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HomeMy WebLinkAboutNovember 16, 2010 Regular Session Agenda PacketTrophy Club Municipal Utility District No. 1 Trophy Club Entities Meeting Agenda 100 Municipal Drive Trophy Club, Texas 76262 Svore Municipal Building Boardroom7:00 PMTuesday, November 16, 2010 Call to order and announce a quorum. Citizen Presentation Citizens are allowed three (3) minutes to address the Board regarding an item over which the Board has policy or oversight authority as provided by Texas law, the ethics order, or other policy order. REGULAR SESSION Reports & Updates 1.Receive Patriot Flag Presentation from Town Resident Bob Radder. 2.Receive District Manager's Report a. Monthly Update - Water pumped vs. billed b. Water - Wastewater Reports c. Monthly Update - PID Development/Homes d. Update on Water Plant Booster Pump (formerly VFD) e. Update on Bar Screens for WWTP f. AWBD Conference: June 17 - 19, 2010 g. Update on Fire Plan h. Review and approval process of monthly agendas WaterPumpedVsBilled-Sept2010.pdf Water Report-3rd Qtr-2010.pdf WWTP Discharge Report Sept 2010.pdf Plan Holders-WWTP Screen Rake.pdf Sept 2010 PID Connection Summary.pdf TCMUD 1 Order 2009-0915-RulesOfProcedure-Agendas.pdf Attachments: 3.Receive Finance Update a. To provide Board with a monthly update and address the Board's questions. TCMUD No. 1 1 of 187 16 Nov 2010 November 16, 2010Trophy Club Municipal Utility District No. 1 Meeting Agenda 4.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 construction of the New Fire Station. September 2010 Fire Report.pdf October Fire Report 2010.pdf FireStationConstructionSchedule.pdf Scheduled Work for Fire Station-Week of Nov 15.pdf Attachments: 5.Receive Town Council Update a. Councilmember Rose to provide the Board with an update of Council meetings, notices and relevant business. 6.Receive Board Update a. North Texas Ground Water Association Meeting b. Update from Joint Storage Tank Committee Action Items: 7.2010-140-M1 Review and Approve Disbursements & Variance Report a. September 2010 Sept 2010 Financial Variance Reports.pdfAttachments: 8.2010-89-M1 Discuss and take appropriate action to award / reject bids received for Trinity Well No. 2 Project. Bid Tab-2nd Re-Bid-Trinity Well No2.pdfAttachments: 9.2010-137-M1 Discuss and take appropriate action regarding funding options for a new Trinity Well. 10.2010-144-M1 Discuss and take the appropriate action to establish an Audit Committee. 11.2010-139-M1 Discuss and take appropriate action regarding Amendment to the Information Form (September 2010). SEPT AMENDMENT TO INFO FORM-101910.pdfAttachments: 12.2010-145-M1 Discuss and take appropriate action concerning a three-year contract with Constellation NewEnergy, Inc. CNE DR Agreement.pdf Email-CPwer-Constellation-LoadAnalysis-110710.pdf Attachments: TCMUD No. 1 2 of 187 16 Nov 2010 November 16, 2010Trophy Club Municipal Utility District No. 1 Meeting Agenda 14.2010-75-M1 Discuss and take appropriate action concerning an Order to amend Order 2009-0915, Attachment B, Section 2, Fees and Expense Policy, and Attachment F, Rules of Procedure. Agenda Item 15 Discussion Items-Sanders.pdf Request to Speak before the MUD 1 Board.pdf M1-O-2010-1116-Code Of Conduct-TrackedChanges.pdf M1-O-2010-1116-Code Of Conduct-AC.pdf Attachments: 13.2010-138-M1 Discuss and take appropriate action concerning request by a citizen, Steven Kohs, on October 1, 2010, for reimbursement for director fees beginning March 2008 and ending May 2010, for Mr. Kohs' term as Director on the MUD 2, Master District and MUD 1 Boards. Kohs Email 042609.pdf Kohs' request.pdf Kohs-Email Re DonationDirectorFees.pdf Attachments: 15.2010-134-M1 Review and Approve Minutes: a. September 1, 2010 - Budget Workshop Meeting b. September 9, 2010 - Special Joint Meeting c. September 14, 2010 - Regular Session M1-Minutes-090110-Budget Workshop.pdf M1-Minutes-090910-SpecialJointSession.pdf M1-Minutes-091410-RegularSession.pdf Attachments: Review & Discuss 16.Review Monthly Tax Collection Report a. September 2009 b. October 2010 Tax Collection Report-September.pdf Tax Collection Report-October-2010.pdf PID Tax Report-Sept 2009.pdf PID Tax Report-Oct 2010.pdf Attachments: 17.2010-36-M1 Set Next Meeting Date: a. Tuesday, December 21, 2010 at 7:00 p.m. - Regular Session b.Joint Quarterly Meetings: ii. Tuesday, December 7th, 2010 at 6 pm iii. Wednesday, February 9, 2011 at 7 pm ~ Tentative, may want to move to March (3 months from December). Dec 2010 Calendar.pdfAttachments: TCMUD No. 1 3 of 187 16 Nov 2010 November 16, 2010Trophy Club Municipal Utility District No. 1 Meeting Agenda 18.Items for Future Agendas a. Funding of Future Capital Projects; i.e., 2 MG Storage Tank b. Water Rate Study c. Disaster Planning d. Upper Trinity Ground Water Association (Sanders) e. Municipal Water Rate for Town Parks (Sanders) 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 187 16 Nov 2010 November 16, 2010Trophy Club Municipal Utility District No. 1 Meeting Agenda CERTIFICATION) THE STATE OF TEXAS) COUNTY OF DENTON) COUNTY OF TARRANT) THIS CERTIFIES THAT ON FRIDAY, NOVEM BER 12TH 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 TUESDAY, NOVEMBER 16TH, 2010, 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 THEIR WEBSITE AND/OR 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 ______________________, 2010. ________________________________, Title: ___________________________ TCMUD No. 1 5 of 187 16 Nov 2010 October November December January February March April May June July August September Total for year 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 79,137 690,298 2010 39,794 39,713 29,547 30,305 25,328 23,279 41,646 53,439 102,921 89,760 128,687 82,331 686,750 2011 0 Totals 314,972 235,558 175,310 189,124 152,337 169,606 226,660 231,654 368,472 464,134 530,735 394,906 3,453,468 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 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 81,500 713,612 2010 40,803 41,600 32,700 31,400 30,145 27,240 43,400 62,646 113,049 94,950 131,650 76,159 725,742 2011 0 Totals 317,328 244,914 181,486 184,954 165,899 189,260 241,406 274,400 392,300 487,518 527,775 378,598 3,585,838 Water Billed 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 OctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJune July AugustSeptemberMonthsGallons 2006 2007 2008 2009 2010 2011 Water Pumped 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 123456789101112 MonthsGallons 2006 2007 2008 2009 2010 2011 Q:\Water Dept\Water\combined graphs (version 2).xls TCMUD No. 1 6 of 187 16 Nov 2010 TCMUD No. 1 7 of 187 16 Nov 2010 Discharge Number: 001-AAvg Max Units Min Avg Max UnitsOxygen, dissolved (DO)Sample Measurement************ ****** 6.4 ****** ****** (19) 0Twice/ WeekGrab00300 1 0 Effluent Gross ValuePermit Requirement************ ******6.0 Mo Min****** ****** MG/LTwice / Week Grab pHSample Measurement************ ******7****** 7.9 (12) 0weeklyGrab00400 1 0 Effluent Gross ValuePermit Requirement************ ******6.0 Mo Min******9.0 MinSUWeekly GrabSolids, total suspendedSample Measurement6.1****** ****** 1.1 3.3 (19) 0Twice/ WeekCompos00530 1 0 Effluent GrossPermit Requirement175 Daily Avg************12 Daily Avg40 Daily MaxMG/LTwice/ WeekComposNitrogen, ammonia total (as N) Sample Measurement0.62****** ****** 0.11 0.17 (19) 0Twice/ WeekCompos00610 1 0 Effluent GrossPermit Requirement44 Daily Avg************3.0 Daily Avg10 Daily MaxMG/LTwice/ WeekComposNitrogen, Nitrate Total (As N)Sample Measurement113.18****** ******21.94 26(19) 0 Weekly Compos00620 1 0 Effluent Gross ValuePermit Requirement350 Daily Avg************24 Daily Avg51 7 Day AvgMG/LWeeklyComposFlow, in conduit or thru treatment plantSample Measurement0.67070.9893 ****** ****** ****** ******0Continu-ous Total Z50050 P 0 0 Effluent GrossPermit Requirement******2431 2hr Peak****** ****** ****** ******Continu-ous Total ZFlow, in conduit or thru treatment plantSample Measurement******2013 ****** ****** ****** ******0Continu-ous Total Z50050 Y 0 0 Annual AveragePermit Requirement1.75 Annl Avg************ ****** ****** ******Continu-ous Total ZDischarge Monitoring ReportMonitoring Period:ParameterQuantity or Loading Quantity or ConcentrationNo. ExFrequency of AnalysisSample Type123(26) LBS / DY4(26) LBS / DY5(26) LBS / DY6(03) MGD7(03) MGDTCMUD No. 18 of 18716 Nov 2010 Plan Holders TROPHY CLUB WWTP SCREEN RAKE INSTALLATION Trophy Club Municipal Utility District No. 1 As of November 12, 2010 Bid Opening: Tuesday, November 23, 2010, at 2:00 P.M. Number of Addendums Issued: ___ DELTATEK ENGINEERING Firm Registration No. F-4419 14114 DALLAS PARKWAY, SUITE 480 DALLAS, TEXAS 75254 469-374-9800 bn@deltatekeng.com Page 1 of 1 (00/00/00) – Date plans sent to plan holders Advertised: agcquoin Reed Construction/AGC NTXCR CDC Data Mcgraw-Hill bids@bidocean.com 1. Associated Construction Partners 215 W Bandera Rd Ste 114-461 Boerne TX 78006 Phone: 210-698-8714 Fax: 210-698-8712 Email: jill@acpartners.org Jill Simpson (11/1/10) 2. Steve Dake Construction 3911 Blue Feather Ct Arlington, TX 76016 Phone: 817-454-6508 Fax: 817-572-6919 Email: dakeconstruction@sbcglobal.net Steve Dake (11/1/10) 3. J.S. Haren Company 1175 Hwy 11 North P.O. Box 450 Athens, TN 37303 Phone: 423-745-5000 Fax: 423-745-5252 Email: jsharen1@aol.com J.S. Haren (11/1/10) 4. Comarco Industrial 1949 Willamette Falls Dr., #B West Linn, OR 97068 Phone: 503-650-9454 Fax: 503-213-7427 Email: dean@comarcolndustrial.com Dean Wood (11/1/10) 5. Legacy Contracting, LP dba Control Specialist Services, L.P. 2530 N. Hwy. 287, #320 Decatur, TX 76234 Phone: 940-626-1415 Fax: 940-626-1486 Email: georgeb@csi5.com George Brown (11/01/10) 6. Crescent Constructors, Inc. 1100 Grinnell Dr Richardson, TX 75081 Phone: 972-783-6901 Fax: 972-437-2845 Email: miked@crescentconstructors.com Michael Daigre (11/03/10) 7. AUI Contractors, LLC 4775 N orth Freeway Ft. Worth, TX 76106 Phone: 817-926-4377 Fax: 817-926-4387 Email: lowbid@auigc.com Doug Wasik (11/08/10) 8. Triple D., Inc. 4591 Keller Haslet Road Keller, TX 76244 Phone: 817-430-9900 Fax : 817-430-9911 Email: dskinnerd@aol.com Bob Skinner (11/10/10) 9. Red River Construction 2804 Capital Street Wylie, TX 75098 Phone: 972-578-0127 Fax : 972-578-1043 Email: dean.porter@redriverconstruction.com Dean Porter (11/10/10) 10. 11. 12. TCMUD No. 1 9 of 187 16 Nov 2010 PID CONNECTION FEE SUMMARY(Sept 10)DEPOSIT DATE QTY (5/8") $ 2,300 QTY (1") $ 2,300 QTY (1.5") $ 7,590 QTY (2") $ 15,410 TOTAL QTY TOTAL AMOUNT TEXPOOL TRANSFERQTYCUMRUNNING BALANCE($3.26M)1- -$ - -$ - -$ - -$ - - 423 2,659,700 2- -$ - -$ - -$ - -$ - - 423 2,659,700 3- -$ - -$ - -$ - -$ - - 423 2,659,700 4- -$ - -$ - -$ - -$ - - 423 2,659,700 5- -$ - -$ - -$ - -$ - - 423 2,659,700 6- -$ - -$ - -$ - -$ - - 423 2,659,700 7- -$ - -$ - -$ - -$ - - 423 2,659,700 8- -$ - -$ - -$ - -$ - - 423 2,659,700 9- -$ - -$ - -$ - -$ - - 423 2,659,700 10 - -$ 4 9,200$ - -$ - -$ 4 9,200 427 2,650,500 11 - -$ - -$ - -$ - -$ - - 427 2,650,500 12 - -$ - -$ - -$ - -$ - - 427 2,650,500 13 - -$ 1 2,300$ - -$ - -$ 1 2,300 428 2,648,200 14 - -$ 1 2,300$ - -$ - -$ 1 2,300 429 2,645,900 15 - -$ 1 2,300$ - -$ - -$ 1 2,300 430 2,643,600 16 - -$ 1 2,300$ - -$ - -$ 1 2,300 431 2,641,300 17 - -$ - -$ - -$ - -$ - - 431 2,641,300 18 - -$ - -$ - -$ - -$ - - 431 2,641,300 19 - -$ - -$ - -$ - -$ - - 431 2,641,300 20 - -$ - -$ - -$ - -$ - - 431 2,641,300 21 - -$ 3 6,900$ - -$ - -$ 3 6,900 434 2,634,400 22 - -$ - -$ - -$ - -$ - - 434 2,634,400 23 - -$ - -$ - -$ - -$ - - 434 2,634,400 24 - -$ 1 2,300$ - -$ - -$ 1 2,300 435 2,632,100 25 - -$ -$ - -$ - -$ - - 435 2,632,100 26 - -$ - -$ - -$ - -$ - - 435 2,632,100 27 - -$ 1 2,300$ - -$ - -$ 1 2,300 436 2,629,800 28 - -$ - -$ - -$ - -$ - - 436 2,629,800 29 - -$ 5 11,500$ - -$ - -$ 5 11,500 441 2,618,300 30- -$ 5 11,500$ - -$ - -$ 5 11,500 446 2,606,800 31 - -$ - -$ - -$ - -$ - - 446 2,606,800 TOTAL - -$ 23 52,900$ - -$ - -$ 23 52,900 - Upon collection of one or more Utility Fees by Town, such Utility Fees shall, within ten (10) working days, be deposited by Town into an account designated by MUDs(hereinafter "MUDs Account"). Town shall continue to collect and to deposit such Utility Fees into MUDs Account in accordance with the existing agreement betweenthe MUDs until such time as the total amount paid into that account equals $3,260,000. Town shall collect and deposit a minimum of one hundred fifty (150) UtilityFees each year, for a total of five (5) successive years commencing on May 7, 2008 (hereinafter "Collection Period"). In the event that more than 150 Utility Fees arecollected by Town in anyone or more years of the Collection Period, such Utility Fees in excess of the 150 Utility Fees required under this Section shall be carriedover to the following year or years and shall be a credit toward the total Utility Fees due for such subsequent year or years. In the event that fewer than 150 Utility Fees are collected by Town during anyone or more year(s) of the Collection Period, including those Utility Fees carried overfrom any given year in which more than 150 Utility Fees were collected by Town, Town shall within ten (10) working days of collection of such Utility Fees fromDeveloper, pay into MUDs Account the difference between the amount that would have been paid had 150 Access Fees been paid at $2,300 each and the amount ofUtility Fees actually collected by Town. On or about May 7, 2013, Town shall calculate the total amount of Utility Fees paid to MUDs. Town shall provide MUDs writtennotice of any amount paid less than $3,260,000 (the "Utility Fee Remainder").TCMUD No. 110 of 18716 Nov 2010 TCMUD 1 Order 2009-0915 ATTACHMENT F TROPHY CLUB MUD NO. 1 RULES OF PROCEDURE ARTICLE II BOARD OF DIRECTORS Section 2.06. Posting Agendas and Notice to Directors. After approval of the agenda by the President, the District Secretary shall post the agenda as required by the Texas Open Meetings Act and the Code. Notice to the directors of any meeting of the Board shall be given at least seventy-two (72) hours prior to the meeting. Such notice shall be given by electronic transmission, facsimile, or telephone if notice is given less than five (5) days prior to a meeting. Copies of the agenda will be placed on the MUD 1 webpage and will be available for the public at the meeting. TCMUD No. 1 11 of 187 16 Nov 2010 TCMUD No. 1 12 of 187 16 Nov 2010 TCMUD No. 1 13 of 187 16 Nov 2010 TCMUD No. 1 14 of 187 16 Nov 2010 TCMUD No. 1 15 of 187 16 Nov 2010 TCMUD No. 1 16 of 187 16 Nov 2010 TCMUD No. 1 17 of 187 16 Nov 2010 TCMUD No. 1 18 of 187 16 Nov 2010 TCMUD No. 1 19 of 187 16 Nov 2010 TCMUD No. 1 20 of 187 16 Nov 2010 TCMUD No. 1 21 of 187 16 Nov 2010 TCMUD No. 1 22 of 187 16 Nov 2010 TCMUD No. 1 23 of 187 16 Nov 2010 TCMUD No. 1 24 of 187 16 Nov 2010 TCMUD No. 1 25 of 187 16 Nov 2010 TCMUD No. 1 26 of 187 16 Nov 2010 TCMUD No. 1 27 of 187 16 Nov 2010 TCMUD No. 1 28 of 187 16 Nov 2010 TCMUD No. 1 29 of 187 16 Nov 2010 TCMUD No. 130 of 18716 Nov 2010 Scheduled Work for the Week of November 15, 2010 1. Finish the concrete work at the curved retaining wall 2. Clean up concrete forms and backfill curved retaining wall 3. Install storm drainage at curved retaining wall 4. Start building structural masonry at apparatus bay 5. Continue work on structural steel erection 6. Demo median on Trophy Club Drive and remove curbs where required 7. Grade all paving areas to correct sub-grade elevation 8. Lime stabilize all paving areas TCMUD No. 1 31 of 187 16 Nov 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-140-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:10/12/2010 Trophy Club Municipal Utility District No. 1 On agenda:Final action:11/16/2010 Title:Review and Approve Disbursements & Variance Report a. September 2010 Attachments:Sept 2010 Financial Variance Reports.pdf Action ByDate Action ResultVer. TCMUD No. 1 32 of 187 16 Nov 2010 File #: 2010-140-M1, Version: 1 Title Review and Approve Disbursements & Variance Report a. September 2010 TCMUD No. 1 33 of 187 16 Nov 2010 TCMUD No. 1 34 of 187 16 Nov 2010 TCMUD No. 1 35 of 187 16 Nov 2010 TCMUD No. 1 36 of 187 16 Nov 2010 TCMUD No. 1 37 of 187 16 Nov 2010 TCMUD No. 1 38 of 187 16 Nov 2010 TCMUD No. 1 39 of 187 16 Nov 2010 TCMUD No. 1 40 of 187 16 Nov 2010 TCMUD No. 1 41 of 187 16 Nov 2010 TCMUD No. 1 42 of 187 16 Nov 2010 TCMUD No. 1 43 of 187 16 Nov 2010 TCMUD No. 1 44 of 187 16 Nov 2010 TCMUD No. 1 45 of 187 16 Nov 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-89-M1 Name: Status:Type:M1 Bids Pending File created:In control:6/11/2010 Trophy Club Municipal Utility District No. 1 On agenda:Final action:11/16/2010 Title:Discuss and take appropriate action to award / reject bids received for Trinity Well No. 2 Project. Attachments:Bid Tab-2nd Re-Bid-Trinity Well No2.pdf Action ByDate Action ResultVer. RejectTrophy Club Municipal Utility District No. 1 6/15/2010 1 Pass TCMUD No. 1 46 of 187 16 Nov 2010 File #: 2010-89-M1, Version: 1 Title Discuss and take appropriate action to award / reject bids received for Trinity Well No. 2 Project. Body The Bid Opening for the 2nd Re-bid on this project is scheduled for 2 pm on Wednesday, November 10th. Results of this re-bid should be available at the meeting. TCMUD No. 1 47 of 187 16 Nov 2010 BID TAB - TRINITY WELL NO. 2Collier Engineering #Est. QtyUnitItem DescriptionTwo-PieceSingle-PieceTwo-PieceSingle-PieceTwo-PieceSingle-Piece11LS 1SWPP$15,000$15,000$6,500$6,500$6,700$6,70021LSLocation of Utilities$1,500$1,500$2,500$2,500$800$80031LSClear/Grade site$10,000$10,000$3,600$3,600$1,000$1,00041LSConstruct/Repair access road$36,000$36,000$20,000$20,000$16,600$16,6005a1LSLabor/Materials/Equipment 2-piecepotable water supply well$725,000$775,000$644,2005b1LSLabor/Materials/Equipment 10" single-piece water supply well$655,000$604,750$615,30061LSFurnish/Install testing equipment - 36-hour pump test$25,000$25,000$46,000$46,000$1,000$1,00071LSFurnish/Install 6" pipe, airline, seal slab & well head$50,000$50,000$53,000$53,000$43,100$43,10081LSFurnish/Install pump end$10,000$10,000$9,800$9,800$6,800$6,80091LSFurnish/Install 200 hp submersible well motor $55,000$55,000$60,600$60,600$65,300$65,300101LSFurnish/Install electrical system$56,000$56,000$20,500$20,500$41,300$41,300111LSCollier Consulting - Geophysical Logging of pilot hole$9,000$9,000$9,000$9,000$9,000$9,000121LSCollier Consulting - 36-hour pump test & data analysis$4,500$4,500$4,500$4,500$4,500$4,500$997,000$1,011,000$840,300$927,000$840,750$811,40013n/aVFDrill pilot/test hole per vertical foot "VF"$75.00$75.00$35.00$35.00$75.00$75.0014n/aVFReam surface casing interval per VF$55.00$55.00$34.00$34.00$85.00$85.00Trinity Well No. 2 3Wednesday, November 10th, 2010 - 2:00 pcharlie.liesberger@alsayinc.comName of BidderContactPhoneEmailAddressCity, State, ZipBid Project Name:Bid Opening Date:Number Bids Received:AlsayHouston, TX 77066Charles Liesberger281-444-6960 6615 Giant Road Central Texas Water WellP.O. Box 1184Bowie, TX 76230Nelson ThomasConroe, TX 77301Michael Weisinger936-756-7721mweisinger@weisingerinc.comTwo-piece Base Bid Amount (Items 1-12) TOTAL:Single-piece Base Bid Amount (Items 1-12) TOTAL:EXHIBIT A, PAGE 3BID SCHEDULETROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 2940-366-1371wntdrill@yahoo.comWeisinger, Inc.2200 East DavisTCMUD No. 148 of 18716 Nov 2010 15n/aVFReam 10" single piece well per VF$55.00$55.00$30.00$30.00$100.00$100.0016n/aVFUnder-ream screened interval per VF$55.00$55.00$50.00$50.00$125.00$125.0017n/aVFFurnish/Install/Cement grouting 16" diamerter casing per VF$75.00$75.00$65.00$65.00$85.00$85.0018n/aVFFurnish/Install/Cement grouting 14" diameter casing in place of 16" casing-$5.50-$5.50-$10.00-$10.00-$10.00-$10.0019n/aVFFurnish/Install/Cement grout 10" diameter casing per VF$40.00$40.00$35.00$35.00$50.00$50.0020n/aVFFurnish/Install 10" diameter well screen $95.00$95.00$90.00$90.00$130.00$130.0021n/aVFFurnish/Install 10" diameter well blank $25.00$25.00$20.00$20.00$45.00$45.0022n/aVFFurnish/Install gravel pack per VF$15.00$15.00$10.00$10.00$40.00$40.0023n/aVFFurnish/Install 6" galvanized column pipe, cable, airline$50.00$50.00$45.00$45.00$35.00$35.0024n/aLFFurnish/Install 6" buried water line$100.00$100.00$10.00$10.00$50.00$50.0022n/aVFFurnish/Install 5" column pipe in lieu of 6" column pipe$2,000.00$2,000.00$24.00$24.00$1.45$1.4523n/aVFPlug back test hole$50.00$50.00$12.00$12.00$50.00$50.00241LSFurnish/Install 150 hp motor in lieu of 200 hp motor$3,000.00$3,000.00$6,000.00$6,000.00$500.00$500.00251LSFurnish/Install all stainless steel pump $18,000.00$18,000.00$4,000.00$4,000.00$5,300.00$5,300.00261LSCancellation of test pump/motor/testing equipment$0.00$0.00$17,000.00$17,000.00$500.00$500.00271LSDeletion electrical standby generator$0.00$0.00$4,000.00$4,000.00$500.00$500.00EXHIBIT A, PAGE 4TCMUD No. 149 of 18716 Nov 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-137-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:9/10/2010 Trophy Club Municipal Utility District No. 1 On agenda:Final action:9/14/2010 Title:Discuss and take appropriate action regarding funding options for a new Trinity Well. Attachments: Action ByDate Action ResultVer. TCMUD No. 1 50 of 187 16 Nov 2010 File #: 2010-137-M1, Version: 1 Title Discuss and take appropriate action regarding funding options for a new Trinity Well. Body Excerpt from June 15, 2010 Meeting Minutes: Discuss and take appropriate action concerning funding options for Trinity Well No. 2 and High Speed Pump. (Scott) Staff seeks direction from the Board regarding funding options (1. Line of Credit @ 3.9% interest or 2. Use Reserves) for Trinity Well No. 2 and for the High Speed Pump. District Manager Scott advised that initially a loan was approved at 3% interest to purchase the High Speed Pump and to drill the Trinity Well. Scott seeks direction from the Board to either use financing (3% interest) or use reserves. President Thomas suggested holding off on funding options for the Trinity Well until the cost is determined. District Manager Scott advised that the cost for the High Speed Pump is approximately $240,000 total. Director Sanders is in favor of using reserved funds for the High Speed Pump for an amount not to exceed $240,000 to come from the designated fund balance in the Fire Station Construction account. Finance Director DuBose stated that we would do a Budget Amendment. Director Armstrong asked to go back to discuss Agenda No. 11 for clarification. Armstrong asked District Manager Scott if we get this thing in the hole before October we don't have to worry about paying the additional costs you are talking about. District Manager Scott verified that we may not be able to drill this well once this new policy comes into effect in Denton. It is currently in effect in Tarrant County. Scott stated he does not have a timeline as to when this may occur; however, at this time he feels it may be some time after the first of the year. TCMUD No. 1 51 of 187 16 Nov 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-144-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:11/8/2010 Trophy Club Municipal Utility District No. 1 On agenda:Final action:11/16/2010 Title:Discuss and take the appropriate action to establish an Audit Committee. Attachments: Action ByDate Action ResultVer. TCMUD No. 1 52 of 187 16 Nov 2010 File #: 2010-144-M1, Version: 1 Title Discuss and take the appropriate action to establish an Audit Committee. Body As per Attachment D, Section 3 of Order 2009-0915, it states the following: SECTION 3 .Audit Committee.The District hereby appoints its Board of Directors as an audit committee to review the annual audit prepared by the District Auditor. The Board may designate a lesser number than the entire Board, but not less than two (2) Directors to serve as its audit committee. TCMUD No. 1 53 of 187 16 Nov 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-139-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:10/11/2010 Trophy Club Municipal Utility District No. 1 On agenda:Final action:11/16/2010 Title:Discuss and take appropriate action regarding Amendment to the Information Form (September 2010). Attachments:SEPT AMENDMENT TO INFO FORM-101910.pdf Action ByDate Action ResultVer. TCMUD No. 1 54 of 187 16 Nov 2010 File #: 2010-139-M1, Version: 1 Title Discuss and take appropriate action regarding Amendment to the Information Form (September 2010). Body Due to the decrease in the MUD 1 tax rate, we are required by the Water Code to amend the Information Form to reflect this change. Staff recommends approval. TCMUD No. 1 55 of 187 16 Nov 2010 SEPTEMBER 2010 AMENDMENT TO INFORMATION FORM For Trophy Club Municipal Utility District No. 1 (As of September 14, 2010) STATE of TEXAS } COUNTY of DENTON } COUNTY of TARRANT } We the undersigned, constituting a majority of the Board of Directors of Trophy Club Municipal Utility District No. 1 (the “District”), of Denton and Tarrant Counties, Texas, in compliance with Section 49.455, Texas Water Code, as amended, do hereby make and execute this SEPTEMBER 2010 AMENDMENT TO INFORMATION FORM in order to amend and update the information in the District’s AMENDED AND RESTATED INFORMATION FORM dated June 3, 2009, as recorded as Instrument No. 2009-73042 of the Official Public Records of Real Property of Denton County, Texas, and as recorded as Instrument No. D209161719 in the Official Public Records of Tarrant County, Texas, as previously amended by the District’s 2010 AMENDMENT TO INFORMATION FORM dated February 16, 2010, as recorded as Instrument No. 2010-44250 of the Official Public Records of Real Property of Denton County, Texas, and as recorded as Instrument No. D210111615 in the Official Public Records of Tarrant County, Texas, and as further amended by the MAY 2010 AMENDMENT TO INFORMATION FORM, dated May 18, 2010, as recorded as Instrument No. 2010-48713 of the Official Public Records of Real Property of Denton County, Texas, and as recorded as Instrument No. D210120785 in the Official Public Records of Tarrant County, Texas. The AMENDED AND RESTATED INFORMATION FORM dated June 3, 2009, the 2010 AMENDMENT TO INFORMATION FORM dated February 16, 2010, and the MAY 2010 AMENDMENT TO INFORMATION FORM, dated May 18, 2010, as previously recorded, are incorporated herein by reference for all purposes. As more fully detailed in the District’s AMENDED AND RESTATED INFORMATION FORM, dated June 3, 2009, the District as it currently exists is the result of a consolidation of Trophy Club Municipal Utility District No. 1 with Trophy Club Municipal Utility District No. 2 following a consolidation election held in each of the two districts on May 9, 2009, in which the consolidation of the two districts was approved by the vote of the electors in each of the two districts in accordance with Section 54.729 of the Texas Water Code. The consolidation was effective as of the date of the consolidation election on May 9, 2009, following the approval by the board of each district of its Order Canvassing Consolidation Election Returns on May 12, 2009. The undersigned officers of the District hereby affirm and certify as follows (paragraph numbers below are the same as in the AMENDED AND RESTATED INFORMATION FORM dated June 3, 2009, which is being amended): TCMUD No. 1 56 of 187 16 Nov 2010 September 2010 Amendment To Information Form 3. Tax Rate. The most recent rate of the District taxes on property located in the District is as follows: $0.195 on each $100 of assessed valuation (Tax rate for Fiscal Year 2010- 2011, as approved by the Board of Directors on September 14, 2010.) 9. Form of Notice to Purchasers. The particular form of Notice to Purchasers required by Section 49.452 of the Texas Water Code to be furnished by a seller to a purchaser of real property in the consolidated District completed by the District with all information required to be furnished by the District (as of September 14, 2010), is attached hereto as an Exhibit, and is thereby made a part of this Information Form for all purposes. 11. Signatures. This SEPTEMBER 2010 AMENDMENT TO INFORMATION FORM is signed by a majority of the members of the Board of Directors of the consolidated District and is affirmed and acknowledged by each such officer. 12. Filing. This SEPTEMBER 2010 AMENDMENT TO INFORMATION FORM is being filed with the county clerks of Denton County and Tarrant County, Texas, in which parts of the consolidated District are located. A copy of this SEPTEMBER 2010 AMENDMENT TO INFORMATION FORM also is being filed with the executive director of the Texas Commission on Environmental Quality. [Signatures on next page.] 2 TCMUD No. 1 57 of 187 16 Nov 2010 September 2010 Amendment To Information Form Each of the undersigned members of the Board of Directors of Trophy Club Municipal Utility District No. 1 hereby certifies and affirms that the foregoing information is correct and accurate to the best of his knowledge and belief. WITNESS OUR HANDS this 19th day of October, 2010. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 _____________________________ James C. Thomas, President _____________________________ Jim Moss, Vice President _____________________________ Kevin Carr, Assistant Secretary/Treasurer _____________________________ Bill Armstrong, Director ___ _____ Nick Sanders, Director [District’s Seal] 3 TCMUD No. 1 58 of 187 16 Nov 2010 September 2010 Amendment To Information Form STATE of TEXAS } COUNTY of DENTON } BEFORE ME, the undersigned, a Notary Public in and for the State of Texas, on this day personally appeared James C. Thomas, Jim Moss, Kevin Carr, Bill Armstrong, and Nick Sanders , , known to me to be the persons and officers of Trophy Club Municipal Utility District No. 1, whose names are subscribed to the foregoing instrument and affirmed and acknowledged that said instrument is correct and accurate to the best of their knowledge and belief, and that they executed the same for the purposes and in the capacities therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this _____ day of October, 2010. (Notary’s Seal) _____________________________ Notary Public, State of Texas COMMISSION EXPIRES: _______ Please return recorded document to: Trophy Club MUD#1 Attn: Mary Moore 100 Municipal Drive Trophy Club, TX 76262 4 TCMUD No. 1 59 of 187 16 Nov 2010 September 2010 Amendment To Information Form EXHIBIT NOTICE TO PURCHASERS IN TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (Pursuant to Texas Water Code, Section 49.452) (as of September 14, 2010) The real property, described below, that you are about to purchase is located in the TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 (the "District," as consolidated with Trophy Club Municipal Utility District No. 2 as of May 9, 2009). The consolidated District has taxing authority separate from any other taxing authority and may, subject to voter approval, issue an unlimited amount of bonds and levy an unlimited rate of tax in payment of such bonds. As of this date, the rate of taxes levied by the consolidated District on real property located in the District is $0.19500 (for the 2010 tax year) on each $100 of assessed valuation. The total amount of bonds, excluding refunding bonds and any bonds or any portion of bonds issued that are payable solely from revenues received or expected to be received under a contract with a governmental entity, approved by the voters and which have been or may, at this date, be issued by the consolidated District is $29,094,217 (of which $5,769,217 of bonds approved by the voters has not yet been issued), and the aggregate initial principal amounts of all bonds issued for one or more of the specified facilities of the consolidated District and payable in whole or in part from property taxes is $23,325,000 (of which the total principal amount of bonds outstanding at this time is $9,290,000). The District also has the authority (under restrictive covenants applicable to certain property in the District) to adopt and impose a standby fee on property in the District that has water, sanitary sewer, or drainage facilities and services available but not connected and which does not have a house, building, or other improvement located thereon and does not substantially utilize the utility capacity available to the property. The District may exercise the authority without holding an election on the matter. As of this date, the most recent amount of the standby fee is $6.00 per lot, per month. An unpaid standby fee is a personal obligation of the person that owned the property at the time of imposition and is secured by a lien on the property. Any person may request a certificate from the District stating the amount, if any, of unpaid standby fees on a tract of property in the District. The District is located in part within the corporate boundaries of the Town of Trophy Club (a home-rule municipality), in part within the corporate boundaries of the Town of Westlake (a general-law municipality), in part within the extraterritorial jurisdiction of the Town of Trophy Club, and in part within the extraterritorial jurisdiction of the Town of Westlake. With respect to property located within the corporate boundaries of a municipality, the taxpayers of the District are subject to the taxes imposed by the municipality and by the District until the District is dissolved. By law (Texas Local Government Code, Section 43.076(d)), a district located wholly in two or more municipalities and in unincorporated area may be abolished by agreement among the district and all of the municipalities in which parts of the district are located, and without the consent of the voters of the district. 5 TCMUD No. 1 60 of 187 16 Nov 2010 September 2010 Amendment To Information Form The purpose of this District is to provide water and sanitary sewer facilities and services and fire-fighting facilities and activities within the District through the issuance of bonds payable in whole or in part from property taxes. The cost of these utility facilities is not included in the purchase price of your property, and these utility and fire-fighting facilities are owned or to be owned by the District. The legal description of the property you are acquiring is as follows: ______________________________________________________________________ _____________________________________________________________________. ____________________________________ ____________________ Signature of Seller Date NOTARY ACKNOWLEDGMENT FOR SELLER: THE STATE OF TEXAS) COUNTY OF ________) This instrument was acknowledged before me on ________________________, 20___, by _____________________________________. [seal] ___________________________________ Notary Public, State of Texas My commission expires: ________ PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM. The undersigned purchaser hereby acknowledges receipt of the foregoing notice at or prior to execution of a binding contract for the purchase of the real property described in such notice or at closing of purchase of the real property. ___________________________________ ____________________ Signature of Purchaser Date 6 TCMUD No. 1 61 of 187 16 Nov 2010 September 2010 Amendment To Information Form 7 NOTARY ACKNOWLEDGMENT FOR PURCHASER: THE STATE OF TEXAS) COUNTY OF ________) This instrument was acknowledged before me on ________________________, 20____, by _____________________________________. [seal] _____________________________ Notary Public, State of Texas My commission expires: ________________ For Further Information Contact: Trophy Club MUD No. 1 100 Municipal Dr. Trophy Club, TX 76262 682.831.4685 TCMUD No. 1 62 of 187 16 Nov 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-145-M1 Name: Status:Type:M1 Contract Regular Session File created:In control:11/10/2010 Trophy Club Municipal Utility District No. 1 On agenda:Final action:11/16/2010 Title:Discuss and take appropriate action concerning a three-year contract with Constellation NewEnergy, Inc. Attachments:CNE DR Agreement.pdf Email-CPwer-Constellation-LoadAnalysis-110710.pdf Action ByDate Action ResultVer. TCMUD No. 1 63 of 187 16 Nov 2010 File #: 2010-145-M1, Version: 1 Title Discuss and take appropriate action concerning a three-year contract with Constellation NewEnergy, Inc. Body Please refer to attached email and contract for further information. TCMUD No. 1 64 of 187 16 Nov 2010 Demand Response Management Agreement Page 1 of 8 ©2010 Constellation Energy Group, Inc. All rights reserved. The offering herein is sold and contracted by Constellation NewEnergy, Inc., a subsidiary of Constellation Energy Group, Inc. Errors and omissions excepted. This Demand Response Management Agreement (“Agreement”) is between Constellation NewEnergy, Inc. (”NewEnergy”) and ___________________________________ (“Customer”), sometimes hereinafter referred to collectively as the “Parties” and individually as a “Part y,” and is made effective as of ________________ (the “Effective Date”). RECITALS a) Customer is a retail consumer of electricity with the capacity and desire to meet the Electric Reliability Council of Texas (“ERCOT”) requirements for Load Acting as Resource (“LaaR”) and/or Emergency Interruptible Load Service (“EILS”), collectively referred to as Demand Response (“DR”). b) NewEnergy, a Qualified Scheduling Entity as defined by ERCOT (“QSE”) provides DR management services assisting its customers to provide LaaR and EILS resources to the ERCOT marketplace. c) Customer desires to employ the services of NewEnergy to provide such DR Management Services. I. DEFINITIONS The following terms when used herein shall have the meanings set forth below. a) “DR Capacity” means EILS Capacity and/or LaaR Capacity each as defined respectively in Exhibits A and B. b) “ERCOT Charges” means all actual costs and fees that are incurred by NewEnergy for assisting Customer in the sale of its DR Capacity imposed by (i) a Governmental Authority, (ii) the ERCOT ISO, (iii) transmission distribution service providers, and (iv) third parties with whom NewEnergy does not have an existing contractual relationship for facilitating the Customer’s sale of DR Capacity. c) "ERCOT Guides" means the ERCOT Operating Guides and the ERCOT Market Guides, as may be revised from time to time. d) "ERCOT Protocols" means the ERCOT Protocols approved by the Public Utility Commission of Texas, as they may be validly amended from time to time.“Governmental Authority” means any federal, state, local, municipal, or other governmental entity, and any subdivision thereof or any agency, authority, instrumentality, regulatory body, court, administrative tribunal, or other entity exercising executive, legislative, judicial, taxing, regulatory, or administrative powers or functions of or pertaining to government, including but not limited to the PUCT, ERCOT and the North American Electric Reliability Corporation (“NERC” or its successor) or any regional entity approved by NERC. II. TERM a) Term: The term of this Agreement shall commence on the Effective Date, and shall remain in effect for three years from the first day that Customer offers its DR Capacity for sale to ERCOT or a third party market participant. This Agreement shall automatically extend for a one year period, unless and until terminated by either party with at least thirty (30) days prior written notice. b) Changes in Law: This Agreement shall automatically terminate on any date on which any change in applicable law renders this Agreement illegal, null or void, or in the event that any Governmental Authority with jurisdiction over a Party issues a rule, regulation or order that has a materially adverse effect on one or more of the Parties’ ability to realize the anticipated economic benefits originally contemplated by the Parties at the time of execution of this Agreement; provided, however, that prior to exercising any right to terminate, the Parties shall undertake good faith negotiations in an effort to modify this Agreement to avoid or minimize the adverse impact of the change in law. If the Parties are unable to negotiate a modification to this Agreement within thirty (30) business days following the issuance of the order giving rise to such renegotiation efforts, then this Agreement shall terminate at the close of such thirty (30) business day period. III. COMPENSATION a) Revenue Sharing. For Customer’s DR Capacity sales to ERCOT or a third party, the Parties acknowledge that NewEnergy will receive revenues, net of related ERCOT Charges, for scheduling the sale of Customer’s DR Capacity. Customer will receive ______% (_______percent) of the ERCOT revenues and the remaining ERCOT revenues shall compensate NewEnergy for services provided pursuant to this Agreement, including any broker’s TCMUD No. 1 65 of 187 16 Nov 2010 Demand Response Management Agreement Page 2 of 8 ©2010 Constellation Energy Group, Inc. All rights reserved. The offering herein is sold and contracted by Constellation NewEnergy, Inc., a subsidiary of Constellation Energy Group, Inc. Errors and omissions excepted. fees. b) Sales and Use Taxes. All fees for services provided under this Agreement are exclusive of any state or federal sales and use taxes, which may be applicable. NewEnergy reserves the right to bill and collect applicable taxes from Customer. c) Monthly Settlement. Monthly settlement terms with Customers for the applicable Programs are set out in Exhibits hereto. The Parties acknowledge that fees received by NewEnergy from ERCOT will be administered in accordance with the financial settlement process in the ERCOT Protocols, and that fees received from third-party sales will be governed by the agreement(s) between NewEnergy and the third party. The Parties agree that any adjustments subsequent to the initial ERCOT settlement statement shall be remitted to the Party owed. The Parties acknowledge that EILS disbursements from ERCOT may occur less frequently than monthly. d) Customer Costs: NewEnergy guarantees to Customer that, during the term of this Agreement, Customer will not have any out-of-pocket cash obligations with respect to any deficiencies assessed by ERCOT for under or non- performance to the extent that such deficiencies can be deducted from Customer’s payments earned or to be earned during the term of this Agreement. However, if no further payments are due Customer, Customer shall remit such amounts to NewEnergy. Where such penalty reimbursement is due NewEnergy at the end of the term of this Agreement, in the event Customer renews this Agreement for an additional term, NewEnergy agrees to recover such amounts from payments earned by Customer during the renewal term of this Agreement IV. SCOPE OF SERVICES PROVIDED BY NEW ENERGY NewEnergy will be responsible for the following: a) Representation: Representing the Customer as its sole QSE for the purpose of enrolling, bidding and selling the Customer’s DR Capacity for each of the ESI IDs identified in Exhibits hereto to ERCOT and/or third -party market participants, through the daily submittal of schedules and bids for LaaR or other periodic submittal of schedules and bids for EILS, as directed by Customer. Customer shall have the option to decline participation in any ERCOT DR auction. b) Qualification: Assisting Customer with the process of qualifying its facilities to sell DR Capacity to ERCOT through coordination, documentation, communications and testing with third-party vendors, Customer’s personnel and ERCOT. If, in the sole discretion of NewEnergy, Customer’s bid to ERCOT would jeopardize NewEnergy’s qualification to provide DR Management Services within ERCOT, NewEnergy may decline to submit Customer’s bid to participate in ERCOT auctions. c) Administration: Administering the distribution of any funds received from ERCOT related to the sale of Customer’s DR Capacity to ERCOT. d) Monitoring: Monitoring the DR capacity equipment and facilities, responding to ERCOT deployments and assisting Customer in resolving issues associated with the execution of required documentation with ERCOT. V. CUSTOMER’S RESPONSIBILITIES a) Au thorizations and Duties: Customer grants NewEnergy the sole and exclusive authority to act as its QSE with ERCOT to perform the DR Management Services described below on behalf of Customer for its LaaR or EILS Capacity for each of the ESI IDs identified in Exhibits hereto. Nothing contained in this Agreement shall require NewEnergy to institute any legal or regulatory proceeding with any Governmental Authority, or to pursue remedies in any venue or with any third party on behalf of Customer in connection with any of the DR Management Services provided under this Agreement. b) Equipment: Customer shall be responsible for the installation and maintenance of the necessary equipment and communications as specified in the ERCOT Protocols. Customer may, at its option, arrange for installation of the necessary equipment by or through NewEnergy, and the cost of such equipment,and its installation and maintenance will be deducted from the initial ERCOT DR revenues payable by NewEnergy to Customer until fully recovered. During the Term of the Agreement, Customer will not modify, tamper or disconnect the meter, the communication equipment or any connections or interfaces to the meter or communication equipment. Unless otherwise determined by NewEnergy in its sole discretion, title to the equipment shall transfer to Customer upon installation of the equipment at Customer’s premises, subject to the deduction in full of the cost TCMUD No. 1 66 of 187 16 Nov 2010 Demand Response Management Agreement Page 3 of 8 ©2010 Constellation Energy Group, Inc. All rights reserved. The offering herein is sold and contracted by Constellation NewEnergy, Inc., a subsidiary of Constellation Energy Group, Inc. Errors and omissions excepted. of the equipment, its installation and maintenance against market revenues; provided that ownership of any software shall remain with NewEnergy or the third-party licensor licensing it to NewEnergy. NewEnergy shall have the right, at its sole option, to deactivate the software following expiration or termination of this Agreement for any reason. c) Information: NewEnergy will rely on Customer to provide accurate information including, but not limited to that needed by ERCOT, in connection with DR Management Services rendered hereunder and needed by NewEnergy to otherwise perform its obligations under this Agreement. Customer will take such actions and execute such documents as are required for its participation, including but not limited to the Standard Form EILS Agreement with ERCOT if Customer is selected to participate in the EILS Program. d) Scheduling: Upon notification by Customer, NewEnergy will submit Customer’s DR Capacity for scheduling, either to a third party QSE or to ERCOT consistent with scheduling protocols set forth by ERCOT for the applicable Program. Customer shall have a standing bid by which NewEnergy will bid Customer’s DR Capacity. Customer may change the standing bid at its discretion provided that changes are submitted to NewEnergy at least one (1) hour prior to the ERCOT deadline for Day Ahead Schedules or twenty four (24) hours ahead of the ERCOT deadline for EILS bids. e) DR Obligations: Customer has the obligation to meet the ERCOT Protocol performance and availability requirements for its DR Capacity sales to ERCOT or a third party. Customer shall comply fully and promptly with dispatch instructions from ERCOT unless in the sole and reasonable judgment of Customer, such compliance would create a threat to safety, risk of bodily harm or damage to Customer’s equipment. f) Notification: During periods when Customer is obligated to provide DR services to ERCOT or a third party, Customer shall promptly provide notice to NewEnergy of any unplanned reduction or unavailability of its capacity to provide such DR services and provide written documentation of the reason for non-compliance. NewEnergy shall use commercially reasonable efforts to notify ERCOT and to mitigate any financial impact to Customer and NewEnergy’s QSE, and any resulting charges shall be the responsibility of Customer. VI. REPRESENTATION AND WARRANTIES a) Warranties: With the exception of any warranty that is expressly set forth in this Agreement, NewEnergy and its respective successors, assigns and delegatees make NO WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE with regard to the services NewEnergy provides, or the activities Customer undertakes, pursuant to this Agreement. b) Customer Representations: Customer represents and warrants that it has, or by the time scheduling under this Agreement is to commence, complied with all ERCOT qualification requirements. Customer has installed and will maintain the necessary equipment, controls, procedures, practices and training to ensure the safety of persons and property in the event that there is an interruption and a subsequent restoration of electricity to any of its facilities registered to provide DR services under this Agreement, and that it will comply with applicable availability testing as required by ERCOT. Customer agrees that the ESI ID(s) used to provide DR services under this Agreement shall not be used to provide to any third party, including without limitation ERCOT, any other demand response service or other ancillary service or balancing energy service as set forth in the ERCOT Protocols. c) LIMITATION OF LIABILITY: IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT, SPECIAL, PUNITIVE, LOST PROFIT, LOST OPPORTUNITY, BUSINESS INTERRUPTION, OR EXEMPLARY DAMAGES FOR ANY LOSS, DAMAGE, CLAIM OR CAUSE OF ACTION RELATED TO THIS AGREEMENT WHETHER ARISING FROM BREACH OF CONTRACT OR WARRANTY OR TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR STATUTE, OR OTHERWISE. IN NO EVENT, WHETHER ARISING FROM BREACH OF CONTRACT, WARRANTY OR TORT (INCLUDING NEGLIGENCE AND STRICT LIABIITY) OR OTHERWISE, SHALL NEWENERGY BE LIABLE, IN THE AGGREGATE, FOR ANY AMOUNT IN EXCESS OF THE TOTAL REVENUES EARNED BY NEWENERGY HEREUNDER IN THE SIX (6) MONTH PERIOD PRECEDING THE EVENT GIVING RISE TO SUCH CLAIM. d) INDEMNITY: EXCEPT TO THE EXTENT CAUSED BY NEW ENERGY’S WILLFUL MISCONDUCT OR GROSS NEGLIGENCE, CUSTOMER RELEASES, INDEMNIFIES, AND HOLDS NEWENERGY HARMLESS FROM ALL TCMUD No. 1 67 of 187 16 Nov 2010 Demand Response Management Agreement Page 4 of 8 ©2010 Constellation Energy Group, Inc. All rights reserved. The offering herein is sold and contracted by Constellation NewEnergy, Inc., a subsidiary of Constellation Energy Group, Inc. Errors and omissions excepted. LIABILITY, COSTS, CLAIMS, LOSSES, OR CAUSES OF ACTION, INCLUDING PERSONAL INJURY, PROPERTY LOSS, PROPERTY DAMAGE, OR DEATH, HOWEVER CAUSED, WHICH MAY ARISE OUT OF OR RELATE TO AN INTERRUPTION OF ELECTRIC POWER TO CUSTOMER’S FACILITIES OR EQUIPMENT OR ANY RESTART OR RESTORATION OF ELECTRIC POWER TO CUSTOMER’S FACILITIES OR EQUIPMENT WHICH MAY OCCUR WITH NO ADVANCE NOTICE TO CUSTOMER. VII. DEFAULTS, REMEDIES AND DISPUTE RESOLUTION a) Events of Default: Each of the following shall constitute an Event of Default: material breach, continued non- payment, material misrepresentation, voluntary or involuntary bankruptcy. b) Remedies for Default: If an Event of Default occurs the non-defaulting party shall notify the defaulting Party. Following receipt of a notice of an Event of Default, the Defaulting Party shall have 30 days from receipt of notice of default in which to cure the Event of Default. c) Termination: If the Event of Default is not cured timely then the Party not in default, by notice in writing to the Defaulting Party, may, in addition to any other rights and remedies available to it under this Agreement, terminate this Agreement upon at least five (5) days prior written notice to the Defaulting Party. VIII. MISCELLANEOUS PROVISIONS a) Successors and Assigns: Neither Party shall assign this Agreement or any of the agreements attached as Exhibits hereto, nor any part thereof, without the prior written consent of the other Party other than to a third party which succeeds to all or substantially all of the assets of the Party; provided, however, that NewEnergy may subcontract certain services to be performed hereunder. b) Notices: Any notice and other communication to a Party required or authorized by this Agreement shall be in writing and addressed as set forth below, and shall be deemed given (i) when delivered in person, (ii) whether actually received or not, four (4) business days after it is deposited in any U.S. post office or mail receptacle, certified or registered mail, return receipt requested, postage prepaid, or (iii) on the next delivery day after it is placed with an expedited delivery service and designated for next-day service with proof of delivery, or (iv) when received by the other Party if transmitted via email. Customer Constellation NewEnergy, Inc. Company Name: Company Name: Constellation NewEnergy, Inc. Address: Address: 1221 Lamar Street, Suite 750 City, State, Zip: City, State, Zip: Houston, TX 77010 Attention: Attention: Contracts Administration Telephone: Telephone: 888-635-0827 Facsimile: Facsimile: 1-866.631.4108 Either Party may, by written notice to the other, change the representative or the address to which such notices and communications are to be sent. c) Entirety: This Agreement contains the entire agreement between Customer and NewEnergy with respect to the subject matter hereof and supersedes all prior negotiations, representations, contracts or agreements whether written or oral. This Agreement may be modified, amended, altered or rescinded only by a writing expressly referring to this Agreement and signed by the Parties. No delay, failure or waiver on the part of either Party in TCMUD No. 1 68 of 187 16 Nov 2010 Demand Response Management Agreement Page 5 of 8 ©2010 Constellation Energy Group, Inc. All rights reserved. The offering herein is sold and contracted by Constellation NewEnergy, Inc., a subsidiary of Constellation Energy Group, Inc. Errors and omissions excepted. exercising any rights hereunder, and no partial or single exercise thereof, will constitute a waiver of such rights or of any other rights hereunder. d) Governing Law: This Agreement shall be interpreted, construed and governed by the laws of the State of Texas. EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY OR TO INITIATE OR BECOME A PARTY TO ANY CLASS ACTION CLAIMS IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. e) Counterparts: This Agreement may be executed in any number of counterparts with the same effect as if the Parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same agreement. f) Confidentiality: Each Party shall treat as confidential all information and data delivered to it by the other Party pursuant to this Agreement, whether delivered electronically, orally, or in tangible form, which (i) relate to the the business affairs of the Parties (ii) Customer data and information relating to contract pricing, transaction terms and operations, and (iii) if delivered electronically or in tangible form, are expressly designated by label, stamp or other written communication that the information or data furnished is confidential at the time of delivery (collectively, the "Confidential Information”). During the term of this Agreement and until three (3) years after the termination or expiration of this Agreement, each Party agrees not to disclose or permit the disclosure of any portion of the Confidential Information to any third party other than a party affiliated with such Party, provided, that either Party may disclose any Confidential Information (a) that has become generally available to the public, (b) that may be required or appropriate in any report, statement, or testimony submitted to any municipal, state, or Federal regulatory body having or claiming to have jurisdiction over the Party or the subject matter of this Agreement, (c) that may be required or appropriate in response to any summons or subpoena or in connection with any litigation or to comply with any law, order, regulation, or ruling applicable to either Party, provided, that the Party required to make such disclosure shall agree to take reasonable steps to protect the Confidential Information and shall disclose only that portion of the Confidential Information that it is required to disclose. g) Severability: If any provision of this Agreement is held to be illegal, invalid or unenforceable, such provision shall be fully severable and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement. h) Nature of Relationship: Nothing in this Agreement shall be construed as creating the relationship of agent- principal, partnership, joint venture, co venture, trustee beneficiary, or other or similar fiduciary relationship of any kind. The obligations undertaken herein are limited to those of a contractual services provider. The Parties agree and acknowledge that NewEnergy is not acting as a commodity trading advisor (as defined in the Commodity Exchange Act). ACCEPTED AND AGREED: IN WITNESS WHEREOF, and with the intent to be bound thereby, the Parties hereto have caused their duly authorized representatives to execute this DR Management Agreement on their behalf effective as of the day and year first written above. Customer Constellation NewEnergy, Inc. Signature: Signature: Name: Name: Title: Title: Date: Date: This Agreement and documentation provided by NewEnergy is confidential information, and may not be disclosed to any third party without written authorization by NewEnergy. TCMUD No. 1 69 of 187 16 Nov 2010 Demand Response Management Agreement Page 6 of 8 ©2010 Constellation Energy Group, Inc. All rights reserved. The offering herein is sold and contracted by Constellation NewEnergy, Inc., a subsidiary of Constellation Energy Group, Inc. Errors and omissions excepted. EXHIBIT A Emergency Interruptable Load Service (EILS) Definitions: a) “EILS” means the Emergency Interruptible Load Service as defined in the ERCOT Protocols and Operating Guides. b) “EILS Capacity” means the amount of retail electricity consumption that a Customer’s ERCOT qualified facility or resource is capable of interrupting or curtailing in accordance with the ERCOT requirements for EILS. c) "EILS Management Services" means services required to qualify, schedule, bid, deploy, and settle with ERCOT or third parties for the purposes of offering Customer’s load interruption capacity for EILS consistent with ERCOT Protocols, applicable laws, and includes the EILS Management Services specifically enumerated in this Agreement. Monthly Settlement Terms: For the EILS Program, NewEnergy will remit payments to Customer within ten (10) days from the end of the applicable four (4) month period after NewEnergy receives payment from ERCOT. This Agreement shall cover the following EILS Resources: ESI ID Description/Name 1 2 3 4 5 6 7 8 9 10 TCMUD No. 1 70 of 187 16 Nov 2010 Demand Response Management Agreement Page 7 of 8 ©2010 Constellation Energy Group, Inc. All rights reserved. The offering herein is sold and contracted by Constellation NewEnergy, Inc., a subsidiary of Constellation Energy Group, Inc. Errors and omissions excepted. EXHIBIT B Load Acting as a Resource (LaaR) Definitions: a) “LAAR” means Load Acting as a Resource for Responsive Reserve Service as defined in the ERCOT Protocols or Load Resources as defined in the ERCOT Nodal Protocols.” b) LAAR Capacity” means the amount of retail electricity consumption that a Customer’s ERCOT qualified facility or resource is capable of interrupting or curtailing in accordance with the ERCOT Protocol requirements for LAAR Additional Customer Obligations: Customer shall comply fully and promptly with the deployment of under-frequency relay equipment. Monthly Settlement Terms: For the LaaR Program, NewEnergy will remit payments to Customer within forty five (45) days from the end of the closing month after NewEnergy receives payment from ERCOT This Agreement shall cover the following LaaR Resources: ESI ID Description/Name 1 2 3 4 5 6 7 8 9 10 TCMUD No. 1 71 of 187 16 Nov 2010 Demand Response Management Agreement Page 8 of 8 ©2010 Constellation Energy Group, Inc. All rights reserved. The offering herein is sold and contracted by Constellation NewEnergy, Inc., a subsidiary of Constellation Energy Group, Inc. Errors and omissions excepted. ADDENDUM A to the DR MANAGEMENT AGREEMENT BETWEEN Constellation NewEnergy, Inc. (“NewEnergy) and________________________, (“Customer”) dated ___________________: Communications and Maintenance Services: During the Term of the Agreement, NewEnergy will provide the following extended equipment and /or services to Customer: 1) Satcom, DSL Communications Modem, or CDMA / GPRS wireless communications 2) Satcom, DSL Communications Setup, or CDMA / GPRS wireless communications 3) Satcom, DSL Communications Service, or CDMA / GPRS wireless communications 4) Quarterly DR Testing NewEnergy will deduct a service fee of $200.00 per month from the Customer’s share of DR revenue for the above listed items. Further, during the term of the agreement, NewEnergy will: 1) Replace a failed piece of hardware at no cost, as long as the piece of hardware is under warranty. Third-party labor costs, if any, will be passed through to Customer 2) Replace a failed piece of hardware at cost, if the piece of hardware fails outside of the manufacturer’s warranty. Cost including third-party labor, if any, will be passed through without markup to Customer and may be deducted from the Customer’s share of DR Revenue. Agreed to and accepted by: For Customer For Constellation NewEnergy, Inc. Signature: Signature: Name: Name: Title: Title: Date: Date: TCMUD No. 1 72 of 187 16 Nov 2010 Mary Moore From: Robert Scott Sent: Wednesday, November 10, 2010 8:20 AM To: Mary Moore Subject: FW: CPower/Constellation - Load Analysis - Trophy Club Municipal Utility District Attachments: CNE DR Agreement.pdf Page 1 of 2CPower/Constellation - Load Analysis - Trophy Club Municipal Utility District 11/10/2010 From: Jim Kordoban [mailto:Jim.Kordoban@cpowered.com] Sent: Sunday, November 07, 2010 9:34 PM To: Robert Scott; Subject: CPower/Constellation - Load Analysis - Trophy Club Municipal Utility District Gentlemen: As promised, I am sending you this e-mail to show you Trophy Club Municipal Utility District’s net revenue projections (i.e. what they will be based upon Trophy Club Municipal Utility District’s historical load size over the last 12-18 months) due to what we found out by running the associated ESI ID information. Based upon our analysis of Trophy Club Municipal Utility District’s load consumption, you have historically been hovering around approximately 225KW(on average) over the last 13 months. This was based on the utility data provided. 10443720002828536: 225KW (Non-IDR meter) Knowing this, the net revenue projections are presented below (based upon the EILS program). These numbers again are net of any equipment installment fees (which will be determined by the service engineer), should you decide that you want/need remote curtailment installed. In order to be eligible to participate in the EILS program, each participating meter must be an IDR meter (which this meter is not). In order to be eligible to participate in the ERCOT Demand Response program, we will need Oncor to switch this meter out to an IDR meter. Each IDR meter must also be equipped with a real-time monitoring/data logging device that will help the client and Constellation to monitor availability and performance factors. Typically, this cost is around $3,000 per meter. Constellation will be happy to pay for the cost of this meter up-front and then will take the associated cost out of revenue earned until paid for. This will not only ensure Trophy Club Municipal Utility District’s success in demand response but it will also provide many other energy management related benefits as well. You will have a real time picture of what your load profile is doing at all times. Net to Customer (Approximations based upon current market) 225KW: $9,600/yr; $3,200 paid at the end of each 4 month program period. With regards to automation installment costs (if necessary), we can certainly take these out of Trophy Club Municipal Utility District’s revenue payments, so essentially there is no up-front out of pocket cost to get into the program. TCMUD No. 1 73 of 187 16 Nov 2010 Just so that you have it, I have attached our standard EILS contract for you to review and pass along. Please let me know what questions you may have. <<CNE DR Agreement.pdf>> I look forward to taking the next steps! If you have any questions, comments or concerns that I can alleviate, please do not hesitate to give me a call any time 24/7. Best regards, Jim Kordoban Jim Kordoban Business Development Manager Constellation New Energy-formely CPower, Inc. 325 N. Saint Paul, Suite 2650 Dallas, TX., 75201 M. (214) 850.8707 T. (972) 813.6117 F. (214) 594.5882 E.jim.kordoban@cpowered.com james.kordoban@constellation.com This message (including any attachments) may contain privileged and confidential information intended for a specific individual and purpose, and is protected by law. If you are not the intended recipient, you should notify the sender by telephone or electronic mail and delete this message. Any unauthorized disclosure, copying, distribution, or other use of this message is strictly prohibited. Page 2 of 2CPower/Constellation - Load Analysis - Trophy Club Municipal Utility District 11/10/2010 TCMUD No. 1 74 of 187 16 Nov 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-75-M1 Name: Status:Type:M1 Order Regular Session File created:In control:6/2/2010 Trophy Club Municipal Utility District No. 1 On agenda:Final action:11/16/2010 Title:Discuss and take appropriate action concerning an Order to amend Order 2009-0915, Attachment B, Section 2, Fees and Expense Policy, and Attachment F, Rules of Procedure. Attachments:Agenda Item 15 Discussion Items-Sanders.pdf Request to Speak before the MUD 1 Board.pdf M1-O-2010-1116-Code Of Conduct-TrackedChanges.pdf M1-O-2010-1116-Code Of Conduct-AC.pdf Action ByDate Action ResultVer. Discussion only - No action takenTrophy Club Municipal Utility District No. 1 6/15/2010 1 TCMUD No. 1 75 of 187 16 Nov 2010 File #: 2010-75-M1, Version: 1 Title Discuss and take appropriate action concerning an Order to amend Order 2009-0915, Attachment B, Section 2, Fees and Expense Policy, and Attachment F, Rules of Procedure. Body This is the first draft proposal to amend Attachment B, Section 2, Fees and Expense Policy, Order 2009- 0915. This amendment is seen as being necessary due to the recent request by an ex-MUD Director for reimbursement after the fact for attending MUD meetings. Excerpt from June 15, 2010 minutes regarding request to amend Attachment F, Rules of Procedure (Order 2009-0915): Director Sanders went through each of the items and sought input from the Board. Item 1 - Comment only that meetings are conducted by Roberts Rules of Orders. Item 2 - Both President Thomas and Secretary/Treasurer Carr agreed to change. Item 4 - The District Manager will assist the Secretary/Treasurer - Agreed. Item 5 - Only one subject per agenda item - Agreed Item 6 - Right to the Floor - no one talks a second time until all other directors have had an opportunity to speak. Item 7 - Suspend Rules of Procedure requires two-thirds vote of directors present. Director Armstrong and Secretary/Treasurer Carr agreed. Item 8 - Add "Future Agenda Items" to Rules of Procedure - explanation only with no consensus taken. The Board directed Staff to make recommended changes/amendments to the Rules Of Procedure, by redline, and bring back to the Board for their review and approval. District Manager Scott requested Staff hold off on this issue until after we get through this budget process, and then we can work on this, to which the Board agreed. TCMUD No. 1 76 of 187 16 Nov 2010 Discussion Items As related to Agenda Item 14 – Review and discuss Rule of Procedure 1. Article II, Section 2.08 of Attachment F says that we shall conduct the meetings as per “Roberts Rules of Order”. 2. Article II, Section 2.08 of Attachment F says “The Board may provide a portion of each meeting for public comments in accordance with the policies established for receipt of public comment.” Should we include something like the “Presentation by Citizens” section like in the Council rules? (see below) “Presentations by citizens, with or without prior notification, shall be limited to a total of six minutes, with three minutes of time allowed prior to Council discussion and three minutes of time allowed subsequent to Council discussion but before the Chair calls for a vote. It is within the discretion of the Chair to reasonably extend those limits. Citizens must turn in a completed ‘Request to Speak’ form to the Town Secretary.” 3. Article II, Section 2.08 of Attachment F - Amendment to Rules Currently our rules allow for changes to be made “…from time to time, with the concurrence of all directors.” This item which is in the Council rules says: “These rules may be amended, or new rules adopted with a favorable vote by four (4) members of the Town council in attendance, provided that the proposed amendments or new rules shall have been introduced into the record at a prior Town Council Meeting. 4. Article II, Section 3.07 of Attachment F – paragraph 2 says that the Finance Director is going to assist the Secretary/Treasurer. Seems like this should include the District Manager at a minimum. 5. New Item – Questions to Contain One Subject This item which is in the Council’s Rules says: “All questions submitted for a vote shall contain only one subject. If town or more points are involved, any member may require a division, if the question reasonably admits of a division.” 6. New item – Right to Floor This item which is in the Council’s Rules says: “Any Council member desiring to speak shall be recognized by the Chairman/Mayor. No member shall be allowed to speak more than once on any subject until every member wishing to speak shall have spoken.” TCMUD No. 1 77 of 187 16 Nov 2010 7. New item – Suspension of Rules This item which is in the Council’s rules says: “Any provision of these rules may be temporarily suspended by a two-thirds vote of all members of the Town Council in attendance. The Vote on may such suspension shall be taken by a show of hands and entered into the record.” 8. New item - Presentations by Members of Board – Future Agenda items This item which is in the Council rules says: “The agenda shall provide a time when the Mayor or any Town Council member may bring before the Town Council any business that the Town Council member believes should be deliberated upon by the Town Council at a future meeting of the Town Council. However, pursuant to the Town Charter, before any item is placed for discussion and/or action on a future Town Council agenda, a request for its placement on the agenda shall be made by either the Mayor or by any tow (2) Council members. These matters need not be specifically listed on the agenda, but discussion and formal action on such matters shall be deferred until a subsequent Town Council meeting provided that the requirements of Chapter 551 Texas Government Code have been met.” 9. Section 2.02 Removal of Directors – (This is not part of Attachment F, so it may not be discussed.) It seem to me that there should be a process for giving an excused absence and if one is granted, then that absence should not be included in the total missed meetings in the this section. This is not part of Attachment F but should be discussed at some point. TCMUD No. 1 78 of 187 16 Nov 2010 Request to Speak before the MUD 1 Board Name _____________________________ Phone _____________ Date ____________ Address ___________________________ City _______________ Zip ______________ Agenda Item # ________ Other Agenda Item # ________ ___ I wish to speak IN FAVOR of this item. ___ I wish to speak IN OPPOSITION to this item. ___ I do not wish to speak; however, please record my __ SUPPORT __ OPPOSITION General Citizen Comments: This item is available for citizens to speak on any subject; however, no action, by law, may be taken on the topic. Topic of Discussion: ______________________________________________________ _______________________________________________________________________ _______________________________________________________________________ Comments will be limited to three (3) minutes. TCMUD No. 1 79 of 187 16 Nov 2010 MUD 1 Board of Directors WELCOME to the MUD 1 Board Meeting! The following are a few tips designed to help you understand the proceedings of the meeting.  Those wishing to address the Board are asked to complete a Request to Speak Card. Please turn the card in to the MUD Secretary.  The President (presiding officer) will ask for those wishing to address the Board to do so at the appropriate time. Please approach the speaker’s stand, state your name and address for the record, and discuss the topic of interest. Please direct your comments to the MUD Board.  Although the MUD Board cannot take specific action on Citizens’ Comments topics due to legal requirements, they will hear the topic and the Board may: 1) Have the item placed on a future agenda for action, or 2) Refer the item to staff for study or conclusion.  We appreciate your interest in the community and hope you will visit again soon! Comments will be limited to three (3) minutes. TCMUD No. 1 80 of 187 16 Nov 2010 TCMUD No. 1 81 of 187 16 Nov 2010 TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1 ORDER NO. 2009-09152010-1116 AN ORDER OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1, REPEALING ORDER 2009-09152006-0711, AND ADOPTING AN AMENDED CODE OF ETHICS, A FEES AND EXPENSE POLICY, POLICIES AND PROCEDURES FOR SELECTION AND REVIEW OF CONSULTANTS, POLICIES CONCERNING THE USE OF MANAGEMENT INFORMATION INCLUDING THE FORMATION OF AN AUDIT COMMITTEE, CODE OF CONDUCT, RULES OF PROCEDURE AND CERTAIN OTHER MATTERS; AND ADDING ATTACHMENT “E” - CODE OF CONDUCT; AND ADDING ATTACHMENT “F” - RULES OF PROCEDURE; AND PROVIDING AN EFFECTIVE DATE WHEREAS, Trophy Club Municipal Utility District No. 1 (the “District”) is a Water District operating pursuant to Chapter 54 of the Texas Water Code; and WHEREAS, on July 11, 2006September 15, 2009, the District adopted Order 20096- 0915711 per the Texas Water Code Ann. §49.199, requiring the Board of Directors of the District to adopt certain policies and procedures in writing; including a code of ethics, an expense policy, policies and procedures for the selection and review of consultants, and policies concerning the use of management information and the formation of an audit committee; and WHEREAS, the Board of Directors of the District now finds it prudent and wise to adopt an additional Attachment B, Fees and Expense and to aAttachment F, ddress Code of Conduct Rules of Procedure, as amended, for its Board of Directors; and WHEREAS, the Board determines that in order to have a fair, ethical and accountable District it is in their best interest to repeal Order 20096-0915711 and adopt Order 20109- 11160915, adopting an amendment to Attachment B, Fees & Expense Policy and an amendment to Attachment F, Rules of Procedure Code of Conduct, attached hereto as Attachment E and Rules of Procedure, attached hereto as Attachment F, in addition to the policies attached hereto as Attachements A-D. NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 THAT: I. The Board of Directors hereby adopts in addition to the Code of Ethics (Attachment A); a Fees and Expense Policy (Attachment B); a Policy Concerning Selection, Monitoring, Review and Evaluation of Professional Consultants (Attachment C); , Policies Relating to Use of Management Information and Formation of an Audit Committee (Exhibit D); a Code of Conduct (Attachment E); and Rules of Procedure (Attachment F) hereof as its written policies and procedures required by Tex. Water Code Ann. §49.199. TCMUD No. 1 82 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 II. The Joint Presidents and Joint Secretaryies of the Board of Directors are authorized to evidence adoption of this Order on behalf of the Board of Directors and to do all other things proper and necessary to carry out the intent hereof. This Order supersedes all previous Orders adopting any of the following: a Code of Ethics, a Fees and Expense Policy, a Travel Expense Policy, Policies and Procedures for Selection and Review of Consultants, or Policies Concerning the Use of Management Information Including the Formation of an Audit Committee or Rules of Procedure. ATTACHMENT A CODE OF ETHICS SECTION 1. Purpose. The purpose of this Code of Ethics is to set forth the standards of conduct and behavior for the members of the Board of Directors of Trophy Club Municipal Utility District No. 1 (the “District”), and its officers, and employees of the District (collectively with the Directors, the “District Officials”). SECTION 2. Policy. It is the policy of the District that District Officials shall conduct themselves in a manner consistent with sound business and ethical practices; that the public interest shall always be considered in conducting District business; that the appearance of propriety shall be avoided to ensure and maintain public confidence in the District; and that the Board shall control and manage the affairs of the District fairly, impartially, and without discrimination. Section 2.01 Qualification of Directors. A. A person shall not serve as a Director if he is disqualified by law from doing so. As of the date of adoption of this Code of Ethics, Section 49.052, Texas Water Code, disqualifies certain person from serving as directors of the District. B. Within sixty (60) days after the Board determines that any Director is disqualified from serving on the Board, it shall replace such Director with a person who is not disqualified. C. Any Director who is disqualified from serving on the Board under Section 2.01(a) who willfully occupies an office and exercises the duties and powers of that office may be subject to penalties under Section 49.052, Texas Water Code, including possible conviction of a misdemeanor and imposition of a fine. D. A Director is not qualified to serve on the Board if the Director simultaneously serves in another civil office, either elective or appointive, entitling the Director to compensation. Article XVI, Section 40, of the Texas Constitution, Appendix “B.” Section 2.02 Removal of Directors The Board by unanimous vote of the remaining Directors may remove a Director from the Board if that Director has missed one-half (1/2) or more of the regular meetings of the Board scheduled during the prior twelve (12) months. See Section 49.052 , Texas Water Code. TCMUD No. 1 83 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 SECTION 3. Conflicts of Interest. (A) The District adopts Chapter 171, Government Code, as its Conflict of Interest Policy, the principal provisions of which are as follows: Except where a majority of the Board of Directors is required to abstain from participation in a vote because of conflict of interest, a Director will abstain from participating in a decision of the Board of Directors which either (1) confers an economic benefit on a business in which the Director or a close relative has a substantial interest, or (2) affects the value of property in which the Director or a close relative has a substantial interest differently from how it affects other real property in the District. For these purposes, a person is considered to have a “substantial interest” in a business if (1) he owns ten percent (10%) or more of the voting stock or shares of the business entity or owns either ten percent (10%) or more or $5,000 or more of the fair market value of the business entity; or (2) funds received from the business exceed ten percent (10%) of his gross income for the previous year. A Person has a substantial interest in real property if the interest is an equitable or legal interest with a market value of $2,500 or more. A “close relative” of a Director for these purposes is a person related to the Director within the first degree of affinity or consanguinity. (B) A Director who has a substantial interest in any matter involving the business entity or real property shall disclose that fact to the other Directors by Affidavit. The Affidavit must be filed with the Secretary of the Board. An interested Director shall abstain from further participation in the matter as set forth in Section 3(A). (C) The Board shall take a separate vote on any budget item specifically dedicated to a contract with a business entity in which a Director has a substantial interest. In the event of a separate vote, the Director may not participate in that separate vote, but may vote on a final budget if the Director has complied with Section 3. (D) As of the date of adoption of this Code of Ethics, Chapter 176, Local Government Code, requires the disclosure of certain relationships by Directors, vendors, and certain prospective vendors to the District. A Director, vendor, or prospective vendor who has a relationship that requires disclosure under Chapter 176 shall disclose that relationship by completing the form prescribed by the Texas Ethics Commission and timely filing such form with the Records Administrator. A Director or vendor violating this Section may be subject to prosecution as a Class C misdemeanor under Sections 176.003 and 176.006(f), Local Government Code, respectively. SECTION 4. Conduct of District Business. Each District Official will conduct all business of the District in a manner consistent with the requirements of applicable law and the Texas Open Meetings Act. SECTION 5. Acceptance of Gifts. No District Official shall accept any benefit as consideration for any decision, opinion, recommendation, vote, or other exercise of discretion in carrying out his official acts for the District. No District Official shall solicit, accept, or agree to accept any benefit from a person known to be interested in or likely to become interested in any contract, purchase, payment, claim, or transaction involving the exercise of the District’s Official’s discretion. As used herein, “benefit” shall not include: TCMUD No. 1 84 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 (A) A fee prescribed by law to be received by a public servant or any other benefit to which the District Official is lawfully entitled or for which he gives legitimate consideration in a capacity other than as a District Official; (B) A gift or other benefit conferred on account of kinship or a personal, professional, or business relationship independent of the status of the recipient as a District Official; (C) A political contribution, as defined by the Election Code; (D) A benefit consisting of food, lodging, transportation, or entertainment accepted as a guest; or (E) A benefit to a District Official required to file a financial statement under the Texas Election Code that is derived from a function in honor or appreciation of the recipient if: (1) The benefit and the source of any benefit in excess of $50.00 is reported in the required financial statement; (2) The benefit is used solely to defray the expenses that accrue in the performance of duties or activities in connection with its official duties for the District which are non-reimbursable by the District; or (3) An item with value of less than $50.00, excluding cash or negotiable instrument; or (4) An item issued by a governmental entity that allows the use of property or facilities owned, leased, or operated by the governmental entity. SECTION 6. Bribery A District Official shall not intentionally or knowingly offer, confer, or agree to confer on another, or solicit, accept, or agree to accept from another, any benefit as consideration when to do so is prohibited by law. As of the date of adoption of this Code of Ethics, Section 36.02, Texas Penal Code, lists the offenses that are considered bribery when committed by District Officials. Violations of penal laws may subject a District Official to criminal prosecution. SECTION 7. Acceptance of Honoraria. A Director shall not solicit, accept or agree to accept an honorarium as prohibited by law. As of the date of the adoption of this Code of Ethics, Section 36.07, Texas Penal Code, provides the circumstances in which a Director may not accept an honorarium. Violations of penal laws may subject a District Official to criminal prosecution. SECTION 8. Lobbying. Should the Texas Ethics Commission by rule require any District Officials directly communicating with legislative or executive branch officials to register as lobbyists, District Officials shall comply with such rule. See Government Code, Section 305.0051. TCMUD No. 1 85 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 The District shall not reimburse from District funds the expenses of any person in excess of $50.00 for direct communications with a member of the legislative or executive branch unless the person being compensated resides in the district of the member with whom the person communicates or files a written statement which includes the person’s name, the amount of compensation or reimbursement, and the name of the affected political subdivision with the Secretary of State. This provision does not apply to registered lobbyists, a full-time employee of the District or an elected or appointed District Official. ATTACHMENT B FEES AND EXPENSE POLICY SECTION 1. Purpose. The purpose of this Expense Policy is to set forth the policies of Trophy Club Municipal Utility District No. 1 (the “District”) concerning per diem and travel expenses for members of the Board of Directors of the District. SECTION 2. Per Diem for Directors. (A) Pursuant to Section 49.060 of the Texas Water Code, as amended, Directors are entitled to receive as fees of office $150.00 a day for each day the Director actually spends performing the duties of a director, provided the fees shall not exceed a sum of $7,200 per annum. “Performing the duties of a director” means substantive performance of the management or business of the District, including participation in board and committee meetings and other activities involving the substantive deliberation of District Business and in pertinent educational programs. The phrase does not include routine or ministerial activities such as the execution of documents, self-preparation for meetings, or other activities requiring a minimal amount of time. Directors may attend other meetings relating to the management or business of the District and receive fees of office and expenses at the discretion of each director. (B) At every monthly MUD Board meeting, Directors will receive a FEE PAYMENT REQUEST. Each Director in attendance at said meeting will be required to complete the FEE PAYMENT REQUEST. Directors will have two options: 1) Request payment or 2) Decline payment. Any Director who fails to complete/submit a FEE PAYMENT REQUEST at the meeting will be emailed, or if no email address, mailed a FEE PAYMENT REQUEST by the MUD Secretary. If the Director wishes to DECLINE payment, the Director may indicate such via an electronic transmission, via regular mail or submit the Request in person to the MUD Secretary. Any such FEE PAYMENT REQUEST mailed or e-mailed by the MUD Secretary which is not completed and returned to the MUD Secretary within thirty (30) days of the date such FEE PAYMENT REQUEST will be declined. (C) Directors attending “outside” meetings on District business who wish to receive payment for attendance at such meeting shall have thirty (30) days from the date of said meeting in which to submit a FEE PAYMENT REQUEST for payment. Any FEE PAYMENT REQUEST received after thirty (30) days shall come before the MUD Board for approval. All Directors requesting and receiving reimbursement for attending District business outside of the monthly Board meetings shall be required to provide an TCMUD No. 1 86 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 update/report to the Board either in person at the very next meeting or provide an update/report via an electronic transmission to the MUD Board and the District Manager. SECTION 3. Attendance at Meetings and Conduct of Other District Business. Board members may attend conferences and meetings of the Association of Water Board Directors, at the District’s expense, whether within or outside the Town of Trophy Club. Attendance at other conferences, hearings, or other meetings outside of Trophy Club by the members of the Board of Directors must be sanctioned by the Board of Directors; attendance at local meetings or conduct of other local District business will be at each Director’s discretion. Directors attending any meeting or conducting any District business shall report to the Board concerning the meeting or activity. SECTION 4. Expenses Outside of Trophy Club. The District will pay a reasonable room rate for a director’s hotel room, if District business requires that the director be out of Trophy Club, reasonable tips incurred in making the trip, roundtrip mileage at the current IRS mileage rate and parking, if any, for travel by car or roundtrip airfare at current commercial rates for standard (not first class) air fare and reasonable rental car or taxi charges. The District will pay for meals actually eaten and paid for by the Director on a sanctioned trip outside of Trophy Club; provided, however, reimbursement for meals will be limited to $75.00 per day per person. Appropriate documentation listing the person in attendance and a description of the business discussed at the meeting or activity is required. No reimbursement shall be made for the purchase of alcoholic beverages for a director, spouse, employee or guest. No reimbursement shall be made for the meals of a spouse of a director or employee. SECTION 5. Expenses for Local Meetings and Activities. The District will pay for roundtrip mileage at the current IRS rate for travel by car, parking, and will pay meals directly related to the meeting or activity. Reimbursement for meals will be limited to $75.00 per day per person. Appropriate documentation listing the person in attendance and a description of the business discussed at the meeting or activity is required. No reimbursement shall be made for the purchase of alcoholic beverages for a director, spouse, employee or guest. No reimbursement shall be made for the meals of a spouse of a director or employee. SECTION 6. Reimbursement. Directors attending meetings or other activities and wishing to receive a per diem and/or expenses must submit a verified statement showing the number of days actually spent in service to the District and a general description of the duties performed for each day of service. To receive reimbursement for expenses, a Director must also submit an itemized expense report to the Senior Accountant before reimbursement is approved by the Board’s District Manager. Items on the expense report shall include lodging, meals, tips, parking and transportation. Directors sharing expense items may split reported expenses in any matter they deem equitable, but the Board will pay no more than 100% of the actual total cost of reimbursable items. SECTION 7. Extraordinary Expenses. Any extraordinary expenses for a Director attending a sanctioned activity of the District must be approved by the Board prior to incurring the expense. TCMUD No. 1 87 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 ATTACHMENT C POLICY CONCERNING SELECTION, MONITORING, REVIEW AND EVALUATION OF PROFESSIONAL CONSULTANTS SECTION 1. Purpose. The purpose of this Policy Concerning Selection, Monitoring, Review, and Evaluation of Professional Consultants is to set guidelines for the Board of Directors for Trophy Club Municipal Utility District No. 1 (the “District”) concerning its Professional Consultants. SECTION 2. Definition of Professional Consultant. “Professional Consultant” shall include the District’s attorney, auditor, bookkeeper, financial advisor, and tax assessor/collector, and such other consultants other than employees that the District may hereafter engage. SECTION 3. Selection of Consultants. Whenever the Board of Directors of the District decides to terminate the services of one or more of its Professional Consultants, the Board shall request one or more proposals as required by the Professional Services Procurement Act, Section 2254.001 et seq., Government Code, except where selection of professional consultants is to be conducted by the Board in an open meeting, shall appoint a committee of one or two Directors to review any proposals received by the Board, to interview applicants, and to make a recommendation to the entire Board of Directors concerning the selection. SECTION 4. Monitoring of Professional Consultants. For those Professional Consultants with annual contracts, the Board of Directors of the District will review the performance of the Professional Consultants for the prior year at the time the contract is renewed. The Board of Directors shall review the performance of its other Professional Consultants, upon the request of one or more Directors. ATTACHMENT D POLICIES RELATING TO USE OF MANAGEMENT INFORMATION AND FORMATION OF AN AUDIT COMMITTEE SECTION 1. Purpose. The purpose of this Policy Relating to the Use of Management Information and Formation of an Audit Committee for Trophy Club Municipal Utility District No. 1 (the “District”) is to provide written policies concerning the use of management information. SECTION 2. Annual Budget. Prior to each fiscal year, the Board of Directors of the District shall adopt an annual budget for the next fiscal year for use in planning and controlling of costs. SECTION 3. Audit Committee. The District hereby appoints its Board of Directors as an audit committee to review the annual audit prepared by the District Auditor. The Board may designate a lesser number than the entire Board, but not less than two (2) Directors to serve as its audit committee. TCMUD No. 1 88 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 SECTION 4. Accounting Standards. The District hereby directs its auditor to adopt uniform auditing reporting requirements that use “Audits of State and Local Governmental Units” as a guide on audit working papers and that uses “Governmental Accounting and Financial Reporting Standards” for final audit reports (subject to the standards for audits prescribed by applicable Texas Commission on Environmental Quality Rules). ATTACHMENT “E” TROPY CLUB MUD NO. 1 CODE OF CONDUCT Statement of Purpose The citizens and the businesses that Trophy Club MUD No. 1 (MUD 1) serves are entitled to have a fair, ethical and accountable District, which earns the public’s full confidence for integrity. It is the strong desire of the MUD District to fulfill this expectation; and, therefore requires that the MUD Directors: • Comply with both the letter and sprit of the laws and policies affecting the operations of the District; • Be independent, impartial and fair in their judgment and actions; and • Use their respective office or position for the public good and , not for personal gain. To this end, the MUD Directors have adopted this Code of Conduct in order to assure public confidence in the integrity of its government and its effective and fair operation. SECTION 1. Definitions The following words, terms and phrases, when used in this section, shall have the following meanings subscribed to them: (A) Business. A corporation, partnership, sole proprietorship, firm, holding company, joint stock company, receivership, trust or any other for profit or non-profit entity. (B) MUD Board. The legislative and governing body of the District consisting of the five (5) members; MUD President, Vice-President, Secretary/Treasurer, and two Directors. [During the interim period between May 9, 2009 and the date of the election of the five member board at the May 2010 election, the MUD Board will consist of ten (10) members acting jointly per the Texas Water Code. This provision regarding the ten (10) members will expire at the canvassing of the May 2010 election. This parenthetical may be removed at that time without further action of the Board.] (C) Employee. Any person employed by the District, including those individuals on a part-time basis, including independent contractors hired by the District for repetitive performance of services, but not independent contractors engaged for occasional services. TCMUD No. 1 89 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 SECTION 2. Nepotism. Showing favoritism toward a relative (needs further definitions see State Law). The practice of hiring personnel or awarding contracts which favor a relative is prohibited by the District. Exclusions to this prohibition are: a. Employees who have been continuously employed by the District for more than two (2) years prior to the election or appointment of the Director. b. Individuals who are employees of the District as of the effective date of this policy. SECTION 3. Act in the Public Interest. Recognizing that stewardship of the public interest must be their primary concern, MUD Directors shall work for the common good of the people the District serves and not for any private or personal interest. interest, and they The Directors shall assure fair and equal treatment of all persons, claims and transactions coming before the District. SECTION 4. Comply with the Law. MUD Directors shall comply with the laws of the nation and the State of Texas in the performance of their public duties. These laws include, but are not limited to: the United States and Texas Constitutions; laws pertaining to conflicts of interest, election campaigns, financial disclosures, employer responsibilities, and open processes of government; and MUD Orders, resolutions and policies; the Texas Water Code; and the Texas Commission on Environmental Quality ( TCEQ). SECTION 5. Conduct of MUD Directors. The professional and personal conduct of MUD Directors must be above reproach and avoid even the appearance of impropriety. MUD Directors shall refrain from abusive conduct, personal charges or verbal attacks upon the character or motives of other MUD Director(s), employees, and the public. Discussions held in confidence and or in Executive and/or Closed Session shall be kept strictly in confidential. Directors shall not violate and or divulge confidential discussions held during Executive and / or Closed Sessions and or private conversations. SECTION 6. Respect for Process. MUD Directors shall perform their duties in accordance with the processes and Rules Of Order established by the MUD Board. SECTION 7. Conduct of Public Meetings. MUD Directors have an obligation to attend meetings and to be prepared for public issues; to listen courteously and attentively to all public discussions before the body; and to focus on the business at hand. They shall refrain from interrupting other speakers, making personal comments not germane to the business of the body, or otherwise interfering with the orderly conduct of meetings. SECTION 8. Decisions Based on Merit. It is expected and required that MUD Directors review material, participate in discussions and base their decisions on the merits and substance of the matter at hand. SECTION 9. Communication. Prior to permitting final action on a matter under consideration, MUD Directors shall publicly share substantive information, which they may have received from sources outside the public decision-making process that is relevant to such action by the MUD Board. SECTION 10. Conflicts of Interest and Disclosure. MUD Directors shall familiarize themselves with and abide by the following conflicts of interest and disclosure statutes and principles: TCMUD No. 1 90 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 (A) Chapter 171 of the Local Government Code which requires an officer, whether elected, appointed, paid, or unpaid, of a district exercising responsibilities beyond those that are advisory in nature, to file an affidavit disclosing a substantial interest in a business entity or property that would be beneficially affected by a decision of the governing body or of any other board or commission upon which the member serves and thereafter to abstain from participation in discussion and voting on the matter. Once the disclosure is made, the MUD Director is to remove himself from the meeting area to ensure his presence does not hinder the discussion of the item or influence the vote. (B) Section 176 of the Local Government Code which requires MUD Directors and the District Manager to file a conflicts disclosure statement disclosing any business relationship with a person or business doing business with the District or being considered by the District for a business relationship. (C) Section 176.003(a)(2)(B) of the Local Government Code which requires the disclosure of gifts of an aggregate value of more than $250.00 in the twelve (12) month period preceding the date that a Director becomes aware of a transaction described in Section 176, other than gifts of food, lodging, transportation, or entertainment accepted as a guest. (D) Sections 553.001-553.003 of the Government Code which requires the filing of an affidavit before the date the District will acquire a property in which public servants has a legal or equitable interest. (E) In order to assure their independence and impartiality on behalf of the public good, MUD Directors are prohibited from using their positions to influence government decisions in which they have a personal interest. SECTION 11. Corruption. MUD Directors shall familiarize themselves with and abide by the Texas Penal Code mandates concerning corruption, including without limitation, Section 36.02 prohibiting receipt of prohibited gifts, Section 39.02 concerning abuse of official capacity and Section 39.06(a) concerning misuse of official information and all other applicable state laws regulating or related to public service. SECTION 12. Political Advocacy. MUD Directors shall not utilize the District’s name, logo, or their position for purposes of endorsing any political candidate, political position or business. SECTION 13. Confidential Information. MUD Directors shall respect the confidentiality of information concerning District property, personnel or proceedings of the District. They shall neither disclose confidential information without proper legal authorization, nor use such information to advance their personal interests. SECTION 14. Use of Public Resources. Directors shall not use public resources generally unavailable to the public, such as District staff time, equipment, supplies or facilities, for private gain or personal purposes. SECTION 15. Representation of Private Interests. In keeping with their role as stewards of the public interest, Directors shall not appear on behalf of private interests of third parties before the MUD Board or any board, commission, committee, or proceeding of the District. TCMUD No. 1 91 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 SECTION 16. Advocacy. Directors shall represent the official policies or positions of the MUD Board to the best of their ability when designated as delegates for this purpose. When presenting their individual opinions and positions, MUD Directors shall explicitly state that they do not represent their body or the MUD District, nor will they allow the inference that they do. SECTION 17. Policy Role of Directors. MUD Directors shall respect and adhere to the District’s structure as outlined in the Texas Water Code and the District’s policies and procedures. In this structure, the MUD Directors determine the policies of the District with the advice, information and analysis provided by the public, and District staff. Except as provided by District Order, MUD Directors therefore shall not interfere with the administrative functions of the District or the professional duties of the District staff; nor shall they impair the ability of Staff to implement MUD Board policy decisions. SECTION 18. Independence of Boards, Commissions, and Committees. Because of the value of the independent advice of boards, commissions, committees and advisory groups to the public decision-making process, MUD Directors shall refrain from using their position to influence unduly the deliberations or outcomes of any board, commission, committee, and advisory group proceedings. SECTION 19. Positive Workplace Environment. MUD Directors shall support the maintenance of a positive and constructive workplace environment for District employees and for citizens and businesses dealing with the District. MUD Directors shall recognize their special role in dealing with District employees and refrain from creating the perception of inappropriate direction to Staff. SECTION 20. Implementation. As an expression of the standards of conduct for MUD Directors expected by the District, this Code of Conduct is intended to be self-enforcing. It therefore becomes most effective when MUD Directors are thoroughly familiar with it and embrace its provisions. Ethical standards shall be included in the regular orientations for candidates for the MUD Board, and newly elected and appointed MUD Directors. MUD Directors entering office, shall sign a statement affirming they have read and understood the Trophy Club MUD No. 1 Code of Conduct and agree to be bound by its terms. In addition, the Code of Conduct shall be reviewed periodically by the MUD Directors, and the MUD Board shall consider recommendations for revision as it becomes necessary. SECTION 21. Compliance and Enforcement. The Trophy Club MUD No. 1 Code of Conduct expresses standards of ethical conduct expected for Trophy Club No. 1 MUD Directors. MUD Directors themselves have the primary responsibility to assure that ethical standards are understood and met, and that the public can continue to have full confidence in the integrity of government. The President(s) of the MUD Board has the additional responsibility to intervene when a MUD Director’s’ actions appear to be in violation of the Code of Conduct and are brought to their attention. The MUD Board may impose sanctions, such as reprimand, formal censure on a MUD Director whose conduct does not comply with the District’s ethical standards. The MUD Board also may act censure or reprimand a MUD Director in accordance with MUD 1 procedures and subject to the limitations set forth in Section 20 of this policy. The MUD Board finds and determines that these ethics and standards of conduct are necessary and appropriate in order to serve the legitimate goal of orderly governance, integrity and public confidence in government. TCMUD No. 1 92 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 SECTION 22. Procedure for Enforcement. (A) Upon good faith and belief that a MUD Director has violated any term or provision of this Code of Conduct, a party having such good faith and belief that a violation has occurred and wishing to initiate a formal review of the alleged violation shall file a written complaint with the MUD Secretary. The written complaint shall contain 1) the name of the complaining party (hereinafter “Complainant”); 2) the name of the party against whom the complaint is being filed (hereinafter “Respondent”); 3) the specific sections allegedly violated; 4) Specific dates, approximate time of day, locations and other facts evidencing the alleged violations; and 5) any documentation evidencing that a violation of the Code of Conduct occurred. (B) Upon receipt of a written complaint meeting all of the requirements set forth in the preceding paragraph, the MUD Secretary shall place the complaint on the next available regular District meeting agenda for which posting requirements may legally and procedurally be met. Alternatively, if the complaint does not meet all of the requirements set forth in the preceding paragraph, the MUD Secretary shall notify the Complainant in writing of the nature of the deficiency and no further action by the MUD Secretary or MUD Board shall be necessary, until such time the MUD Secretary can determine that the complaint meets the requirements of this section. Once placed upon the District agenda, the scope of the MUD Board review shall be limited to a determination of whether the complaint on its face presents a violation of this Code of Conduct for which sanctions, such as reprimand, or formal censure would be appropriate in order to serve the legitimate goal of orderly governance, integrity, and public confidence in government. Upon a majority vote of the MUD Board that the complaint merits further review and investigation, an item shall be placed on the next available regular District meeting agenda for which posting requirements may be legally and procedurally met. Additionally, upon majority vote, the MUD Board may specify any and all individual items of grievance from the Complaint that merit such review and investigation and that will be considered by the MUD Board at a subsequent hearing on the matter. At least seven (7) days prior to the hearing date, the MUD Secretary shall notify the respondent in writing of the date, time and place at which the MUD Board will conduct a hearing on the merits of the alleged complaint, and if MUD Board has by majority vote specified individual items for review and investigation at the hearing, such notice shall advise the Respondent of the scope of the hearing. Alternatively, if upon review of the complaint on its face a majority vote of MUD Board determines that further review and investigation is not warranted, then the Complainant shall be notified in writing of such vote, the written complaint shall be returned to the Complainant, and no further action shall be required by the MUD Secretary or MUD Board. (C) At the subsequent MUD Board hearing, the Complainant and Respondent may present testimonial and or documentary evidence regarding the allegations contained within the Complaint. If the MUD Board determines that substantial evidence has been presented to support the allegation that a violation of the Code of Conduct has occurred and that the violation is detrimental to orderly governance, integrity, and public confidence in the District government, then the MUD Board may by majority vote impose sanctions, such as reprimand, or formal censure, as determined appropriate to serve the legitimate goals of this policy. (D) All procedural rules of the MUD Board shall apply to proceedings conducted pursuant to this Section. The complaint procedure specified in this Section shall only be TCMUD No. 1 93 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 applicable to those MUD Directors who are appointed and/or elected and for the conduct of such official that occurs during the official’s term of office on a MUD board. TCMUD No. 1 94 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 STATEMENT OF COMMITMENT As a member of the Trophy Club MUD No. 1 Board, I agree to uphold the Code of Conduct myself by the following model of behavior. I will: • Recognize the worth of individual MUD Directors and appreciate their individual talents, perspectives and contributions; • Help create an atmosphere of respect and civility where individual MUD Directors, MUD staff and the public are free to express their ideas and work to their full potential; • Conduct my personal and public affairs with honesty, integrity, fairness and respect for others; • Respect the dignity and privacy of individuals and organizations; • Keep the common good as my highest purpose and focus on achieving constructive solutions for public benefit; • Avoid and discourage conduct which is divisive or harmful to the best interests of Trophy Club MUD No. 1; • Treat all people with whom I come in contact in a manner I wish to be treated; • Before I speak or act I will ask myself the following questions: 1. Is it the truth? 2. Is it fair to all concerned? 3. Will it build goodwill and better relationships? 4. Will it be beneficial to all concerned? I affirm that I have read and that I understand, accept and support the Trophy Club MUD No. 1 Code of Conduct. _____________________________________________ Print Name _____________________________________________ Position/Title _________________________________ __________________________ Signature Date TCMUD No. 1 95 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 ATTACHMENT F TROPHY CLUB MUD NO. 1 RULES OF PROCEDURE ARTICLE I ORGANIZATION, POWERS AND OFFICE Section 1.01. Organization. Trophy Club Municipal Utility District No. 1 (“MUD 1”) is a governmental agency and body politic and corporate of the State of Texas pursuant to Chapters 49 and 54 of the Texas Water Code and Section 59, Article XVI of the Texas Constitution. Section 1.02. Powers. MUD 1 has all of the rights, powers, privileges, authority, functions and duties necessary and convenient to accomplish the purposes established for a municipal utility district as provided by Chapters 49 and 54 of the Texas Water Code (“Code”). Section 1.03. Office. The chief administrative office of MUD 1 shall be located within the boundaries of MUD 1. ARTICLE II BOARD OF DIRECTORS Section 2.01. General Powers and Number. The business and affairs of the Authority shall be conducted under the authority and direction of the MUD 1 Board. Effective pursuant to the May 2010 election, the number of directors of the Board shall be five (5). In the event of a vacancy in the office of director, the Board shall appoint a qualified person to the office until the next election for directors. Section 2.02. Qualifications of Directors. Each director, whether elected or appointed, shall be required to qualify by the execution of a Constitutional Oath of Office and Statement of Elected Officer. A person shall not serve as a director if he or she is not qualified to do so under the provisions of the Code. Within sixty (60) days after the Board determines that any director is not qualified to serve on the Board, it shall replace such director with a person who is qualified. Any director not qualified to serve on the Board, who willfully occupies an office and exercises the duties and powers of that office, may be subject to penalties under the Code, as amended, including possible conviction of a misdemeanor and imposition of a fine. Section 2.03. Tenure. Except as provided by the Code, each director shall serve for a period of four (4) years and until his or her successor is elected and qualified. Any director appointed to the Board shall serve for the remainder of the term of office to which such director is appointed. Section 2.04. Meetings. The Board shall establish a regular meeting time and place or places. The Board shall meet monthly except upon the occasion when it is determined that no meeting is necessary in a particular month. In any event, the Board shall meet no less than four (4) times each year. Special meetings of the Board may be called by or at the request of the President(s) or any two (2) directors. Section 2.05. Agendas. The President, and/or the District Manager shall confer with the District’s attorneys prior to each meeting to determine the agenda items. Directors wishing to place an item on the agenda should contact the President or District Manager. The Directors shall TCMUD No. 1 96 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 request only one subject per agenda item. Section 2.06. Posting Agendas and Notice to Directors. After approval of the agenda by the President(s), the District Secretary shall post the agenda as required by the Texas Open Meetings Act and the Code. Notice to the directors of any meeting of the Board shall be given at least seventy-two (72) hours prior to the meeting. Such notice shall be given by electronic transmission, facsimile, or telephone if notice is given less than five (5) days prior to a meeting. Copies of the agenda will be placed on the MUD 1 webpage and will be available for the public at the meeting. Section 2.07. Quorum. A majority of the Board shall constitute a quorum for the transaction of business at any meeting of the Board. Following the May 2010 election, the act of three (3) directors at a meeting for which a quorum is present shall be the act of the Board. Section 2.08. Conduct of Meetings. The President shall preside at Board meetings. In the absence of the President, the Vice President shall preside. The meetings shall be conducted in accordance with Robert’s Rules of Order, as the same may be modified from time- to- time, with the concurrence of all directors. The Board may provide a portion of each meeting for public comments in accordance with the policies established for receipt of public comment. No Director may speak twice to the same issue until everyone else wishing to speak has spoken to it once. A request to suspend those “Rules of Procedure” that may be suspended, may be proposed upon a motion. Such motion may be adopted with a two-thirds vote of Directors. The Board agrees that before any subject is open to debate it is first necessary that a motion be made by a Director who has the floor; second, that it be seconded (with certain exceptions provided in Robert's Rules of Order); and third, that the President shall state the question so that the Board may know what is before it for consideration and action. Debate cannot begin until the President has stated the motion or resolution and called the question. ARTICLE III OFFICERS Section 3.01. Officers. Effective as of the May 2010 election, The officers of the District shall be a President, a Vice President, a Secretary/Treasurer, and such other officers as may be elected in accordance with the provisions of this Article, including but not limited to, and Investment Officer. The Board may elect or appoint such officers including an Assistant Secretary/Treasurer as it may deem desirable, such officers to have the authority to perform the duties prescribed from time- to- time by the President. Section 3.02. Election and Term of Office. The officers of the District shall be elected annually by the Board at the regular meeting of the Board in June. New offices may be created and filled at any meeting of the Board. Each officer shall hold office until his successor shall have been duly elected. Section 3.03. Removal. Any officer elected or appointed by the Board may be removed by the Board whenever the best interests of the District would be served thereby, but such removal shall not constitute a removal from the Board. Section 3.04. Vacancies. A vacancy in any office because of death, resignation, removal, disqualification, or otherwise must be filled by the Board for the unexpired portion of the term in accordance with the Code provisions regarding the filling of vacancies. TCMUD No. 1 97 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 Section 3.05. President. Effective pursuant to the May 2010 election, MUD 1 shall have one (1) President. The President shall be a member of the Board with all the rights and privileges thereof, including the right to introduce motions before the Board and to vote on all matters. The President shall preside at all meetings of the Board. The President may sign any deeds, mortgages, bonds, contracts, or other instruments which the Board has authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Board to the general manager or other employee of the District; and in general, the President shall perform all duties as may be prescribed by the Board from time- to- time. Section 3.06. Vice President. Effective as of the May 2010 election, The Vice President shall be a member of the Board and in the absence of or upon the death of the President and in the event of the inability or refusal of the President to perform;, the Vice President shall perform the duties, succeed to the authority and assume the responsibilities of the powers of the office of President. In the event there is more than one (1) Vice President, the Vice Presidents in the order designated at the time of their election or, in the absence of any designation, then in the order of their election shall succeed the President. A Vice President shall perform such other duties as a prescribed by the Board or assigned by the President. Section 3.07. Secretary/Treasurer. In his or her role as Secretary, the Secretary/Treasurer is responsible for seeing that all records and books of the District are properly kept and that all notices are duly given in accordance with the provisions of these rules or as required by law. In general, the Secretary/Treasurer shall perform all duties incident to the office of Secretary and such other duties as from time- to- time may be assigned by the President or by the Board. The Secretary/Treasurer may attest the President’s signature on documents. The Secretary/Treasurer may delegate such duties as may be prudent to staff and consultants but shall not be relieved of any responsibility to perform legally required duties. In his or her role as Treasurer, the Secretary/Treasurer, with the assistance of the Finance Director District Manager, shall be responsible for all funds and securities of the District, shall review the receipts of all money due and payable to the District from any source, and shall assure the deposit of all such moneys in the name of the District in such banks as shall be selected by the Board. The Secretary/Treasurer shall also review the disbursements of the District, and in general, shall perform all duties incident to the office of the Treasurer and such other duties as from time- to- time may be assigned to him or her by the President or the Board. The Investment Officer, if not the same person as the Treasurer, shall be responsible for the investment of the District’s funds, as provided in Section 3.09 hereof. Section 3.098. Investment Officer. Any officer or staff designee of the Board may be appointed as the Investment Officer of the District (the “Investment Officer”). The Investment Officer, so appointed by the Board, along with the Finance Director, shall be the Investment Officers of the District and, in such capacity, shall fulfill the responsibilities of such office regarding the investment of the District’s funds, pursuant to the Public Funds Investment Act, as amended, and the Investment Policy of the District, as such policy may be amended by the Board from time to time. TCMUD No. 1 98 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 PASSED AND APPROVED by the Board of Directors of the Trophy Club Municipal Utility District No. 1, Trophy Club, Texas, this, the 165th day of SeptemberNovember, 20109. _________________________________ James C. Thomas, President (SEAL) ____________________________________ Kevin R. Carr, Secretary/Treasurer ____________________________ Mary Moore, MUD Secretary _____________________________ ________________________________ Dean Henry, Joint President Jim Budarf, Joint President Trophy Club MUD No. 1 Trophy Club MUD No. 1 (SEAL) ATTEST: _____________________________ ________________________________ Jim Hase, Joint Secretary James C. Thomas, Joint Secretary Trophy Club MUD No. 1 Trophy Club MUD No. 1 TCMUD No. 1 99 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 CERTIFICATE OF ORDER (20109-11160915) THE STATE OF TEXAS } COUNTY OF DENTON } COUNTY OF TARRANT} I, the undersigned member of the Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties, Texas (the "District"), hereby certify as follows: 1. That I am the duly qualified and acting Secretary of the Board of Directors of the District, and that as such, I have custody of the minutes and records of the District. 2. That the Board of Directors of the District convened in Open Session at a Regular Meeting on September 15, 2009November 16, 2010, at the regular meeting place thereof, and the roll was called of the duly constituted officers and members of the Board of Directors, to wit: James C. Thomas President Jim Moss Vice President Kevin Carr Secretary/Treasurer Bill Armstrong Director Nick Sanders Director and Directors Henry, Budarf, Cantrell, Thomas, Moss, Carr, Hase, Thomas, Twomey, Fair Armstrong and KohsSanders were present, thus constituting a quorum, whereupon, among other business, the following was transacted at such meeting: a written AN ORDER OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1, REPEALING ORDER 2009-0915, AND ADOPTING AN AMENDED CODE OF ETHICS, A FEES AND EXPENSE POLICY, POLICIES AND PROCEDURES FOR SELECTION AND REVIEW OF CONSULTANTS, POLICIES CONCERNING THE USE OF MANAGEMENT INFORMATION INCLUDING THE FORMATION OF AN AUDIT COMMITTEE, CODE OF CONDUCT, RULES OF PROCEDURE AND CERTAIN OTHER MATTERS; AND PROVIDING AN EFFECTIVE DATE AN ORDER OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1, REPEALING ORDER 2006-0711, AND ADOPTING AN AMENDED CODE OF ETHICS FEES AND EXPENSE POLICY, POLICIES AND PROCEDURES FOR SELECTION AND REVIEW OF CONSULTANTS, POLICIES CONCERNING THE USE OF MANAGEMENT INFORMATION INCLUDING THE FORMATION OF AN AUDIT COMMITTEE, AND CERTAIN OTHER MATTERS; AND ADDING ATTACHMENT “E” CODE OF CONDUCT; AND ADDING ATTACHMENT “F” RULES AND PROCEDURES; AND PROVIDING AN EFFECTIVE DATE TCMUD No. 1 100 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 was duly introduced for the consideration of the Board of Directors. It was then duly moved and seconded that such Order be adopted and, after due discussion, such motion, carrying with it the adoption of such Order prevailed and carried by the following vote: AYES: NOES: 3. That a true, full and correct copy of such Order adopted at such meeting is attached to and follows this certificate; that such Order has been duly recorded in the minutes of the Board of Directors for such meeting; that the persons named in the above and foregoing Paragraph 2 were the duly chosen, qualified and acting officers and members of the Board of Directors as indicated therein, that each was duly and sufficiently notified officially and personally, in advance, of the time, place and purpose of such meeting, and that such Order would be introduced and considered for adoption at such meeting, and that each consented, in advance, to the holding of such meeting for such purpose; that the canvassing of the officers and members of the Board of Directors present at and absent from such meeting and of the votes of each on such motion, as set forth in the above and foregoing Paragraph 2, is true and correct; and that sufficient and timely notice of the hour, date, place and subject of such meeting was given and posted as required by Chapter 551, Texas Gov. Code. SIGNED AND SEALED the 165TH day of September 2009November 2010. Secretary, Board of Directors (SEAL) TCMUD No. 1 101 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1 ORDER NO. 2010-1116 AN ORDER OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1, REPEALING ORDER 2009-0915, AND ADOPTING AN AMENDED CODE OF ETHICS, A FEES AND EXPENSE POLICY, POLICIES AND PROCEDURES FOR SELECTION AND REVIEW OF CONSULTANTS, POLICIES CONCERNING THE USE OF MANAGEMENT INFORMATION INCLUDING THE FORMATION OF AN AUDIT COMMITTEE, CODE OF CONDUCT, RULES OF PROCEDURE AND CERTAIN OTHER MATTERS; - AND PROVIDING AN EFFECTIVE DATE WHEREAS, Trophy Club Municipal Utility District No. 1 (the “District”) is a Water District operating pursuant to Chapter 54 of the Texas Water Code; and WHEREAS, on September 15, 2009, the District adopted Order 2009-0915 per the Texas Water Code Ann. §49.199, requiring the Board of Directors of the District to adopt certain policies and procedures in writing; including a code of ethics, an expense policy, policies and procedures for the selection and review of consultants, and policies concerning the use of management information and the formation of an audit committee; and WHEREAS, the Board of Directors of the District now finds it prudent and wise to adopt Attachment B, Fees and Expense and Attachment F, Rules of Procedure, as amended, for its Board of Directors; and WHEREAS, the Board determines that in order to have a fair, ethical and accountable District it is in their best interest to repeal Order 2009-0915 and adopt Order 2010-1116, adopting an amendment to Attachment B, Fees & Expense Policy and an amendment to Attachment F, Rules of Procedure . NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 THAT: I. The Board of Directors hereby adopts in addition to the Code of Ethics (Attachment A); a Fees and Expense Policy (Attachment B); a Policy Concerning Selection, Monitoring, Review and Evaluation of Professional Consultants (Attachment C); Policies Relating to Use of Management Information and Formation of an Audit Committee (Exhibit D); a Code of Conduct (Attachment E); and Rules of Procedure (Attachment F) hereof as its written policies and procedures required by Tex. Water Code Ann. §49.199. II. The President and Secretary of the Board of Directors are authorized to evidence adoption of this Order on behalf of the Board of Directors and to do all other things proper and necessary to carry out the intent hereof. This Order supersedes all previous Orders adopting any of the following: a Code of Ethics, a Fees and Expense Policy, a Travel Expense Policy, Policies and Procedures for TCMUD No. 1 102 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 Selection and Review of Consultants, Policies Concerning the Use of Management Information Including the Formation of an Audit Committee or Rules of Procedure. ATTACHMENT A CODE OF ETHICS SECTION 1. Purpose. The purpose of this Code of Ethics is to set forth the standards of conduct and behavior for the members of the Board of Directors of Trophy Club Municipal Utility District No. 1 (the “District”), and its officers, and employees of the District (collectively with the Directors, the “District Officials”). SECTION 2. Policy. It is the policy of the District that District Officials shall conduct themselves in a manner consistent with sound business and ethical practices; that the public interest shall always be considered in conducting District business; that the appearance of propriety shall be avoided to ensure and maintain public confidence in the District; and that the Board shall control and manage the affairs of the District fairly, impartially, and without discrimination. Section 2.01 Qualification of Directors. A. A person shall not serve as a Director if he is disqualified by law from doing so. As of the date of adoption of this Code of Ethics, Section 49.052, Texas Water Code, disqualifies certain person from serving as directors of the District. B. Within sixty (60) days after the Board determines that any Director is disqualified from serving on the Board, it shall replace such Director with a person who is not disqualified. C. Any Director who is disqualified from serving on the Board under Section 2.01(a) who willfully occupies an office and exercises the duties and powers of that office may be subject to penalties under Section 49.052, Texas Water Code, including possible conviction of a misdemeanor and imposition of a fine. D. A Director is not qualified to serve on the Board if the Director simultaneously serves in another civil office, either elective or appointive, entitling the Director to compensation. Article XVI, Section 40, of the Texas Constitution, Appendix “B.” Section 2.02 Removal of Directors The Board by unanimous vote of the remaining Directors may remove a Director from the Board if that Director has missed one-half (1/2) or more of the regular meetings of the Board scheduled during the prior twelve (12) months. See Section 49.052, Texas Water Code. TCMUD No. 1 103 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 SECTION 3. Conflicts of Interest. (A) The District adopts Chapter 171, Government Code, as its Conflict of Interest Policy, the principal provisions of which are as follows: Except where a majority of the Board of Directors is required to abstain from participation in a vote because of conflict of interest, a Director will abstain from participating in a decision of the Board of Directors which either (1) confers an economic benefit on a business in which the Director or a close relative has a substantial interest, or (2) affects the value of property in which the Director or a close relative has a substantial interest differently from how it affects other real property in the District. For these purposes, a person is considered to have a “substantial interest” in a business if (1) he owns ten percent (10%) or more of the voting stock or shares of the business entity or owns either ten percent (10%) or more or $5,000 or more of the fair market value of the business entity; or (2) funds received from the business exceed ten percent (10%) of his gross income for the previous year. A Person has a substantial interest in real property if the interest is an equitable or legal interest with a market value of $2,500 or more. A “close relative” of a Director for these purposes is a person related to the Director within the first degree of affinity or consanguinity. (B) A Director who has a substantial interest in any matter involving the business entity or real property shall disclose that fact to the other Directors by Affidavit. The Affidavit must be filed with the Secretary of the Board. An interested Director shall abstain from further participation in the matter as set forth in Section 3(A). (C) The Board shall take a separate vote on any budget item specifically dedicated to a contract with a business entity in which a Director has a substantial interest. In the event of a separate vote, the Director may not participate in that separate vote, but may vote on a final budget if the Director has complied with Section 3. (D) As of the date of adoption of this Code of Ethics, Chapter 176, Local Government Code, requires the disclosure of certain relationships by Directors, vendors, and certain prospective vendors to the District. A Director, vendor, or prospective vendor who has a relationship that requires disclosure under Chapter 176 shall disclose that relationship by completing the form prescribed by the Texas Ethics Commission and timely filing such form with the Records Administrator. A Director or vendor violating this Section may be subject to prosecution as a Class C misdemeanor under Sections 176.003 and 176.006(f), Local Government Code, respectively. SECTION 4. Conduct of District Business. Each District Official will conduct all business of the District in a manner consistent with the requirements of applicable law and the Texas Open Meetings Act. SECTION 5. Acceptance of Gifts. No District Official shall accept any benefit as consideration for any decision, opinion, recommendation, vote, or other exercise of discretion in carrying out his official acts for the District. No District Official shall solicit, accept, or agree to accept any benefit from a person known to be interested in or likely to become interested in any contract, purchase, payment, claim, or transaction involving the exercise of the District’s Official’s discretion. As used herein, “benefit” shall not include: TCMUD No. 1 104 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 (A) A fee prescribed by law to be received by a public servant or any other benefit to which the District Official is lawfully entitled or for which he gives legitimate consideration in a capacity other than as a District Official; (B) A gift or other benefit conferred on account of kinship or a personal, professional, or business relationship independent of the status of the recipient as a District Official; (C) A political contribution, as defined by the Election Code; (D) A benefit consisting of food, lodging, transportation, or entertainment accepted as a guest; or (E) A benefit to a District Official required to file a financial statement under the Texas Election Code that is derived from a function in honor or appreciation of the recipient if: (1) The benefit and the source of any benefit in excess of $50.00 is reported in the required financial statement; (2) The benefit is used solely to defray the expenses that accrue in the performance of duties or activities in connection with its official duties for the District which are non-reimbursable by the District; or (3) An item with value of less than $50.00, excluding cash or negotiable instrument; or (4) An item issued by a governmental entity that allows the use of property or facilities owned, leased, or operated by the governmental entity. SECTION 6. Bribery A District Official shall not intentionally or knowingly offer, confer, or agree to confer on another, or solicit, accept, or agree to accept from another, any benefit as consideration when to do so is prohibited by law. As of the date of adoption of this Code of Ethics, Section 36.02, Texas Penal Code, lists the offenses that are considered bribery when committed by District Officials. Violations of penal laws may subject a District Official to criminal prosecution. SECTION 7. Acceptance of Honoraria. A Director shall not solicit, accept or agree to accept an honorarium as prohibited by law. As of the date of the adoption of this Code of Ethics, Section 36.07, Texas Penal Code, provides the circumstances in which a Director may not accept an honorarium. Violations of penal laws may subject a District Official to criminal prosecution. SECTION 8. Lobbying. Should the Texas Ethics Commission by rule require any District Officials directly communicating with legislative or executive branch officials to register as lobbyists, District Officials shall comply with such rule. See Government Code, Section 305.0051. TCMUD No. 1 105 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 The District shall not reimburse from District funds the expenses of any person in excess of $50.00 for direct communications with a member of the legislative or executive branch unless the person being compensated resides in the district of the member with whom the person communicates or files a written statement which includes the person’s name, the amount of compensation or reimbursement, and the name of the affected political subdivision with the Secretary of State. This provision does not apply to registered lobbyists, a full-time employee of the District or an elected or appointed District Official. ATTACHMENT B FEES AND EXPENSE POLICY SECTION 1. Purpose. The purpose of this Expense Policy is to set forth the policies of Trophy Club Municipal Utility District No. 1 (the “District”) concerning per diem and travel expenses for members of the Board of Directors of the District. SECTION 2. Per Diem for Directors. (A) Pursuant to Section 49.060 of the Texas Water Code, as amended, Directors are entitled to receive as fees of office $150.00 a day for each day the Director actually spends performing the duties of a director, provided the fees shall not exceed a sum of $7,200 per annum. “Performing the duties of a director” means substantive performance of the management or business of the District, including participation in board and committee meetings and other activities involving the substantive deliberation of District Business and in pertinent educational programs. The phrase does not include routine or ministerial activities such as the execution of documents, self-preparation for meetings, or other activities requiring a minimal amount of time. Directors may attend other meetings relating to the management or business of the District and receive fees of office and expenses at the discretion of each director. (B) At every monthly MUD Board meeting, Directors will receive a FEE PAYMENT REQUEST. Each Director in attendance at said meeting will be required to complete the FEE PAYMENT REQUEST. Directors will have two options: 1) Request payment or 2) Decline payment. Any Director who fails to complete/submit a FEE PAYMENT REQUEST at the meeting will be emailed, or if no email address, mailed a FEE PAYMENT REQUEST by the MUD Secretary. If the Director wishes to DECLINE payment, the Director may indicate such via an electronic transmission, via regular mail or submit the Request in person to the MUD Secretary. Any such FEE PAYMENT REQUEST mailed or e-mailed by the MUD Secretary which is not completed and returned to the MUD Secretary within thirty (30) days of the date such FEE PAYMENT REQUEST will be declined. (C) Directors attending “outside” meetings on District business who wish to receive payment for attendance at such meeting shall have thirty (30) days from the date of said meeting in which to submit a FEE PAYMENT REQUEST for payment. Any FEE PAYMENT REQUEST received after thirty (30) days shall come before the MUD Board for approval. All Directors requesting and receiving reimbursement for attending District business outside of the monthly Board meetings shall be required to provide an TCMUD No. 1 106 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 update/report to the Board either in person at the very next meeting or provide an update/report via an electronic transmission to the MUD Board and the District Manager. SECTION 3. Attendance at Meetings and Conduct of Other District Business. Board members may attend conferences and meetings of the Association of Water Board Directors, at the District’s expense, whether within or outside the Town of Trophy Club. Attendance at other conferences, hearings, or other meetings outside of Trophy Club by the members of the Board of Directors must be sanctioned by the Board of Directors; attendance at local meetings or conduct of other local District business will be at each Director’s discretion. Directors attending any meeting or conducting any District business shall report to the Board concerning the meeting or activity. SECTION 4. Expenses Outside of Trophy Club. The District will pay a reasonable room rate for a director’s hotel room, if District business requires that the director be out of Trophy Club, reasonable tips incurred in making the trip, roundtrip mileage at the current IRS mileage rate and parking, if any, for travel by car or roundtrip airfare at current commercial rates for standard (not first class) air fare and reasonable rental car or taxi charges. The District will pay for meals actually eaten and paid for by the Director on a sanctioned trip outside of Trophy Club; provided, however, reimbursement for meals will be limited to $75.00 per day per person. Appropriate documentation listing the person in attendance and a description of the business discussed at the meeting or activity is required. No reimbursement shall be made for the purchase of alcoholic beverages for a director, spouse, employee or guest. No reimbursement shall be made for the meals of a spouse of a director or employee. SECTION 5. Expenses for Local Meetings and Activities. The District will pay for roundtrip mileage at the current IRS rate for travel by car, parking, and will pay meals directly related to the meeting or activity. Reimbursement for meals will be limited to $75.00 per day per person. Appropriate documentation listing the person in attendance and a description of the business discussed at the meeting or activity is required. No reimbursement shall be made for the purchase of alcoholic beverages for a director, spouse, employee or guest. No reimbursement shall be made for the meals of a spouse of a director or employee. SECTION 6. Reimbursement. Directors attending meetings or other activities and wishing to receive a per diem and/or expenses must submit a verified statement showing the number of days actually spent in service to the District and a general description of the duties performed for each day of service. To receive reimbursement for expenses, a Director must also submit an itemized expense report to the Senior Accountant before reimbursement is approved by the Board’s District Manager. Items on the expense report shall include lodging, meals, tips, parking and transportation. Directors sharing expense items may split reported expenses in any matter they deem equitable, but the Board will pay no more than 100% of the actual total cost of reimbursable items. SECTION 7. Extraordinary Expenses. Any extraordinary expenses for a Director attending a sanctioned activity of the District must be approved by the Board prior to incurring the expense. TCMUD No. 1 107 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 ATTACHMENT C POLICY CONCERNING SELECTION, MONITORING, REVIEW AND EVALUATION OF PROFESSIONAL CONSULTANTS SECTION 1. Purpose. The purpose of this Policy Concerning Selection, Monitoring, Review, and Evaluation of Professional Consultants is to set guidelines for the Board of Directors for Trophy Club Municipal Utility District No. 1 (the “District”) concerning its Professional Consultants. SECTION 2. Definition of Professional Consultant. “Professional Consultant” shall include the District’s attorney, auditor, bookkeeper, financial advisor, and tax assessor/collector, and such other consultants other than employees that the District may hereafter engage. SECTION 3. Selection of Consultants. Whenever the Board of Directors of the District decides to terminate the services of one or more of its Professional Consultants, the Board shall request one or more proposals as required by the Professional Services Procurement Act, Section 2254.001 et seq., Government Code, except where selection of professional consultants is to be conducted by the Board in an open meeting, shall appoint a committee of one or two Directors to review any proposals received by the Board, to interview applicants, and to make a recommendation to the entire Board of Directors concerning the selection. SECTION 4. Monitoring of Professional Consultants. For those Professional Consultants with annual contracts, the Board of Directors of the District will review the performance of the Professional Consultants for the prior year at the time the contract is renewed. The Board of Directors shall review the performance of its other Professional Consultants, upon the request of one or more Directors. ATTACHMENT D POLICIES RELATING TO USE OF MANAGEMENT INFORMATION AND FORMATION OF AN AUDIT COMMITTEE SECTION 1. Purpose. The purpose of this Policy Relating to the Use of Management Information and Formation of an Audit Committee for Trophy Club Municipal Utility District No. 1 (the “District”) is to provide written policies concerning the use of management information. SECTION 2. Annual Budget. Prior to each fiscal year, the Board of Directors of the District shall adopt an annual budget for the next fiscal year for use in planning and controlling of costs. SECTION 3. Audit Committee. The District hereby appoints its Board of Directors as an audit committee to review the annual audit prepared by the District Auditor. The Board may designate a lesser number than the entire Board, but not less than two (2) Directors to serve as its audit committee. TCMUD No. 1 108 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 SECTION 4. Accounting Standards. The District hereby directs its auditor to adopt uniform auditing reporting requirements that use “Audits of State and Local Governmental Units” as a guide on audit working papers and that uses “Governmental Accounting and Financial Reporting Standards” for final audit reports (subject to the standards for audits prescribed by applicable Texas Commission on Environmental Quality Rules). ATTACHMENT “E” TROPY CLUB MUD NO. 1 CODE OF CONDUCT Statement of Purpose The citizens and the businesses that Trophy Club MUD No. 1 (MUD 1) serves are entitled to have a fair, ethical and accountable District, which earns the public’s full confidence for integrity. It is the strong desire of the MUD District to fulfill this expectation; and, therefore requires that the MUD Directors: • Comply with both the letter and sprit of the laws and policies affecting the operations of the District; • Be independent, impartial and fair in their judgment and actions; and • Use their respective office or position for the public good and not for personal gain. To this end, the MUD Directors have adopted this Code of Conduct in order to assure public confidence in the integrity of its government and its effective and fair operation. SECTION 1. Definitions The following words, terms and phrases, when used in this section, shall have the following meanings subscribed to them: (A) Business. A corporation, partnership, sole proprietorship, firm, holding company, joint stock company, receivership, trust or any other for profit or non-profit entity. (B) MUD Board. The legislative and governing body of the District consisting of five (5) members; MUD President, Vice-President, Secretary/Treasurer, and two Directors. (C) Employee. Any person employed by the District, including those individuals on a part-time basis, including independent contractors hired by the District for repetitive performance of services, but not independent contractors engaged for occasional services. SECTION 2. Nepotism. Showing favoritism toward a relative. The practice of hiring personnel or awarding contracts which favor a relative is prohibited by the District. Exclusions to this prohibition are: a. Employees who have been continuously employed by the District for more than two (2) years prior to the election or appointment of the Director. b. Individuals who are employees of the District as of the effective date of this policy. TCMUD No. 1 109 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 SECTION 3. Act in the Public Interest. Recognizing that stewardship of the public interest must be their primary concern, MUD Directors shall work for the common good of the people the District serves and not for any private or personal interest. The Directors shall assure fair and equal treatment of all persons, claims and transactions coming before the District. SECTION 4. Comply with the Law. MUD Directors shall comply with the laws of the nation and the State of Texas in the performance of their public duties. These laws include, but are not limited to: the United States and Texas Constitutions; laws pertaining to conflicts of interest, election campaigns, financial disclosures, employer responsibilities, and open processes of government; and MUD Orders, resolutions and policies; the Texas Water Code; and the Texas Commission on Environmental Quality (TCEQ). SECTION 5. Conduct of MUD Directors. The professional and personal conduct of MUD Directors must be above reproach and avoid even the appearance of impropriety. MUD Directors shall refrain from abusive conduct, personal charges or verbal attacks upon the character or motives of other MUD Director(s), employees, and the public. Discussions held in confidence and or in Executive and/or Closed Session shall be kept strictly confidential. Directors shall not violate and or divulge confidential discussions held during Executive and / or Closed Sessions and or private conversations. SECTION 6. Respect for Process. MUD Directors shall perform their duties in accordance with the processes and Rules Of Order established by the MUD Board. SECTION 7. Conduct of Public Meetings. MUD Directors have an obligation to attend meetings and to be prepared for public issues; to listen courteously and attentively to all public discussions before the body; and to focus on the business at hand. They shall refrain from interrupting other speakers, making personal comments not germane to the business of the body, or otherwise interfering with the orderly conduct of meetings. SECTION 8. Decisions Based on Merit. It is expected and required that MUD Directors review material, participate in discussions and base their decisions on the merits and substance of the matter at hand. SECTION 9. Communication. Prior to permitting final action on a matter under consideration, MUD Directors shall publicly share substantive information, which they may have received from sources outside the public decision-making process that is relevant to such action by the MUD Board. SECTION 10. Conflicts of Interest and Disclosure. MUD Directors shall familiarize themselves with and abide by the following conflicts of interest and disclosure statutes and principles: (A) Chapter 171 of the Local Government Code which requires an officer, whether elected, appointed, paid, or unpaid, of a district exercising responsibilities beyond those that are advisory in nature, to file an affidavit disclosing a substantial interest in a business entity or property that would be beneficially affected by a decision of the governing body or of any other board or commission upon which the member serves and thereafter to abstain from participation in discussion and voting on the matter. Once the disclosure is made, the MUD Director is to remove himself from the meeting area to ensure his presence does not hinder the discussion of the item or influence the vote. TCMUD No. 1 110 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 (B) Section 176 of the Local Government Code which requires MUD Directors and the District Manager to file a conflicts disclosure statement disclosing any business relationship with a person or business doing business with the District or being considered by the District for a business relationship. (C) Section 176.003(a)(2)(B) of the Local Government Code which requires the disclosure of gifts of an aggregate value of more than $250.00 in the twelve (12) month period preceding the date that a Director becomes aware of a transaction described in Section 176, other than gifts of food, lodging, transportation, or entertainment accepted as a guest. (D) Sections 553.001-553.003 of the Government Code which requires the filing of an affidavit before the date the District will acquire a property in which public servants has a legal or equitable interest. (E) In order to assure their independence and impartiality on behalf of the public good, MUD Directors are prohibited from using their positions to influence government decisions in which they have a personal interest. SECTION 11. Corruption. MUD Directors shall familiarize themselves with and abide by the Texas Penal Code mandates concerning corruption, including without limitation, Section 36.02 prohibiting receipt of prohibited gifts, Section 39.02 concerning abuse of official capacity and Section 39.06(a) concerning misuse of official information and all other applicable state laws regulating or related to public service. SECTION 12. Political Advocacy. MUD Directors shall not utilize the District’s name, logo, or their position for purposes of endorsing any political candidate, political position or business. SECTION 13. Confidential Information. MUD Directors shall respect the confidentiality of information concerning District property, personnel or proceedings of the District. They shall neither disclose confidential information without proper legal authorization, nor use such information to advance their personal interests. SECTION 14. Use of Public Resources. Directors shall not use public resources generally unavailable to the public, such as District staff time, equipment, supplies or facilities, for private gain or personal purposes. SECTION 15. Representation of Private Interests. In keeping with their role as stewards of the public interest, Directors shall not appear on behalf of private interests of third parties before the MUD Board or any board, commission, committee, or proceeding of the District. SECTION 16. Advocacy. Directors shall represent the official policies or positions of the MUD Board to the best of their ability when designated as delegates for this purpose. When presenting their individual opinions and positions, MUD Directors shall explicitly state that they do not represent their body or the MUD District, nor will they allow the inference that they do. SECTION 17. Policy Role of Directors. MUD Directors shall respect and adhere to the District’s structure as outlined in the Texas Water Code and the District’s policies and procedures. In this structure, the MUD Directors determine the policies of the District with the advice, information and analysis provided by the public, and District staff. Except as provided by TCMUD No. 1 111 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 District Order, MUD Directors therefore shall not interfere with the administrative functions of the District or the professional duties of the District staff; nor shall they impair the ability of Staff to implement MUD Board policy decisions. SECTION 18. Independence of Boards, Commissions, and Committees. Because of the value of the independent advice of boards, commissions, committees and advisory groups to the public decision-making process, MUD Directors shall refrain from using their position to influence unduly the deliberations or outcomes of any board, commission, committee, and advisory group proceedings. SECTION 19. Positive Workplace Environment. MUD Directors shall support the maintenance of a positive and constructive workplace environment for District employees and for citizens and businesses dealing with the District. MUD Directors shall recognize their special role in dealing with District employees and refrain from creating the perception of inappropriate direction to Staff. SECTION 20. Implementation. As an expression of the standards of conduct for MUD Directors expected by the District, this Code of Conduct is intended to be self-enforcing. It therefore becomes most effective when MUD Directors are thoroughly familiar with it and embrace its provisions. Ethical standards shall be included in the regular orientations for candidates for the MUD Board, and newly elected and appointed MUD Directors. MUD Directors entering office, shall sign a statement affirming they have read and understood the Trophy Club MUD No. 1 Code of Conduct and agree to be bound by its terms. In addition, the Code of Conduct shall be reviewed periodically by the MUD Directors, and the MUD Board shall consider recommendations for revision as it becomes necessary. SECTION 21. Compliance and Enforcement. The Trophy Club MUD No. 1 Code of Conduct expresses standards of ethical conduct expected for Trophy Club No. 1 MUD Directors. MUD Directors themselves have the primary responsibility to assure that ethical standards are understood and met, and that the public can continue to have full confidence in the integrity of government. The President(s) of the MUD Board has the additional responsibility to intervene when a MUD Director’s’ actions appear to be in violation of the Code of Conduct and are brought to their attention. The MUD Board may impose sanctions, such as reprimand, formal censure on a MUD Director whose conduct does not comply with the District’s ethical standards. The MUD Board also may act censure or reprimand a MUD Director in accordance with MUD 1 procedures and subject to the limitations set forth in Section 20 of this policy. The MUD Board finds and determines that these ethics and standards of conduct are necessary and appropriate in order to serve the legitimate goal of orderly governance, integrity and public confidence in government. SECTION 22. Procedure for Enforcement. (A) Upon good faith and belief that a MUD Director has violated any term or provision of this Code of Conduct, a party having such good faith and belief that a violation has occurred and wishing to initiate a formal review of the alleged violation shall file a written complaint with the MUD Secretary. The written complaint shall contain 1) the name of the complaining party (hereinafter “Complainant”); 2) the name of the party against whom the complaint is being filed (hereinafter “Respondent”); 3) the specific sections allegedly violated; 4) Specific dates, approximate time of day, locations and other facts evidencing the alleged violations; and 5) any documentation evidencing that a violation of the Code of Conduct occurred. TCMUD No. 1 112 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 (B) Upon receipt of a written complaint meeting all of the requirements set forth in the preceding paragraph, the MUD Secretary shall place the complaint on the next available regular District meeting agenda for which posting requirements may legally and procedurally be met. Alternatively, if the complaint does not meet all of the requirements set forth in the preceding paragraph, the MUD Secretary shall notify the Complainant in writing of the nature of the deficiency and no further action by the MUD Secretary or MUD Board shall be necessary, until such time the MUD Secretary can determine that the complaint meets the requirements of this section. Once placed upon the District agenda, the scope of the MUD Board review shall be limited to a determination of whether the complaint on its face presents a violation of this Code of Conduct for which sanctions, such as reprimand, or formal censure would be appropriate in order to serve the legitimate goal of orderly governance, integrity, and public confidence in government. Upon a majority vote of the MUD Board that the complaint merits further review and investigation, an item shall be placed on the next available regular District meeting agenda for which posting requirements may be legally and procedurally met. Additionally, upon majority vote, the MUD Board may specify any and all individual items of grievance from the Complaint that merit such review and investigation and that will be considered by the MUD Board at a subsequent hearing on the matter. At least seven (7) days prior to the hearing date, the MUD Secretary shall notify the respondent in writing of the date, time and place at which the MUD Board will conduct a hearing on the merits of the alleged complaint, and if MUD Board has by majority vote specified individual items for review and investigation at the hearing, such notice shall advise the Respondent of the scope of the hearing. Alternatively, if upon review of the complaint on its face a majority vote of MUD Board determines that further review and investigation is not warranted, then the Complainant shall be notified in writing of such vote, the written complaint shall be returned to the Complainant, and no further action shall be required by the MUD Secretary or MUD Board. (C) At the subsequent MUD Board hearing, the Complainant and Respondent may present testimonial and or documentary evidence regarding the allegations contained within the Complaint. If the MUD Board determines that substantial evidence has been presented to support the allegation that a violation of the Code of Conduct has occurred and that the violation is detrimental to orderly governance, integrity, and public confidence in the District government, then the MUD Board may by majority vote impose sanctions, such as reprimand, or formal censure, as determined appropriate to serve the legitimate goals of this policy. (D) All procedural rules of the MUD Board shall apply to proceedings conducted pursuant to this Section. The complaint procedure specified in this Section shall only be applicable to those MUD Directors who are appointed and/or elected and for the conduct of such official that occurs during the official’s term of office on a MUD board. TCMUD No. 1 113 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 STATEMENT OF COMMITMENT As a member of the Trophy Club MUD No. 1 Board, I agree to uphold the Code of Conduct by the following model of behavior. I will: • Recognize the worth of individual MUD Directors and appreciate their individual talents, perspectives and contributions; • Help create an atmosphere of respect and civility where individual MUD Directors, MUD staff and the public are free to express their ideas and work to their full potential; • Conduct my personal and public affairs with honesty, integrity, fairness and respect for others; • Respect the dignity and privacy of individuals and organizations; • Keep the common good as my highest purpose and focus on achieving constructive solutions for public benefit; • Avoid and discourage conduct which is divisive or harmful to the best interests of Trophy Club MUD No. 1; • Treat all people with whom I come in contact in a manner I wish to be treated; • Before I speak or act I will ask myself the following questions: 1. Is it the truth? 2. Is it fair to all concerned? 3. Will it build goodwill and better relationships? 4. Will it be beneficial to all concerned? I affirm that I have read and that I understand, accept and support the Trophy Club MUD No. 1 Code of Conduct. _____________________________________________ Print Name _____________________________________________ Position/Title _________________________________ __________________________ Signature Date TCMUD No. 1 114 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 ATTACHMENT F TROPHY CLUB MUD NO. 1 RULES OF PROCEDURE ARTICLE I ORGANIZATION, POWERS AND OFFICE Section 1.01. Organization. Trophy Club Municipal Utility District No. 1 (“MUD 1”) is a governmental agency and body politic and corporate of the State of Texas pursuant to Chapters 49 and 54 of the Texas Water Code and Section 59, Article XVI of the Texas Constitution. Section 1.02. Powers. MUD 1 has all of the rights, powers, privileges, authority, functions and duties necessary and convenient to accomplish the purposes established for a municipal utility district as provided by Chapters 49 and 54 of the Texas Water Code (“Code”). Section 1.03. Office. The chief administrative office of MUD 1 shall be located within the boundaries of MUD 1. ARTICLE II BOARD OF DIRECTORS Section 2.01. General Powers and Number. The business and affairs of the Authority shall be conducted under the authority and direction of the MUD 1 Board. Effective pursuant to the May 2010 election, the number of directors of the Board shall be five (5). In the event of a vacancy in the office of director, the Board shall appoint a qualified person to the office until the next election for directors. Section 2.02. Qualifications of Directors. Each director, whether elected or appointed, shall be required to qualify by the execution of a Constitutional Oath of Office and Statement of Elected Officer. A person shall not serve as a director if he or she is not qualified to do so under the provisions of the Code. Within sixty (60) days after the Board determines that any director is not qualified to serve on the Board, it shall replace such director with a person who is qualified. Any director not qualified to serve on the Board, who willfully occupies an office and exercises the duties and powers of that office, may be subject to penalties under the Code, as amended, including possible conviction of a misdemeanor and imposition of a fine. Section 2.03. Tenure. Except as provided by the Code, each director shall serve for a period of four (4) years and until his or her successor is elected and qualified. Any director appointed to the Board shall serve for the remainder of the term of office to which such director is appointed. Section 2.04. Meetings. The Board shall establish a regular meeting time and place or places. The Board shall meet monthly except upon the occasion when it is determined that no meeting is necessary in a particular month. In any event, the Board shall meet no less than four (4) times each year. Special meetings of the Board may be called by or at the request of the President(s) or any two (2) directors. Section 2.05. Agendas. The President, and/or the District Manager shall confer with the District’s attorneys prior to each meeting to determine the agenda items. Directors wishing to place an item on the agenda should contact the President or District Manager. The Directors shall TCMUD No. 1 115 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 request only one subject per agenda item. Section 2.06. Posting Agendas and Notice to Directors. After approval of the agenda by the President, the District Secretary shall post the agenda as required by the Texas Open Meetings Act and the Code. Notice to the directors of any meeting of the Board shall be given at least seventy-two (72) hours prior to the meeting. Such notice shall be given by electronic transmission, facsimile, or telephone if notice is given less than five (5) days prior to a meeting. Copies of the agenda will be placed on the MUD 1 webpage and will be available for the public at the meeting. Section 2.07. Quorum. A majority of the Board shall constitute a quorum for the transaction of business at any meeting of the Board. Following the May 2010 election, the act of three (3) directors at a meeting for which a quorum is present shall be the act of the Board. Section 2.08. Conduct of Meetings. The President shall preside at Board meetings. In the absence of the President, the Vice President shall preside. The meetings shall be conducted in accordance with Robert’s Rules of Order, as the same may be modified from time-to-time, with the concurrence of all directors. The Board may provide a portion of each meeting for public comments in accordance with the policies established for receipt of public comment. No Director may speak twice to the same issue until everyone else wishing to speak has spoken to it once. A request to suspend those “Rules of Procedure” that may be suspended, may be proposed upon a motion. Such motion may be adopted with a two-thirds vote of Directors. The Board agrees that before any subject is open to debate it is first necessary that a motion be made by a Director who has the floor; second, that it be seconded (with certain exceptions provided in Robert's Rules of Order); and third, that the President shall state the question so that the Board may know what is before it for consideration and action. Debate cannot begin until the President has stated the motion or resolution and called the question. ARTICLE III OFFICERS Section 3.01. Officers. The officers of the District shall be a President, a Vice President, a Secretary/Treasurer, and such other officers as may be elected in accordance with the provisions of this Article, including but not limited to, an Investment Officer. The Board may elect or appoint such officers including an Assistant Secretary/Treasurer as it may deem desirable, such officers to have the authority to perform the duties prescribed from time-to-time by the President. Section 3.02. Election and Term of Office. The officers of the District shall be elected annually by the Board at the regular meeting of the Board in June. New offices may be created and filled at any meeting of the Board. Each officer shall hold office until his successor shall have been duly elected. Section 3.03. Removal. Any officer elected or appointed by the Board may be removed by the Board whenever the best interests of the District would be served thereby, but such removal shall not constitute a removal from the Board. Section 3.04. Vacancies. A vacancy in any office because of death, resignation, removal, disqualification, or otherwise must be filled by the Board for the unexpired portion of the term in accordance with the Code provisions regarding the filling of vacancies. TCMUD No. 1 116 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 Section 3.05. President. Effective pursuant to the May 2010 election, MUD 1 shall have one (1) President. The President shall be a member of the Board with all the rights and privileges thereof, including the right to introduce motions before the Board and to vote on all matters. The President shall preside at all meetings of the Board. The President may sign any deeds, mortgages, bonds, contracts, or other instruments which the Board has authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Board to the general manager or other employee of the District; and in general, the President shall perform all duties as may be prescribed by the Board from time-to-time. Section 3.06. Vice President. The Vice President shall be a member of the Board and in the absence of or upon the death of the President and in the event of the inability or refusal of the President to perform; the Vice President shall perform the duties, succeed to the authority and assume the responsibilities of the powers of the office of President. A Vice President shall perform such other duties as a prescribed by the Board or assigned by the President. Section 3.07. Secretary/Treasurer. In his or her role as Secretary, the Secretary/Treasurer is responsible for seeing that all records and books of the District are properly kept and that all notices are duly given in accordance with the provisions of these rules or as required by law. In general, the Secretary/Treasurer shall perform all duties incident to the office of Secretary and such other duties as from time-to-time may be assigned by the President or by the Board. The Secretary/Treasurer may attest the President’s signature on documents. The Secretary/Treasurer may delegate such duties as may be prudent to staff and consultants but shall not be relieved of any responsibility to perform legally required duties. In his or her role as Treasurer, the Secretary/Treasurer, with the assistance of the District Manager, shall be responsible for all funds and securities of the District, shall review the receipts of all money due and payable to the District from any source, and shall assure the deposit of all such moneys in the name of the District in such banks as shall be selected by the Board. The Secretary/Treasurer shall also review the disbursements of the District, and in general, shall perform all duties incident to the office of the Treasurer and such other duties as from time-to- time may be assigned to him or her by the President or the Board. The Investment Officer, if not the same person as the Treasurer, shall be responsible for the investment of the District’s funds, as provided in Section 3.09 hereof. Section 3.08. Investment Officer. Any officer or staff designee of the Board may be appointed as the Investment Officer of the District (the “Investment Officer”). The Investment Officer, so appointed by the Board, along with the Finance Director, shall be the Investment Officers of the District and, in such capacity, shall fulfill the responsibilities of such office regarding the investment of the District’s funds, pursuant to the Public Funds Investment Act, as amended, and the Investment Policy of the District, as such policy may be amended by the Board from time to time. TCMUD No. 1 117 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 PASSED AND APPROVED by the Board of Directors of the Trophy Club Municipal Utility District No. 1, Trophy Club, Texas, this, the 16th day of November, 2010. _________________________________ James C. Thomas, President (SEAL) ____________________________________ Kevin R. Carr, Secretary/Treasurer ____________________________ Mary Moore, MUD Secretary TCMUD No. 1 118 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 CERTIFICATE OF ORDER (2010-1116) THE STATE OF TEXAS } COUNTY OF DENTON } COUNTY OF TARRANT} I, the undersigned member of the Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties, Texas (the "District"), hereby certify as follows: 1. That I am the duly qualified and acting Secretary of the Board of Directors of the District, and that as such, I have custody of the minutes and records of the District. 2. That the Board of Directors of the District convened in Open Session at a Regular Meeting on November 16, 2010, at the regular meeting place thereof, and the roll was called of the duly constituted officers and members of the Board of Directors, to wit: James C. Thomas President Jim Moss Vice President Kevin Carr Secretary/Treasurer Bill Armstrong Director Nick Sanders Director and Directors Thomas, Moss, Carr, , Armstrong and Sanders were present, thus constituting a quorum, whereupon, among other business, the following was transacted at such meeting: a written AN ORDER OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1, REPEALING ORDER 2009-0915, AND ADOPTING AN AMENDED CODE OF ETHICS, A FEES AND EXPENSE POLICY, POLICIES AND PROCEDURES FOR SELECTION AND REVIEW OF CONSULTANTS, POLICIES CONCERNING THE USE OF MANAGEMENT INFORMATION INCLUDING THE FORMATION OF AN AUDIT COMMITTEE, CODE OF CONDUCT, RULES OF PROCEDURE AND CERTAIN OTHER MATTERS; AND PROVIDING AN EFFECTIVE DATE was duly introduced for the consideration of the Board of Directors. It was then duly moved and seconded that such Order be adopted and, after due discussion, such motion, carrying with it the adoption of such Order prevailed and carried by the following vote: AYES: NOES: 3. That a true, full and correct copy of such Order adopted at such meeting is attached to and follows this certificate; that such Order has been duly recorded in the minutes of the Board of Directors for such meeting; that the persons named in the above and foregoing Paragraph 2 were the duly chosen, qualified and acting officers and members of the Board of Directors as indicated therein, that each was duly and sufficiently notified officially and personally, in advance, of the time, place and purpose of such meeting, and that such Order would be introduced and considered TCMUD No. 1 119 of 187 16 Nov 2010 TCMUD 1 – ORDER 2010-1116 for adoption at such meeting, and that each consented, in advance, to the holding of such meeting for such purpose; that the canvassing of the officers and members of the Board of Directors present at and absent from such meeting and of the votes of each on such motion, as set forth in the above and foregoing Paragraph 2, is true and correct; and that sufficient and timely notice of the hour, date, place and subject of such meeting was given and posted as required by Chapter 551, Texas Gov. Code. SIGNED AND SEALED the 16TH day of November 2010. Secretary, Board of Directors (SEAL) TCMUD No. 1 120 of 187 16 Nov 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-138-M1 Name: Status:Type:M1 Agenda Item Regular Session File created:In control:10/5/2010 Trophy Club Municipal Utility District No. 1 On agenda:Final action:11/16/2010 Title:Discuss and take appropriate action concerning request by a citizen, Steven Kohs, on October 1, 2010, for reimbursement for director fees beginning March 2008 and ending May 2010, for Mr. Kohs' term as Director on the MUD 2, Master District and MUD 1 Boards. Attachments:Kohs Email 042609.pdf Kohs' request.pdf Kohs-Email Re DonationDirectorFees.pdf Action ByDate Action ResultVer. TCMUD No. 1 121 of 187 16 Nov 2010 File #: 2010-138-M1, Version: 1 Title Discuss and take appropriate action concerning request by a citizen, Steven Kohs, on October 1, 2010, for reimbursement for director fees beginning March 2008 and ending May 2010, for Mr. Kohs' term as Director on the MUD 2, Master District and MUD 1 Boards. Body Steven Kohs was a appointed as MUD 2 Director on March 31, 2008 and served until May 18, 2010. During the entire term as a MUD 2 Director, Kohs was offered pay sheets at each and every meeting, and at each and every meeting, Mr. Kohs repeatedly left the paysheets blank. In an email dated April 26, 2009, Mr. Kohs stated, "I have also NEVER taken the paycheck as all the other MUD Directors have done." On Tuesday, September 28th, 2010, Mr. Kohs came to the Town Offices and requested to speak to District Manager Scott, who was on vacation until September, 30, 2010. Mr. Kohs then requested a paysheet. MUD Secretary Moore advised Mr. Kohs that he would need to submit an Open Records Request in order to receive that record per the Texas Public Information Act. On Friday, October 1st, 2010, Mr. Kohs came in and delivered another envelope to District Manager Scott, this time with paysheets attached to his previous request of September 28th, for reimbursement for director fees from 2008 to 2010. As per the Code of Ethics Order 2009-0915, Attachment B, Section 2 - Per Diem for Directors, dated September 15, 2009, it states the following: SECTION 2.Per Diem for Directors. Pursuant to Section 49.060 of the Texas Water Code, as amended,Directors are entitled to receive as fees of office $150.00 a day for each day the Director actually spends performing the duties of a director, provided the fees shall not exceed a sum of $7,200 per annum. “Performing the duties of a director” means substantive performance of the management or business of the District, including participation in board and committee meetings and other activities involving the substantive deliberation of District Business and in pertinent educational programs. The phrase does not include routine or ministerial activities such as the execution of documents, self-preparation for meetings, or other activities requiring a minimal amount of time. Directors may attend other meetings relating to the management or business of the District and receive fees of office and expenses at the discretion of each director. As per the Ethics Order 2006-0711, Attachment B, Section 2 - Per Diem for Directors, dated July 11, 2006, it states the following: SECTION 2.Per Diem for Directors.The Directors are entitled to receive as fees of office $100 a day for each day of service necessary to discharge their duties; provided the fees shall not exceed a sum of $6,000 per annum. With respect to Mr. Kohs' request, please pay attention to the following: 1. April 10th, 2008 - Attendance at AWWA/TWA in Grapevine - Staff has no knowledge of Mr. Kohs' attendance at this meeting. Additionally, as per the Ethics Order 2006-0711, Directors may only be reimbursed $100/day, and in Mr. Kohs' request for payment, Kohs also requested $100 for attendance at the April 10th, 2008 Master District Board meeting. Mr. Kohs' is in violation of Order 2006-0711. 2. May 2008 - Two requests for reimbursement with no specific date specified. Did Mr. Kohs actually tour the WWTP? If so, what were the actual date(s)? Did he tour the WWTP once or twice? As per the Ethics Order. The Directors are entitled to receive as fees of office $100 a day for each day of service necessary to discharge their duties. Mr. Kohs' is in violation of Order 2006-0711. 3. In Mr. Kohs' request for payment, he submitted two requests for the same day; April 14, 2009 for MUD 2 Board Meeting and April 14, 2009 for Master District Board Meeting. Per the Ethics Policy 2006-0711, Directors may only be reimbursed up to $100/day. Mr. Kohs' is in violation of Order 2006-0711. 4. In Mr. Kohs' request for payment, he requests payment for attendance at the following MUD 1 Board meetings: May 14th, 2009; June 14, 2009; August 14, 2009; September 14, 2009; October 14, 2009; November 14, 2009 and December 14, 2009 . There were NO MUD 1 meetings on any of the following dates: May 14; June 14; August 14; September 14; October 14; November 14; or December 14, 2009. 5. June 2009 - Requests reimbursement with no specific date specified for a "suggested" tour of the waste water treatment plant. Did Mr. Kohs actually tour the WWTP? If so, Mr. Kohs needs to provide the date. 6. In Mr. Kohs' request for payment for 2010 MUD 1 meeting attendance, Mr. Kohs indicates they are Master District meetings when they were actually MUD 1 meetings. 7. Mr. Kohs submitted a signed payment request for March 16, 2010 Master District/MUD 1 meeting. The TCMUD No. 1 122 of 187 16 Nov 2010 File #: 2010-138-M1, Version: 1 Signed / Approved minutes show Mr. Kohs as ABSENT. 8. Mr. Kohs submitted a signed payment request for Master District/MUD 1 Board meeting for April 20, 2010. There was NO MUD 1 meeting on April 20, 2010. There was a MUD 1 meeting on April 19, 2010, and the signed / approved minutes show Mr. Kohs as ABSENT. 9. In Mr. Kohs' request for payment for 2010 MUD 1 meeting attendance, there is NO signed paysheet for the May 18th, 2010 MUD 1 Board meeting. 10. As of May 19, 2010, Mr. Kohs was no longer a MUD Director, and therefore, as a Citizen, Mr. Kohs is no longer entitled nor able to make a request for payment, as he is no longer a MUD Director. TCMUD No. 1 123 of 187 16 Nov 2010 Mary Moore From: Mary Moore Sent: Wednesday, June 03, 2009 10:38 AM To: Subject: FW: TROPHY CLUB VOTER ALERT www.sweepthemudout.org Page 1 of 2 10/4/2010 ----- Original Message ----- From: <voter_alert@sweepthemudout.org> To: "1" <vaaronart@sbcglobal.net> Sent: Sunday, April 26, 2009 9:58 PM Subject: TROPHY CLUB VOTER ALERT www.sweepthemudout.org CITIZENS OF TROPHY CLUB, This May Be Your Last Chance To Hear The Truth ! The town of Trophy Club is in a dangerous cross road. If you don't know by now our town has an extremely critical vote on May 9th., and if you still do not know what all the many issues and truths are......the time has come to become better informed ! My Name Is Steven Kohs, I am a MUD 2 Director, I was the ONLY one to vote NO, for the MUDS to sue you... I have also NEVER taken the PAYCHECK as all the other MUD Directors have done. My fear is simple, Will the citizens of Trophy Club seek the truth, ask the questions needed to cast an informed vote ? Or will they go along with the good ole boy system and devastate our town by a vote supported by deceit, lies, and smear tactics ? CITIZENS OF Trophy Club........DID YOU KNOW..........You have a MUD candidate convinced by other MUD Directors into running as a SINGLE ISSUE candidate for Mayor to continue to protect the MUD's greed for power and control, and to perpetuate the collection of their director fees merely for attending meetings. More concerning is this candidate is not truly qualified to run our town government which is very obvious by the past MUD mismanagement, performance and legal investigations. This same MUD candidate running for Mayor, voted to waste about $ 250,000.00 of YOUR tax payer cash to SUE YOU ! To add insult to injury, she has personally received about $ 42,000.00 of tax payer money along the way while making this decision to create havoc within our town. You have MUD directors who have misstated the truth to gain citizens votes. The MUD directors and MUD attorney appear to be concealing public legal facts until after the election. You have MUD directors who have bullied town employees to do as they say. You have MUD directors slandering our town manager unjustly. You have 2 MUD directors who are currently being legally investigated by the Denton County DA's office for breaking the law for deleting public documents. TCMUD No. 1 124 of 187 16 Nov 2010 You have MUD directors giving large illegal bonuses. The MUDs have been in direct violation of EPA regulation the last ( 12 ) consecutive quarters, or 4 years, and have done nothing to keep us safe. The cost to tax payers is approximately $ 470,000.00. The MUDs have had 4 years to correct this and still allow our town to be at risk. Keep in mind, the same person in charge of the MUDs is now running for our town mayor. You also have the MUDs openly supporting a TOWN COUNCIL CANDIDATE who is currently listed as a party in an investigation in the Denton County DA office for a hate crime. A former MUD 2 director resigned due to financial waste and mismanagement. I have no idea why this TRUTHFUL information is not being spread like wild fire. IT SHOULD BE. IF I had my way, I would fire the entire MUD board, and start over with people who will be honest, just, and make the unprecedented effort to work with the town to bring peace to our town, less turmoil and personal conflict for our town employees, and to lessen our town government cost of serving "US" ...The Citizens. And For The Record. Here is where my support is... and where my vote will be placed. ( YES ) On Town Proposition # 2 Absolutely - ( NO ) On MUD Proposition. The time has come to hear the truth Trophy Club....... Ask The Questions.... Seek The Truth That THEY Do Not Want You To Know........... Stay tuned for part two of this report..... www.sweepthemudout.org -------------------------------------------------------------------------------- No virus found in this incoming message. Checked by AVG - www.avg.com Version: 8.0.238 / Virus Database: 270.12.4/2081 - Release Date: 04/26/09 09:44:00 A Good Credit Score is 700 or Above. See yours in just 2 easy steps! 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September 1, 2010 - Budget Workshop Meeting b. September 9, 2010 - Special Joint Meeting c. September 14, 2010 - Regular Session Attachments:M1-Minutes-090110-Budget Workshop.pdf M1-Minutes-090910-SpecialJointSession.pdf M1-Minutes-091410-RegularSession.pdf Action ByDate Action ResultVer. TCMUD No. 1 148 of 187 16 Nov 2010 File #: 2010-134-M1, Version: 1 Title Review and Approve Minutes: a. September 1, 2010 - Budget Workshop Meeting b. September 9, 2010 - Special Joint Meeting c. September 14, 2010 - Regular Session TCMUD No. 1 149 of 187 16 Nov 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Meeting Minutes Trophy Club Municipal Utility District No. 1 5:00 PM Svore Municipal Building BoardroomWednesday, September 1, 2010 The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties met in Special Session on Wednesday, September 1, 2010, in the Boardroom of the Administration Building, 100 Municipal Drive, Trophy Club, Texas 76262. Call to order and announce a quorum. President Jim Thomas, Vice President Jim Moss, Secretary/Treasurer Kevin Carr, Director Bill Armstrong, and Director Nick Sanders Present:5 - MUD 1 STAFF PRESENT: Robert Scott, District Manager Mary Moore, MUD Secretary Kathy DuBose, Finance Director Danny Thomas, Fire Chief GUEST(S) PRESENT: Margi Cantrell, Town Councilmember SPECIAL SESSION 2010-101-M11.Discuss and take appropriate action regarding Resolution 2010-0901, Budget Amendment No. 2, for the purchase of a High Speed Pump for $240,000. (DuBose) M1-R-2010-0901-BudgetAmndmnt2.pdfAttachments: A motion was made by Secretary/Treasurer Carr, seconded by Vice President Moss, that Resolution 2010-0901, Budget Amendment No. 2, be Approved. The motion CARRIED unanimously. President Thomas, Vice President Moss, Secretary/Treasurer Carr, and Director Armstrong Aye:4 - Director SandersExcused:1 - Director Sanders arrived at 5:02 p.m. TCMUD No. 1 150 of 187 16 Nov 2010 September 1, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes 2010-103-M12.Review and discuss TCMUD No. 1's preliminary draft budget for FY 2010-2011. Preliminary Draft Budget FY10-11-M1.pdfAttachments: Finance Director DuBose distributed to the Board updated budget sheets, which provided three budget scenarios for the Board's consideration. President Thomas thanked resident Jim Hase for his assistance to Staff and the Board with this year's budget. Finance Director DuBose advised that we budgeted to break even in the current fiscal year. We began with $1,857,000; and we may be under expenditures by about $100,000. DuBose advised that we were going to use up some of our Fund Balance for about $250,000 worth of capital. As far as next year with regard to revenues, property tax in the current year that was supporting some O&M expenses; audit, legal, tax appraisal, tax billing, appraisal services. We anticipated $185,000 go toward O&M during the year. Next year, we have estimated 4% increase in growth with a 10.8% increase from City of Fort Worth. Finance Director DuBose advised that the TCEQ requirement is to retain 20% of debt service payment in reserves which amounts to almost $500,000. In discussions with TCEQ, we have been allowed to keep 10% debt service payment in fund blance, which is reflected in final column three - Option 3. Shift PID Connection fees ($246,000) to O & M . We would have to look for money if there are only 107 homes built in the PID in the next fiscal year. Once money goes into I & S, it must stay there. If the money goes into O & M, it can be moved over to I & S. DuBose advised that Trophy Club home values went down approximately 4%, so a $300,000 home in 09-10, the taxes were $0.205, or about $615/year. For 2010/11, with a home value of $288,000 with a $0.195 tax rate, the yearly tax would be $561, a net savings of about $54/year. District Manager Scott stated that there is one change on the water side. they are projecting $102 million; 128 million gallons this last month; which is 100 million more this year than last year. We went up on meter expense. $1.9 total budget for water. Scott advised that we made need to upgrade our Scada. The bid to upgrade scada for new pump is $12,800; Capital Expense for High Service Pump - savings by going with current Scada provider is about $8,000. Director Sanders stated that a Water Study was done by Carter Burgess, which stated that when there were 450 connections in the PID, the Elevated Water Storage Tank would need to be built in order to stay in compliance. District Manager Scott stated that when TCEQ came out recently to do their annual investigation of the Water Plant, TCEQ stated to District Manager Scott that we were already out of compliance with all the homes that we currently have along with the new high school that is currently online. Scott also explained that should we have another peaking charge next year, that would really increase the cost of our water as it is dependent upon the number of peaking charges received by an entity and water costs are averaged over three years. Resident Jim Hase' addressed the Board, stating he recommends putting the Rate Order on September 14th agenda. Discussion only. TCMUD No. 1 151 of 187 16 Nov 2010 September 1, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes Adjourn Meeting adjourned at 6:40 p.m. ___________________________ James C. Thomas, President (Seal) ____________________________ Kevin R. Carr, Secretary ____________________________ Mary Moore, MUD Secretary TCMUD No. 1 152 of 187 16 Nov 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Meeting Minutes Trophy Club Municipal Utility District No. 1 7:00 PM Svore Municipal Building BoardroomThursday, September 9, 2010 The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties met in Special Joint Session with the Town Council of Trophy Club, Texas, on September 9, 2010, in the Boardroom of the Administration Building, 100 Municipal Drive, Trophy Club, Texas 76262. Call to order and announce a quorum. Mayor White and President Thomas each called the meeting to order at 7:00 p.m., with each entity noting a quorum was present. MUD 1 BOARD MEMBERS President Jim Thomas, Vice President Jim Moss, Secretary/Treasurer Kevin Carr, and Director Nick Sanders Present:4 - Director Bill ArmstrongAbsent:1 - MUD 1 STAFF PRESENT: Robert Scott, District Manager Mary Moore, MUD Secretary Kathy DuBose, Finance Director TOWN COUNCIL/STAFF PRESENT: Mayor Connie Connie White Mayor Pro Tem Bill Rose Councilmember Glenn Strother Councilmember Margi Cantrell Councilmember J.D. Stotts Councilmember Larry Hoover Interim Town Manager Stephen Seidel Town Attorney Patricia Adams Town Secretary Lisa Hennek IT Director Mike Pastor GUEST(S) PRESENT: Lee Graham, Reporter - Alliance Newspaper Citizen Presentation No citizens addressed the Board. TCMUD No. 1 153 of 187 16 Nov 2010 September 9, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes SPECIAL JOINT SESSION Mayor White requested to move Agenda Item No. 6 (2010-73-M1) forward for Chief Kniffen to address along with Agenda No. 1, to which everyone agreed. TCMUD No. 1 154 of 187 16 Nov 2010 September 9, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes 2010-72-M11.Receive update from Police Chief Kniffen regarding Town Manager search and discussion of same. Police Chief Kniffen provided the following update with regard to the hiring of a new Town Manager for the Town of Trophy Club: Mercer received over 100 applicants and Mercer narrowed this down to seven candidates. Council narrowed this list to five candidates. Video interviews were conducted on the remaining five candidates. Council reviewed these videos, and then narrowed the list down to three finalists. The finalists are scheduled to be in Trophy Club the 17 and 18 of September for interviews. The candidates will receive a 45-50 minute tour of Town, and then meet with the management team to include District Manager Scott, if he is available. Following the tours, there will be a reception at the Country Club for all three candidates and their spouses. Saturday morning will begin the interviews, scheduled for 9 and 11 and 1 pm, with each interview lasting approximately 1 hour 15 minutes each with discussion to follow. Lunch will be served to the Board between Candidate 2 and Candidate 3. Chief Kniffen asked who would be present for the interviews? Councilmember Cantrell stated her understanding was that no public would be present and there would be a representative from the MUD, be it either the MUD 1 President or the District Manager. Councilmember Strother asked who would be asking the questions and where will the interviews be held. Mayor White stated that her understanding was that it would be the Council Chambers and potentially some one from the MUD who would interview the candidate, with District Manager Scott providing his input on Friday with the other managers. Councimember Cantrell stated that Council will not make a decision until the 20th, thus giving Citizens time to give their input to Council. President Thomas thanked Council for the opportunity to be a part of the interview process. Thomas stated he would like to be in the audience to hear what the candidates have to say. District Manager Scott asked if there would be enough time on Friday for all of the managers to ask questions of the three candidates. Interim Town Manager Seidel stated that there is a meeting this Friday at 10 am to discuss how the managers might interview the three candidates. Councilmember Cantrell reiterated that it was her understanding that a MUD representative would be present at the interview; however, he would not be included in the decision process. Councilmember Rose agreed that a MUD representative would be present and able to ask questions but would not be a part of the decision process. Councilmember Hoover suggested MUD President Thomas to be present at the interviews. End of discussions with no action. TCMUD No. 1 155 of 187 16 Nov 2010 September 9, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes 2010-73-M16.Discussion regarding TCMUD No. 1's relationship with the Town Council relative to the hiring of a new Town Manager and possible action regarding same. Discussion held under Agenda Item 1, 2010-72-M1. TCMUD No. 1 156 of 187 16 Nov 2010 September 9, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes 2010-34-M12.Discuss and take appropriate action regarding the Intergovernmental Contract for Employee and Contractual Services. Combined Employee Services -6th Draft.pdf Towns Bid to SEMO-March2010.pdf SEMO Chart No 1-050810.pdf Attachments: Director Sanders stated had a question about Section 1.02, Term and Termination. Is there a way to cancel without default or does cancellation require some type of default. Sanders' preference is to strike 1.02. You have one way to cancel; it's an annual contract; it affects the budget. Try it for a year, if it doesn't work, next year you terminate with 90-day notice. If you want to keep Section 1.02, add further definition on how you resolve a conflict. Mayor White stated Section 10 is a violation issue. White stated that Section 1.02 is in the contract for the MUD's benefit to give MUD 1 an out if the Town does not fulfill their obligation under this contract. Director Carr states he is okay with leaving Section 1.02, Termination for Default, in the contract. Director Thomas stated that it is unlikely that MUD 1 would terminate this contract without adequate cause; however, if necessary, there is language in the contract allowing us to terminate the contract. Director Carr asked If there is a process prior to the default process. Attorney Adams stated there is; however, it is not documented within the document how or what that process should be. Standard protocol would naturally follow; however, she stated it is up to the Board and Council's comfort level. Attorney Adams was asked to determine verbiage for inclusion that "default occurs after approval by the appropriate Party" to which Adams agreed. Director Sanders addressed Section 2.05; and asked how the Fire Chief reports directly to both the District Manager and the Town Manager. Attorney Adams responded by stating that the Fire Chief reports directly to the Town Manager for EMS issues; and directly to the District Manager regarding Fire Issues. An example is Lisa Hennek, our Town Secretary, who reports to the Council as Town Secretary, but she also reports to the Town Manager for Human Resources issues. Director Sanders addressed Item 2.05, stating it's really an operational versus budgetary issue, and would prefer the Fire Chief reported for operational purposes to the Town Manager and for budgetary reasons to the District Manager. This assumes that part of the rationale of having the Fire Chief report to the District Manager regarding Fire Issues is that the money was coming from there. Sanders stated that in the long term, there ought to be one method of reporting for operational reasons; however, their funding would be different. Director Carr stated for the record he disagrees with Director Sanders' comments. Mayor White stated that she agrees with the addition of the verbiage; however, she does not feel it is a good idea at this time to address the other issues raised by Director Sanders. Director Sanders addressed Section 3.01, second paragraph, really more specifically Exhibit A, stating that he has an issue with the word, "exclusive control". Sanders TCMUD No. 1 157 of 187 16 Nov 2010 September 9, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes feels this paragraph seems to violate what is in the personnel manual. How does that work when there are two people above the Fire Chief, but the manual today states it goes to the Town Manager for final disposition. Mayor White stated that Section 10 addresses Director Sanders' issue. Councilmembers Stotts and Strother recommended striking the word "exclusive", which was agreed by all. Director Sanders referred to Section 9, which refers to Section 10, talks about discipline and how those issues are resolved. In Item 10.2, Sanders advised it says everyone is a town employee, an employee is where an employee receives pay, benefits and supervision. Sanders believes there is a need to go back to the personnel manual. Attorney Adams stated that her understanding is that the MUDs will have their own Personnel Policy with a January 1, 2011 target date. Director Sanders commented that all employees are Town employees. Mayor White stated that we will work with the current policy and asked what is the risk of having two personnel policies? Attorney Adams stated we have the operations portion going through the MUD Manager, and the administrative portion going through the Town Manager, that's what Section 10 addresses. The structure of the agreement is okay. Adams stated that it all goes back to IRS regulations, whoever is on the payroll, and we are okay doing what we are doing. Director Sanders added that all he would point out in Item 10, last paragraph the use of the word "shall" for Jointly Funded Employees, is an absolute. Attorney Adams stated that the Town Personnel Manual/Policy does not have technical regulations. Director Sanders asked if there is any conflict. Interim Town Manager Seidel commented that he and District Manager Scott have worked very hard in an open and honest fashion. Director Carr suggested adding a section for water/wastewater issues to the Town Personnel Policy manual. Councilmember Rose asked to address Section 2.08, jointly funded employees, clarified that Fire/EMS Personnel are Town employees. Section 3.02, MUD 1 has employees who are the exclusive employees of MUD 1. If they are exclusive employees of the MUD, how can they be a Town employee? Mayor White states that it is described later in that paragraph. Councilmember Strother stated for clarification that anyone who works for the Town, gets a check. Now the MUD pays for that service. For this particular paragraph, you may want to change the wording to accommodate every employee for payroll and benefits, and change to works exclusively for MUD 1, so there is no gray area. Councilmember Hoover asked who signs the check, to which the answer was the Town. TCMUD No. 1 158 of 187 16 Nov 2010 September 9, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes Director Carr advised that this same scenario goes on all over the world, and employees get benefits from whomever they are contracting with. Councilmember Rose has no problem with current agreement where all employees are Town employees, doesn't see a problem with it. Rose wants to obtain letters from all benefit providers stating that they agree to this contract. Mayor White stated that is not going to work. Director Sanders offered that MUD has staff who are Town employees who are the exclusive staff workers of MUD 1, to satisfy Rose's issue. Councilmember Stotts stated that he agrees with the Mayor. We've had a number of lawyers look at this and go over it for months, and believes it is good as is. If we want to make some minor changes, that's fine, but to go and re-hash this whole thing at this point, Stotts feels we are wasting time. We all agree we want to get this done, and we're now going to knock it down with technicalities that Town and MUD lawyers have felt were not worth chasing after. Mayor White added nothing we have discussed represents what we believe it should be, it's purely how it should be worded. Director Carr advised that if you change one thing, it changes other parts of the agreement/contract. It's a domino effect. We have had a number of attorneys review this over the past months. Councilmember Rose stated he is not sure we're in agreement. Rose asked if with this new agreement, will the MUD exclusive employees, will they continue to be Town employees or MUD employees? Attorney Adams answered that it is the latter. The change with this new contract is there are some employees who are MUD 1 employees who are not Town employees. Councilmember Stotts stated the disagreement is with Rose. Stotts is not trying to be rude, agree to disagree. Attorney Adams asked if she needed to change the contract. Director Carr stated to leave as it currently reads. Councilmember Strother stated he agrees with Director Carr. President Thomas and Councilmember Hoover agreed, and requested to move on. Councilmember Strother asked if Attorney Adams had any concerns, to which Attorney Adams stated she did not. A motion was made by Councilmember Strother and seconded by Director Hoover to approve the Interlocal Agreement for Employee Contractual Services, per the September 9th Draft, as presented and as amended. Floor opened for discussion. Councilmember Stotts asked Attorney Adams for updates of amendments. Attorney Adams stated the following amendments: Section 1.02 - Termination Default, added a sentence at the end that says, "issuance of a notice of default shall first be approved by the governing body of the party declaring the default." The next change was to Section 2.05, Fire Chief. Fire Chief defined as, "the jointly funded employee supervising firefighting services and emergency medical services provided by the TCMUD No. 1 159 of 187 16 Nov 2010 September 9, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes Trophy Club Fire Department." The word "exclusive" is stricken in two sentences from the 2nd paragraph of Section 3.01. Motion Carried 5-1-0 with Councilmember Rose voting against. Interim Town Manager Seidel thanked District Manager Scott, stating that over the past few months very uncontentious discussion and negotiation. Seidel also thanked the Council and the MUD Board; as this was in his opinion very easy to negotiate and appreciates everyone's input. A motion was made by Secretary/Treasurer Carr, seconded by President Thomas, to Approve the Interlocal Agreement for Employee Contractual Services, as drafted on the September 9, 2010 draft with the changes in Section 1.02, as stated, Section 2.05, regarding definition of Fire Chief, and Section 3.01, the second paragraph, strike words "exclusive." Motion CARRIED unanimously. President Thomas, Vice President Moss, Secretary/Treasurer Carr, and Director Sanders Aye:4 - TCMUD No. 1 160 of 187 16 Nov 2010 September 9, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes 2010-122-M13.Discussion regarding construction of Town's Elevated Water Storage Tank as per the 2007 Contract for Water and Wastewater Operational Services between Town of Trophy Club and Trophy Club MUD 1; possible action regarding same. 2007-Water-WWOperationsContract.pdfAttachments: Interim Town Manager Seidel advised the Elevated Tank has been designed and is ready to go to bid. The cost to construct the Tank has increased dramatically; as a result of this increase in cost, the developer would like to wait a few more months. Currently the cost estimate for the tank is $1.4 - $1.5 million, and the Town's engineer agrees with this cost estimate. From talking to the developer, he would like to move forward in February/March timeline to begin construction. Previously, this was planned for November/December. From talking with Robert Scott, there is a need to move forward as quickly as possible. Mayor White advised the reason for potentially building a larger tank is that there is a need for additional storage, so the question was brought up of potentially building the elevated tank larger to accommodate some of the necessary storage. White asked District Manager Scott if that was a possibility. District Manager Scott stated we would need to redo some engineering. Mayor White stated she would like to have some discussions on this. District Manager Scott stated that after talking to TCEQ, Scott believes the Town needs to move forward on the elevated tank. Scott stated that the larger tank would really not be that advantageous. President Thomas advised we're going to face issues with regard to water pressure; adding, that the Town is in default of the Operations Contract, Section 2.1. Councilmember Strother is very appreciative to be having these meetings, and asked, what are the community’s needs? We have an existing Police Station that needs to be replaced with no money or land. Should we look at exploring options to look at joint properties? At the end of the day, the residents of our Town are going to pay for something. District Manager Scott has a good point, that by increasing the size of the elevated tank, we are still going to need a Ground Storage Tank. How do we work together for the benefit of the citizens? Councilmember Stotts verified that this 500,000 gallon water storage tank is paid for in part by the PID; 80% by PID and 20% by Developer. Stotts has not seen a contract? Is it a letter or contract? Director Carr replied that it is a letter. Interim Town Manager Seidel advised that $900,000 has been reserved for the 500,000 gallon water storage tank, and the remaining portion is due by the developer. Director Sanders stated our concern is how long it takes, and if the developer is saying he won't have the money until X date, can we get started, move forward faster, if this next summer, is as bad as this past August, rationing to maintain levels, if we get all cash in hand, can we move forward? Attorney Adams advised we would need all the money up front, as the Town will let the project. TCMUD No. 1 161 of 187 16 Nov 2010 September 9, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes Mayor White advised the system requires it. Director Sanders asked if there is a way to go out for bid. Director Carr clarified that the elevated tank is needed for "pressure" not for rationing. Mayor White stated we have a problem, and it needs to get done. Need to figure out a solution, hopefully something that is suitable for the whole community rather than having separate projects. Councilmember Hoover stated the people in the PID need water. District Manager Scott advised that had the elevated tank been in place, it would have saved the MUD over $160,000 due to peaking charges. District Manager Scott estimated the MUDS will need to construct a ground storage tank in about two years where the Police Department is currently. Director Sanders suggested establishing a committee/task force from each entity to discuss possible options and requested we keep it on our agenda. Councilmember Stotts asked about the discussions with Mehrdad, did he explain what his situation was? Interim Town Manager Seidel replied that the Developer advised he would be in a better position if he waited until February or March. Councilmember Stotts asked how long it would take to redo the engineering for a larger elevated tank? Interim Town Manager Seidel estimated it would take 3 - 4 months. District Manager Scott advised he asked Town Engineer Tom Rutledge, who stated that it would take 90 days. Councilmember Stotts asked if Staff felt comfortable that the developer (Mehrdad) would be able to start in February or do we need extra contractual constraints to ensure this gets rolling, or a possibility to have Town begin funding and have Mehrdad repay Town. Acting Town Manager Seidel advised Mehrdad is open to that. Councilmember Stotts asked if office space or storage space at the base of the elevated water in the elevated tank? Interim Town Manager Seidel replied that it does not. At the potential location, additional storage would be separate. Councilmember Hoover advised he would like to move forward, and volunteered to be a member of the committee. Mayor White agreed that a committee was a good idea and asked Councilmember Strother if he would agree to be on the committee and Strother agreed. Councilmember Stotts also agreed to volunteer, as needed. Stotts added that this is in the PID; we have to do this or come up with some other option. We have a TCMUD No. 1 162 of 187 16 Nov 2010 September 9, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes contractual obligation to do this. President Thomas asked who on the MUD Board would like to serve, and Directors Sanders and Carr volunteered. Discussion only; committee formed. 2010-124-M14.Discussion regarding transferring electrical account for Admin Building from Town Account to MUD Account and possible action regarding same. District Manager Scott advised that he has met with Attorney Adams regarding this issue and found that it would not be cost effective for the Town to move the account due to the cancellation fee the Town would incur. Discussion only. 2010-123-M15.Discussion regarding Capital Improvements and/or Capital Expense Items affecting Town and/or MUD 1 Budget(s) and possible action regarding same. District Manager Scott asked the Council if they knew when they would be starting or funding any street construction projects, so the MUDs could budget accordingly for water lines. Scott asked if it would be in 10/11 or the 11/12 budget. Finance Director DuBose feels it would be performed in the 10/11 budget year, adding that the Street Superintendent stated that it should have be done last year. Mayor White stated that this is a much smaller project than previous street projects. District Manager Scott wants to make sure to ensure adequate monies are allotted in next year's budget. Mayor White referred District Manager Scott to the Capital Budge in the Town budget package, as it lays it out the construction schedule street-by-street over the next several years. Councilmember Stotts asked about the status regarding effluent water over at Harmony Park. District Manager Scott stated he has talked to Parks Director Adams regarding this, and Scott recommended it be done when the streets go in over by the WWTP (Wastewater Treatment Plant). Scott suggested that the water lines be laid along the Country Club boundary line. Acting Town Manager Seidel stated that it is a timing issue, as development should be occurring in the area in the next few months. Discussion only. TCMUD No. 1 163 of 187 16 Nov 2010 September 9, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes 2010-125-M17.Discussion regarding the potential of both entities working together and possible action regarding same. Mayor White advised that Council recently attended a retreat where the facilitator worked with Staff and with Council; and it was suggested to have a retreat with Council and MUD Board. President Thomas stated that was a good idea. Councilmember Strother advised that both governmental entities need to look at what's out there; what's the MUD's 20-year plan? What's needed for buildout for Town? Capacity of the treatment plant - need more room? MUD will need to have a full turnover in next 20 years, will they need more room or not? Mayor White asked if attending a retreat was something the MUDs would want to do. President Thomas suggested that District Manager Scott and Interim Town Manager Seidel get together on this. Councilmember Stotts added that it's important to form some type of long-range planning committee, definitely want to look at improved planning between the two entities. Discussion only. TCMUD No. 1 164 of 187 16 Nov 2010 September 9, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes 2010-126-M18.Discuss and take appropriate action regarding request for temporary exception to Noise Nuisance Ordinance, Chapter 8, Article 1, Section 1.01(a) 7 to drill a new Trinity Well at the northwest end of Crooked Creek Court. Chapter8Article1Section7.pdfAttachments: District Manager Scott stated that it would be four weeks for construction, not two weeks as mentioned in Staff comments. The noise decibel at the well is 80 decibels. The drilling would be 24-hours day. Councilmember Stotts asked how deep is the well? District Manager Scott advise 1425 feet. Scott added that it would not cost much to tie-in as there is already a tie in at the drilling site. Mayor White asked if there was a problem with the well being drilled/located in a floodplain. District Manager Scott replied that it was not a problem. Councilmember Cantrell stated that she felt it would be prudent to offer to talk with affected residents and offer options for their inconvenience. Interim Town Manager Seidel offered if the residents were not interested in hotel, option to offer rebate on water bill. Councilmember Rose stated he would like to have resident input before offering. District Manager Scott advised that the well has already been approved by TCEQ. Scott wants to talk to the residents and get their input regarding the noise and drilling of the well, and then bring that back to the Board for further direction. Councilmember Stotts asked District Manager Scott if he wanted Council to take action tonight. District Manager Scott stated not at this time; Scott just wanted to make the Council aware. Councilmember Strother stated there are some things the well drillers can do; however, it is possible that it would cheaper to compensate the affected residents. The lights may be more of an issue than the noise. Discussion only. 2010-71-M19.Set Next Joint Session Meeting Dates i. Thursday, November 11, 2010 at 7 pm ii. Wednesday, February 9, 2011 at 7 pm Feb 2011 Calendar.pdf November Calendar.pdf Attachments: Councilmember Rose requested moving the February date from Wednesday the 10th to Thursday the 11th. Upon hearing no objections, the date was changed to Thursday, February 11th, 2010. TCMUD No. 1 165 of 187 16 Nov 2010 September 9, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes Adjourn Meeting adjourned at 9:44 p.m. ___________________________ James C. Thomas, President (Seal) ____________________________ Kevin R. Carr, Secretary ____________________________ Mary Moore, MUD Secretary TCMUD No. 1 166 of 187 16 Nov 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Meeting Minutes Trophy Club Municipal Utility District No. 1 7:00 PM Svore Municipal Building BoardroomTuesday, September 14, 2010 The Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties met in Regular Session on Tuesday, September 14, 2010, in the Boardroom of the Administration Building, 100 Municipal Drive, Trophy Club, Texas 76262. Call to order and announce a quorum. President Thomas called the meeting to order at 7:00 p.m., noting a quorum was present. MUD 1 BOARD MEMBERS: President Jim Thomas, Vice President Jim Moss, Secretary/Treasurer Kevin Carr, Director Bill Armstrong, and Director Nick Sanders Present:5 - MUD 1 STAFF PRESENT: Robert Scott, District Manager Mary Moore, MUD Secretary Kathy DuBose, Finance Director Danny Thomas, Fire Chief Pam Liston, Attorney TOWN COUNCIL/STAFF PRESENT: Councilmember Bill Rose GUEST(S) PRESENT: Jim Hase, 209 Inverness Drive Dean Henry, 308 Oakmont Drive Melinda Watts Smith, Attorney (Representing Attorney West) Citizen Presentation No citizens addressed the Board. Board agreed to move Agenda Item No. 9 forward, in consideration of Melinda Watts Smith's time who is representing Attorney Bob West, who was not able to attend to address Agenda Item No. 9. TCMUD No. 1 167 of 187 16 Nov 2010 September 14, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes 2010-74-M19.Receive report from Legal Counsel regarding legal representation; discussion and possible action regarding same. (Armstrong) Communication to Directors Regarding Legal Services.pdf West Letter re Legal Service Fees.pdf Liston-Ltr hourly fees 9 2 10.pdf Attachments: District Manager Scott spoke in favor of keeping both attorneys. Director Carr also spoke in favor of retaining both attorneys, and feels that MUD 1 is very fortunate to have representation from both firms. President Thomas asked the attorneys to provide the cost paid for the attorneys to update each other regarding the previous month's meetings or for updates. Thomas added, the working relationship between Pam and Bob is and has been excellent. Attorney Liston stated that she did not know the exact cost; however, she does not feel that this cost should be a determining factor, as it is a very nominal amount. Director Armstrong arrived at 7:05 p.m. Director Moss made a motion to retain both attorneys; to continue status quo. Director Carr seconded the motion. Floor opened for discussion. Melinda Watts Smith was given an opportunity to share her thoughts, sharing that she was a secretary for the early MUD Board. She agrees that both firms work very well together, and believes it is an excellent working relationship. Director Armstrong stated he agrees with Director Moss' motion. Motion carried unanimously. PUBLIC HEARING The Board went into Public Hearing at 7:14 p.m. Trophy Club Municipal Utility District No. 1 to conduct a Public Hearing regarding: Proposed tax rate to increase, decrease, or remain the same for the fiscal year beginning October 1, 2010 and ending September 30, 2011. A. No citizens addressed the Board. TCMUD No. 1 Budget for fiscal year beginning October 1, 2010, and ending September 30, 2011. B. No citizens addressed the Board. REGULAR SESSION Board closed the Public Hearing Session at 7:15 p.m. TCMUD No. 1 168 of 187 16 Nov 2010 September 14, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes Action Items: TCMUD No. 1 169 of 187 16 Nov 2010 September 14, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes 2010-129-M11.Discuss and take appropriate action regarding Resolution 2010-0914, adopting and approving the Budget for Trophy Club Municipal Utility District No. 1 for fiscal year beginning October 1, 2010, and ending September 30, 2011. TCMUD1-R-2010-0914-Aprv Budget.pdf 00 REVENUE SUMMARY.pdf INTERESTandSINKING.pdf O&M SUMMARY.pdf Tax Rate Impact Summary 10-11 Budget 09-14-10.pdf 045 FIRE EXPENSES.pdf Attachments: District Manager Scott advised the only change was for engineering fees for the Wastewater Treatment Plant Permit renewal. The fees went from $1750 to $4,000. Currently, we are in our fourth year of our WWTP permit. The reason for the increase is to pay for the engineering report for renewal of the permit. President Thomas thanked Jim Hase again for all of his work on the budget. Finance Director DuBose distributed a handout entitled Operations and Maintenance Summary, and explained the change. Director Armstrong asked Jim Hase asked if they discussed his concerns regarding reserves. Jim Hase addressed the Board. Hase stated that that he and District Manager Scott, Director Carr and Finance Director DuBose recommend the last column for the budget, as well as the other sheets that are in your packet. Hase stated in his mind, 34% is low; however, he does not recommend raising the reserves in fiscal year 10/11. Hase added that any decision to raise that reserve to 50% in future fiscal years would be a first class mud if you could get to 50%. Director Armstrong thanked Jim Hase for his input, stating he agreed with Hase's comments. President Thomas invited Jim Hase to join the Board at the dias. Director Sanders asked what was the difference between columns 2 and 3 that caused a $100,000 difference? Finance Director DuBose answered it is the tax rate. The difference is from the I&S handout, which DuBose distributed. DuBose stated the portion there in the first column, you're at break even. At the 2nd option, you would have $0.195 tax rate. The property taxes went down because of the reduced values. In third column, Option 3, reflects taking in only the PID payments to where you would draw down the fund balance $178,000, which brings you to the amount, which is required by our application. Our fund balance should be at 10% of the upcoming debt service payment, which is at about $90,000. Director Sanders verified that you're taking money that was a PID Connection Fee and moving it to Operations. Finance Director Dubose stated that is just like we did this year. Director Sanders commented that we are reducing reserves in Interest and Sinking. TCMUD No. 1 170 of 187 16 Nov 2010 September 14, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes Finance Director DuBose stated that is because our debt service requirements are greatly reduced the following year. Director Sanders stated that the cost for buying the wastewater screens is split between using some money this year that ends in two weeks, and using a roughly same amount in next year's budget for that. District Scott stated it is all in this year's budget. Director Sanders asked if we are going to pay cash of $250,000 for wastewater screens? District Manager Scott stated it was from reserves to make up the difference, that is why we are in the red. Director Sanders, those screens have a useful life of many years, and are considered an asset. Sanders wanted to discuss not using the reserves for screens and instead use that money to buy down the tax rate, and could we in fact lower our tax rate. Sanders asked what would be the debt to finance that cost over 20 years. District Manager Scott stated he would not recommend going over three years, as anything financed over three years would need TCEQ approval. Director Sanders asked how do you encumber that money that you could use in the next fiscal year's budget? Finance Director DuBose replied, because it is appropriated, we would transfer it to our capital projects fund, which is a multi-year fund. President Thomas verified the interest spread over three years would be $20,000, and DuBose agreed, and that is based on the current interest rates received. Director Sanders stated that he recognizes we're going to be faced with some major expenditures with ground storage, just didn't want us to use reserves. Director Carr stated that we will be in a very favorable position after next year's position, planning for the ground storage tank. We will be in a much better position, plus we can sell bonds to pay for the ground storage tank. Hopefully, next budget year we can reduce taxes or see what revenue could pay for that tank without going out for a bond by keeping the tax rate steady. Carr asked District Manager Scott to reiterate the savings and benefits from installing the screens at the WWTP. Director Sanders stated that District Manager Scott addressed his concerns. Director Sanders verified that if we approve this budget, we would set a tax rate of $0.195, and do a 7% rate increase, to which everyone agreed. Director Sanders moved to approve the proposed 2010-2011 Budgets, and to approve Resolution 2010-0914. Director Carr seconded the motion. Motion CARRIED unanimously. President Thomas, Vice President Moss, Secretary/Treasurer Carr, Director Armstrong, and Director Sanders Aye:5 - TCMUD No. 1 171 of 187 16 Nov 2010 September 14, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes 2010-130-M12.Discuss and take appropriate action regarding Resolution 2010-0914-A, fixing and levying the Trophy Club Municipal Utility District No. 1 tax rate for debt service for the fiscal year beginning October 1, 2010, and ending September 30, 2011. M1-Resolution-2010-0914-A-DebtSvc.pdfAttachments: Finance Director DuBose stated that the resolution sets your debt service tax rate at $0.0769 per $100 valuation. Attorney Liston asked if we could go back to Agenda Item 1, and asked if Director Sanders would include in a statement that his motion was to approve Resolution 2010-0914 inherently, to which Director Sanders agreed, as did Director Carr (seconder). A motion was made by Secretary/Treasurer Carr, seconded by Vice President Moss, to approve Resolution 2010-0914-A, for TCMUD 1 tax rate for debt service for at .07696 for FY October 1, 2010 and ending September 30, 2011. Director Moss seconded the motion. The motion CARRIED unanimously. President Thomas, Vice President Moss, Secretary/Treasurer Carr, Director Armstrong, and Director Sanders Aye:5 - 2010-131-M13.Discuss and take appropriate action regarding Resolution 2010-0914-B, fixing and levying the Trophy Club Municipal Utility District No. 1 tax rate for operation and maintenance, including the portion of such tax rate to support the Fire Department, for the fiscal year beginning October 1, 2010, and ending September 30, 2011. TCMUD1-R-2010-0914-B-OnM.pdfAttachments: Finance Director DuBose advised there are two portions to this O & M (Operations and Maintenance). We have tax supported O & M of $86,314 made up of property tax appraisal fees charged by Denton Central Appraisal District. Property Tax Administration Fees are collection fees by Denton County. Legal costs of $35,000 and the annual audit; that tax rate is $0.00879 per $100 valuation. Also, you have the O & M for the Fire Department, and that rate would be $0.10925 per $100 assessed valuation, for a total of $0.11804 for O & M per $100 valuation. A motion was made by Secretary/Treasurer Carr, seconded by Director Sanders, to approve Resolution 2010-0914-B, for TCMUD 1 tax rate for Operation and Maintenance, including the portion of such tax to support the Fire Department for Fiscal Year October 1st, 2010 and ending September 30, 2011, for the general fund O & M, recommend $0.00879 and for the Fire Dept O & M, $0.10925. Director Sanders seconded the motion. The motion CARRIED unanimously. President Thomas, Vice President Moss, Secretary/Treasurer Carr, Director Armstrong, and Director Sanders Aye:5 - TCMUD No. 1 172 of 187 16 Nov 2010 September 14, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes 2010-132-M14.Discuss and take appropriate action regarding Resolution 2010-0914-C, approving the Trophy Club Municipal Utility District No. 1 tax roll of the Denton Central Appraisal District and Tarrant Appraisal District for 2010. M1-Resolution-2010-0914-C-Aprv Tax Roll.pdfAttachments: Finance Director DuBose advised that this tax roll takes the net assessed taxable value for the district and times our tax rate, giving you your actual tax levy of $1,914,812. A motion was made by Director Armstrong, seconded by Director Sanders, to pass the Resoution 2010-0914-C, to approve the 2010 MUD 1 Tax Roll. Director Sanders seconded the motion. The motion CARRIED unanimously. President Thomas, Vice President Moss, Secretary/Treasurer Carr, Director Armstrong, and Director Sanders Aye:5 - 2010-133-M15.Discuss and take appropriate action regarding Order 2010-0914, the 2010 Rate Order. M1-O-2010-0915-Rate Order.pdf SevenPercentIncreaseUtilityRate.pdf Attachments: Director Sanders questioned when MUD 1 last raised water rates. Staff responded it was last year, as a pass through increase because Fort Worth Water raised their water rates, similar to what Fort Worth did this year. This year they increased their rates 10.4% and we are increasing our rates 7%, which is offset by wastewater rate fees. A motion was made by Director Sanders, seconded by Secretary/Treasurer Carr, to APPROVE Order 2010-0914, the 2010 Rate Order. The motion CARRIED unanimously. President Thomas, Vice President Moss, Secretary/Treasurer Carr, Director Armstrong, and Director Sanders Aye:5 - TCMUD No. 1 173 of 187 16 Nov 2010 September 14, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes 2010-121-M16.Discussion and possible action regarding construction, location and funding options for a new 2 million gallon ground storage tank. (Moss) Vice President Moss stated that this was discussed at length at the Special Joint Session on the 9th with the Town Council; and Moss suggests no action at this time, as a committee was formed at the joint meeting. Moss stated that he was informed by District Manager Scott that there is no immediate urgency (two years to begin construction) to move forward on this ground storage tank. Director Carr stated he and Director Sanders are part of this committee along with Councilmember Strothers and Hoover. The issue at hand is that the Town needs to move on this as there is a Police Station sitting where the ground storage tank needs to go. Director Moss stated that one of the things that the committee is charged with is whether or not there is another viable location for the ground storage tank. Director Carr commented that all options will be considered, land purchase, additional pumps and water lines, and will be brought before the Board and Council. Director Sanders stated he is looking for further direction from the Board, that Kevin and he serve as MUD members on that committee. Sanders would like to see District Manager Scott and the Town Manager be part of those committee meetings, and secondly, if schedules did not allow, suggest the President be the first alternate should he or Kevin would not be able to attend. Mr. Jim Hase addressed the Board, suggesting that the Board revisit the Methodist Church to see if they want to sell their land for either the Police Department or a Ground Storage Tank. President Thomas gave Director Armstrong a brief history of the Town's dealings with the Methodist Church to purchase property for the new Fire Station. Councilmember Rose commented that Councilmember Strother will be out of pocket until the 9th of October. Director Moss feels that Council should offer an alternate in Strother's temporary absence. Director Sanders asked Councilmember Rose to ask Council to include the Town Manager in the committee discussions, to which Councilmember Rose agreed. District Manager Scott advised that his recommendation is to start construction in two years; and it takes seven to nine months to construct a 2 mg Ground Storage Tank. Engineering fees will be considered in the 11/12 budget. No action. TCMUD No. 1 174 of 187 16 Nov 2010 September 14, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes 2010-136-M17.Discuss and take appropriate action regarding rebidding for a new Trinity Well. District Manager Scott advised that the cost is roughly $850,000 to drill a well. Scott added that in order to reduce cost of drilling, the drillers would need to drill 24/7. With that, we would need to obtain permission from Town for noise abatement and seek input from the affected citizens. Scott seeks direction from the Board. Director Sanders asked what the decibel level would be at the residences if the level is 85 decibels at wellhead, as it may be low enough that we may not need an exception. Sanders also asked what are the Board's options to offer some type of rebate to the affected residents. District Manager Scott offered to pay for their water and wastewater. . Scott added that the residents may complain more about the lights, adding the drillers would not work on weekends. Director Sanders asked what is the lower price if we go 24 hours? District Manager Scott advised that we won't know what the savings will be until we rebid. Director Sanders stated that we need more data from drillers, and suggested holding a Town meeting and invite affected residents, and get their feedback and what, if any, issues they may have. District Manager Scott added that a lot of the actual noise will be from offloading of material from the trucks. Director Armstrong agreed, stating that the noise he experienced recently from the gas well drillers was the clanging of the pipe and the lights were very intrusive. Director Sanders suggested finding out what drillers can do with regard to lighting and how does it affect the surrounding residents (light shade). Director Sanders asked about the savings if we sell bonds all at once versus farming out for Trinity Well and the Ground Storage Tank. Director Moss asked if the new groundwater district being formed in Denton is an economic factor that needs to be considered. Director Carr asked the Board what direction Distrct Manager Scott should go in. Carr asked if there was anything in Water Code allowing or disallowing compensation of resident/citizens for their inconvenience. Attorney Liston advised she would have to check on that. President Thomas stated he would like to see District Manager Scott start a new bid process and include some information regarding light shade containment for the surrounding residents. Director Sanders, in answer to Moss' concern regarding the new ground water district, Sanders advised that he will be attending the North Texas Groundwater Association Public Hearing Meeting on September 22nd, 9 am, in Denton. The issue is at some point they will set a rate on well water used. The payback from drilling this well isn't going to be as fast as expected unless something changes. TCMUD No. 1 175 of 187 16 Nov 2010 September 14, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes District Manager Scott added that Tarrant County Groundwater Association is already formed and drawing money. For each well, there is a $500 registration fee with a rate set at $0.03 per thousand. Meters have to be calibrated every six months and reports have to be submitted monthly. Scott added that North Texas Groundwater Association can charge as much as $0.30/thousand. Director Moss advised that they did light illuminous measures when he was on the Council; adding that it can be done. President Thomas asked the Board if they were in agreement to rebid with approval to drill 24/7 with light shade requirements. Board was in agreement with Thomas' request. Director Carr made a motion and Director Moss seconded; to approve District Manager Scott to go out and rebid for a new Trinitly Well, as discussed. Motion CARRIED unanimously. President Thomas, Vice President Moss, Secretary/Treasurer Carr, Director Armstrong, and Director Sanders Aye:5 - 2010-137-M18.Discuss and take appropriate action regarding funding options for a new Trinity Well. No discussion held or action taken. 2010-135-M110.Discuss and take appropriate action regarding appointment of a MUD representative to attend the interviews for new Town Manager. The Board agreed that President Thomas will attend the interviews for Town Manager for Town of Trophy Club. 2010-127-M111.Review and Approve Disbursements & Variance Report a. August 2010 August 2010 Monthly Financial Statements.pdfAttachments: District Manager Carr moved to approve the August 2010 Disbursements and Variance Reports. Director Sanders seconded the motion. Motion CARRIED unanimously. President Thomas, Vice President Moss, Secretary/Treasurer Carr, Director Armstrong, and Director Sanders Aye:5 - 2010-128-M112.Review and Approve Minutes: a. August 17, 2010 - Regular Session M1-Minutes-081710-Regular Session.pdfAttachments: A motion was made by Director Sanders, seconded by Director Armstrong, to approve the August 17, 2010 Regular Session minutes. The motion CARRIED unanimously. President Thomas, Vice President Moss, Secretary/Treasurer Carr, Director Armstrong, and Director Sanders Aye:5 - Reports & Updates TCMUD No. 1 176 of 187 16 Nov 2010 September 14, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes 13.Receive District Manager's Report a. Monthly Update - Water pumped vs. billed b. Monthly Update - PID Development/Homes c. Update on effects of recent storm. d. Update on High Speed Pump e. Update on new hire District Manager Scott updated the Board regarding the above items. 14.Receive Finance Director's Report a. To provide Board with a monthly update and address the Board's questions. Finance Director DuBose provided the following update to the Board: 1. With regard to PID Utility Fees, we have reached 150 permits that were going to debt service and we have begun to defer to the O&M side. We also estimate approximately 200 permits for the current fiscal year. Of the 15 for the month of August, 12 went onto Utility and Operations. 2. Debt Payments - All the wires for September 1st were made in the last week of August. 3. Finance worked with Melinda Watts Smith on the financial data for the Fire Plan to make sure all that information was correct. 4. Working on audit preparation. Interim audit begins the first of November. 5. After 14 months of vacancies in the last 18 months that DuBose has been here, Finance has hired an individual to start next monday - Michael Aguilera. Director Carr thanked Finance Director DuBose for her work on the budget, stating he enjoyed working with Finance Director DuBose. 15.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 construction of the New Fire Station. Fire Chief Thomas provided the Board with the monthly Fire Update as well as a Fire Station Construction Update. 16.Receive Town Council Update a. Councilmember Rose to provide the Board with an update of Council meetings, notices and relevant business. Council Liaison Rose provided the following update to the Board: 1. Approved subdividers plat for Final Plat for Neighborhood 8, Phase 1 located in The Highlands at Trophy Club at the northeast corner of Trophy Club Drive and Trophy Park Drive. 2. Approved the final plat for Waters Edge at Hogan's Glen, Phase 2A located in Planned Development No. 22. 3. Awarded the bid for the Safe Routes to School Project to Ken Do Contracting, LP, in an amount not to exceed $318,857.50. President Thomas asked Councilmember Rose if there was any discussion at last night's Council meeting regarding the elevated tank. Councilmember Rose advised they did not, as it was not on the agenda. TCMUD No. 1 177 of 187 16 Nov 2010 September 14, 2010Trophy Club Municipal Utility District No. 1 Meeting Minutes Review & Discuss 17.Review Monthly Tax Collection Report a. August 2010 Finance Director DuBose advised that we have collected over 100% of our collection amounts. 2010-69-M118.Set Next Meeting Date: a. Regular Session - Tuesday, October 19, 2010, 7:00 p.m. b. Joint Quarterly Meetings: i. Wednesday, November 10, 2010, 7:00 pm ii. Thursday, February 10, 2011, 7:00 pm October Calendar.pdfAttachments: The Board agreed to meet on their next regularly scheduled meeting date and time. 19.Items for Future Agendas a. Funding of Future Capital Projects; i.e., 2 MG Storage Tank b. Water Rate Study c. Disaster Planning d. Upper Trinity Ground Water Association (Sanders) 1. Municipal Water Rate for their Parks (Sanders) Adjourn Meeting adjourned at 9:00 p.m. ___________________________ James C. Thomas, President (Seal) ____________________________ Kevin R. Carr, Secretary ____________________________ Mary Moore, MUD Secretary TCMUD No. 1 178 of 187 16 Nov 2010 TCMUD No. 1179 of 18716 Nov 2010 TCMUD No. 1180 of 18716 Nov 2010 1,034,513,632 CURRENT YEAR INFORMATION Start Value Adjusted Value 1,042,252,479 StartValue 1,034,513,632 StartExemption 42,695,823 (1,312) 42,695,823 Adjusted Exemption 42,694,511 Net Value Adj 7,738,847 Net Exmp Adj Start Exemption 999,557,968 42,694,511 Adj Taxable 991,817,809 Start Value + net Value Adj 1,042,252,479 Start Exemp + Net Exmp Adj Start Taxable Actual Current Levy 42,694,511 Actual Start Levy 1,934,044.92 Actual Current Value 1,042,252,479 Actual Current Exemption 1,949,138.23 1,934,044.730.195000 Calc Start LevyRate 1,949,138.04 Calc Adj Levy 0.195000 Rate 1,949,138.23 Start + Frozen 1,934,044.92 Adj Frozen Loss Act Levy + Act Frozen 0.00 Start Frozen Loss 1,934,044.73 YEAR NET START BALANCE NET MTD ADJ NET YTD ADJ CALC BALANCE REFUNDS DUE COL %NET YTD PAIDNET MTD PAID 1994 188.57 0.00 0.000.000.00 0.00188.570.00 1995 188.57 0.00 0.000.000.00 0.00188.570.00 1996 204.24 0.00 0.000.000.00 0.00204.240.00 1997 197.44 0.00 0.000.000.00 0.00197.440.00 1998 190.62 0.00 0.000.000.00 0.00190.620.00 1999 815.32 0.00 0.000.000.00 0.00815.320.00 2000 354.22 0.00 0.000.000.00 0.00354.220.00 2001 572.09 0.00 0.000.000.00 0.00572.090.00 2002 14,974.63 0.00 1.00150.460.00 0.0014,824.17150.46 2003 327.74 0.00 0.000.000.00 0.00327.740.00 2004 424.29 0.00 0.000.000.00 0.00424.290.00 2005 611.88 68.38 0.000.0068.38 0.00680.260.00 2006 2,011.08 101.89 0.000.00101.89 0.002,112.970.00 2007 2,644.70 93.74 0.000.0093.74 0.002,738.440.00 2008 3,555.94 91.70 0.000.0091.70 0.003,647.640.00 2009 6,832.54 83.53 20.591,424.1683.53 0.005,491.911,424.16 2010 1,934,044.92 15,093.31 0.316,221.1715,093.31 0.001,942,917.066,221.17 TOTAL 1,968,138.79 15,532.55 15,532.55 7,795.79 7,795.79 1,975,875.55 0.00 Page 1 of 1 YEAR-TO-DATE SUMMARY PART C 11/2/2010 10:22 AM Tax Year = 2010 AND Year End Date = 10/31/2010 AND Month Range from 10/1/2010 to 10/31/2010 and Tax Units = TROPHY CLUB MUD #1 Denton CountyPrint Date: 67 - TROPHY CLUB MUD #1 TCMUD No. 1 181 of 187 16 Nov 2010 0 CURRENT YEAR INFORMATION Start Value Adjusted Value 0 StartValue 0 StartExemption 0 0 0 Adjusted Exemption 0 Net Value Adj 0 Net Exmp Adj Start Exemption 0 0 Adj Taxable 0 Start Value + net Value Adj 0 Start Exemp + Net Exmp Adj Start Taxable Actual Current Levy 13,888,181 Actual Start Levy 423.98 Actual Current Value 58,853,148 Actual Current Exemption 49,528.29 0.000.109140 Calc Start LevyRate 0.00 Calc Adj Levy 0.109140 Rate 49,528.29 Start + Frozen 423.98 Adj Frozen Loss Act Levy + Act Frozen 0.00 Start Frozen Loss 0.00 YEAR NET START BALANCE NET MTD ADJ NET YTD ADJ CALC BALANCE REFUNDS DUE COL %NET YTD PAIDNET MTD PAID 2009 423.98 0.00 100.00423.980.00 0.000.00423.98 TOTAL 423.98 0.00 0.00 423.98 423.98 0.00 0.00 Page 1 of 2 YEAR-TO-DATE SUMMARY PART C 10/4/2010 9:52 AM Tax Year = 2009 AND Year End Date = 9/30/2010 AND Month Range from 10/1/2009 to 9/30/2010 and Tax Units = TRCLUB PID1 EMER SRV Denton CountyPrint Date: 37 - TRCLUB PID1 EMER SRV TCMUD No. 1 182 of 187 16 Nov 2010 Page 2 of 2 YEAR-TO-DATE SUMMARY PART C 10/4/2010 9:52 AM Tax Year = 2009 AND Year End Date = 9/30/2010 AND Month Range from 10/1/2009 to 9/30/2010 and Tax Units = TRCLUB PID1 EMER SRV Denton CountyPrint Date: ALL TAX UNITS 423.98 0.00 0.00 423.98 423.98 0.00 0.00GRAND TOTAL YEAR-TO-DATE SUMMARY / PART C / GRAND TOTAL NET MTD ADJ NET YTD ADJ NET MTD PAID NET YTD PAID CALC BALANCE REFUNDS DUENET START BALANCE TCMUD No. 1 183 of 187 16 Nov 2010 119,578,766 CURRENT YEAR INFORMATION Start Value Adjusted Value 128,582,895 StartValue 119,578,766 StartExemption 15,297,912 3,302,973 15,297,912 Adjusted Exemption 18,600,885 Net Value Adj 9,004,129 Net Exmp Adj Start Exemption 109,982,010 18,600,885 Adj Taxable 104,280,854 Start Value + net Value Adj 128,582,895 Start Exemp + Net Exmp Adj Start Taxable Actual Current Levy 18,600,885 Actual Start Levy 113,926.88 Actual Current Value 128,582,895 Actual Current Exemption 120,155.38 113,926.830.109250 Calc Start LevyRate 120,155.35 Calc Adj Levy 0.109250 Rate 120,155.38 Start + Frozen 113,926.88 Adj Frozen Loss Act Levy + Act Frozen 0.00 Start Frozen Loss 113,926.83 YEAR NET START BALANCE NET MTD ADJ NET YTD ADJ CALC BALANCE REFUNDS DUE COL %NET YTD PAIDNET MTD PAID 2010 113,926.88 6,228.50 0.42516.546,228.50 0.00119,638.84516.54 TOTAL 113,926.88 6,228.50 6,228.50 516.54 516.54 119,638.84 0.00 Page 1 of 1 YEAR-TO-DATE SUMMARY PART C 11/2/2010 10:22 AM Tax Year = 2010 AND Year End Date = 10/31/2010 AND Month Range from 10/1/2010 to 10/31/2010 and Tax Units = TRCLUB PID1 EMER SRV Denton CountyPrint Date: 37 - TRCLUB PID1 EMER SRV TCMUD No. 1 184 of 187 16 Nov 2010 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-36-M1 Name: Status:Type:M1 Agenda Item Draft File created:In control:2/23/2010 Trophy Club Municipal Utility District No. 1 On agenda:Final action:8/17/2010 Title:Set Next Meeting Date: a. Tuesday, December 21, 2010 at 7:00 p.m. - Regular Session b.Joint Quarterly Meetings: ii. Tuesday, December 7th, 2010 at 6 pm iii. Wednesday, February 9, 2011 at 7 pm ~ Tentative, may want to move to March (3 months from December). Attachments:Dec 2010 Calendar.pdf Action ByDate Action ResultVer. TabledTrophy Club Municipal Utility District No. 1 3/16/2010 1 TCMUD No. 1 185 of 187 16 Nov 2010 File #: 2010-36-M1, Version: 1 Title Set Next Meeting Date: a. Tuesday, December 21, 2010 at 7:00 p.m. - Regular Session b.Joint Quarterly Meetings: ii. Tuesday, December 7th, 2010 at 6 pm iii. Wednesday, February 9, 2011 at 7 pm ~ Tentative, may want to move to March (3 months from December). TCMUD No. 1 186 of 187 16 Nov 2010 111/9/2010 3:57 PMMary MooreSMTWT F S123456789101112 13 14 15 16 17 1819 20 21 22 23 24 2526 27 28 29 30 31December 2010SMTWT F S12345678910111213141516 17 18 19 20 21 2223 24 25 26 27 28 2930 31January 2011December 2010MondayTuesdayWednesdayThursdayFridaySat/SunDecember 1AUDITORS (PS Conference Room)FINANCE - Internal (Council Chambers)27:00pmP&Z Commission (Council Chambers)345AUDITORS (PS Conference Room)6AUDITORS (PS Conference Room)7:00pmCouncil (MUD Bd Rm)79:00amManagement Team Meeting (Council Ch4:00pmPolice Chaplain Meeting (internal) 6:00pmJoint Session with MUD & Town Council 7:00pmParks & Recreation 89Christmas Party Set Up (Svore Mu10Employee Christmas Party (Svore 1112136:30pmEDC B (Svore Municipal Building Boardroom)141510:00amEAC (PS Conference Room)12:00pmCOURT (Svore Municipal Building Boardroom)167:00pmP&Z Commission (Council Chambers)171819207:00pmCouncil (MUD Bd Rm)219:00amManagement Team Meetings (PS Conference Room)7:00pmTCMUD No.1 Meeting(Svore Municipal Buildling Board Room7:00pmTrophy Club Park SubCommittee (PS Confe2223Christmas Holiday - Offices Closed24252627284:00pmTBD - ZBA (Svore Municipal Buildling Board Room)7:00pmCitizens Police Academy Alumni (Internal) (Police Dept. Training Room)293031HOLIDAY - OFFICES CLOSEDTCMUD No. 1187 of 18716 Nov 2010