To provide update regarding the New Fire Station. August 09 Fire Report.pdfAttachments: 8.09-53-MD Receive District Manager's Report a. Water pumped vs. billed b. Monthly Revenue for Wastewater Treatment Plant c. Update on Membrane Filters at WWTP d. Update on Water Plant Booster Pump (formerly VFD) e. Update on Fort Worth Meter Vault f. Report on costs for Open Records Requests g. Update on Well Reports from Talem Laboratories BilledVsPumped-August 2009.pdf Well Analyses.pdf Attachments: 9.09-132-M1 Discuss and take appropriate action regarding Consolidation of TCMUD No. 1 and TCMUD No. 2. a. Order 2009-0915-A, terminating agreement concerning disbursement of Centurion American Funds. b. Order 2009-0915-B, terminating agreement concerning Funding Instruments for New Fire Station. Order-Terminate CA Agrmnt.pdf Order-Terminate Agrmnt Fund Instruments.pdf Attachments: TCMUD No. 1 2 of 172 15 September 2009 September 15, 2009Trophy Club Municipal Utility District No. 1 Meeting Agenda 10.09-130-M1 Discuss and take appropriate action regarding Order 2009-0915-C, the 2009-2010 Rate Order. TCMUD1-O-2009-0915-C-RateOrder-draft.pdf TCMUD1 Rate Order 2009-0915-C-final.pdf Attachments: 11.09-81-M1 Discuss and take appropriate action regarding Order 2009-0915, repealing the Ethics Policy and adopting an amended Ethics Policy, a Code of Conduct and a Rules of Procedure for the Board of Directors of TCMUD No. 1. (Budarf) 12.09-127-M1 Discuss and take appropriate action to approve the Public Official Bonds for TCMUD 1 Board of Directors, as required by Texas Water Code Section 49.055(c). (West) Director Bonds.pdfAttachments: 13.09-99-M1 Discuss and take appropriate action regarding agreement between TCMUD No. 1 and the Trophy Club Country Club (TCCC) for the use of a part of TCCC's parking lot for housing of the temporary fire department facilities during construction on the new fire station. (West) TCCC License Agreement-Temporary Fire Station.pdfAttachments: 14.09-105-M1 Discuss and take appropriate action concerning the Public Information Act as it relates to Open Records Requests and establishing policy for the charging of fees for same. (Carr) 2008 Public Information Handbook.pdfAttachments: 15.09-129-M1 Discuss and take appropriate action to nominate and appoint a TCMUD 1 Director to fill the vacancy created by the resignation of Director Borges. 16.09-134-M1 Discuss and take appropriate action regarding nomination(s) for the Denton Central Appraisal District (DCAD) Review Board. DCAD Nomination.pdfAttachments: 17.09-126-M1 Review and Approve Minutes a. February 20, 2009 - MUD 1 & MUD 2 Joint Session Minutes b. August 4, 2009 - Budget Workshop Minutes c. August 5, 2009 - Regular Session Minutes d. August 20, 2009 - Special Session Minutes M1-M2 Special Joint Session Minutes 02-20-09.pdf Minutes-8-4-9-BudgetWorkshop.pdf Minutes-080509-Reg Sess.pdf Minutes 082009-Special.pdf Attachments: TCMUD No. 1 3 of 172 15 September 2009 September 15, 2009Trophy Club Municipal Utility District No. 1 Meeting Agenda 18.09-69-M1 Review Monthly Tax Collection Report a. August 2009 - MUD 1 and MUD 2 August Tax Collection Report.pdfAttachments: 19.09-103-M1 Items for Future Agendas a. Update on MUD 1's water contract with Fort Worth b. Funding of Future Capital Projects; i.e., 2 MG Storage Tank c. Rate Order modification and possible Water Study (Twomey) d. Disaster Planning e. Review of MUD's Debt versus Expenses f. Transfer of EMS to the MUDs (November/December 2009) g. Have TNP update Legal Description (09-131-M1) (October 2009) h. Place Numbers for Directors at May 2010 election (09-100-M1) i. Creation of TCMUD1 webstie (09-115-M1) j. Drill for a new Trinity Well (09-124-M1) Citizen Presentation(s) 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. 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 No. 1 4 of 172 15 September 2009 September 15, 2009Trophy Club Municipal Utility District No. 1 Meeting Agenda CERTIFICATION) THE STATE OF TEXAS) COUNTY OF DENTON) COUNTY OF TARRANT) THIS CERTIFIES THAT ON SEPTEMBER 11TH, 2009 AT OR BEFORE 5:00 P.M., A COPY OF THE ABOVE NOTICE OF A MEETING OF THE TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 TO BE HELD ON SEPTEMBER 15, 2009, WAS POSTED ON THE FRONT WINDOW OF THE TROPHY CLUB M.U.D. ADMINISTRATION BUILDING, 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS, WHICH IS A PLACE CONVENIENT TO THE PUBLIC WITHIN THE BOUNDARIES OF THE DISTRICT, AND A COPY WAS ALSO PROVIDED TO THE COUNTY CLERKS OF DENTON AND TARRANT COUNTIES, TO BE POSTED ON A BULLETIN BOARD AT A PLACE CONVENIENT TO THE PUBLIC IN SUCH COUNTY COURT HOUSES, PURSUANT TO SECTION 49.063 OF THE WATER CODE AND SECTION 551.054 OF THE OPEN MEETINGS ACT, CHAPTER 551 TEXAS GOVERNMENT CODE. ____________________ Mary Moore MUD Secretary THIS FACILITY IS WHEELCHAIR ACCESSIBLE AND ACCESSIBLE PARKING SPACES ARE AVAILABLE. REQUESTS FOR ACCOMMODATIONS OR INTERPRETATIVE SERVICES MUST BE MADE 48 HOURS PRIOR TO THIS MEETING. PLEASE CONTACT MARY MOORE AT (682) 831-4685 OR FAX YOUR REQUEST TO (817) 490-0705. I certify that the attached notice and agenda of items to be considered by this Board was removed by me from the front window of the Svore Municipal Building, 100 Municipal Drive, Trophy Club, Texas, on the __________ day of ______________________, 2009. ________________________________, Title: ___________________________ TCMUD No. 1 5 of 172 15 September 2009 100 Municipal Drive Trophy Club, TX 76262Trophy Club Entities Legislation Details (With Text) File #: Version:109-128-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:8/25/2009 Trophy Club Municipal Utility District No. 1 On agenda:Final action:9/15/2009 Title:Discuss and take appropriate action to accept Director Borges' resignation. Attachments:BorgesResignationLetter.pdf Action ByDate Action ResultVer. TCMUD No. 1 6 of 172 15 September 2009 109-128-M1 Version:File #: Title Discuss and take appropriate action to accept Director Borges' resignation. Body Director Borges has submitted her letter of resignation letter, see attachment. TCMUD No. 1 7 of 172 15 September 2009 TCMUD No. 1 8 of 172 15 September 2009 100 Municipal Drive Trophy Club, TX 76262Trophy Club Entities Legislation Details (With Text) File #: Version:109-121-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:8/20/2009 Trophy Club Municipal Utility District No. 1 On agenda:Final action:9/15/2009 Title:Discuss and take appropriate action regarding Resolution 2009-0915, adopting and approving the Budget for Trophy Club Municipal Utility District No. 1 for fiscal year beginning October 1, 2009, and ending September 30, 2010. Attachments:TCMUD1-R-2009-0915-Aprv Budget.pdf Action ByDate Action ResultVer. TCMUD No. 1 9 of 172 15 September 2009 109-121-M1 Version:File #: Title Discuss and take appropriate action regarding Resolution 2009-0915, adopting and approving the Budget for Trophy Club Municipal Utility District No. 1 for fiscal year beginning October 1, 2009, and ending September 30, 2010. Body Resolution is attached. TCMUD No. 1 10 of 172 15 September 2009 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 RESOLUTION NO. 2009-0915 A RESOLUTION TO APPROVE THE FY 2009-2010 BUDGET FOR TROPHY CLUB MUD NO. 1 A RESOLUTION OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1, OF DENTON AND TARRANT COUNTIES, TEXAS; APPROVING AND ADOPTING A BUDGET FOR THE FISCAL YEAR OCTOBER 1, 2009 THROUGH SEPTEMBER 30, 2010, PROVIDING THAT EXPENDITURES FOR SAID FISCAL YEAR BE MADE IN ACCORDANCE WITH SAID BUDGET, PROVIDING A SEVERABILITY CLAUSE, AND PROVIDING AN EFFECTIVE DATE WHEREAS, an annual budget for the fiscal year beginning October 1, 2009 and ending September 30, 2010, has been duly created by the Finance Department of the Trophy Club Municipal Utility District No. 1 (the “District”) in accordance with Section 49.057(b) of the Texas Water Code; and WHEREAS, a public hearing was held on September 15, 2009, in accordance with Section 49.057(b) of the Texas Water Code, following due publication of notice thereof at which time all citizens and parties of interest were given the opportunity to be heard regarding the proposed 2009-2010 fiscal year budget; and WHEREAS, after full and final consideration it is the opinion of the Board Directors of the District No. 1, that the 2009-2010 fiscal year budget of revenues and expenditures, as hereinafter set forth, should be adopted and approved. NOW THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1: Section 1. That the annual budget of revenues and expenditures necessary for conducting affairs of the District for the fiscal year 2009-2010, attached hereto and incorporated herein as Exhibit A, providing for a financial plan for the ensuing fiscal year is hereby approved and adopted. Section 2. That the expenditures during the fiscal year shall be made in accordance with this budget unless otherwise authorized by proper amendment. Said budget document shall be on file for public inspection in the office of the District. TCMUD No. 1 11 of 172 15 September 2009 Section 3. That unless otherwise modified by the Board of the District, the remaining budget for all capital improvements from fiscal year 2008-2009, attached hereto and incorporated herein as Exhibit B, not completed or started as of September 30, 2009, will be automatically carried over into fiscal year 2009- 2010. Section 4. 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 5. 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 MUD 1 Board not in conflict with the provisions of this resolution shall remain in full force and effect. Section 6. That this resolution shall become effective immediately upon its passage. PASSED AND APPROVED by the Board of Directors of Trophy Club Municipal Utility District No. 1, this the 15th day of September, 2009. ___________________________ _____________________________ DEAN HENRY, Joint President JIM BUDARF, Joint President TCMUD No. 1 TCMUD No. 1 ATTEST: ____________________________ _____________________________ JIM HASE, Joint Secretary JAMES C. THOMAS, Joint Secretary TCMUD No. 1 TCMUD No. 1 ____________________________ MARY MOORE, MUD Secretary (Seal) TCMUD No. 1 TCMUD No. 1 12 of 172 15 September 2009 EXHIBIT “A” (Budget – pending Board’s approval) TCMUD No. 1 13 of 172 15 September 2009 EXHIBIT “B” TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 RESOLUTION NO. 2009-0915 A RESOLUTION TO APPROVE THE FY 2009-2010 BUDGET FOR TROPHY CLUB MUD NO. 1 There are no capital improvements from fiscal year 2008-2009 to be carried over into fiscal year 2009-2010. TCMUD No. 1 14 of 172 15 September 2009 100 Municipal Drive Trophy Club, TX 76262Trophy Club Entities Legislation Details (With Text) File #: Version:109-122-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:8/20/2009 Trophy Club Municipal Utility District No. 1 On agenda:Final action:9/15/2009 Title:Discuss and take appropriate action regarding Resolution 2009-0915-B, fixing and levying the Trophy Club Municipal Utility District No. 1 tax rate for debt service for the fiscal year beginning October 1, 2009, and ending September 30, 2010. Attachments:TCMUD1-R-2009-0915-B-DebtSvc.pdf Action ByDate Action ResultVer. TCMUD No. 1 15 of 172 15 September 2009 109-122-M1 Version:File #: Title Discuss and take appropriate action regarding Resolution 2009-0915-B, fixing and levying the Trophy Club Municipal Utility District No. 1 tax rate for debt service for the fiscal year beginning October 1, 2009, and ending September 30, 2010. Body Draft of resolution is attached. TCMUD No. 1 16 of 172 15 September 2009 TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1 RESOLUTION NO. 2009-0915-B A RESOLUTION TO SET THE COMPONENT OF THE MUD 1 TAX RATE FOR DEBT SERVICE FOR 2009 RESOLVED: Pursuant to Section 26.05 of the Texas Tax Code, and Sections 49.211(a), 49.212(a), 54.601 and 54.602 of the Texas Water Code, the Board of Directors of Trophy Club Municipal Utility District No. 1 hereby finds that a tax rate of $.______ per $100 of taxable value, if applied to the total taxable value of property on the District's appraisal roll for the 2009 tax year, will impose the total amount of taxes needed to pay the District’s debt obligations during the next year, and that such tax rate is reasonable and necessary to service the District's debt obligations during the next year, including payments of lawfully incurred contractual obligations providing security for the payment of the principal of and interest on bonds and other evidences of indebtedness issued on behalf of the District. It is therefore ordered by the Board of Directors of the District that the component of the 2009 tax rate for debt service is hereby set at$.______ per $100 of taxable value of each property included on the appraisal roll for the District for the 2009 tax year. PASSED AND APPROVED by the Board of Directors of the Trophy Club Municipal Utility District No. 1, Trophy Club, Texas this 15th day of September, 2009. ___________________________ _____________________________ DEAN HENRY, Joint President JIM BUDARF, Joint President TCMUD No. 1 TCMUD No. 1 ATTEST: ____________________________ _____________________________ JIM HASE, Joint Secretary JAMES C. THOMAS, Joint Secretary TCMUD No. 1 TCMUD No. 1 ____________________________ MARY MOORE, MUD Secretary (Seal) TCMUD No. 1 TCMUD No. 1 17 of 172 15 September 2009 100 Municipal Drive Trophy Club, TX 76262Trophy Club Entities Legislation Details (With Text) File #: Version:109-123-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:8/20/2009 Trophy Club Municipal Utility District No. 1 On agenda:Final action:9/15/2009 Title:Discuss and take appropriate action regarding Resolution 2009-0915-C, fixing and levying the Trophy Club Municipal Utility District No. 1 tax rate for maintenance and operations, including the portion of such tax rate to support the Fire Department, for the fiscal year beginning October 1, 2009, and ending September 30, 2010. Attachments:TCMUD1-R-2009-0915-C-OnM.pdf Action ByDate Action ResultVer. TCMUD No. 1 18 of 172 15 September 2009 109-123-M1 Version:File #: Title Discuss and take appropriate action regarding Resolution 2009-0915-C, fixing and levying the Trophy Club Municipal Utility District No. 1 tax rate for maintenance and operations, including the portion of such tax rate to support the Fire Department, for the fiscal year beginning October 1, 2009, and ending September 30, 2010. Body Draft resolution is attached. TCMUD No. 1 19 of 172 15 September 2009 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 RESOLUTION NO. 2009-0915-C A RESOLUTION TO SET THE COMPONENT OF THE MUD 1 TAX RATE FOR MAINTENANCE AND OPERATION EXPENDITURES FOR 2008, INCLUDING THE PORTION OF SUCH TAX RATE TO SUPPORT THE FIRE DEPARTMENT RESOLVED: Pursuant to Section 26.05 of the Texas Tax Code and Sections 49.107 and 49.351 of the Texas Water Code, the Board of Directors of Trophy Club Municipal Utility District No. 1 hereby finds that a tax rate of $.______ per $100 of taxable value, if applied to the total taxable value of property on the District's appraisal roll for the 2009 tax year, will impose the amount of taxes needed to fund maintenance and operation expenditures of the District for the next year, including the fire department operations. The Board further finds that of this tax rate for maintenance and operation expenditures, $.______ per $100 of taxable value is reasonable and necessary to support the Fire Department under the plan previously approved by the District's electors, and that the remainder of $.______ per $100 taxable value is reasonable and necessary to fund other maintenance and operation expenditures of the District. It is therefore ordered by the Board of Directors of the District that the component of the 2009 tax rate for Maintenance and Operation expenditures is hereby set at $.______ per $100 of taxable value of each property included on the appraisal roll for the District for the 2009 tax year, of which $.______ per $100 of taxable value shall be used to support the Fire Department and the remaining $.______ per $100 of taxable value shall be used to fund other maintenance and operation expenditures of the District. PASSED AND APPROVED by the Board of Directors of the Trophy Club Municipal Utility District No. 1, Trophy Club, Texas, this 15th day of September 2009. ___________________________ _____________________________ DEAN HENRY, Joint President JIM BUDARF, Joint President TCMUD No. 1 TCMUD No. 1 ATTEST: ____________________________ _____________________________ JIM HASE, Joint Secretary JAMES C. THOMAS, Joint Secretary TCMUD No. 1 TCMUD No. 1 ____________________________ MARY MOORE, MUD Secretary (Seal) TCMUD No. 1 20 of 172 15 September 2009 100 Municipal Drive Trophy Club, TX 76262Trophy Club Entities Legislation Details (With Text) File #: Version:109-125-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:8/20/2009 Trophy Club Municipal Utility District No. 1 On agenda:Final action:9/15/2009 Title:Discuss and take appropriate action regarding Resolution 2009-0915-A, approving the Trophy Club Municipal Utility District No. 1 tax roll of the Denton Central Appraisal District and Tarrant Appraisal District for 2009. Attachments:Resolution-2009-0915-A-Aprv Tax Roll.pdf Action ByDate Action ResultVer. TCMUD No. 1 21 of 172 15 September 2009 109-125-M1 Version:File #: Title Discuss and take appropriate action regarding Resolution 2009-0915-A, approving the Trophy Club Municipal Utility District No. 1 tax roll of the Denton Central Appraisal District and Tarrant Appraisal District for 2009. Body Draft resolution attached. TCMUD No. 1 22 of 172 15 September 2009 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 RESOLUTION NO. 2009-0915-A A RESOLUTION TO APPROVE THE 2009 MUD 1 TAX ROLL RESOLVED: Pursuant to Section 26.09 (e) of the Texas Tax Code, the Board of Directors of Trophy Club Municipal Utility District No. 1 hereby approves the 2009 certified appraisal roll dated July 18, 2009 from Denton County Central Appraisal District and July 25, 2009 from Tarrant Appraisal District, in which the net taxable appraised value was listed as $717,424,660 (original certified value of $726,965,640 was reduced by an overstatement error of $9,540,980 as indicated by the Denton Central Appraisal District on July 24, 2009) and $305,055,500, respectively for a total of $1,022,480,160. The current 2009 tax rate (A total of $.______/$100 assessed value) approved by the Board of Directors of Trophy Club Municipal Utility District No. 1, which has been imposed on each property included on the certified appraisal roll for the District for 2009, totals $___________ actual levy. The Board hereby declares that such appraisal roll with amounts of tax entered shall constitute the District's tax roll for the 2009 tax year. PASSED AND APPROVED by the Board of Directors of the Trophy Club Municipal Utility District No. 1, Trophy Club, Texas, this the 15th day of September, 2009. ___________________________ _____________________________ DEAN HENRY, Joint President JIM BUDARF, Joint President TCMUD No. 1 TCMUD No. 1 ATTEST: ____________________________ _____________________________ JIM HASE, Joint Secretary JAMES C. THOMAS, Joint Secretary TCMUD No. 1 TCMUD No. 1 ____________________________ MARY MOORE, MUD Secretary (Seal) TCMUD No. 1 TCMUD No. 1 23 of 172 15 September 2009 100 Municipal Drive Trophy Club, TX 76262Trophy Club Entities Legislation Details (With Text) File #: Version:109-78-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:5/8/2009 Trophy Club Municipal Utility District No. 1 On agenda:Final action:8/5/2009 Title:Receive Finance Director's Update a. Monthly Update b. Consolidation of MUD Financial Accounts Attachments: Action ByDate Action ResultVer. TCMUD No. 1 24 of 172 15 September 2009 109-78-M1 Version:File #: Title Receive Finance Director's Update a. Monthly Update b. Consolidation of MUD Financial Accounts Body [Enter body here.] TCMUD No. 1 25 of 172 15 September 2009 100 Municipal Drive Trophy Club, TX 76262Trophy Club Entities Legislation Details (With Text) File #: Version:109-46-MD Name: Status:Type:MD Agenda Item Regular Session File created:In control:4/29/2009 Trophy Club Municipal Utility District No. 1 On agenda:Final action:8/5/2009 Title:Receive Update from Fire Chief Thomas a. To provide Board with a monthly update and address the Board's questions. b. To provide update regarding the New Fire Station. Attachments:August 09 Fire Report.pdf Action ByDate Action ResultVer. TCMUD No. 1 26 of 172 15 September 2009 109-46-MD Version:File #: Title Receive Update from Fire Chief Thomas a. To provide Board with a monthly update and address the Board's questions. b. To provide update regarding the New Fire Station. Body [Enter body here.] TCMUD No. 1 27 of 172 15 September 2009 TCMUD No. 1 28 of 172 15 September 2009 TCMUD No. 1 29 of 172 15 September 2009 TCMUD No. 1 30 of 172 15 September 2009 TCMUD No. 1 31 of 172 15 September 2009 TCMUD No. 1 32 of 172 15 September 2009 TCMUD No. 1 33 of 172 15 September 2009 TCMUD No. 1 34 of 172 15 September 2009 TCMUD No. 1 35 of 172 15 September 2009 TCMUD No. 1 36 of 172 15 September 2009 TCMUD No. 1 37 of 172 15 September 2009 TCMUD No. 1 38 of 172 15 September 2009 TCMUD No. 1 39 of 172 15 September 2009 100 Municipal Drive Trophy Club, TX 76262Trophy Club Entities Legislation Details (With Text) File #: Version:109-53-MD Name: Status:Type:MD Agenda Item Regular Session File created:In control:4/29/2009 Trophy Club Municipal Utility District No. 1 On agenda:Final action:8/5/2009 Title:Receive District Manager's Report a. Water pumped vs. billed b. Monthly Revenue for Wastewater Treatment Plant c. Update on Membrane Filters at WWTP d. Update on Water Plant Booster Pump (formerly VFD) e. Update on Fort Worth Meter Vault f. Report on costs for Open Records Requests g. Update on Well Reports from Talem Laboratories Attachments:BilledVsPumped-August 2009.pdf Well Analyses.pdf Action ByDate Action ResultVer. TCMUD No. 1 40 of 172 15 September 2009 109-53-MD Version:File #: Title Receive District Manager's Report a. Water pumped vs. billed b. Monthly Revenue for Wastewater Treatment Plant c. Update on Membrane Filters at WWTP d. Update on Water Plant Booster Pump (formerly VFD) e. Update on Fort Worth Meter Vault f. Report on costs for Open Records Requests g. Update on Well Reports from Talem Laboratories TCMUD No. 1 41 of 172 15 September 2009 October November December January February March April May June July August September 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 37,382 56,370 125,089 91,724 Totals 335,177 230,225 170,056 185,959 151,061 171,496 232,266 237,588 334,646 492,397 492,709 319,117 3,352,697 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 38,250 66,450 116,823 94,525 Totals 325,625 233,318 176,876 181,718 159,564 196,270 250,908 276,514 351,027 508,018 488,665 312,739 3,461,242 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 No. 1 42 of 172 15 September 2009 TCMUD No. 1 43 of 172 15 September 2009 TCMUD No. 1 44 of 172 15 September 2009 TCMUD No. 1 45 of 172 15 September 2009 TCMUD No. 1 46 of 172 15 September 2009 100 Municipal Drive Trophy Club, TX 76262Trophy Club Entities Legislation Details (With Text) File #: Version:109-132-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:9/4/2009 Trophy Club Municipal Utility District No. 1 On agenda:Final action:9/15/2009 Title:Discuss and take appropriate action regarding Consolidation of TCMUD No. 1 and TCMUD No. 2. a. Order 2009-0915-A, terminating agreement concerning disbursement of Centurion American Funds. b. Order 2009-0915-B, terminating agreement concerning Funding Instruments for New Fire Station. Attachments:Order-Terminate CA Agrmnt.pdf Order-Terminate Agrmnt Fund Instruments.pdf Action ByDate Action ResultVer. TCMUD No. 1 47 of 172 15 September 2009 109-132-M1 Version:File #: Title Discuss and take appropriate action regarding Consolidation of TCMUD No. 1 and TCMUD No. 2. a. Order 2009-0915-A, terminating agreement concerning disbursement of Centurion American Funds. b. Order 2009-0915-B, terminating agreement concerning Funding Instruments for New Fire Station. Body Agreements needing to be finalized as a result of the consolidation. TCMUD No. 1 48 of 172 15 September 2009 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 ORDER NO. 2009-0915-A ORDER CONFIRMING TERMINATION OF SETTLEMENT AGREEMENT REGARDING CENTURION AMERICAN FUNDS WHEREAS, Trophy Club Municipal Utility District No. 1 (“MUD1”) and Trophy Club Municipal Utility District No. 2 (“MUD2”) have been parties to the SETTLEMENT AGREEMENT BETWEEN TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 AND TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 2 REGARDING CENTURION AMERICAN FUNDS (the “Settlement Agreement Regarding Centurion American Funds”), dated and effective as of September 7, 2007; WHEREAS, MUD1 and MUD2 (jointly referred to as the “MUDs”) have consolidated into one district under the name of “Trophy Club Municipal Utility District No. 1” pursuant to the terms of a Consolidation Agreement approved by the separate board of directors of each of MUD1 and MUD2 on January 26, 2009, and pursuant to the provisions of Sections 54.729 through 54.733 of the Texas Water Code, and as a result of the vote of the electors in each district in favor of consolidation on May 9, 2009; and WHEREAS, the Board of Directors of Trophy Club Municipal Utility District No. 1 as consolidated desires to confirm that the consolidation of MUD1 and MUD2 has resulted in the termination of the Settlement Agreement Regarding Centurion American Funds, and to clarify that all funds to be received from the Town of Trophy Club payable to the MUDs for the right to access the MUDs’ water supply and wastewater treatment services and system, shall be paid to Trophy Club Municipal Utility District No. 1 as consolidated; NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (AS CONSOLIDATED): 1. The Settlement Agreement Regarding Centurion American Funds is terminated effective as of May 9, 2009 (the date of the consolidation election). 2. All funds to be received from the Town of Trophy Club payable to the MUDs for the right to access the MUDs’ water supply and wastewater treatment services and system shall be paid to Trophy Club Municipal Utility District No. 1 as consolidated. 1 TCMUD No. 1 49 of 172 15 September 2009 2 PASSED AND APPROVED by the Board of Directors of Trophy Club Municipal Utility District No. 1 (consolidated), this 15th day of September, 2009. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (consolidated) By: _____________________________ By: ______________________________ Dean Henry Jim Budarf Joint President, Board of Directors Joint President, Board of Directors Attest: Attest: By: ______________________________ By: ______________________________ Jim Hase James C. Thomas Joint Secretary, Board of Directors Joint Secretary, Board of Directors Approved as to form: __________________________________ Attorney, Trophy Club MUD No. 1 R:\stor\rgw\MUD\Consolidation\Termination of Settlement Agreement Regarding Centurian American Funds.doc Draft 8/7/09 RGW TCMUD No. 1 50 of 172 15 September 2009 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 ORDER NO. 2009-0915-B ORDER CONFIRMING TERMINATION OF NEW FIRE STATION FUNDING INSTRUMENTS WHEREAS, Trophy Club Municipal Utility District No. 1 (“MUD1”) and Trophy Club Municipal Utility District No. 2 (“MUD2”, which is the result of a consolidation in 1990 of the two districts originally known as Denton County Municipal Utility District No. 2 and Denton County Municipal Utility District No. 3) have been parties to the TROPHY CLUB FIRE DEPARTMENT CONTRACT (the “Original Fire Department Contract”), dated and effective as of April 6, 1986, as amended by the FIRST AMENDMENT TO TROPHY CLUB FIRE DEPARTMENT CONTRACT (the “First Amendment”), dated and effective as of September 3, 2003, and as further amended by the SECOND AMENDMENT TO TROPHY CLUB FIRE DEPARTMENT CONTRACT (the “Second Amendment”), dated and effective as of February 20, 2009; WHEREAS, Paragraph 8 of the Original Fire Department Contract, as modified by the First Amendment and the Second Amendment, provides: “This Contract shall remain in effect until the termination date of the 2008 Master District Contract, as amended, unless this Contract is terminated earlier by mutual agreement of the parties. If MUD1 and MUD2 consolidate pursuant to the provisions of Sections 54.729 through 54.733 of the Texas Water Code, then this Contract shall terminate as of the effective date of the consolidation”; WHEREAS, MUD1 and MUD2 have consolidated into one district under the name of “Trophy Club Municipal Utility District No. 1” pursuant to the terms of a Consolidation Agreement approved by the separate board of directors of each of MUD1 and MUD2 on January 26, 2009, and pursuant to the provisions of Sections 54.729 through 54.733 of the Texas Water Code, and as a result of the vote of the electors in each district in favor of consolidation on May 9, 2009; WHEREAS, the Second Amendment added a new Paragraph 5.1 to the Original Fire Department Contract, as previously amended, to reflect the agreements between MUD1 and MUD2 regarding the funding for a new fire station, and several Unsecured Notes (the “New Fire Station Funding Instruments,” as more particularly listed below in Paragraph 1 of this Order) were thereafter executed pursuant to such Paragraph 5.1; WHEREAS, by Order No. 2009-0805-A approved and signed on August 5, 2009, by the Board of Directors of Trophy Club Municipal Utility District No. 1 as consolidated, the Original Fire Department Contract as amended was terminated, but no specific action was taken regarding the status or disposition of the New Fire Station Funding Instruments; and 1 TCMUD No. 1 51 of 172 15 September 2009 TCMUD No.1 ORDER 2009-0915-B 2 WHEREAS, the Board of Directors of Trophy Club Municipal Utility District No. 1 as consolidated desires to confirm that the consolidation of MUD1 and MUD2 and the termination of the Original Fire Department Contract as amended has resulted in the termination of the New Fire Station Funding Instruments, and to clarify that all funds previously designated by MUD1, MUD2, or Trophy Club Master District for use in constructing the new fire station have become and are assets of Trophy Club Municipal Utility District No. 1 as consolidated; NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (AS CONSOLIDATED): 1. The following financing instruments (the “New Fire Station Funding Instruments”) have been terminated, effective as of May 9, 2009 (the date of the consolidation election): a. UNSECURED NOTE, dated April 15, 2009, executed by Trophy Club Municipal Utility District No. 2, payable to the order of Trophy Club Municipal Utility District No. 1, in the original principal amount of $154,000; b. UNSECURED NOTE, dated April 15, 2009, executed by Trophy Club Municipal Utility District No. 2, payable to the order of Trophy Club Municipal Utility District No. 1, in the original principal amount of $86,250.00; c. UNSECURED NOTE, dated March 4, 2009, executed by Trophy Club Municipal Utility District No. 2, payable to the order of Trophy Club Municipal Utility District No. 1, in the original principal amount of $200,000; d. UNSECURED NOTE, dated March 4, 2009, executed by Trophy Club Municipal Utility District No. 2, payable to the order of Trophy Club Municipal Master District Operating Account, in the original principal amount of $500,000; and e. UNSECURED NOTE, dated March 4, 2009, executed by Trophy Club Municipal Utility District No. 2, payable to the order of Trophy Club Municipal Utility District No. 1, in the original principal amount of $42,500. 2. All funds previously designated by MUD1, MUD2, or Trophy Club Master District for use in constructing the new fire station are confirmed to have become and are assets of Trophy Club Municipal Utility District No. 1 as consolidated. 2 TCMUD No. 1 52 of 172 15 September 2009 TCMUD No.1 ORDER 2009-0915-B 3 3 PASSED AND APPROVED by the Board of Directors of Trophy Club Municipal Utility District No. 1 (consolidated), this 15th day of September, 2009. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (consolidated) By: _____________________________ By: ______________________________ Dean Henry Jim Budarf Joint President, Board of Directors Joint President, Board of Directors Attest: Attest: By: ______________________________ By: ______________________________ Jim Hase James C. Thomas Joint Secretary, Board of Directors Joint Secretary, Board of Directors Approved as to form: __________________________________ Attorney, Trophy Club MUD No. 1 R:\stor\rgw\MUD\Consolidation\Termination of New Fire Station Funding Instruments.doc Draft 8/7/09 RGW TCMUD No. 1 53 of 172 15 September 2009 100 Municipal Drive Trophy Club, TX 76262Trophy Club Entities Legislation Details (With Text) File #: Version:109-130-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:8/25/2009 Trophy Club Municipal Utility District No. 1 On agenda:Final action:9/15/2009 Title:Discuss and take appropriate action regarding Order 2009-0915-C, the 2009-2010 Rate Order. Attachments:TCMUD1-O-2009-0915-C-RateOrder-draft.pdf TCMUD1 Rate Order 2009-0915-C-final.pdf Action ByDate Action ResultVer. TCMUD No. 1 54 of 172 15 September 2009 109-130-M1 Version:File #: Title Discuss and take appropriate action regarding Order 2009-0915-C, the 2009-2010 Rate Order. Body Due to the increase in charges for water fees from the City of Fort Worth, the MUDs will pass-through those increases which are reflected in this 2009-2010 Rate Order. The changes to the Rate Order are as follows: Section 1.05 deleted as it was no longer applicable. Article 2 - Service Rates - Fees increased 3% across the board (Water, Sewer and Basic Charge Fee). Subparagraph B - moved to Section 2.03. Article 3 - Section 3.01 - Following verbiage added to end of Paragraph A: 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. Section 3.02 - Paragraph B - The existing paragraph was deleted, renamed, and now reads as follows: 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 or after the fifteenth (15 th) day after the date of such notice unless payment in full is received before by such day disconnection is scheduled. Notice shall be sent by first class United States mail and shall inform the customer of the amount of the delinquent bill, the date service will be disconnected if payment is not made, and of the customer’s 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 or not 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, penalties, and the security deposit set out in Section 3.01. If payment is not received prior to the date that disconnection has been scheduled, a service charge of $25.00 will be added to the account. Reconnections made outside of the District’s normal business hours at the customer’s request will be charged at an additional after hours fee of $100.00. TCMUD No. 1 55 of 172 15 September 2009 2 2009-10 RATE ORDER TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1 ORDER No. 2009-02040915-C 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, 2008February 4, 2009 (the “2009-1 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 2009-10 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 No. 1 56 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-02040915-C 2 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 No. 1 57 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-02040915-C 3 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 nine-hundred-seventy-five dollars ($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 TCMUD No. 1 58 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-02040915-C 4 sewer connection shall be covered in the ground before a representative of the District has inspected the sewer connection. No house lead shall be covered in the ground before the water connection has been inspected and approved by a licensed plumbing inspector with jurisdiction of the site. 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 one- hundred-fifty dollars ($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 twenty-five dollars ($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 twenty- five dollars ($25.00)$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 one-hundred dollars ($100.00). B. Backflow Inspections. For all backflow installations (residential and commercial) inspected by the personnel of the District, an inspection fee of fifty dollars ($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 twenty-five dollars ($25.00)$25.00, plus payment by the customer of all outstanding charges. If subsequent re-inspections are required, a re-inspection fee of twenty-five dollars ($25.00)$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 one-hundred dollars ($100.00)$100.00. C. 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 TCMUD No. 1 59 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-02040915-C 5 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 three-inch (3” ( or 76 mm) p-trap not less than twelve inches (12” or (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 seventy-five dollars ($75.00) to be paid at the time of issuance of the pool permit. Section 1.05. Builder’s Deposit. A. Residence, Commercial Building or Other Structure. Each builder of a residence, commercial building or other structure shall, at the time a request for a water tap is made, pay a deposit of $75.00 for the first lot for which a water tap has been requested, and $75.00 for each additional lot thereafter. The deposit shall be refunded within ninety (90) days after the builder certifies the sale of its last residence, commercial building or other structure within the District, less any amounts forfeited as provided herein. The District shall deduct from the deposit the cost to repair any damage caused to the District’s property by the builder or the builder’s employees, contractors, subcontractors or agents and shall deduct any delinquent water and sewer service bills of the builder. In the event any amounts are so deducted from the builder’s deposit, it will be incumbent on the builder to reinstate the original amount of the deposit, and failure to do so will result in the suspension of any additional water taps for the builder. Section 1.05. 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 one-thousand-seven-hundred-seventy-five dollars ($1,775.00) for a three- inch (3”) meter and RPZ; six-hundred-fifty dollars ($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 TCMUD No. 1 60 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-02040915-C 6 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 one-hundred dollars ($100.00) for costs of installation, plus the cost of the metered water, shall be charged for temporary water service. The following rate for the sale of water for each temporary water service connection shall be in effect from the effective date hereof until such time as the Board amends said rate: Gallons Used Rate Any amount $3.02 per each 1,000 gallons 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 seventy-five dollars ($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 1.06. 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 1.07. 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 one-thousand-dollar ($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. TCMUD No. 1 61 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-02040915-C 7 When taps have been made by someone other than MUD personnel, there is an installation/inspection fee of fifty dollars ($50.00) plus the cost of the appropriate meter. Any request by a customer for service from an oversized connection line or from a meter larger than a one-inch (1”) standard meter shall be granted by the District only if the customer agrees and makes suitable arrangements to pay the increased costs for such larger line and/or meter as set out above in Paragraph 1.02. Each customer requesting an initial connection to the District’s Water System shall also pay to the District the cost required to be paid by the District to the City of Fort Worth as a “water impact fee” or “water access fee” for the additional customer connection to the Fort Worth Water System. Section 1.08. 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 1.09. 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) $11.850 0-6,000 gallons per month $2.325/1,000 gal 7,000 to 12,000 gallons per month $2.791/1,000 gal 13,000 to 25,000 gallons per month $3.012.92/1,000 gal 26,000-plus gallons per month $3.1102/1,000 gal TCMUD No. 1 62 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-02040915-C 8 (2) Commercial. Each business service connection shall be deemed to be a single-family home for purposes of water service. (3) Clubs. Each club shall be deemed to be a single- family home for purposes of water service. (4) Golf Course. Each meter shall be deemed to be a single-family home for the purposes of water service. (5) Multi-Family Buildings. (i) Single Meter. Each multi-family building or complex of buildings which is served by a single meter shall be billed for water at the same rate as a single-family home, with an Basic Charge Fee of $11.850 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 $11.850 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. TCMUD No. 1 63 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-02040915-C 9 Section 2.02. Sewer Service Rates. The following monthly rates for the collection and disposal of sewage shall be in effect for each Separate Connection within the District from the effective date hereof until such time as the Board of Directors amends said rates: A. Single-Family Homes and Cottages. Each single-family home and cottage shall be billed based upon the treated water used by such unit that month, as follows: Basic Charge Fee (Does not include sewer usage) $11.850 0-6,000 gallons per month $2.325/1,000 gal 7,000-12,000 gallons per month $2.791/1,000 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) $11.850 0-6,000 gallons per month $2.325/1,000 gal 7,000-12,000 gallons per month $2.791/1,000 gal 13,000-25,000 gallons per month $2.923.01/1,000 gal 26,000-plus gallons per month $3.1102/1,000 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 $11.850 times the number of units in the building or complex. Section 2.03. Golf Course Irrigation Water to the Lakes / 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 of sixty cents ($0.6055) per thousand gallons for the years 20098-201109. 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. TCMUD No. 1 64 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-02040915-C 10 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 six dollars ($6.00) per month. Unless otherwise provided by the terms of the recorded restrictive covenant applicable to a particular lot, the stand-by charge shall commence on the first day of the month following the date upon which water and sewer service is available at the property line of the lot and the charge shall cease on the first day of the month preceding the date upon which water and sewer use charges become due and payable to the District for water and sewer service supplied to the lot. Section 2.05. Master Meter (Cooling Tower Calculation). The water usage from the master meter reading less the reading from the “Blow Down” meter equals the “evaporation.” Water usage less “evaporation” equals sewer usage for billing purposes. Section 2.06. Regulatory Assessment. Pursuant to Section 5.235, Texas Water Code, and 30 TAC291.76, the District shall pay a regulatory assessment to the Texas Commission on Environmental Quality (“TCEQ”) annually in the amount required by law on the total charges for retail water and sewer service billed to its customers annually. At the end of each year, the District shall prepare a written statement indicating (i) the total charges for retail water and sewer service for the year and (ii) the regulatory assessment due and payable to the TCEQ. Section 2.07. No Reduced Rates or Free Service. All customers receiving water and/or sewer service from the District shall be subject to the provisions of this Order and shall be charged the rates established in this Order, and no reduced rate or free service shall be furnished to any customer whether such user be a charitable or eleemosynary institution, a political subdivision, or municipal corporation; provided, however, this provision shall not prohibit the District from establishing reasonable classifications of customers for which rates differing from the rates stated herein may be adopted. ARTICLE III SERVICE POLICY Section 3.01. Security Deposits. Security deposits shall be required as follows: TCMUD No. 1 65 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-02040915-C 11 A. Builder’s Deposit A seventy-five dollar ($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. 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. Residential Owners. A security deposit of fifty dollars ($50.00) shall be required from each residential owner customer for a single-family home connected to the District’s system. The security deposit is refundable to the customer when the account is later closed if that account is current at the time it is closed. However, if the account is not current at the time it is closed, then the security deposit shall be applied against the outstanding balance of the customer’s account at that time. C. Residential Lessees. A security deposit of one-hundred-fifty dollars ($150.00) shall be required from each residential lessee customer for a single-family home. D. Construction Meters. See Paragraph 1.05 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: TCMUD No. 1 66 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-02040915-C 12 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. Residential Owners. A security deposit of $50.00 shall be required from each residential owner customer for a single-family home connected to the District’s system. The security deposit is refundable to the customer when the account is later closed if that account is current at the time it is closed. However, if the account is not current at the time it is closed, then the security deposit shall be applied against the outstanding balance of the customer’s account at that time. 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 or after the fifteenth (15th) day after the date of such notice unless payment in full is received before by such day disconnection is scheduled. Notice shall be sent by first class United States mail and shall inform the customer of the amount of the delinquent bill, the date service will be disconnected if payment is not made, and of the customer’s 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 or not 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, penalties, and the security deposit set out in Section 3.01. If payment is not received prior to the date that disconnection has been scheduled, a service charge of $25.00 will be added to the account. Reconnections made outside of the District’s normal business hours at the customer’s request will be charged at an additional after hours fee of $100.00. TCMUD No. 1 67 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-02040915-C 13 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 twenty-five dollar ($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 five dollars ($5.00) shall be made on each confidentiality request as set forth in H.B. 859. F. Same-Day Service. An additional charge of twenty-five dollars ($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 doperform re-reads the same day as requested. G. Accuracy Reading Fee. A meter accuracy reading fee in the amount of ten dollars ($10.00) shall be charged to a customer by the District for each meter accuracy reading made by the District for such customer when the original reading appears to be accurate. If the original meter reading appears to be in error, no fee will be charged. Each customer will be allowed one accuracy meter reading per calendar year at no charge. Should a customer request that the meter accuracy reading be made by an outside source, then a fee of thirty-five dollars ($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. TCMUD No. 1 68 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-02040915-C 14 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 five-thousand dollars ($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 one-hundred-fifty dollars ($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 ten dollars ($10.00), and the charge for subsequently reconnecting the service shall also be ten dollars ($10.00). These charges apply to connects and disconnects that are completed during normal business hours. Section 3.07. Easements. Before service is begun to any customer, or once begun before reconnection is made, the person requesting such service shall grant an easement of ingress and egress to and from the meter(s) for such maintenance and repair as the District, in its judgment, may deem necessary. Section 3.08. Required Service. No service will be given from the District’s water and sewer system unless the customer agrees to take both water and sewer service, except that permanent irrigation only services may receive water only, and projects under construction may, if they wish, receive water service only during the period of such construction. TCMUD No. 1 69 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-02040915-C 15 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 fifteen percent (15%). This shall not apply to services; equipment and/or supplies furnished by MUD 1 under an existing Interlocal Agreement nor to the rates MUD 1 charges for out-of- district water and sewer service. ARTICLE IV INDUSTRIAL WASTE Section 4.01. Policy. The following policy regarding industrial waste shall be effective: A. Definition. “Industrial waste” shall mean the water-borne solids, liquids, and/or gaseous wastes (including Cooling Water), resulting from any industrial, manufacturing, trade, business, commercial, or food processing operation or process, or from the development of any natural resource, or any mixture of such solids, liquids, or wastes with water or domestic sewage. The Clean Water Act of 1977, as amended, and the General Pretreatment Regulations contained in 40 C.F.R. §403 contain the requirements for user’s discharge of industrial waste into wastewater facilities. B. Industrial Waste Discharge-Charges and Rates. If any customer of the District’s sanitary sewer system proposes to discharge industrial waste into such system, the Board of Directors of the District shall request the recommendation of the District Engineer and shall establish rates and charges to provide for an equitable assessment of costs whereby such rates and charges for discharges of industrial waste correspond to the cost of waste treatment, taking into account the volume and strength of the industrial, domestic, commercial waste, and all other waste discharges treated and techniques of the treatment required. Such rates shall be an equitable system of cost recovery which is sufficient to produce revenues, in proportion to the percentage of industrial wastes proportionately relative to the total waste load to be treated by the District for the operation and maintenance of the treatment works, for the amortization of the District’s indebtedness for the cost as may be necessary to assure adequate waste treatment on a continuing basis. B.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 TCMUD No. 1 70 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-02040915-C 16 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 five-thousand dollars ($5,000.00). A penalty under this Section is in addition to any other penalty provided by the laws of this State and may be enforced by complaints filed in the appropriate court of jurisdiction in the county in which the District’s principal office or meeting place is located. If the District prevails in any suit to enforce its rules, it may, in the same action, recover any reasonable fees for attorneys, expert witnesses, and other costs incurred by the District before the court. The court shall fix the amount of the attorneys’ fees. B. Liability for Costs. Any person violating any of the provisions of this Order and/or the rules and regulations governing water and sanitary sewer facilities, service lines, and connections shall become liable to the District for any expense, loss or damage occasioned by the District by reason of such violation, and enforcement thereof shall be in accordance with Paragraph A of Section 5.01 of this Order. Section 5.02. Non-waiver. The failure on the part of the District to enforce any section, clause, sentence, or provision of this Order shall not constitute a waiver of the right of the District later to enforce any section, clause, sentence, or provision of this Order. Section 5.03. Appeal. Any determination by the District of any dispute regarding the terms and provisions of this order may be appealed to the Board of the District, which shall conduct a hearing on the matter. The District shall provide the customer with information regarding appeals and hearing procedures upon the customer’s request. TCMUD No. 1 71 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-02040915-C 17 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 “2009-10 Rate Order” (Order 2009- 0915-C204) 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, 2009October 1, 2009. ARTICLE IX PUBLIC MEETING It is hereby found that the meeting at which this Order is adopted is open to the public as required by law, and that public notice of the time, place, and subject matter of said meeting and of the proposed adoption of this Order was given as required by law. TCMUD No. 1 72 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-02040915-C 18 PASSED, ADOPTED, ORDERED, AND APPROVED this 3rd 15th day of June September 2009. ___________________________ _____________________________ DEAN HENRY, Joint President JIM BUDARF, Joint President TCMUD No. 1 TCMUD No. 1 ATTEST: ____________________________ _____________________________ JIM HASE, Joint Secretary JAMES C. THOMAS, Joint Secretary TCMUD No. 1 TCMUD No. 1 APPROVED AS TO FORM: ____________________________ ATTORNEY, TCMUD No. 1 (Seal) TCMUD No. 1 73 of 172 15 September 2009 2009-10 RATE ORDER TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1 ORDER No. 2009-0915-C 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 February 4, 2009 (the “2009-1 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 2009-10 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. 2 TCMUD No. 1 74 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-0915-C 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. 2 TCMUD No. 1 75 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-0915-C 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 nine-hundred-seventy-five dollars ($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 3 TCMUD No. 1 76 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-0915-C sewer connection shall be covered in the ground before a representative of the District has inspected the sewer connection. No house lead shall be covered in the ground before the water connection has been inspected and approved by a licensed plumbing inspector with jurisdiction of the site. 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 one- hundred-fifty dollars ($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 twenty-five dollars ($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 twenty- five dollars ($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 one-hundred dollars ($100.00). B. Backflow Inspections. For all backflow installations (residential and commercial) inspected by the personnel of the District, an inspection fee of fifty dollars ($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 twenty-five dollars ($25.00), plus payment by the customer of all outstanding charges. If subsequent re-inspections are required, a re-inspection fee of twenty- five dollars ($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 one-hundred dollars ($100.00). C. 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 4 TCMUD No. 1 77 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-0915-C minimum three-inch (3” or 76 mm) p-trap not less than twelve inches (12” or 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 seventy-five dollars ($75.00) to be paid at the time of issuance of the pool permit. Section 1.05. 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 one-thousand-seven-hundred-seventy-five dollars ($1,775.00) for a three- inch (3”) meter and RPZ; six-hundred-fifty dollars ($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 one-hundred dollars ($100.00) for costs of installation, plus the cost of the metered water, shall be charged for temporary water service. The following rate for the sale of water for each temporary water service connection shall be in effect from the effective date hereof until such time as the Board amends said rate: Gallons Used Rate Any amount $3.02 per each 1,000 gallons 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 seventy-five dollars ($75.00). Should any irrigation and/or construction meter attached to a 5 TCMUD No. 1 78 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-0915-C 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 1.06. 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 1.07. 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 one-thousand-dollar ($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 fifty dollars ($50.00) plus the cost of the appropriate meter. Any request by a customer for service from an oversized connection line or from a meter larger than a one-inch (1”) standard meter shall be granted by the District only if the customer agrees and makes suitable arrangements to pay the increased costs for such larger line and/or meter as set out above in Paragraph 1.02. Each customer requesting an initial connection to the District’s Water System shall also pay to the District the cost required to be paid by the District to the City of Fort Worth as a “water impact fee” or “water access fee” for the additional customer connection to the Fort Worth Water System. Section 1.08. 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. 6 TCMUD No. 1 79 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-0915-C Section 1.09. 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) $11.85 0-6,000 gallons per month $2.32/1,000 gal 7,000 to 12,000 gallons per month $2.79/1,000 gal 13,000 to 25,000 gallons per month $3.01/1,000 gal 26,000-plus gallons per month $3.11/1,000 gal (2) Commercial. Each business service connection shall be deemed to be a single-family home for purposes of water service. (3) Clubs. Each club shall be deemed to be a single- family home for purposes of water service. (4) Golf Course. Each meter shall be deemed to be a single-family home for the purposes of water service. (5) Multi-Family Buildings. (i) Single Meter. Each multi-family building or complex of buildings which is served by a single meter shall be billed for water at the same rate as a single-family home, with an Basic Charge Fee of $11.85 times the number of units in the building or complex. 7 TCMUD No. 1 80 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-0915-C (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 $11.85 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. Section 2.02. Sewer Service Rates. The following monthly rates for the collection and disposal of sewage shall be in effect for each Separate Connection within the District from the effective date hereof until such time as the Board of Directors amends said rates: A. Single-Family Homes and Cottages. Each single-family home and cottage shall be billed based upon the treated water used by such unit that month, as follows: Basic Charge Fee (Does not include sewer usage) $11.85 0-6,000 gallons per month $2.32/1,000 gal 7,000-12,000 gallons per month $2.79/1,000 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) $11.85 0-6,000 gallons per month $2.32/1,000 gal 7,000-12,000 gallons per month $2.79/1,000 gal 13,000-25,000 gallons per month $3.01/1,000 gal 26,000-plus gallons per month $3.11/1,000 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 $11.85 times the number of units in the building or complex. 8 TCMUD No. 1 81 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-0915-C Section 2.03. Golf Course Irrigation Water to the Lakes / 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 of sixty cents ($0.60) per thousand gallons for the years 2009-2011. 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 2.04. 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 six dollars ($6.00) per month. Unless otherwise provided by the terms of the recorded restrictive covenant applicable to a particular lot, the stand-by charge shall commence on the first day of the month following the date upon which water and sewer service is available at the property line of the lot and the charge shall cease on the first day of the month preceding the date upon which water and sewer use charges become due and payable to the District for water and sewer service supplied to the lot. Section 2.05. Master Meter (Cooling Tower Calculation). The water usage from the master meter reading less the reading from the “Blow Down” meter equals the “evaporation.” Water usage less “evaporation” equals sewer usage for billing purposes. Section 2.06. Regulatory Assessment. Pursuant to Section 5.235, Texas Water Code, and 30 TAC291.76, the District shall pay a regulatory assessment to the Texas Commission on Environmental Quality (“TCEQ”) annually in the amount required by law on the total charges for retail water and sewer service billed to its customers annually. At the end of each year, the District shall prepare a written statement indicating (i) the total charges for retail water and sewer service for the year and (ii) the regulatory assessment due and payable to the TCEQ. 9 TCMUD No. 1 82 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-0915-C 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. Builder’s Deposit A seventy-five dollar ($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. 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. Residential Owners. A security deposit of fifty dollars ($50.00) shall be required from each residential owner customer for a single-family home connected to the District’s system. The security deposit is refundable to the customer when the account is later closed if that account is current at the time it is closed. However, if the account is not current at the time it is closed, then the security deposit shall be applied against the outstanding balance of the customer’s account at that time. C. Residential Lessees. A security deposit of one-hundred-fifty dollars ($150.00) shall be required from each residential lessee customer for a single-family home. 10 TCMUD No. 1 83 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-0915-C D. Construction Meters. See Paragraph 1.05 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 or after the fifteenth (15th) day after the date of such notice unless payment in full is received before by such day disconnection is scheduled. Notice shall be sent by first class United States mail and shall inform the customer of the amount of the delinquent bill, the date service will be disconnected if payment is not made, and of the customer’s 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 or not 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, 11 TCMUD No. 1 84 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-0915-C penalties, and the security deposit set out in Section 3.01. If payment is not received prior to the date that disconnection has been scheduled, a service charge of $25.00 will be added to the account. Reconnections made outside of the District’s normal business hours at the customer’s request will be charged at an additional after hours fee 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 twenty-five dollar ($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 five dollars ($5.00) shall be made on each confidentiality request as set forth in H.B. 859. F. Same-Day Service. An additional charge of twenty-five dollars ($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 perform re-reads the same day as requested. G. Accuracy Reading Fee. A meter accuracy reading fee in the amount of ten dollars ($10.00) shall be charged to a customer by the District for each meter accuracy reading made by the District for such customer when the original reading appears to be accurate. If the original meter reading appears to be in error, no fee will be charged. Each customer will be allowed one accuracy meter reading per calendar year at no charge. Should a customer request that the meter accuracy reading be made by an outside source, then a fee of thirty-five dollars ($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. 12 TCMUD No. 1 85 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-0915-C 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 five-thousand dollars ($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 one-hundred-fifty dollars ($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 ten dollars ($10.00), and the charge for subsequently reconnecting the service shall also be ten dollars ($10.00). These charges apply to connects and disconnects that are completed during normal business hours. 13 TCMUD No. 1 86 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-0915-C 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 fifteen percent (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 14 TCMUD No. 1 87 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-0915-C 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 five-thousand dollars ($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. 15 TCMUD No. 1 88 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-0915-C Section 5.03. Appeal. Any determination by the District of any dispute regarding the terms and provisions of this order may be appealed to the Board of the District, which shall conduct a hearing on the matter. The District shall provide the customer with information regarding appeals and hearing procedures upon the customer’s request. ARTICLE VI MISCELLANEOUS Section 6.01. Amendments. The Board of the District has and specifically reserves the right to change, alter or amend any rate or provision of this Order at any time. Section 6.02. Severability. The provisions of this Order are severable, and if any provision or part of this Order or the application thereof to any person or circumstance shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Order and application of such provision or part of this Order shall not be affected thereby. Section 6.03. Headings. The section and paragraph headings used herein are for reference only and are not to be construed as part of the text of the section or paragraph. ARTICLE VII REPEAL OF PREVIOUS ORDERS This Rate Order shall be known as the “2009-10 Rate Order” (Order 2009- 0915-C) 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 October 1, 2009. 16 TCMUD No. 1 89 of 172 15 September 2009 Trophy Club MUD 1 2009-10 Rate Order 2009-0915-C 17 ARTICLE IX PUBLIC MEETING It is hereby found that the meeting at which this Order is adopted is open to the public as required by law, and that public notice of the time, place, and subject matter of said meeting and of the proposed adoption of this Order was given as required by law. PASSED, ADOPTED, ORDERED, AND APPROVED this 15th day of September 2009. ___________________________ _____________________________ DEAN HENRY, Joint President JIM BUDARF, Joint President TCMUD No. 1 TCMUD No. 1 ATTEST: ____________________________ _____________________________ JIM HASE, Joint Secretary JAMES C. THOMAS, Joint Secretary TCMUD No. 1 TCMUD No. 1 APPROVED AS TO FORM: ____________________________ ATTORNEY, TCMUD No. 1 (Seal) TCMUD No. 1 90 of 172 15 September 2009 100 Municipal Drive Trophy Club, TX 76262Trophy Club Entities Legislation Details (With Text) File #: Version:109-81-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:5/22/2009 Trophy Club Municipal Utility District No. 1 On agenda:Final action:9/15/2009 Title:Discuss and take appropriate action regarding Order 2009-0915, repealing the Ethics Policy and adopting an amended Ethics Policy, a Code of Conduct and a Rules of Procedure for the Board of Directors of TCMUD No. 1. (Budarf) Attachments: Action ByDate Action ResultVer. TCMUD No. 1 91 of 172 15 September 2009 109-81-M1 Version:File #: Title Discuss and take appropriate action regarding Order 2009-0915, repealing the Ethics Policy and adopting an amended Ethics Policy, a Code of Conduct and a Rules of Procedure for the Board of Directors of TCMUD No. 1. (Budarf) Body The Board agreed to have Attorney Liston work on a Rules of Procedure for the MUD 1 Board and to address this item upon its completion. Per Attorney Liston, she will provide the backup for the Rules of Procedure prior to the meeting via e-mail. TCMUD No. 1 92 of 172 15 September 2009 100 Municipal Drive Trophy Club, TX 76262Trophy Club Entities Legislation Details (With Text) File #: Version:109-127-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:8/21/2009 Trophy Club Municipal Utility District No. 1 On agenda:Final action:9/15/2009 Title:Discuss and take appropriate action to approve the Public Official Bonds for TCMUD 1 Board of Directors, as required by Texas Water Code Section 49.055(c). (West) Attachments:Director Bonds.pdf Action ByDate Action ResultVer. TCMUD No. 1 93 of 172 15 September 2009 109-127-M1 Version:File #: Title Discuss and take appropriate action to approve the Public Official Bonds for TCMUD 1 Board of Directors, as required by Texas Water Code Section 49.055(c). (West) Body The Board has Bonds (see attachment) in place for its Directors; however, Attorney West felt it would be prudent for the Board to take action to approve the Bonds, as indicated by the Texas Water Code - Chapter 49 - Subsection § 49.055 (c) Before beginning to perform the duties of office, each director shall execute a bond for $10,000 payable to the district and conditioned on the faithful performance of that director's duties. All bonds of the directors shall be approved by the board and paid for by the district. TCMUD No. 1 94 of 172 15 September 2009 TCMUD No. 1 95 of 172 15 September 2009 TCMUD No. 1 96 of 172 15 September 2009 TCMUD No. 1 97 of 172 15 September 2009 TCMUD No. 1 98 of 172 15 September 2009 100 Municipal Drive Trophy Club, TX 76262Trophy Club Entities Legislation Details (With Text) File #: Version:109-99-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:7/6/2009 Trophy Club Municipal Utility District No. 1 On agenda:Final action:8/5/2009 Title:Discuss and take appropriate action regarding agreement between TCMUD No. 1 and the Trophy Club Country Club (TCCC) for the use of a part of TCCC's parking lot for housing of the temporary fire department facilities during construction on the new fire station. (West) Attachments:TCCC License Agreement-Temporary Fire Station.pdf Action ByDate Action ResultVer. TCMUD No. 1 99 of 172 15 September 2009 109-99-M1 Version:File #: Title Discuss and take appropriate action regarding agreement between TCMUD No. 1 and the Trophy Club Country Club (TCCC) for the use of a part of TCCC's parking lot for housing of the temporary fire department facilities during construction on the new fire station. (West) Body The draft contract from TCCC is attached for the Board's review. TCMUD No. 1 100 of 172 15 September 2009 TCMUD No. 1 101 of 172 15 September 2009 TCMUD No. 1 102 of 172 15 September 2009 TCMUD No. 1 103 of 172 15 September 2009 TCMUD No. 1 104 of 172 15 September 2009 TCMUD No. 1 105 of 172 15 September 2009 TCMUD No. 1 106 of 172 15 September 2009 TCMUD No. 1 107 of 172 15 September 2009 TCMUD No. 1 108 of 172 15 September 2009 TCMUD No. 1 109 of 172 15 September 2009 TCMUD No. 1 110 of 172 15 September 2009 TCMUD No. 1 111 of 172 15 September 2009 TCMUD No. 1 112 of 172 15 September 2009 TCMUD No. 1 113 of 172 15 September 2009 100 Municipal Drive Trophy Club, TX 76262Trophy Club Entities Legislation Details (With Text) File #: Version:109-105-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:7/15/2009 Trophy Club Municipal Utility District No. 1 On agenda:Final action:9/15/2009 Title:Discuss and take appropriate action concerning the Public Information Act as it relates to Open Records Requests and establishing policy for the charging of fees for same. (Carr) Attachments:2008 Public Information Handbook.pdf Action ByDate Action ResultVer. TCMUD No. 1 114 of 172 15 September 2009 109-105-M1 Version:File #: Title Discuss and take appropriate action concerning the Public Information Act as it relates to Open Records Requests and establishing policy for the charging of fees for same. (Carr) Body This agenda item was requested at the July 14th meeting. Attached is information from the Public Information 2008 Handbook regarding acceptable procedures for charging fees for Open Records Requests. TCMUD No. 1 115 of 172 15 September 2009 2008 Public Information Handbook Office of Attorney General VII. COST OF COPIES AND ACCESS A. General Cost Provisions Subchapter F of the Public Information Act, sections 552.261 through 552.275, generally provides for allowable charges for copies of and access to public information. All charges must be calculated in accordance with the rules promulgated by the attorney general under section 552.262. The rules establish the charges, as well as methods of calculation for those charges. The rules also provide that a local governmental body may, if needed to cover its costs, exceed the costs established by the rules of the attorney general by up to 25 percent.187 In general, charges are allowed for copies of public information to recover the cost of materials, labor, and overhead. However, if a request is for 50 or fewer copies of paper records, the allowable charges are limited to the per page charge for each copy, unless the records to be copied are located in (a) two or more separate buildings, or (b) a remote storage facility.188 Buildings connected by an open or covered sidewalk, or an underground or overhead passageway are not considered “separate buildings.”189 The Act provides several exceptions to the general rule that charges for access or inspection of records are not allowed. For information contained in paper records, the exceptions are based on the volume or age of the records, combined with the time required to prepare the records for inspection.190 For information contained in electronic records, the exceptions are based on the location of the records, whether they are directly accessible to the public in their electronic format, and the tasks that must be performed before providing access to the public information.191 B. Charges for Copies of Paper Records and Printouts of Electronic Records As indicated by section 552.261(a), a governmental body is allowed to recover all costs related to reproducing public information. A request for copies and/or printouts that results in more than 50 pages may also be assessed charges for labor, overhead (which is calculated as a percentage on the labor total), and materials.192 When a request results in more than 50 pages, the location of the records is irrelevant. Requests that require programming and/or manipulation of data may be assessed charges for those tasks also, as well as computer time to process the request.193 The law defines “programming” as “the process of producing a sequence of coded instructions that can be executed by a computer.”194 “Manipulation of data” is defined as “the process of modifying, reordering, or decoding of information with human intervention.”195 Finally, “processing” means “the execution of a sequence of coded instructions by a computer producing a result.”196 The amount allowed for computer processing depends on the type of computer used and the time needed for the computer to process the request. The time is calculated in CPU minutes for mainframe and midrange computers, and in clock hours for client servers and PC’s. TCMUD No. 1 116 of 172 15 September 2009 Examples: 1. A governmental body receives a request for copies of the last 12 months’ worth of travel expenditures for employees, including reimbursements and backup documentation. The records are still in the building. The governmental body determines that there are about 120 pages, and that it will take one and a half hours to put the information together, redact social security numbers and credit card numbers (the requestor has given her permission to do this), and make copies. The total charges for this request would be: Copies, 120 pages @ $.10/page $12.00 Labor, 1.5 hours @ $15.00/hour $22.50 Overhead, $22.50 x .20 $4.50 Total for copies & labor (paper records) $39.00 2. In addition to the above request, the requestor also sends a separate request for copies of all the e-mails between two named employees and the public for the same 12- month period. The requestor has agreed to the redaction of any e-mail addresses of members of the public. The governmental body’s e-mail system allows them to electronically redact the e-mail addresses, but this will require some programming. The governmental body determines that there are 80 pages of e-mail responsive to this request. The total charges for this request would be: Printouts, 80 pages @ $.10/page $8.00 Labor, .25 hours to recover deleted e-mails, @ $15.00/hour $3.75 Labor, .50 hours to write program to redact, @ $28.50/hour $14.25 Overhead, $18.00 x .20 $3.60 Client Server, .50 hours to process program, @ $2.20/hour $1.10 Total for printouts & labor (electronic redaction/electronic records) $30.70 3. Rather than receiving the e-mails in paper form, the requestor wants to receive them electronically on a CD. The total charges would be: Labor, .25 hours to recover deleted e-mails, @ $15.00/hour $3.75 Labor, .50 hours to write program to redact, @ $28.50/hour $14.25 Labor, .25 hours to prepare to burn to CD, @ $15.00/hour $3.75 Overhead, $21.75 x .20 $4.35 Client Server, .50 hours to process program, @ $2.20/hour $1.10 PC, .25 hours to burn CD, @ $1.00/hour $0.25 Materials, 1 CD @ $1.00/each $1.00 Total for CD & labor (electronic redaction/electronic records) $28.45 TCMUD No. 1 117 of 172 15 September 2009 C. Charges for Inspection of Paper Records and Electronic Records Charges for requests for inspection of paper records are regulated by section 552.271 and section 552.272 for electronic records. Section 552.271 allows charges for copies for any page that must be copied so that confidential information may be redacted to enable the requestor to inspect the information subject to release.197 No other charges are allowed unless198 (a) the records to be inspected are older than five years, or (b) the records completely fill, or when assembled will completely fill, six or more archival boxes, and (c) the governmental body estimates that it will require more than five hours to prepare the records for inspection.199 If a governmental body has fewer than 16 full-time employees, the criteria is reduced to (a) the records are older than three years, or (b) the records fill, or when assembled will completely fill, three or more archival boxes, and (c) the governmental body estimates that it will require more than two hours to prepare the records for inspection.200 An “archival box” is a box that measures approximately 12.5" W x 15.5" L x 10" H.201 On average, such a box would contain 4,000 pages. Only records responsive to the request may be counted towards the number of boxes. Preparing records that fall under subsections 552.271(c) or (d) for inspection includes the time needed to locate and compile the records, redact the confidential information, and make copies of pages that require redaction. Overhead charges are not allowed on requests for inspection.202 Section 552.272 allows charges for labor when providing access to electronic information requires programming and/or manipulation of data, regardless of whether or not the information is available directly on-line to the requestor.203 Searching and/or printing electronic records is neither programming nor manipulation of data. Overhead is not allowed on requests for inspection.204 Examples: 1. The requestor states that she wants to inspect travel expenditure records for the past year, and then will decide whether or not she wants copies. Of the 120 pages that are responsive, 112 pages have information that must be redacted, with the requestor’s permission, before the requestor may inspect the records. The total charges for this request would be: Redacted copies, 112 @ $.10/page $11.20 Labor & Overhead $0.00 Total for inspection, redacted copies $11.20 2. The requestor wants to inspect the same type of records for the past 10 years. Because part of the records are older than five years, and it has been determined that it will take more than five hours to prepare them for inspection, the requestor may be assessed charges for the redacted copies and the time required to prepare the records that are older than five years. Basing its calculations on the one year already produced for inspection, the governmental body determines that the total charges for this request would be: TCMUD No. 1 118 of 172 15 September 2009 Redacted copies, 1,120 @ $.10/page $112.00 Labor, 1.5 hour x 5 years x $15.00/hour $112.50 Overhead $0.00 Total for inspection, redacted copies/record older than 5 years $224.50 3. The requestor also wants to inspect the e-mails, rather than getting copies. The requestor has agreed to the redaction of any e-mail addresses of members of the public. The governmental body’s e-mail system allows them to electronically redact the e-mail addresses of members of the public, but this will require some programming. The governmental body determines that there are 80 pages of e-mail responsive to this request. The total charges for this request would be: Labor, .25 hours to recover deleted e-mails, @ $15.00/hour $3.75 Labor, .50 hours to write program to redact, @ $28.50/hour $14.25 Total for inspection of electronically redacted records $18.00 D. Waivers or Reduction of Estimated Charges If a governmental body determines that releasing the information requested is in the “public interest” because it will primarily benefit the general public, the governmental body shall waive or reduce thecharges.205 The determination of whether release of information is in the “public interest” rests with the governmental body whose records are requested.206 Additionally, the law allows a governmental body to waive charges if the cost of collecting the amount owed exceeds the actual amount charged.207 E. Providing a Statement of Estimated Charges as Required by Law If a governmental body estimates that charges will exceed $40.00, the governmental body is required to provide the requestor with a written itemized statement of estimated charges before any work is undertaken.208 Additionally, the statement must advise the requestor if there is a less expensive way, if any, of viewing the records.209 The statement must also contain a notice that the request will be considered automatically withdrawn if the requestor does not respond in writing within ten business days of the date of the statement that the requestor: (a) accepts the charges and agrees to pay them, (b) modifies the request in response to the estimate, or (c) has sent, or is sending, a complaint regarding the charges to the attorney general.210 If the governmental body has the ability to communicate with the general public by electronic mail and/or facsimile, the statement must also advise the requestor that a response may be sent by either of those methods, as well as by regular mail or in person.211 Governmental bodies are cautioned that an estimate statement lacking any of the required elements is considered to be “deficient” because it does not comply with the law. Providing a deficient estimate is considered by this office as not having provided one at all. The consequences of providing a deficient estimate may result in (a) limiting the amount the governmental body may recover through charges,212 and/or (b) preventing the governmental body from considering the request withdrawn by operation of law.213 TCMUD No. 1 119 of 172 15 September 2009 If after receiving agreement from the requestor for the charges, but before completing the request, the governmental body determines that the actual charges will exceed the agreed-upon charges by more than 20 percent, the governmental body must provide the requestor an updated statement of estimated charges.214 This updated statement has the same requirements as the initial statement. If the governmental body fails to provide the updated statement of estimated charges, charges for the entire request are limited to the initial agreed-upon estimate plus 20 percent. The governmental body forfeits any additional charges.215 If the requestor does not respond to the updated statement, the governmental body must provide the records that were prepared and are covered by the initial statement of estimated charges. The requestor forfeits the rest of the request. If a request is estimated to exceed $100 ($50 if a governmental body has fewer than 16 full-time employees), a governmental body that provides the statement of estimated charges with all its required elements may also require that the requestor deposit a percentage of the total amount, or prepay or provide a bond for the total amount.216 The choice of method of payment rests with the governmental body. A governmental body that requires a deposit, bond, or prepayment may consider the request withdrawn if payment is not received within ten business days of the date the governmental body requested the deposit, bond, or prepayment.217 If the requestor makes payment within the required time, the request is considered received on the date the payment is made.218 Additionally, a governmental body is not required to comply with a new request if a requestor owes more than $100.00 on unpaid charges for previous requests for which the requestor was provided, and accepted, an appropriate statement of estimated charges.219 In such cases, the governmental body may require the requestor to pay the unpaid amounts, as well as pay in advance for the instant request before complying with that request. All unpaid charges must be duly documented.220 In addition to the statement of estimated charges required when a request will exceed $40, a governmental body is also required to provide a statement when it determines that (a) a request will require programming and/or manipulation of data, and (b) complying with the request is not feasible or will substantially interfere with the governmental body’s ongoing operation; or (c) the request can only be fulfilled at a cost that covers the programming and/or manipulation of data.221 Governmental bodies are cautioned that a statement under section 552.231, unlike section 552.2615, is not contingent on the charges being over a certain amount. Rather, the statement is mandated if the requisite conditions are present. The statement must include that the information is not available in the form requested, in which form it is available, any contracts or services needed to put the information in the form requested, the estimated charges calculated in accordance with the rules promulgated by the attorney general, and the estimated time of completion to provide the information in the form requested.222 On provision of the statement, the governmental body is not required to provide the information in the form requested unless the requestor states, in writing, that the requestor agrees with the estimated charges and time parameters, or that the requestor will accept the information in the form that is currently available.223 If the requestor fails to respond to the statement in writing within 30 days, the request is considered withdrawn.224 TCMUD No. 1 120 of 172 15 September 2009 F. Cost Provisions Regarding Requests that Require a Large Amount of Personnel Time Section 552.275 was recently added to Subchapter F.225 This new section authorizes a governmental body to establish a reasonable limit, not less than 36 hours in a 12-month period, on the amount of time that personnel are required to spend producing public information for inspection or copies to a requestor, without recovering the costs attributable to the personnel time related to that requestor.226 If a governmental body chooses to establish a time limit under this section, a requestor will be required to compensate the governmental body for the costs incurred in satisfying subsequent requests once the time limit has been reached.227 A limit under this section does not apply if the requestor is an elected official of the United States, the state of Texas, or a political subdivision of the state of Texas; or a representative of (a) a radio or television station that holds a license issued by the Federal Communications Commission; (b) a newspaper that is qualified under section 2051.044 of the Government Code to publish legal notices or is a free newspaper of general circulation and that is published at least once a week and available and of interest to the general public in connection with the dissemination of news; or (c) a publicly funded legal services organization that is exempt from federal income taxation by being listed as a “501(c)(3) entity” under section 501(a) of the Internal Revenue Code of 1986, as amended.228 On establishing the time limit, a governmental body must make it clear to all requestors that the limit applies to all requestors equally, except as provided by the exemptions of subsections (j), (k), and (l). A governmental body that avails itself of section 552.275 must provide a requestor with a statement detailing the time spent in complying with the instant request, and the cumulative amount of time the requestor has accrued towards the established limit.229 A governmental body may not charge for the time spent preparing the statement.230 If a requestor meets or exceeds the established limit, the governmental body may assess charges for labor, overhead, and material for all subsequent requests. The governmental body is required to provide a written estimate within ten business days of receipt of the request, even if the estimated total will not exceed $40.00. All charges assessed under section 552.275 must be in compliance with the rules promulgated by the attorney general. TCMUD No. 1 121 of 172 15 September 2009 100 Municipal Drive Trophy Club, TX 76262Trophy Club Entities Legislation Details (With Text) File #: Version:109-129-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:8/25/2009 Trophy Club Municipal Utility District No. 1 On agenda:Final action:9/15/2009 Title:Discuss and take appropriate action to nominate and appoint a TCMUD 1 Director to fill the vacancy created by the resignation of Director Borges. Attachments: Action ByDate Action ResultVer. TCMUD No. 1 122 of 172 15 September 2009 109-129-M1 Version:File #: Title Discuss and take appropriate action to nominate and appoint a TCMUD 1 Director to fill the vacancy created by the resignation of Director Borges. Body [Enter body here.] TCMUD No. 1 123 of 172 15 September 2009 100 Municipal Drive Trophy Club, TX 76262Trophy Club Entities Legislation Details (With Text) File #: Version:109-134-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:9/11/2009 Trophy Club Municipal Utility District No. 1 On agenda:Final action:9/15/2009 Title:Discuss and take appropriate action regarding nomination(s) for the Denton Central Appraisal District (DCAD) Review Board. Attachments:DCAD Nomination.pdf Action ByDate Action ResultVer. TCMUD No. 1 124 of 172 15 September 2009 109-134-M1 Version:File #: Title Discuss and take appropriate action regarding nomination(s) for the Denton Central Appraisal District (DCAD) Review Board. Body Please see attachment for additional information/explanation. TCMUD No. 1 125 of 172 15 September 2009 TCMUD No. 1 126 of 172 15 September 2009 TCMUD No. 1 127 of 172 15 September 2009 TCMUD No. 1 128 of 172 15 September 2009 TCMUD No. 1 129 of 172 15 September 2009 TCMUD No. 1 130 of 172 15 September 2009 TCMUD No. 1 131 of 172 15 September 2009 100 Municipal Drive Trophy Club, TX 76262Trophy Club Entities Legislation Details (With Text) File #: Version:109-126-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:8/20/2009 Trophy Club Municipal Utility District No. 1 On agenda:Final action:9/15/2009 Title:Review and Approve Minutes a. February 20, 2009 - MUD 1 & MUD 2 Joint Session Minutes b. August 4, 2009 - Budget Workshop Minutes c. August 5, 2009 - Regular Session Minutes d. August 20, 2009 - Special Session Minutes Attachments:M1-M2 Special Joint Session Minutes 02-20-09.pdf Minutes-8-4-9-BudgetWorkshop.pdf Minutes-080509-Reg Sess.pdf Minutes 082009-Special.pdf Action ByDate Action ResultVer. TCMUD No. 1 132 of 172 15 September 2009 109-126-M1 Version:File #: Title Review and Approve Minutes a. February 20, 2009 - MUD 1 & MUD 2 Joint Session Minutes b. August 4, 2009 - Budget Workshop Minutes c. August 5, 2009 - Regular Session Minutes d. August 20, 2009 - Special Session Minutes TCMUD No. 1 133 of 172 15 September 2009 MINUTES OF SPECIAL JOINT SESSION TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 and TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 2 February 20, 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 met in Special Joint Session on Friday, February 20, 2009, at 12:00 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 Connie White Secretary/Treasurer Jim Hase Asst. Secretary/Treasurer Neil Twomey Director 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 Mary Moore MUD Secretary Bob West MUD 1 Attorney Pam Liston MUD 2 Attorney Bruce James Attorney Danny Thomas Fire Chief Betty Ann Henry 308 Oakmont Drive Shirley Hase 209 Inverness Drive Brandon Emmons Town Manager Bill Rose Resident SPECIAL JOINT SESSION A.1 Call to Order and Announce a Quorum. a. Municipal Utility District No. 1 President Henry announced a quorum and called the meeting to order at 12:33 p.m. b. Municipal Utility District No. 2 President Budarf announced a quorum and called the meeting to order at 12:33 p.m. A.2 Public Comments or Presentations No public comments. B.1 Discuss and take appropriate action concerning financing for the new fire station and management of the fire department, including amendment of TROPHY CLUB FIRE DEPARTMENT CONTRACT effective April 6, 1986, as previously amended by TCMUD No. 1 134 of 172 15 September 2009 MUD 1 Minutes February 20, 2009 2 FIRST AMENDMENT TO TROPHY CLUB FIRE DEPARTMENT CONTRACT effective September 3, 2003. Attorney West advised he has information that he would like to discuss further in Closed Session pursuant to previous instructions. Board agreed to discuss this item in Closed Session. Action: Refer below. B.2 Discuss and take appropriate action regarding report of Consolidation Task Force. Director Hase advised that everyone should have received his report and letter regarding the findings of the Consolidation Task Force. Mr. Hase had no additional comments or recommendations. Director White asked about posting the Consolidation Task Force Report to the website. Town Manager Emmons stated that would be acceptable provided there is a disclaimer added stating that the report has not yet been formally accepted by any of the governing entities. TCMUD No. 2 MUD 2 Director Budarf moved to accept Consolidation Task Force Report as written/presented. MUD 2 Director Borges seconded the motion. Floor opened for discussion. Director Carr asked to include posting the report to the website. Director Carr asked Director Kohs if he agreed with the numbers in the CTF Report. Director Kohs stated that there was a time when he struggled with comprehending the formulas, agrees the math was correct, but he was not able to follow or comprehend the system and the process of the formulas, stating it was pretty complex. President Budarf called for the vote. Motion carried unanimously. TCMUD No. 1 MUD 1 Director White moved to accept the Consolidation Task Force Committee’s Report, as written/presented. MUD 1 Director Cantrell seconded the motion. Motion carried unanimously. B.3 Discuss and take appropriate action regarding the May 9, 2009 consolidation election, ballot, and proposition. Attorney West requested to speak to Items B.3 and B.4 jointly, and the Board agreed. Attorney West advised that we have had contact with the Secretary of State’s office, Election Division, as well as Bond Counsel, who advise that as long as the voting can take place in a way that is not confusing to the voters on the issues, then we can go forward. We are waiting to hear from the Town to see if they have anything else they plan to add to the ballot. West’s understanding is that the Town’s referendum, which has been discussed, has not yet been called, and if it is called, it will take some modification to the Joint Election Agreement, because the Secretary of State’s office is very concerned with having the referendum on the same piece of paper or location, as they believe it will be confusing to the voters. The alternative is to terminate the Joint Election Agreement, and hold the elections in separate locations for voting for each MUD. Some discussion still needs to occur regarding whether the Town calls a referendum for the Town to take MUD 2. Director Kohs asked about MUDs withdrawing from the May election, forming an agreement between the three entities, if the Town were to agree, and waiting until the November ballot. TCMUD No. 1 135 of 172 15 September 2009 MUD 1 Minutes February 20, 2009 3 Attorney West advised that because there are certain requirements that need to be done for an election, the deadline to reach an agreement would have to be done by March 9th, which is the deadline to call for an election. Director Borges stated that we have been working on this for five years. We could have moved forward last year; however, we postponed moving forward for the McLain Study. Now the numbers show that consolidation of the MUDs is better, and Borges believes the citizens are smart enough to make the right decision. Action – MUD 1: Tabled to March meeting. Action – MUD 2: Tabled to March meeting. B.4 Discuss and take appropriate action regarding the Joint Election Agreement between Trophy Club Municipal Utility District No. 1, Trophy Club Municipal Utility District No. 2, and the Town of Trophy Club for the May 9, 2009 election. Discussion held under B.4. Action – MUD 1: Tabled to March meeting. Action – MUD 2: Tabled to March meeting. B.5 Discuss and take appropriate action concerning results of court hearing in Cause No. 2009-40021-362, Trophy Club Municipal Utility District No. 2 versus Town of Trophy Club, Texas. Attorney West summarized this morning’s hearing, advising that the judge ruled not to extend the Temporary Restraining Order (TRO). The judge did not have enough time on his docket to hear testimony and requested further documentation, and scheduled a hearing for Wednesday, March 4 at 1:30 p.m. The issue will be back before the judge with all parties present and prepared to make their case. Today was just an argument on the legal points. We can talk about advice; however, that needs to be done in closed session, and deferred to Liston for additional comments. Attorney Liston advised that the Judge did not reach any argument on the merits of the case today. An attorney whom we knew nothing of entered the suit this morning on behalf of the Town, and brought briefs that we had not been provided copies of and brought an answer that we had not been provided a copy of and served upon us. So the Court, by operation of law, could not extend the TRO because of the Texas Rules of Civil Procedures, and was not inclined to enter the Temporary Injunction based on not hearing any argument on the merit but the answer contained pleas to the jurisdiction that must be addressed before any evidence on the merit can be entertained. The issue is whether or not TCMUD 2 had standing and the other issue is whether or not the case is “ripe” to be heard. The Judge wanted to clarify these issues and make a ruling on these issues before he hears any arguments on the merits. Attorney Liston clarified further that before anyone can file a lawsuit, they have to have standing. The Town made the argument that the MUDs do not have standing and/or right. The second issue is because the Town had not yet taken any action to abolish MUD2 that did not constitute what’s call “ripeness” for the Court to hear the argument. Attorney Liston advised that even though we had filed briefs on Wednesday and Thursday, the MUD briefs had not yet made it from the clerk’s office to the Judge. Director Budarf asked how the Judge was able to receive the Town’s brief. TCMUD No. 1 136 of 172 15 September 2009 MUD 1 Minutes February 20, 2009 4 Attorney Liston advised that the Town attorney brought the briefs to Court that he filed with the County Clerk at 9:30 a.m. that morning for the 9:00 a.m. hearing. Director White advised that the TRO expires on Monday, February 23. She spoke with Mayor Sanders, who explained that the Town is planning to send out an email to council explaining what has occurred, and recommending they place an item on the next agenda (March 2nd) to vote on an ordinance, which will be a restrictive ordinance, that is dependent on an election. Council will vote to put it on the ballot to pass with a referendum vote. Director Hase asked if the Town proceeds as Director White stated from the Mayor, does that mean that MUD 2 exists as MUD 2 through the election date. Attorney Liston explained that if passed with the required two-thirds it will make it effective the day of election, however, it depends on how the ordinance is worded. Council’s plan is to have it ready to become effective the day of canvassing. Action: None MUNICIPAL UTILITY DISTRICTS 1 AND 2 TO CONVENE INTO CLOSED SESSION CLOSED SESSION MUD Boards convened into Closed Session at 1:08 p.m. E.1 PURSUANT TO SECTION 551.071 OF THE TEXAS GOVERNMENT CODE REGARDING CONSULTATIONS WITH ATTORNEY: a. TO CONDUCT A PRIVATE CONSULTATION WITH THE DISTRICTS’ ATTORNEYS ON A MATTER OF PENDING AND ACTIVE LITIGATION AND/OR A SETTLEMENT OFFER REGARDING SAME: Temporary Restraining Order and Temporary and Permanent Injunction Proceedings pending in Denton County in Cause No. 2009-40021-362 against the Town of Trophy Club, Texas. b. TO CONDUCT A PRIVATE CONSULTATION WITH THE DISTRICTS’ ATTORNEYS ON A MATTER IN WHICH THE DUTIES OF THE ATTORNEYS TO THE GOVERNMENTAL BODIES UNDER THE TEXAS DISCIPLINARY RULES OF PROFESSIONAL CONDUCT OF THE STATE BAR OF TEXAS CLEARLY CONFLICTS WITH THE OPEN MEETINGS ACT: Financing for the new fire station and management of the fire department, including amendment of TROPHY CLUB FIRE DEPARTMENT CONTRACT effective April 6, 1986, as previously amended by FIRST AMENDMENT TO TROPHY CLUB FIRE DEPARTMENT CONTRACT effective September 3, 2003. MUNICIPAL UTILITY DISTRICTS 1 AND 2 TO RECONVENE INTO OPEN/SPECIAL JOINT SESSION MUD Boards reconvened into Open/Special Joint Session at 3:21 p.m. *SPECIAL JOINT SESSION F.1 Discuss and take appropriate action regarding discussions held in Closed Session. TCMUD No. 1 137 of 172 15 September 2009 MUD 1 Minutes February 20, 2009 5 a. Financing for the new fire station and management of the fire department, including amendment of TROPHY CLUB FIRE DEPARTMENT CONTRACT effective April 6, 1986, as previously amended by FIRST AMENDMENT TO TROPHY CLUB FIRE DEPARTMENT CONTRACT effective September 3, 2003. Attorney West provided a brief history regarding the Trophy Club Fire Department Contract. West prepared a document to present to the Board to deliberate and vote that will clean up the language of the Fire Department Contract as previously amended to refer to the proper current contracts, dates and to also to add in the same concept in this contract that is in the 2008 Master District contract. If one of the MUDs ceases to exist for whatever reason, then the remaining MUD will continue as the administrator and facilitator just as it does in the 2008 Master District Contract, until such time as a new contract is created. Now that language is here, regarding funding of the new fire station, TCMUD No. 1 MUD 1 Director Twomey moved to approve the First Amendment to the Trophy Club Fire Department Contract, as presented, with the additional direction that the appropriate offices of MUD 1 execute the necessary promissory notes for the funding referenced in Paragraph 5 under the authority referenced in Paragraph 7. MUD 1 Director White seconded the motion, adding for the purpose of maintaining the integrity of the operation of the Fire Department in the event of any new transition and to ensure the Fire Department is built as planned. Mover agreed with Seconder’s additional comments. Floor opened for discussion. Motion carried unanimously. TCMUD No. 2 MUD 2 Director Thomas moved to approve the First Amendment to the Trophy Club Fire Department Contract, as presented, with the additional direction that the appropriate offices of MUD 1 execute the necessary promissory notes for the funding referenced in Paragraph 5 under the authority referenced in Paragraph 7, for the purpose of maintaining the integrity of the operation of the Fire Department in the event of any new transition and to ensure the Fire Department is built as planned. MUD 2 Director Budarf seconded the motion. Motion carried unanimously. b. Temporary Restraining Order and Temporary and Permanent Injunction Proceedings pending in Denton County in Cause No. 2009-40021-362 against the Town of Trophy Club, Texas. MUD 1 Action: None MUD 2 Action: None President Henry asked for a Motion to revisit Agenda Item B.2 MUD 1 Motion: Director Cantrell moved to revisit/reconsider Agenda Item B.2. Director Hase seconded the motion. MUD 1 Motion carried Unanimously MUD 2 Motion: Director Carr moved to revisit Agenda Item B.2. Director Budarf seconded the motion. MUD 2 motion carried unanimously B.2 Discuss and take appropriate action regarding report of Consolidation Task Force. MUD 2 Motion: Director Thomas moved that we take action authorizing the expense to be able to utilize funds for the publication of facts to the community from an educational standpoint and to utilize resources other than the website for publishing as much as we can to as many TCMUD No. 1 138 of 172 15 September 2009 MUD 1 Minutes February 20, 2009 6 individuals as we can regarding the pertinent facts. Director Borges seconded the motion. MUD 2 motion carried unanimously Director Cantrell stated that he concurred with Director Thomas’ motion MUD 1 Motion: Director Cantrell moved that we follow-through with the signing and sharing cost 50/50 to provide an educational piece from the Consolidation Task Force Committee as well as other pertinent information. Director White seconded the motion. MUD 1 Motion carried unanimously F.1 Adjourn. Meeting adjourned at 3:33 p.m. _________________________________ Dean Henry, MUD 1 President (SEAL) _________________________________ Constance S. White, MUD 1 Secretary _________________________________ Jim Budarf, MUD 2 President (SEAL) _________________________________ Carol Ann Borges, MUD 2 Secretary ______________________________________ Mary Moore, MUD Secretary TCMUD No. 1 139 of 172 15 September 2009 MINUTES OF WORSHOP SESSION TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 August 4, 2009 The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties met in Workshop Session on Tuesday, August 4, 2009, in the Boardroom of the Administration Building, 100 Municipal Drive, Trophy Club, Texas 76262. DIRECTORS PRESENT: Jim Budarf Joint President Jim Hase Joint Secretary/Treasurer Jim Thomas Joint Secretary/Treasurer Carol Borges Director Neil Twomey Director Steven Kohs Director DIRECTORS ABSENT: Dean Henry Joint President Gary Cantrell Joint Vice President Kevin Carr Joint Vice President Bob Fair Director STAFF AND GUESTS PRESENT: Robert Scott District Manager Mary Moore MUD Secretary Kathy DuBose Finance Director Jim Buxton Financial Analyst Danny Thomas Fire Chief Brandon Emmons Town Manager Bill Rose Town Councilmember - 219 Inverness Drive Greg Lamont 15 Avalon Drive WORKSHOP SESSION Call to Order and Announce a Quorum. President Budarf announced a quorum and called the meeting to order at 3:04 p.m. 1. Review and discuss the proposed Budget for Fiscal Year 2009-2010 for TCMUD No. 1. Director Twomey distributed a handout for the Board’s review, stating that the first sheet is a break-even budget, with no extra money going to reserves. We don’t have anything going for O & M taxes. We do have fire taxes going for the MUD. We anticipate a fire tax rate of $.1099, based on appraised valuation. Debt Service tax rate would be .09758 which gives a break-even proposed tax rate of $0.20748. Director Hase would like to see the Board carry an I & S surplus through 9-10 and 10-11 to cover the out years where we are projected a need to have an increased tax rate. Director Hase recommended putting the $308,000 rent payment toward debt service. Both the Board and Finance Director agreed. TCMUD No. 1 140 of 172 15 September 2009 TCMUD No. 1 Regular Session Minutes – July 14th, 2009 2 Finance Director DuBose stated that by moving the $308,000 over to debt service, the loss on O&M is $413,500, which is an approximate deduction of 9% and the estimated combined tax rate would be $0.2008. District Manager Scott explained the water and wastewater portion of the budget, as well as his budget cuts and reductions. Adjourn. Meeting adjourned at 5:42 p.m. ___________________________ _____________________________ DEAN HENRY, Joint President JIM BUDARF, Joint President TCMUD No. 1 TCMUD No. 1 ATTEST: ____________________________ ______________________________ JIM HASE, Joint Secretary JAMES C. THOMAS, Joint Secretary TCMUD No. 1 TCMUD No. 1 ____________________________ MARY MOORE (Seal) MUD Secretary TCMUD No. 1 141 of 172 15 September 2009 MINUTES OF REGULAR SESSION TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 August 5, 2009 The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties met in Regular Session on Wednesday, August 5, 2009, in the Boardroom of the Administration Building, 100 Municipal Drive, Trophy Club, Texas 76262. DIRECTORS PRESENT: Dean Henry Joint President Jim Budarf Joint President Jim Hase Joint Secretary/Treasurer Jim Thomas Joint Secretary/Treasurer Carol Borges Director Neil Twomey Director Steven Kohs Director DIRECTORS ABSENT: Gary Cantrell Joint Vice President Kevin Carr Joint Vice President Bob Fair Director (elected but not yet sworn in) STAFF AND GUESTS PRESENT: Robert Scott District Manager Mary Moore MUD Secretary Bob West MUD 1 Attorney Kathy DuBose Finance Director Jim Buxton Financial Analyst Brandon Emmons Town Manager Danny Thomas Fire Chief Kathleen Wilson Town Councilmember Bob Radder 1 Lee Court Greg Lamont 15 Avalon Drive REGULAR SESSION Call to Order and Announce a Quorum. President Henry announced a quorum and called the meeting to order at 6:00 p.m. 1. Administer the Oath of Office a. Bob Fair Director Fair was unable to attend the meeting due to being ill. 2. Receive District Manager's Report a. Clarification on Water and Wastewater Issues b. Monthly Revenue for Wastewater Treatment Plant c. Update on Fort Worth Meter Vault d. Update on Fort Worth Water meeting and new contract e. Update on Water Plant Booster Pump (formerly VFD) f. Water pumped vs. billed (To be distributed at meeting) g. PID payment received TCMUD No. 1 142 of 172 15 September 2009 TCMUD No. 1 Regular Session Minutes – August 5th, 2009 2 District Manager Scott thanked Mr. Bob Radder for coming out and taking a complete scan and thermal images of all MUD’s running equipment, including electrical panels. District Manager Scott asked Director Kohs if he had any questions or comments regarding water or wastewater, advising that his door is always open. Director Kohs thanked District Manager Scott for performing a lab test on our wells, adding he had nothing further to address with regard to water or wastewater. 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. Mr. Bob Radder addressed the Board, and provided an imaging report to District Manager Scott, advising that he took thermal images at the Water Plant and at the Wastewater Treatment Plant, adding there were only a few anomalies which were easily remedied. 3. Review and discuss the 2009-2010 FY budget for TCMUD No. 1 (Consolidated). (Twomey) The Board discussed the MUD Budget for FY 2009-2010. Director Twomey advised that we are currently considering a $.201 tax rate, which is a break- even tax rate. Finance Director DuBose distributed a handout to the Board, presenting two scenarios and discussed same. The Fire Department (Fire) and Utility Operations and Maintenance (O & M) are the same on both scenarios, with an associated tax rate of 10.9911 cents for fire. In the first scenario, there are three variables that could be dealt in two ways; the debt on the variable speed pump (approximately $40,000), the debt on membrane filters (approximately $120,000), and you could issue debt or borrow money for the pump and generator (approximately $103,000) that the MUDs are looking at buying this budget year. The first scenario has those three items funded in debt service (the Interest and Sinking Fund), which would be paid with taxes. This scenario means utility rate revenues would go up by 8.35%, which includes with the Ft Worth increase in their water rate of 7%, for a total of 8.35%. On the second page of the first scenario, looking at with the combination of debt service and Fire, the total tax rate would equate to $.20327 cents. Director Budarf asked if these numbers include the pass through of Ft Worth’s rate increase, and if that was incorporated in this scenario? DuBose advised that it is. Finance Director DuBose stated that in the second scenario, rather than paying the annual payments for the above three items through debt service, if we paid for them as Utility O & M expenses, funded by utility rates, you are looking at 14% utility rate increase and the tax rate would be about $.18 cents. Director Twomey suggested putting together a matrix showing various scenarios, stating that the public-issued debt has typically been paid from the Interest and Sinking (I&S) fund. Finance Director DuBose explained that the bank-qualified borrowings are considered certificate of obligation bonds has turned our debt into a bond, which may be payable by taxes from the I & S fund. The interest payment on the bond once it is sold is not yet included in the current scenarios. Our plan is that TCEQ approves the bond, 90 days later we go through all the steps necessary to sell the bond. We could have a payment by next October 2010 for this $2 million dollar bond. Twomey asked the Board if they want to build the bond payment into the budget or do we want to capitalize it and pay it out of our reserves. TCMUD No. 1 143 of 172 15 September 2009 TCMUD No. 1 Regular Session Minutes – August 5th, 2009 3 President Henry suggested going with the first scenario and bumping up the tax rate one cent. Director Hase requested Finance Director DuBose provide an explanation of how the money we borrowed through the bank and then the bank turns that debt into a bond. Finance Director DuBose clarified that the MUDs purchased a variable speed pump. We issued contractual obligations in 2004 for $270,000, and that was an eight-year debt, and we have three years left on the note. Previously this payment was in Master District Finance (I&S) and paid with utility rate and now it has been moved over to Operations - Water O&M. Director Hase recommends adopting $.21 cents at this first initial go-round. Director Twomey requested a matrix from Finance Director DuBose, so the Board could see the breakout of the different scenarios. Finance Director DuBose advised we are looking at debt on three items; $40,000 for the variable speed pump, $120,000 is for the membrane filters, the last is $103,000 for the generator/pump. Director Hase suggested we don’t want to go any higher than $0.215, and our target should be no higher than $0.215. Finance Director DuBose advised that a $0.215 tax rate would cause the water utility rate to rise 2.5%. Director Hase suggested going with an 8.35% increase in the utility rates and a target of $0.213 for the tax rate. President Henry asked for a consensus from the Board regarding Director Hase’s suggestion. Director Kohs stated he was fine with Director Hase’s recommendation. Director Twomey stated he would like an absolute maximum tax of $0.215. Director Borges stated that $0.215 makes more sense. Director Budarf stated to set a cap of $0.215; however, he prefers $0.213. President Henry agrees with a tax rate cap of $0.215. Directors Hase and Thomas agree with tax rate cap of $0.215. Action: Discussion only. 4. Review and Approve Disbursements & Variance Report a. June 2009 - MUD 1 b. June 2009 - MUD 2 c. June 2009 - Master District Director Hase moved to approve the MUD 1, MUD 2 and the Master District disbursements and variance report for June 2009. Director Twomey seconded the motion. Motion carried unanimously. 5. Present and discuss 2009 Certified Appraisal Records and Rollback Tax Rate Calculation. Finance Director DuBose advised that the overall appraised value went up substantially. The rollback rate could not be calculated until the Board decided on the debt amount. DuBose will send the debt information to DCAD tomorrow. The combined value went up 3.5% for MUD 1 and went up 4.2% for MUD 2. TCMUD No. 1 144 of 172 15 September 2009 TCMUD No. 1 Regular Session Minutes – August 5th, 2009 4 Action: Discussion only. 6. Discuss and take appropriate action to announce the placement of a proposal to adopt a 2009 Tax Rate on the September 15, 2009 Trophy Club Municipal Utility District No. 1 public meeting agenda as an action item, and announce a Public Hearing on same date regarding the adoption of the Fiscal Year 2009-2010 MUD 1 Budget. Director Twomey moved to announce the placement of a proposal to adopt a 2009 Tax Rate on the September 15, 2009 TCMUD No. 1 agenda as an action item, and announce a Public Hearing on the same date regarding adoption of the FY 09-10 TCMUD No. 1 Budget with a tax rate of $0.2150. Director Budarf seconded the motion. Floor opened up for discussion. Director Kohs asked about possibility of including a tax rate to enable MUDs to take over EMS. Town Manager Emmons addressed the Board, stating there is way too much due diligence that needs to be done prior to any change in the hands of EMS. Motion carried unanimously. 7. Discuss and take appropriate action regarding request to establish pooled cash accounts between the Town and TCMUD1 at First Financial Bank and Texpool. (Budarf) Director Budarf stated that the Town has approved the process of pooling cash and now it is necessary for the MUD Board to review and offer either their approval or denial for pooling MUD funds with Town funds. Finance Director DuBose stated that the current system takes a large amount of staff time to move money around and between accounts. By pooling cash, it would allow Finance to work smarter not harder, especially with the day-to-day operations. The controls are what are required to make a payment against an account. DuBose stated there is no hurry, and understands the Board’s concerns. Director Twomey has no problem with one MUD account at TexPool and one MUD account at First Financial, and has concerns with pooling the MUD money with the Town money. Finance Director DuBose advised that on an invoice that is split between Town and MUD, Finance has to write two checks for the one invoice. Attorney West advised that payroll is different from invoices, as the employees are considered Town employees and this is a contractual agreement. Under our bond conveyances, aren’t there covenants requiring those funds will be segregated. At this point, West is agreeing with Twomey. Action: Discussion only. 8. Receive Finance Director's Update a. Monthly Update b. Consolidation of MUD Financial Accounts Finance Director DuBose advised that as of August 1st all of the accounts have been consolidated. STW is still working on some of Utility Billing’s accounts. DuBose advised that everything will be booked to the appropriate account. Action: Discussion only TCMUD No. 1 145 of 172 15 September 2009 TCMUD No. 1 Regular Session Minutes – August 5th, 2009 5 9. Receive Update from Fire Chief Thomas a. To provide Board with a monthly activity report and address the Board's questions. b. To provide update regarding the New Fire Station. Fire Chief Thomas updated the Board, advising that Firefighter Campbell is back to work. 10. Discussion regarding Building America Bonds (BABs). (Twomey) Director Twomey updated the Board regarding BABs, advising that these are taxable bonds. The government will subsidize the interest rate by subsidizing 35%. The positive is that muni bonds are now at 4.7% to 5%. The problem is that TCEQ would have to approve the BABs program bond application. We would have to re-apply to TCEQ, if we wanted to use a BABs Fire Station Bond. TCEQ has never done a BABs issue. Congress has to budget the money for this program every year, so you are at the mercy of the Congress. You have to apply every 45 days before a bond interest payment was due for the interest subsidy. Because of the BABs program, there has been an 18% drop in muni bonds issues, which drives down the price for municipal bonds. This is a very new bond, and warrants observing prior to investment. The clientele more inclined to purchase these types of bonds (BABs) are banks, and are for much larger amounts - $50-60 million. Also, the BABs bonds are private placement issues versus the public placement of tax exempt municipal bonds. Director Twomey advised that he will continue to research and will keep the Board apprised. Action: Discussion only. 11. Discuss and take appropriate action concerning the 2009 Interlocal Agreement with Denton County Tax Office for Property Tax Collection. Director Budarf moved to approve a resolution to approve the 2009 Interlocal Agreement with Denton County Tax Office for Property Tax Collection. Director Twomey seconded the motion. Motion carried unanimously. 12. Review and discuss contract with Town of Trophy Club for use of Administration Building. Director Budarf advised at last night’s meeting that a request has been made of the Town to pay for half of the insurance on the Admin Building. Action: Tabled to September 15th meeting. 13. Discuss and take appropriate action to establish a new tax collection policy for TCMUD No. 1. (Budarf) Director Budarf advised that due to MUD 2’s excellent tax collection history, Budarf recommends utilizing MUD 2’s firm for tax collection. Director Budarf moved to continue utilizing MUD 2’s firm for tax collection. Director Thomas seconded the motion. Floor opened for discussion. Attorney West provided the Board with a history of MUD 1’s tax collection policy. Town Manager Emmons advised that they use McCreary. Motion failed 3-4-0 with Directors Borges, Thomas and Budarf voting for and Directors Kohs, Twomey, Hase and Henry voting against. 14. Discuss and take appropriate action regarding a resolution approving the finance contract for the Membrane Filters for the Trophy Club Wastewater Treatment Plant. The Bank is requesting the Board approve by resolution the finance contract for the Membrane Filters for the Wastewater Treatment Plant. Staff recommends approval. TCMUD No. 1 146 of 172 15 September 2009 TCMUD No. 1 Regular Session Minutes – August 5th, 2009 6 Director Budarf moved to approve Resolution 2008-0805, to approve the contract for the Membrane Filters for the Wastewater Treatment Plant. Director Borges seconded the motion. Motion carried unanimously. 15. Discuss and take appropriate action regarding agreement between TCMUD No. 1 and the Trophy Club Country Club (TCCC) for the use of a part of TCCC's parking lot for housing of the temporary fire department facilities during construction on the new fire station. (West) Contract is not ready for approval at this time. TCCC has submitted a 12-page document that staff is still reviewing and researching. Action: Discussion only. 16. Discuss and take appropriate action regarding the consolidation of Trophy Club MUD 1 and Trophy Club MUD 2. a. Shared Employees b. Order 2000-0805, confirming termination of Master District Contract c. Order 2009-0805-A, confirming termination of Fire Services Contract d. 1st Amendment Interlocal Agreement for Fire Protection Services - Town of Trophy Club e. Second Modification of Contract for Water Supply and Wastewater Treatment, Between Town of Trophy Club, Texas, and Trophy Club Municipal Utility District No. 1. f. First Modification of Contract for Water and Wastewater Operational Services Director Hase advised that we are in fact-gathering mode and are not ready to provide a report to the Board with regard to Shared Employees. We have asked the Town Manager Emmons to have the shared employees provide a breakdown of their tasks by September 1st. Town Manager Emmons has asked for some time due to being in the middle of budget. A. Discussion only; no action. B. Director Budarf moved to approve Order 2000-0805, confirming termination of the Master District Contract. Director Borges seconded the motion. Motion carried unanimously. C. Director Borges moved to approve Order 2009-0805-A, confirming termination of the Fire Department Contract. Director Kohs seconded the motion. Motion carried unanimously. D. Director Budarf moved to approve the 1st Amendment to the Interlocal Agreement for Fire Protection Services with the Town of Trophy Club. Director Twomey seconded the motion. Motion carried unanimously. E. Director Budarf moved to approve the Second Modification of Contract for Water Supply and Wastewater Treatment, between Town of Trophy Club, Texas, and Trophy Club Municipal Utility District No. 1. Director Thomas seconded the motion. Motion carried unanimously. F. Director Budarf moved to approve the First Modification of Contract for Water and Wastewater Operational Services. Director Borges seconded the motion. Motion carried unanimously. 17. Discuss and take appropriate action concerning Resolution 2009-0805-A, adopting the TCMUD No. 1 Identity Theft Program. (Moore) TCMUD No. 1 147 of 172 15 September 2009 TCMUD No. 1 Regular Session Minutes – August 5th, 2009 7 MUD Secretary Moore advised that the Red Flags Rule is an anti-fraud regulation, in effect since January 1, 2008, requiring creditors with covered accounts to implement a written Identity Theft Prevention Program. Under the Rule, the definition of “creditor” includes businesses or organizations that regularly provide goods or services first and allow customers to pay later. Utility companies fall within this definition. The Federal Trade Commission announced a delay until November 1 in their enforcement of the Red Flag rules. Director Twomey moved to approved Resolution 2009-0805-A, to adopt the TCMUD No. 1 Identity Theft Program. Director Budarf seconded the motion. Motion carried unanimously. 18. Review and Approve Minutes a. February 20, 2009 - MUD 1 - MUD 2 Joint Session Minutes b. July 14, 2009 - TCMUD No. 1 Meeting Minutes MUD Secretary Moore requested to table the February 20, 2009, minutes to the September meeting. Director Borges moved to approve the July 14, 2009 TCMUD 1 minutes, as written. Director Thomas seconded the motion. Floor opened for discussion. Motion carried unanimously. 19. Review Monthly Tax Collection Report a. July 2009 - MUD 1 and MUD 2 Board reviewed the report. Action: Discussion only. 20. Set Next Meeting Date a. Tuesday, September 15, 2009, 6:00 p.m. Board agreed to meet on Tuesday, September 15, 2009, 6:00 p.m. 21. Items for Future Agendas a. Update on MUD 1's water contract with Fort Worth b. Funding of Future Capital Projects; i.e., 2 MG Storage Tank c. Rate Order modification and possibility of Water Study (Twomey) d. Disaster Planning e. 2003 Fair and Credit Transaction Act f. Review of MUD's Debt versus Expenses g. Repeal Ethics Policy and adopt an amended Ethics Policy, a Code of Conduct and a Rules of Procedure. h. Assign a position number to each director’s office, in accordance with Section 49.103(c) of the Texas Water Code. i. Create a TCMUD No. 1 website. j. Public Information Act as it relates to Open Records Requests and establishing policy for charging of fees for same. Board asked to add an agenda item for November or December to begin discussions with Town of Trophy Club for transfer of EMS to the MUDs. Additionally, the Board requested removal of Item E – 2003 Fair and Credit Transaction Act. TCMUD No. 1 148 of 172 15 September 2009 TCMUD No. 1 Regular Session Minutes – August 5th, 2009 8 Adjourn. Meeting adjourned at 8:28 p.m. ___________________________ _____________________________ DEAN HENRY, Joint President JIM BUDARF, Joint President TCMUD No. 1 TCMUD No. 1 ATTEST: ____________________________ ______________________________ JIM HASE, Joint Secretary JAMES C. THOMAS, Joint Secretary TCMUD No. 1 TCMUD No. 1 ____________________________ MARY MOORE (Seal) MUD Secretary TCMUD No. 1 149 of 172 15 September 2009 MINUTES OF SPECIAL SESSION TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 August 20, 2009 The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties met in Special Session on Thursday, August 20, 2009, in the Boardroom of the Administration Building, 100 Municipal Drive, Trophy Club, Texas 76262. DIRECTORS PRESENT: Dean Henry Joint President Jim Hase Joint Secretary/Treasurer Jim Thomas Joint Secretary/Treasurer Arrived at 3:10 p.m. Kevin Carr Joint Vice President Bob Fair Director Steven Kohs Director DIRECTORS ABSENT: Jim Budarf Joint President Neil Twomey Director Gary Cantrell Joint Vice President Carol Borges Director STAFF AND GUESTS PRESENT: Robert Scott District Manager Mary Moore MUD Secretary Kathy DuBose Finance Director Jim Buxton Financial Analyst Danny Thomas Fire Chief Larry Crosser 17 Overhill Drive Greg Lamont 15 Avalon Drive SPECIAL SESSION President Henry announced that Director Thomas was running late and requested the Board move forward to Agenda Item No. 1. 1. Administer the Oath of Office a. Bob Fair MUD Secretary Moore administered the Oath of Office to Bob Fair, and Director Fair signed the Oath of Office. Call to Order and Announce a Quorum. President Henry announced a quorum and called the meeting to order at 3:10 p.m. 2. Discuss and take appropriate action regarding the placement of a proposal to adopt a 2009 Tax Rate on the September 15, 2009 Trophy Club Municipal Utility District No. 1 public meeting agenda as an action item, and announce a Public Hearing on same date regarding the adoption of the 2009 Tax Rate and adoption of the Fiscal Year 2009-2010 MUD 1 Budget. Finance Director DuBose explained that she needed the component for the Interest and Sinking Debt portion of the tax rate and the fire tax rate for publication of the Public Hearing Notice. TCMUD No. 1 150 of 172 15 September 2009 TCMUD No. 1 Regular Session Minutes – July 14th, 2009 2 President Henry proposed a maximum tax rate of $0.215 per $100 valuation. Director Carr seconded the motion, and requested to amend the motion for a fire department tax of $0.11270 and an I and S tax rate of $0.06873. Mover agreed with seconder’s amendment. Floor opened for discussion. Motion carried unanimously. 3. Discuss and take appropriate action to approve a funding contract with American National Bank for the purchase of a High Service Pump, a Generator, and Switchgear over a three-year period at tax exempt rate of 3.90%. District Manager Scott advised the Board has approved the above items, all of which are in next year’s Budget. Scott is requesting the Board’s approval to move forward on the contract with American National Bank. Director Carr moved to approve the funding contract with American National Bank for the purchase of a High Service Pump, a Generator, and Switchgear over a three-year period with a tax exempt rate of 3.90%. Director Thomas seconded the motion. Motion carried unanimously. Adjourn. Meeting adjourned at 3:23 p.m. ___________________________ _____________________________ DEAN HENRY, Joint President KEVIN CARR, Joint Vice President TCMUD No. 1 TCMUD No. 1 ATTEST: ____________________________ ______________________________ JIM HASE, Joint Secretary JAMES C. THOMAS, Joint Secretary TCMUD No. 1 TCMUD No. 1 ____________________________ MARY MOORE (Seal) MUD Secretary TCMUD No. 1 151 of 172 15 September 2009 100 Municipal Drive Trophy Club, TX 76262Trophy Club Entities Legislation Details (With Text) File #: Version:109-69-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:4/29/2009 Trophy Club Municipal Utility District No. 1 On agenda:Final action:7/14/2009 Title:Review Monthly Tax Collection Report a. August 2009 - MUD 1 and MUD 2 Attachments:August Tax Collection Report.pdf Action ByDate Action ResultVer. TCMUD No. 1 152 of 172 15 September 2009 109-69-M1 Version:File #: Title Review Monthly Tax Collection Report a. August 2009 - MUD 1 and MUD 2 TCMUD No. 1 153 of 172 15 September 2009 TCMUD No. 1154 of 17215 September 2009 TCMUD No. 1155 of 17215 September 2009 TCMUD No. 1156 of 17215 September 2009 TCMUD No. 1157 of 17215 September 2009 TCMUD No. 1158 of 17215 September 2009 TCMUD No. 1159 of 17215 September 2009 TCMUD No. 1160 of 17215 September 2009 TCMUD No. 1161 of 17215 September 2009 TCMUD No. 1162 of 17215 September 2009 TCMUD No. 1163 of 17215 September 2009 TCMUD No. 1164 of 17215 September 2009 TCMUD No. 1165 of 17215 September 2009 TCMUD No. 1166 of 17215 September 2009 TCMUD No. 1167 of 17215 September 2009 TCMUD No. 1168 of 17215 September 2009 TCMUD No. 1169 of 17215 September 2009 TCMUD No. 1170 of 17215 September 2009 100 Municipal Drive Trophy Club, TX 76262Trophy Club Entities Legislation Details (With Text) File #: Version:109-103-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:7/9/2009 Trophy Club Municipal Utility District No. 1 On agenda:Final action:8/5/2009 Title:Items for Future Agendas a. Update on MUD 1's water contract with Fort Worth b. Funding of Future Capital Projects; i.e., 2 MG Storage Tank c. Rate Order modification and possible Water Study (Twomey) d. Disaster Planning e. Review of MUD's Debt versus Expenses f. Transfer of EMS to the MUDs (November/December 2009) g. Have TNP update Legal Description (09-131-M1) (October 2009) h. Place Numbers for Directors at May 2010 election (09-100-M1) i. Creation of TCMUD1 webstie (09-115-M1) j. Drill for a new Trinity Well (09-124-M1) Attachments: Action ByDate Action ResultVer. TCMUD No. 1 171 of 172 15 September 2009 109-103-M1 Version:File #: Title Items for Future Agendas a. Update on MUD 1's water contract with Fort Worth b. Funding of Future Capital Projects; i.e., 2 MG Storage Tank c. Rate Order modification and possible Water Study (Twomey) d. Disaster Planning e. Review of MUD's Debt versus Expenses f. Transfer of EMS to the MUDs (November/December 2009) g. Have TNP update Legal Description (09-131-M1) (October 2009) h. Place Numbers for Directors at May 2010 election (09-100-M1) i. Creation of TCMUD1 webstie (09-115-M1) j. Drill for a new Trinity Well (09-124-M1) TCMUD No. 1 172 of 172 15 September 2009