HomeMy WebLinkAboutJanuary 18, 2011 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, January 18, 2011
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
Action Items:
1.2011-04-M1 Receive presentation regarding Investment Policy for Trophy Club MUD
1; discuss and take action to adopt Resolution 2011-0118, adopting MUD
Investment Policy. (Staff)
Resolution-2011-0118-InvestmentPolicy.pdf
Exhibit A-MUD Investment Policy.pdf
Attachments:
2.2011-01-M1 Discuss, review and take appropriate action to accept the FY 2010 annual
audit.
Reports & Updates
3.2011-02-M1 Receive Presentation from Mr. Jay Hartley of Wise Guys Irrigation;
discussion of same. (President Thomas)
4.2011-03-M1 Receive Update from President Thomas on Tarrant County Water
District's Water Conservation meeting; discussion of same.
5.Receive District Manager's Report
a. Monthly Update - Water pumped vs. billed
b. 4th Quarter Water / November 2010 Wastewater Report
c. Biomonitoring at Wastewater Treatment Plant
d. Update - Constellation Energy contract
e. Update - Water Plant Booster Pump
f. Update - Screen Rake Installation
g. Update - Fire Plan
h. TCEQ Response - Exception to Chloramine Rule
i. TCEQ Response - Inspection Water Plant
j. Reminder: AWBD Conference: February 4-5, 2011
TCMUD No. 1 1 of 107 18 January 2011
January 18, 2011Trophy Club Municipal Utility
District No. 1
Meeting Agenda
Water Pumped Vs Billed-Dec 2010.pdf
4th Qtr 2010 Water Report.pdf
WWTP Discharge Report November 2010.pdf
Biomonitoring Report-WWTP.pdf
TCEQ Letter - WWTP- DM's Report.pdf
TCEQ Response-ChloramineRule-Jan2011.pdf
TCEQ-Follow-Up-Investigation-Water Plant.pdf
Attachments:
6.Receive Finance Update
a. Provide monthly update and address the Board's questions.
7.Receive Fire Update from Fire Chief Thomas
a. To provide Board with a monthly update and address the Board's questions.
b. Update on construction of new Fire Station
December 2010 Fire Report.pdf
FireStation5-wkConstructionSchedule.pdf
FireStationConstructionCostsAsOf010411.pdf
Attachments:
8.Receive Town Council Update
a. Councilmember Rose to provide the Board with an update of Council meetings,
notices and relevant business.
Action Items:
9.2010-M1-150 Review and Approve Disbursements & Variance Report
a. November 2010
b. December 2010
10.2010-155-M1 Discuss and take appropriate action on future water storage
requirements. (Moss/Thomas)
Agenda Request Water Storage Moss 121610.pdf
Agenda Request Water Storage Thomas 121710.pdf
Jim Thomas - 4 Discussion-Jan Mtg.pdf
Attachments:
11.2010-156-M1 Discuss and take appropriate action regarding Order 2011-0118, the 2011
Rate Order.
M1-O-2011-0118-Rate Order-redline.pdfAttachments:
12.2010-75-M1 Discuss and take appropriate action concerning repealing Order
2009-0915, and adopting Order 2010-1214, to amend Attachment B,
Section 2, Fees and Expense Policy, and Attachment F, Rules of
Procedure.
M1-O-2010-1214-Code Of Conduct-TrackedChanges.pdf
M1-O-2010-1214-Code Of Conduct-ac.pdf
Agenda Item 15 Discussion Items-Sanders.pdf
Attachments:
TCMUD No. 1 2 of 107 18 January 2011
January 18, 2011Trophy Club Municipal Utility
District No. 1
Meeting Agenda
13.2010-154-M1 Review and Approve Minutes:
a. December 14, 2010 - Regular Session
M1-Mins-121410.pdfAttachments:
Review & Discuss
14.Set Next Meeting Date:
a. Tuesday, February 15, 2011 @ 7:00 p.m.
b. Joint Meeting Date: February 10, 2011
Feb 2011.pdfAttachments:
15.Items for Future Agendas
a. Funding of Future Capital Projects; i.e., 2 MG Storage Tank
b. Water Rate Study
c. Disaster Planning
d. Municipal Water Rate for Town Parks (Sanders)
e. Purchase of a new Ladder Truck for Fire Department. (Chief Thomas)
f. Establish an entry statute or monument for the future fire station with funding
for said item. (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 3 of 107 18 January 2011
January 18, 2011Trophy Club Municipal Utility
District No. 1
Meeting Agenda
CERTIFICATION)
THE STATE OF TEXAS)
COUNTY OF DENTON)
COUNTY OF TARRANT)
THIS CERTIFIES THAT ON FRIDAY, JANUARY 14, 2011 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, JANUARY 18, 2011, 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 BULLETIN BOARD AT A
PLACE CONVENIENT TO THE PUBLIC IN SUCH COUNTY COURTHOUSES,
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
______________________, 2011.
________________________________, Title: ___________________________
TCMUD No. 1 4 of 107 18 January 2011
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12011-04-M1 Name:
Status:Type:M1 Resolution Regular Session
File created:In control:1/11/2011 Trophy Club Municipal Utility District No. 1
On agenda:Final action:1/18/2011
Title:Receive presentation regarding Investment Policy for Trophy Club MUD 1; discuss and take action to
adopt Resolution 2011-0118, adopting MUD Investment Policy. (Staff)
Attachments:Resolution-2011-0118-InvestmentPolicy.pdf
Exhibit A-MUD Investment Policy.pdf
Action ByDate Action ResultVer.
Title
Receive presentation regarding Investment Policy for Trophy Club MUD 1; discuss and take action to
adopt Resolution 2011-0118, adopting MUD Investment Policy. (Staff)
Body
Investment Policy Summary Paragraph
It is the policy of the Trophy Club Municipal Utility District No. 1 (MUD) that after allowing for anticipated cash flow
requirements of the MUD and giving due consideration to the safety and risk of investment, all available funds shall be
invested in conformance with legal and administrative guidelines.
Effective cash management is recognized as essential to good fiscal management. Investment interest is a source of
revenue to MUD funds. The MUD’s investment portfolio shall be developed and managed in a manner designed to be
responsive to public trust, to be in compliance with legal requirements and limitations, and to maximize this revenue
source.
Investments shall be made with the primary objectives of:
1 Safety and preservation of principal
2 Maintenance of sufficient liquidity to meet operating needs
3 Public trust from prudent investment activities
4 Optimization of interest earnings on the portfolio
Thepurpose of this investment policy is to comply with Chapter 2256 of the Government Code (“Public Funds Investment
Act”), which requires the MUD to adopt a written investment policy regarding the investment of its funds and funds under
its control. The Investment Policy addresses the methods, procedures, and practices that must be exercised to ensure
effective and judicious fiscal management of MUD funds.
TCMUD No. 1 5 of 107 18 January 2011
TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1
RESOLUTION NO. 2011-0118
A RESOLUTION OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT
NO. 1 (“MUD 1”), TROPHY CLUB, TEXAS, ADOPTING A MUD 1
INVESTMENT POLICY FOR MUD 1 DISTRICT FUNDS; A COPY OF
WHICH IS ATTACHED AND INCORPORATED HEREIN AS EXHIBIT
“A”; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, it is the intention of Trophy Club Municipal District No. 1 (”MUD 1”) to
comply with state laws and regulations regarding Investment Policies for compliance with the
Public Funds Investment Act, Texas Government Code Chapter 2256. et seq.; and
WHEREAS, the Finance Department has provided MUD 1 Investment Policy, which is
subject to revisions consistent with changing laws, regulations, and the needs of MUD 1;
WHEREAS, a copy of the MUD 1 Investment Policy, is attached and incorporated into
this Resolution as Exhibit “A”, and
WHEREAS, the Board of Directors having determined that the Investment Policy,
Exhibit “A”, to be a sound plan for the District, now desires to adopt said Investment Policy.
NOW, THEREFORE, BE IT RESOLVED BY TROPHY CLUB MUNICIPAL
UTILITY DISTRICT NO. 1, TROPHY CLUB, TEXAS:
Section 1. That the foregoing recitals stated in the preamble are found to be true and
correct and are deemed incorporated into the body of this Resolution as if copied herein in their
entirety.
Section 2. That the Senior Accountant is hereby designated as MUD 1’s primary
Investment Officer to perform the functions required by the attached policy, and the Investment
Officer is hereby authorized to perform the functions required under the Investment Policy and
Chapter 2256 of the Texas Government Code.
Section 3. That the MUD Board has reviewed the attached Investment Policy, which
contains investment strategies and policies that the MUD Board has determined to be beneficial
to the District and hereby, adopts the attached Investment Policy set forth in Exhibit “A’, a copy
of which is attached hereto and incorporated herein in its entirety.
TCMUD No. 1 6 of 107 18 January 2011
Section 4. That any other Resolutions or policies inconsistent with Exhibit “A” are
hereby rescinded in their entirety.
Section 5. That this Resolution shall become effective from and after its date of passage
in accordance with law.
PASSED AND APPROVED by the Board of Directors of the Trophy Club Municipal
Utility District No. 1, Trophy Club, Texas on this the 18th day of January, 2011.
________________________________
James C. Thomas, President
(SEAL)
____________________________________
Kevin R. Carr, Secretary/Treasurer
____________________________
Mary Moore, MUD Secretary
TCMUD No. 1 7 of 107 18 January 2011
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
INVESTMENT POLICY
I. POLICY
It is the policy of the Trophy Club Municipal Utility District No. 1 (MUD) that after allowing for the
anticipated cash flow requirements of the MUD and giving due consideration to the safety and risk
of investment, all available funds shall be invested in conformance with these legal and
administrative guidelines, seeking to optimize interest earnings to the maximum extent possible.
Effective cash management is recognized as essential to good fiscal management. Investment
interest is a source of revenue to MUD funds. The MUD investment portfolio shall be designed and
managed in a manner designed to be responsive to public trust, to be in compliance with legal
requirements and limitations, and to maximize this revenue source.
Investments shall be made with the primary objectives of:
Safety and preservation of principal
Maintenance of sufficient liquidity to meet operating needs
Public trust from prudent investment activities
Optimization of interest earnings on the portfolio
II. PURPOSE
The purpose of this investment policy is to comply with Chapter 2256 of the Government Code
(“Public Funds Investment Act”), which requires the MUD to adopt a written investment policy
regarding the investment of its funds and funds under its control. The Investment Policy addresses
the methods, procedures and practices that must be exercised to ensure effective and judicious
fiscal management of MUD funds.
III. SCOPE
This Investment Policy shall govern the investment of all financial assets of the MUD. These funds
are accounted for in the Basic Financial Statements and include:
General Fund
Capital Projects Funds
Debt Service Funds, including reserves and sinking funds, to the extent not required by
law or existing contract to be kept segregated and managed separately
Any new fund created by the MUD, unless specifically exempted from this Policy by the
MUD Board of Directors (MUD Board) or by law.
The MUD consolidates fund cash balances to maximize investment earnings. Investment income
will be allocated to the various funds based on their respective participation and in accordance with
generally accepted accounting principles.
This Investment Policy shall apply to all transactions involving the financial assets and related
activity for all the foregoing funds. However, this policy does not apply to the assets administered
for the benefit of the MUD by outside agencies under deferred compensation programs.
TCMUD No. 1 8 of 107 18 January 2011
IV. INVESTMENT OBJECTIVES
The MUD shall manage and invest its cash with four primary objectives, listed in order of priority:
safety, liquidity, public trust, and yield, expressed as optimization of interest earnings. The safety of
the principal invested always remains the primary objective. All investments shall be designed and
managed in a manner responsive to the public trust and consistent with state and local law.
The MUD shall maintain a comprehensive cash management program, which includes collection of
accounts receivable, vendor payments in accordance with invoice terms, and prudent investment of
available cash. Cash management is defined as the process of managing monies in order to insure
maximum cash availability and maximum earnings on short-term investment of idle cash.
Safety [PFIA 2256.005(b)(2)]
Safety of principal is the foremost objective of the investment program. Investments shall be
undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The
objective will be to mitigate credit and interest rate risk.
Credit Risk and Concentration of Credit Risk – The MUD will minimize credit risk, the
risk of loss due to the failure of the issuer or backer of the investment, and
concentration of credit risk, the risk of loss attributed to the magnitude of investment in
a single issuer, by:
Limiting investments to the safest types of investments
Pre-qualifying the financial institutions and broker/dealers with which the MUD
will do business
Diversifying the investment portfolio so that potential losses on individual
issuers will be minimized.
Interest Rate Risk – the MUD will manage the risk that the interest earnings and the
market value of investments in the portfolio will fall due to changes in general interest
rates by limiting the maximum weighted average maturity of the investment portfolio to
365 days. In addition, the MUD will:
Structure the investment portfolio so that investments mature to meet cash
requirements for ongoing operations, thereby avoiding the need to liquidate
investments prior to maturity.
Invest operating funds primarily in certificates of deposit, shorter-term
securities, money market mutual funds, or local government investment pools
functioning as money market mutual funds.
Diversify maturities and staggering purchase dates to minimize the impact of
market movements over time.
Liquidity [PFIA 2256.005(b)(2)]
The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may
be reasonably anticipated. This is accomplished by structuring the portfolio so that investments
mature concurrent with cash needs to meet anticipated demands. Because all possible cash
demands cannot be anticipated, a portion of the portfolio will be invested in shares of money market
mutual funds or local government investment pools that offer same-day liquidity. In addition, a
portion of the portfolio will consist of securities with active secondary or resale markets.
TCMUD No. 1 9 of 107 18 January 2011
Public Trust
All participants in the MUD’s investment process shall seek to act responsibly as custodians of the
public trust. The investment officer shall avoid any transaction that might impair public confidence
in the MUD’s ability to operate effectively.
Yield (Optimization of Interest Earnings) [PFIA 2256.005(b)(3)]
The investment portfolio shall be designed with the objective of attaining a market rate of return
throughout budgetary and economic cycles, taking into account the investment risk constraints and
liquidity needs. Return on investment is of secondary importance compared to the safety and
liquidity objectives described above.
V. INVESTMENT STRATEGY STATEMENTS
The MUD portfolio will be structured to benefit from anticipated market conditions and to achieve a
reasonable return. Relative value among asset groups shall be analyzed and pursued as part of
the investment program within the restrictions set forth by the Investment Policy.
The MUD maintains portfolios which utilize four specific investment strategy considerations
designed to address the unique characteristics of the fund groups represented in the portfolios.
Operating Funds
Suitability - All investments authorized in the Investment Policy are suitable for Operating
Funds.
Preservation and Safety of Principal - All investments shall be high quality securities with no
perceived default risk.
Liquidity - Investment strategies for the pooled operating funds have as their primary objective
to assure that anticipated cash flows are matched with adequate investment liquidity. The
dollar-weighted average maturity of operating funds, based on the stated final maturity date of
each security, will be calculated and limited to one year or less. Constant $1 net asset value
investment pools and money market mutual funds shall be an integral component in
maintaining daily liquidity. Investments for these funds shall not exceed an 18-month period
from date of purchase.
Marketability - Securities with active and efficient secondary markets will be purchased in the
event of an unanticipated cash requirement.
Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows
based on anticipated needs. Investment risks will be reduced through diversification among
authorized investments.
Yield - The MUD’s objective is to attain a competitive market yield for comparable securities and
portfolio constraints. The benchmark for Operating Funds shall be the 91 day Treasury bill.
Reserve and Deposit Funds
Suitability - All investments authorized in the Investment Policy are suitable for Reserve and
Deposit Funds.
TCMUD No. 1 10 of 107 18 January 2011
Preservation and Safety of Principal - All investments shall be high quality securities with no
perceived default risk.
Liquidity - Investment strategies for reserve and deposit funds shall have as the primary
objective the ability to generate a dependable revenue stream to the appropriate reserve fund
from investments with a low degree of volatility. Except as may be required by the bond
ordinance specific to an individual issue, investments should be of high quality, with short-to-
intermediate-term maturities. The dollar-weighted average maturity of reserve and deposit
funds, based on the stated final maturity date of each security, will be calculated and limited to
two years or less.
Marketability - Securities with active and efficient secondary markets will be purchased in the
event of an unanticipated cash requirement.
Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows
based on anticipated needs. Investment risks will be reduced through diversification among
authorized investments.
Yield - The MUD’s objective is to attain a competitive market yield for comparable securities and
portfolio constraints. The benchmark for Reserve and Deposit Funds shall be the ninety-one
(91) day Treasury Bill.
Bond and Certificate Capital Project Funds and Special Purpose Funds
Suitability - All investments authorized in the Investment Policy are suitable for Bond and
Certificate Capital Project Funds and Special Purpose Funds.
Preservation and Safety of Principal - All investments shall be high quality securities with no
perceived default risk.
Liquidity - Investment strategies for bond and certificate capital project funds, special projects
and special purpose funds portfolios will have as their primary objective to assure that
anticipated cash flows are matched with adequate investment liquidity. The stated final maturity
dates of investments held should not exceed the estimated project completion date or a
maturity of no greater than three years. The dollar-weighted average maturity of bond and
certificate capital project funds and special purpose funds, based on the stated final maturity
date of each security, will be calculated and limited to two years or less.
Marketability - Securities with active and efficient secondary markets will be purchased in the
event of an unanticipated cash requirement.
Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows
based on anticipated needs. Investment risks will be reduced through diversification among
authorized investments.
Yield - The MUD’s objective is to attain a competitive market yield for comparable securities and
portfolio constraints. The benchmark for Bond and Certificate Capital Project Funds and
Special Purpose Funds shall be the ninety-one (91) day Treasury Bill. A secondary objective of
these funds is to achieve a yield equal to or greater than the arbitrage yield of the applicable
bond or certificate.
Debt Service Funds
Suitability - All investments authorized in the Investment Policy are suitable for Debt Service
Funds.
TCMUD No. 1 11 of 107 18 January 2011
Preservation and Safety of Principal - All investments shall be high quality securities with no
perceived default risk.
Liquidity - Investment strategies for debt service funds shall have as the primary objective the
assurance of investment liquidity adequate to cover the debt service obligation on the required
payment date. Securities purchased shall not have a stated final maturity date which exceeds
the debt service payment date. The dollar-weighted average maturity of debt service funds,
based on the stated final maturity date of each security, will be calculated and limited to one
year or less.
Marketability - Securities with active and efficient secondary markets will be purchased in the
event of an unanticipated cash requirement.
Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows
based on anticipated needs. Investment risks will be reduced through diversification among
authorized investments.
Yield - The MUD’s objective is to attain a competitive market yield for comparable securities and
portfolio constraints. The benchmark for Debt Service Funds shall be the ninety-one (91) day
Treasury Bill.
VI. RESPONSIBILITY AND CONTROL
Delegation of Authority [PFIA 2256.005(f)]
In accordance with the MUD and the Public Funds Investment Act, the MUD Board designates the
Senior Accountant as the MUD’s Investment Officer. The Investment Officer is authorized to
execute investment transactions on behalf of the MUD and may designate a secondary investment
officer to act in his/her absence. No other person may engage in an investment transaction or the
management of the MUD funds except as provided under the terms of this Investment Policy. The
investment authority granted to the investing officer is effective until rescinded.
Quality and Capability of Investment Management [PFIA 2256.005(b)(3)]
The MUD shall provide periodic training in investments for the designated investment officers and
other investment personnel through courses and seminars offered by professional organizations,
associations, and other independent sources in order to insure the quality and capability of
investment management in compliance with the Public Funds Investment Act.
Training Requirement [PFIA 2256.008 – Local Governments]
In accordance with the MUD and the Public Funds Investment Act, designated Investment Officers
shall attend an investment training session no less often than once every two years and shall
receive not less than 10 hours of instruction relating to investment responsibilities. A newly
appointed Investment Officer must attend a training session of at least 10 hours of instruction within
twelve months of the date the officer took office or assumed the officer’s duties. The investment
training session shall be provided by an independent source. For purposes of this policy, an
“independent source” from which investment training shall be obtained shall include a professional
organization, an institution of higher education or any other sponsor other than a business
organization with whom the MUD may engage in an investment transaction.
TCMUD No. 1 12 of 107 18 January 2011
Internal Controls (Best Practice)
The Investment Officer is responsible for establishing and maintaining an internal control structure
designed to ensure that the assets of the MUD are protected from loss, theft, or misuse. The
internal control structure shall be designed to provide reasonable assurance that these objectives
are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not
exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires
estimates and judgments by management.
Accordingly, the Investment Officer shall establish a process for annual independent review by an
external auditor to assure compliance with policies and procedures. The internal controls shall
address the following points.
Control of collusion.
Separation of transactions authority from accounting and record keeping.
Custodial safekeeping.
Avoidance of physical delivery securities.
Clear delegation of authority to subordinate staff members.
Written confirmation for telephone (voice) transactions for investments and wire transfers.
Development of a wire transfer agreement with the depository bank or third party custodian.
Investment Policy Certification [PFIA 2256.005(k-l)]
All investment providers, including financial institutions, banks, money market mutual funds, and
local government investment pools, must sign a certification acknowledging that the organization
has received and reviewed the MUD’s Investment Policy and that reasonable procedures and
controls have been implemented to preclude investment transactions that are not authorized by the
MUD’s policy.
Prudence [PFIA 2256.006]
The standard of prudence to be applied by the Investment Officer shall be the “prudent investor”
rule. This rule states that “Investments shall be made with judgment and care, under circumstances
then prevailing, which persons of prudence, discretion and intelligence exercise in the management
of their own affairs, not for speculation, but for investment, considering the probable safety of their
capital as well as the probable income to be derived.” In determining whether an Investment Officer
has exercised prudence with respect to an investment decision, the determination shall be made
taking into consideration:
The investment of all funds, or funds under the MUD’s control, over which the officer
had responsibility rather than a consideration as to the prudence of a single investment.
Whether the investment decision was consistent with the written approved investment
policy of the MUD.
Indemnification
The Investment Officer, acting in accordance with written procedures and exercising due diligence,
shall not be held personally responsible for a specific investment’s credit risk or market price
changes, provided that these deviations are reported immediately and the appropriate action is
taken to control adverse developments.
TCMUD No. 1 13 of 107 18 January 2011
Ethics and Conflicts of Interest [PFIA 2256.005(i)]
Officers and employees involved in the investment process shall refrain from personal business
activity that would conflict with the proper execution and management of the investment program, or
that would impair their ability to make impartial decisions. Employees and Investment Committee
(see Section XIII) members shall disclose any material interests in financial institutions with which
they conduct business. They shall further disclose any personal financial/investment positions that
could be related to the performance of the investment portfolio. Employees and Investment
Committee members shall refrain from undertaking personal investment transactions with the same
individual with which business is conducted on behalf of the MUD.
An Investment Committee member of the MUD who has a personal business relationship with an
organization seeking to sell an investment to the MUD shall file a statement disclosing that personal
business interest. An Investment Committee member who is related within the second degree by
affinity or consanguinity to an individual seeking to sell an investment to the MUD shall file a
statement disclosing that relationship. A statement required under this subsection must be filed
with the Texas Ethics Commission and the MUD Board.
VII. SUITABLE AND AUTHORIZED INVESTMENTS
Portfolio Management
The MUD currently has a “buy and hold” portfolio strategy. Maturity dates are matched with cash
flow requirements and investments are purchased with the intent to be held until maturity.
However, investments may be liquidated prior to maturity for the following reasons:
An investment with declining credit may be liquidated early to minimize loss of principal.
Cash flow needs of the MUD require that the investment be liquidated.
Investments [PFIA 2256.005(b)(4)(A)]
MUD funds governed by this Policy may be invested in the instruments described below, all of
which are authorized by Chapter 2256 of the Government Code (Public Funds Investment Act).
Investment of MUD funds in any instrument or security not authorized for investment under the Act
is prohibited. The MUD will not be required to liquidate an investment that becomes unauthorized
subsequent to its purchase.
I. Authorized
1. Obligations of the United States of America, its agencies and instrumentalities.
2. Certificates of Deposit issued by a depository institution that has its main office or a
branch office in Texas. The certificate of deposit must be guaranteed or insured by the
Federal Deposit Insurance Corporation or its successor or the National Credit Union
Share Insurance Fund or its successor and secured by obligations in a manner and
amount as provided by law. In addition, certificates of deposit obtained through a
depository institution that has its main office or a branch office in Texas and that
contractually agrees to place the funds in federally insured depository institutions in
accordance with the conditions prescribed in Section 2256.010(b) of the Public Funds
Investment Act are authorized investments.
TCMUD No. 1 14 of 107 18 January 2011
3. Fully collateralized direct repurchase agreements with a defined termination date
secured by obligations of the United States or its agencies and instrumentalities. These
shall be pledged to the MUD, held in the MUD’s name, and deposited at the time the
investment is made with the MUD or with a third party selected and approved by the
MUD. Repurchase agreements must be purchased through a primary government
securities dealer, as defined by the Federal Reserve, or a financial institution doing
business in Texas. A Master Repurchase Agreement must be signed by the
bank/dealer prior to investment in a repurchase agreement. All repurchase agreement
transactions will be on a delivery vs. payment basis. Securities received for repurchase
agreements must have a market value greater than or equal to 102 percent at the time
funds are disbursed. (Sweep Accounts and/or Bond Proceeds)
4. Money Market Mutual funds that: 1) are registered and regulated by the Securities and
Exchange Commission, 2) have a dollar weighted average stated maturity of 90 days or
less, 3) seek to maintain a net asset value of $1.00 per share, and 4) are rated AAA by
at least one nationally recognized rating service.
5. Local government investment pools, which 1) meet the requirements of Chapter
2256.016 of the Public Funds Investment Act, 2) are rated no lower than AAA or an
equivalent rating by at least one nationally recognized rating service, and 3) are
authorized by resolution or ordinance by the MUD Board. In addition, a local
government investment pool created to function as a money market mutual fund must
mark its portfolio to the market daily and, to the extent reasonably possible, stabilize at
$1.00 net asset value.
All prudent measures will be taken to liquidate an investment that is downgraded to less than the
required minimum rating. (PFIA 2256.021) Additionally, the MUD is not required to liquidate
investments that were authorized at the time of purchase. (PFIA 2256.017)
II. Not Authorized [PFIA 2256.009(b)(1-4)]
Investments including interest-only or principal-only strips of obligations with underlying mortgage-
backed security collateral, collateralized mortgage obligations with an inverse floating interest rate
or a maturity date of over 10 years are strictly prohibited.
VIII. INVESTMENT PARAMETERS
Maximum Maturities [PFIA 2256.005(b)(4)(B)]
The longer the maturity of investments, the greater their price volatility. Therefore, it is the MUD’s
policy to concentrate its investment portfolio in shorter-term securities in order to limit principal risk
caused by changes in interest rates.
The MUD attempts to match its investments with anticipated cash flow requirements. The MUD will
not directly invest in securities maturing more than two years from the date of purchase; however,
the above-described obligations, certificates, or agreements may be collateralized using longer
dated investments.
Because no secondary market exists for repurchase agreements, the maximum maturity shall be
120 days except in the case of a flexible repurchase agreement for bond proceeds. The maximum
maturity for such an investment shall be determined in accordance with project cash flow
projections and the requirements of the governing bond ordinance.
TCMUD No. 1 15 of 107 18 January 2011
The composite portfolio will have a weighted average maturity of 365 days or less. This dollar-
weighted average maturity will be calculated using the stated final maturity dates of each security.
[PFIA 2256.005(b)(4)(C)]
Diversification [PFIA 2256.005(b)(3)]
The MUD recognizes that investment risks can result from issuer defaults, market price changes or
various technical complications leading to temporary illiquidity. Risk is managed through portfolio
diversification that shall be achieved by the following general guidelines:
Limiting investments to avoid overconcentration in investments from a specific issuer or
business sector (excluding U.S. Treasury securities and certificates of deposit that are fully
insured and collateralized in accordance with state and federal law),
Limiting investment in investments that have higher credit,
Investing in investments with varying maturities, and
Continuously investing a portion of the portfolio in readily available funds such as local
government investment pools (LGIPs), money market funds or overnight repurchase
agreements to ensure that appropriate liquidity is maintained in order to meet ongoing
obligations.
IX. SELECTION OF BANKS AND DEALERS
Depository
At least every five years a Depository shall be selected through the MUD’s banking services
procurement process, which shall include a formal request for proposal (RFP). The selection of a
depository will be determined by competitive bid and evaluation of bids will be based on the
following selection criteria:
The ability to qualify as a depository for public funds in accordance with state law.
The ability to provide requested information or financial statements for the periods
specified.
The ability to meet all requirements in the banking RFP.
Complete response to all required items on the bid form
Lowest net banking service cost, consistent with the ability to provide an appropriate
level of service.
The credit worthiness and financial stability of the bank.
Authorized Brokers/Dealers [PFIA 2256.025]
The MUD Investment Committee (see Section XIII) shall, at least annually, review, revise, and
approve a list of qualified broker/dealers and financial institutions authorized to engage in securities
transactions with the MUD. Those firms that request to become qualified bidders for securities
transactions will be required to provide a completed broker/dealer questionnaire that provides
information regarding creditworthiness, experience and reputation, and certification stating the firm
has received, read and understood the MUD’s investment policy and agree to comply with the
policy. Authorized firms may include primary dealers or regional dealers that qualify under
Securities & Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule), and qualified
depositories. All investment providers, including financial institutions, banks, money market mutual
funds, and local government investment pools, must sign a certification acknowledging that the
organization has received and reviewed the MUD’s investment policy and that reasonable
procedures and controls have been implemented to preclude investment transactions that are not
authorized by the MUD’s policy. [PFIA 2256.005(k-l)]
TCMUD No. 1 16 of 107 18 January 2011
Competitive Bids
It is the policy of the MUD to require competitive bidding for all individual security purchases and
sales except for: a) transactions with money market mutual funds and local government investment
pools and b) treasury and agency securities purchased at issue through an approved broker/dealer
or financial institution. The Investment Officer shall develop and maintain procedures for ensuring a
competition in the investment of the MUD’s funds.
Delivery vs. Payment [PFIA 2256.005(b)(4)(E)]
Securities shall be purchased using the delivery vs. payment method with the exception of
investment pools and mutual funds. Funds will be released after notification that the purchased
security has been received.
TCMUD No. 1 17 of 107 18 January 2011
X. CUSTODIAL CREDIT RISK MANAGEMENT
Safekeeping and Custodial Agreements
The MUD shall contract with a bank or banks for the safekeeping of securities either owned by the
MUD as part of its investment portfolio or held as collateral to secure demand or time deposits.
Securities owned by the MUD shall be held in the MUD’s name as evidenced by safekeeping
receipts of the institution holding the securities.
Collateral for deposits will be held by a third party custodian designated by the MUD and pledged to
the MUD as evidenced by safekeeping receipts of the institution with which the collateral is
deposited. Original safekeeping receipts shall be obtained. Collateral may be held by the
depository bank’s trust department, a Federal Reserve bank or branch of a Federal Reserve bank,
a Federal Home Loan Bank, or a third party bank approved by the MUD.
Collateral Policy [PFCA 2257.023]
Consistent with the requirements of the Public Funds Collateral Act, it is the policy of the MUD to
require full collateralization of all MUD funds on deposit with a depository bank, other than
investments. In order to anticipate market changes and provide a level of security for all funds, the
collateralization level will be 102% of market value of principal and accrued interest on the deposits
or investments less an amount insured by the FDIC. At its discretion, the MUD may require a higher
level of collateralization for certain investment securities. Securities pledged as collateral shall be
held by an independent third party with whom the MUD has a current custodial agreement. The
Investment Officer is responsible for entering into collateralization agreements with third party
custodians in compliance with this Policy. The agreements are to specify the acceptable
investment securities for collateral, including provisions relating to possession of the collateral, the
substitution or release of investment securities, ownership of securities, and the method of valuation
of securities. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the
MUD and retained. Collateral shall be reviewed at least monthly to assure that the market value of
the pledged securities is adequate.
Collateral Defined
The MUD shall accept only the following types of collateral:
Obligations of the United States or its agencies and instrumentalities
Direct obligations of the state of Texas or its agencies and instrumentalities
Collateralized mortgage obligations directly issued by a federal agency or instrumentality of the
United States, the underlying security for which is guaranteed by an agency or instrumentality of
the United States
Obligations of states, agencies, counties, cities, and other political subdivisions of any state
rated as to investment quality by a nationally recognized rating firm not less than A or its
equivalent with a remaining maturity of ten (10) years or less
A surety bond issued by an insurance company rated as to investment quality by a nationally
recognized rating firm not less than A
A letter of credit issued to the MUD by the Federal Home Loan Bank
TCMUD No. 1 18 of 107 18 January 2011
Subject to Audit
All collateral shall be subject to inspection and audit by the Investment Officer or his/her designee,
including the MUD’s independent auditors.
XI. PERFORMANCE
Performance Standards
The MUD’s investment portfolio will be managed in accordance with the parameters specified within
this Policy. The portfolio shall be designed with the objective of obtaining a rate of return through
budgetary and economic cycles, commensurate with the investment risk constraints and the cash
flow requirements of the MUD.
Performance Benchmark
It is the policy of the MUD to purchase investments with maturity dates coinciding with cash flow
needs. Through this strategy, the MUD shall seek to optimize interest earnings utilizing allowable
investments available on the market at that time. Market value will be calculated on a quarterly
basis on all securities owned and compared to current book value. The MUD’s portfolio shall be
designed with the objective of regularly meeting or exceeding the average rate of return on U.S.
Treasury Bills at a maturity level comparable to the MUD’s weighted average maturity in days.
XII. REPORTING (PFIA 2256.023)
Methods
The Investment Officer shall prepare an investment report on a quarterly basis that summarizes
investment strategies employed in the most recent quarter and describes the portfolio in terms of
investment securities, maturities, and shall explain the total investment return for the quarter.
The quarterly investment report shall include a summary statement of investment activity prepared
in compliance with generally accepted accounting principals. This summary will be prepared in a
manner that will allow the MUD to ascertain whether investment activities during the reporting
period have conformed to the Investment Policy. The report will be provided to the MUD Board.
The report will include the following:
A listing of individual securities held at the end of the reporting period.
Unrealized gains or losses resulting from appreciation or depreciation by listing the
beginning and ending book and market value of securities for the period.
Additions and changes to the market value during the period.
Average weighted yield to maturity of portfolio as compared to applicable benchmark.
Listing of investments by maturity date.
Fully accrued interest for the reporting period
The percentage of the total portfolio that each type of investment represents.
Statement of compliance of the MUD’s investment portfolio with state law and the
investment strategy and policy approved by the MUD Board.
An independent auditor will perform a formal annual review of the quarterly reports with the results
reported to the governing body [PFIA 2256.023(d)].
TCMUD No. 1 19 of 107 18 January 2011
13
Monitoring Market Value [PFIA 2256.005(b)(4)(D)]
Market value of all securities in the portfolio will be determined on a quarterly basis. These values
will be obtained from a reputable and independent source and disclosed to the governing body
quarterly in a written report.
XIII. INVESTMENT COMMITTEE
Members
An Investment Committee, consisting of the District Manager, the MUD Board Secretary/Treasurer,
the Investment Officer/Senior Accountant, and a Secondary Investment Officer, shall review the
MUD’s investment strategies and monitor the results of the investment program at least quarterly.
This review can be done by reviewing the quarterly written reports and by holding committee
meetings as necessary. The committee will be authorized to invite other advisors to attend
meetings as needed.
Scope
The Investment Committee shall include in its deliberations such topics as economic outlook,
investment strategies, portfolio diversification, maturity structure, potential risk to the MUD’s funds,
evaluation and authorization of broker/dealers, rate of return on the investment portfolio, and review
of compliance with the investment policy. The Investment Committee will also advise the MUD
Board of any future amendments to the Investment Policy that are deemed necessary or
recommended.
Procedures
The Investment Policy shall require the Investment Committee to provide minutes of investment
information discussed at any meetings held. The committee shall meet at least annually to discuss
the investment program and policy.
XIV. INVESTMENT POLICY ADOPTION [PFIA 2256.005(e)]
The MUD’s Investment Policy shall be adopted by resolution of the MUD Board. It is the MUD’s
intent to comply with state laws and regulations. The MUD’s Investment Policy shall be subject to
revisions consistent with changing laws, regulations, and the needs of the MUD. The MUD Board
shall adopt a resolution stating that it has reviewed the policy and investment strategies not less
than annually, approving any changes or modifications.
TCMUD No. 1 20 of 107 18 January 2011
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12011-01-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:1/11/2011 Trophy Club Municipal Utility District No. 1
On agenda:Final action:1/18/2011
Title:Discuss, review and take appropriate action to accept the FY 2010 annual audit.
Attachments:
Action ByDate Action ResultVer.
Title
Discuss, review and take appropriate action to accept the FY 2010 annual audit.
Body
Audit Committee met on Wednesday, January 12th, and will provide an update to the Board at the
meeting.
TCMUD No. 1 21 of 107 18 January 2011
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12011-02-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:1/11/2011 Trophy Club Municipal Utility District No. 1
On agenda:Final action:1/18/2011
Title:Receive Presentation from Mr. Jay Hartley of Wise Guys Irrigation; discussion of same. (President
Thomas)
Attachments:
Action ByDate Action ResultVer.
Title
Receive Presentation from Mr. Jay Hartley of Wise Guys Irrigation; discussion of same. (President Thomas)
Body
Wise Guys will give the Board a Power Point Presentation on their services
TCMUD No. 1 22 of 107 18 January 2011
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12011-03-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:1/11/2011 Trophy Club Municipal Utility District No. 1
On agenda:Final action:1/18/2011
Title:Receive Update from President Thomas on Tarrant County Water District's Water Conservation
meeting; discussion of same.
Attachments:
Action ByDate Action ResultVer.
Title
Receive Update from President Thomas on Tarrant County Water District's Water Conservation
meeting; discussion of same.
TCMUD No. 1 23 of 107 18 January 2011
October November December January February March April May June July August Septembe 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 70,502 50,909 44,365 165,776
Totals 385,474 286,467 219,675 189,124 152,337 169,606 226,660 231,654 368,472 464,134 530,735 394,906 3,619,244
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 70,502 50,993 44,220 165,715
Totals 387,830 295,907 225,706 184,954 165,899 189,260 241,406 274,400 392,300 487,518 527,775 378,598 3,751,553
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
TCMUD No. 1 24 of 107 18 January 2011
TCMUD No. 125 of 10718 January 2011
Discharge Number:001-A
Avg Max Units Min Avg Max Units
Oxygen, dissolved
(DO)
Sample
Measurement ******************6.7 ************(19) 0
Twice /
Week Grab
00300 1 0
Effluent Gross Value
Permit
Requirement ******************
6.0
Mo ************MG/L
Twice /
Week Grab
pH Sample
Measurement ******************7.6 ******7.8 (12) 0 Weekly Grab
00400 1 0
Effluent Gross Value
Permit
Requirement ******************
6.0
Mo ******
9.0
Min SU Weekly Grab
Solids, total
suspended
Sample
Measurement 4.5 ************1 3.7 (19) 0
Twice /
Week Compos
00530 1 0
Effluent Gross
Permit
Requirement
175
Daily
Avg ************
12 Daily
Avg
40 Daily
Max MG/L
Twice/
Week Compos
Nitrogen, ammonia
total (as N)
Sample
Measurement 0.88 ************0.18 0.37 (19) 0
Twice /
Week Compos
00610 1 0
Effluent Gross
Permit
Requirement
44 Daily
Avg ************
3.0
Daily
Avg
10
Daily
Max MG/L
Twice/
Week Compos
Nitrogen, Nitrate
Total (As N)
Sample
Measurement 107.96 ************22.5 28 (19) 0 Weekly Compos
00620 1 0
Effluent Gross Value
Permit
Requirement
350
Daily
Avg ************
24 Daily
Avg
51
7 Day
Avg MG/L Weekly Compos
Flow, in conduit or
thru treatment plant
Sample
Measurement 0.5697 0.662 ************************0
Continu-
ous Total Z
50050 P 0 0
Effluent Gross
Permit
Requirement ******
2431
2hr
Peak ************************
Continu-
ous Total Z
Flow, in conduit or
thru treatment plant
Sample
Measurement ******1823 ************************0
Continu-
ous Total Z
50050 Y 0 0
Annual Average
Permit
Requirement
1.75
Annl Avg ******************************
Continu-
ous Total Z
Flow, in conduit or
thru treatment plant
Sample
Measurement 0.6929 ******************************0
Continu-
ous Total Z
50050 1 0 0
Effluent Gross Value
Permit
Requirement
Report
Daily
Avg
Report
Daily
Avg ************************
Continu-
ous Total Z
Coliform, Fecal
General
Sample
Measurement ************************12.7 26.05 (13)0 Daily Grab
74055 1 0
Effluent Gross Value
Permit
Requirement ************************
200 DA
OEOAV
400
7DAV
QEO
100
ML Daily Grab
BOD,
Carbonaceious 05
Day, 20C
Sample
Measurement 12.4 ************2.6 4.5 (19) 0
Twice/
Week Compos
80082 1 0 0
Effluent Gross Value
Permit
Requirement
73 Daily
Avg ************
5 Daily
Avg
20
Daily
Mx MG/L
Twice/
Week Compos
Discharge Monitoring Report
Monitoring Period:
Parameter
Quantity or Loading Quantity or Concentration
No.
Ex
Frequency
of Analysis
Sample
Type
Nov-10
1
2
3
(26)
LBS /
DY
4
(26)
LBS /
DY
5
(26)
LBS /
DY
6 (03)
MGD
7 (03)
MGD
8 (03)
MGD
9
10
(26)
LBS /
DY
TCMUD No. 1 26 of 107 18 January 2011
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TCMUD No. 150 of 10718 January 2011
Cost of Project$2,486,500.00Year‐To‐Date ‐ Legal$2,864.25Year‐To‐Date ‐ Engineering$63,336.08Year to Date ‐ Bonds/CO Issuance Cost$80,908.82Year‐To‐Date Temp Housing & Storage$84,236.84Start/Anticipated End DateMisc. Subtotal$231,345.99Cost of Project$2,486,500.00Running TotalReed Engineering Group - 10/21/10-11/17/10$2,599.20Year‐To‐Date ‐ Legal$2,864.25$2,483,635.75BRW - 12/3/10 - Invoice 210-11046$4,465.35Year‐To‐Date ‐ Engineering$63,336.08$2,420,299.67Year to Date ‐ Bonds/CO Issuance Cost$80,908.82$2,339,390.85Year‐To‐Date Temp Housing & Storage$84,236.84$2,255,154.01Misc. Subtotal$231,345.99Contractor's App for Payment No. 1$68,305.00$2,186,849.01Contractor's App for Payment No. 1$68,305.00To June 30, 2010$2,418,195.00Contractor's App for Payment No. 2$60,705.00Contractor's App for Payment No. 2$60,705.00$2,126,144.01Contractor's App for Payment No. 3$76,716.44To July 31, 2010$2,357,490.00Contractor's App for Payment No. 4$91,506.50Contractor's App for Payment No. 3$76,716.44$2,049,427.57Contractor's App for Payment No. 5$210,102.26To August 31, 2010$2,280,773.56Contractor's App for Payment No. 6$192,565.15Contractor's App for Payment No. 4$91,506.50$1,957,921.07Contractor's App for Payment No. 7$78,568.60To September 30, 2010$2,189,267.06Paid to Date Subtotal:$778,468.95Contractor's App for Payment No. 5$210,102.26$1,747,818.81Contingency Expenditure No. 001$39,263.60To October 30, 2010$1,979,164.80Contingency Expenditure No. 002no costContractor's App for Payment No. 6$192,565.15$1,555,253.66Contingency Expenditure No. 003$8,030.00To November 30, 2010$1,786,599.65Contingency Expenditure No. 004$9,371.03Contractor's App for Payment No. 7$78,568.60$1,476,685.06To December 30, 2010$1,708,031.05Contingency Expenditure No. 001$39,263.60$1,437,421.46Contingency Expenditure No. 002no costTotal Contingencies Paid to Date:$56,664.63Contingency Expenditure No. 003$8,030.00$1,429,391.46Contingency Expenditure No. 004$9,371.03$1,420,020.43Total Contingencies Paid to Date:$56,664.63Cost of Project$2,486,500.00Total Construction Paid to Date - :$835,133.58Year to Date ‐ Construction Apps $778,468.95Total Misc Paid to Date:$231,345.99Total Contingencies Paid to Date:$56,664.63GRAND TOTAL PAID TO DATE: $1,066,479.57Misc. Subtotal$231,345.99Cost of Project$2,486,500.00GRAND Total Paid To Date:$1,066,479.57Balance Remaining - 01/04/11$1,420,020.43Balance Remaining - 12/13/10$1,420,020.43New Trophy Club Fire StationNew Trophy Club Fire StationNew Trophy Club Fire StationMay 2010 ‐ Spring/Summer 20118101 Valcasi Drive, Suite 101, Arlington TX 76001 ‐ 817‐572‐55502700 Earl Rudder Freeway So., Suite 4000, College Station, Texas 77845 ‐ (979) 694‐1791Lot 1, Block 1, MUD No. 1 Complex Addition ‐ 295 Trophy Club Drive, Trophy Club, TX 76262Contractor: Prime ConstructionArchitect: BRW Architects ‐ Ray Holliday, Matt Faulkner TCMUD No. 151 of 10718 January 2011
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-M1-150 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:12/15/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:1/18/2011
Title:Review and Approve Disbursements & Variance Report
a. November 2010
b. December 2010
Attachments:
Action ByDate Action ResultVer.
Title
Review and Approve Disbursements & Variance Report
a. November 2010
b. December 2010
Body
TCMUD No. 1 52 of 107 18 January 2011
PLEASE NOTE: The bulk of the November and December 2010 Monthly Financials
may be found under separate cover as "Supplementals" (Same online location as
Agenda and Packet). These "bulk" financials are separated from the packet due to
the sheer volume of each of the financials and the size of the packet.
Renae will be forwarding to you under separate cover the "Summary" Financials for
November and December 2010.
TCMUD No. 1 53 of 107 18 January 2011
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-155-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:12/17/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:1/18/2011
Title:Discuss and take appropriate action on future water storage requirements. (Moss/Thomas)
Attachments:Agenda Request Water Storage Moss 121610.pdf
Agenda Request Water Storage Thomas 121710.pdf
Jim Thomas - 4 Discussion-Jan Mtg.pdf
Action ByDate Action ResultVer.
Title
Discuss and take appropriate action on future water storage requirements. (Moss/Thomas)
Body
Directors Moss and Thomas have both requested discussion and action regarding the issue of Water
Storage. See attached emails for further details.
TCMUD No. 1 54 of 107 18 January 2011
Mary Moore
From: mossjames-888@sbcglobal.net
Sent: Thursday, December 16, 2010 1:15 PM
To: Robert Scott
Subject: Ground Storage Tanks
Page 1 of 1
12/17/2010
Robert,
It is my belief that we should avoid all the complications of our
combining with the Town on increasing water storage. We should
proceed with the plan of adding 10 feet to our existing storage
tanks as soon as possible using the money left over from the Fire
Station.
It is too uncertain that the Town will have the money for the
elevated tank anyway and the legal problems are too complex.
I would like to see a decision on this made at our next meeting.
Would you please put this on the agenda for action?
Jim Moss
TCMUD No. 1 55 of 107 18 January 2011
Mary Moore
From: jimthomas7777@aol.com
Sent: Friday, December 17, 2010 12:45 AM
To: Mary Moore
Subject: Re: See attachment.
Page 1 of 1
12/17/2010
Agenda item: Discuss and take appropriate action on future water storage requirements.
Mary, this "open-ended" language would allow us to discuss any and all options (another tank, expand
existing tanks, 2M gallon water tank, etc.). "Action" could mean anything as well - vote to expand tanks,
give direction to staff to work with city on elevated tank, etc.
Jim
In a message dated 12/15/2010 9:47:51 A.M. Central Standard Time, mmoore@ci.trophyclub.tx.us
writes:
Thanks, Jim, I have added it as backup for January’s meeting. Do you have the verbiage for
the agenda item so we may discuss?
g{tÇ~ çÉâ4
`tÜç
ATTENTION PUBLIC OFFICIALS
Please note that any correspondence, such as e-mail or letters, sent to MUD staff or MUD officials may become a public record and made
available for Public/media review. Also, a “Reply to All” of this e-mail could lead to violations of the Texas Open Meetings Act. Please
reply only to the sender.
From: jimthomas7777@aol.com [mailto:jimthomas7777@aol.com]
Sent: Tuesday, December 14, 2010 10:21 PM
To: Mary Moore
Subject: See attachment.
IMPORTANT WARNING: This message is intended for the use of the person or entity to which it is
addressed and may contain information that is privileged and confidential, the disclosure of which is
governed by applicable law. If the reader of this message is not the intended recipient, or the employee
or agent responsible to deliver it to the intended recipient, you are hereby notified that any
dissemination, distribution, or copying of this information is STRICTLY PROHIBITED.[v:102105]
TCMUD No. 1 56 of 107 18 January 2011
MUD1 Meeting – December 14, 2010
Considerations Concerning Need for Additional Water Storage
Assumptions & Approximations:
- 2M additional gallons of water storage is needed as soon as possible.
- A 2M gallon storage tank or a 2M gallon elevated water tank will both accomplish this need.
- Land for an additional 2M storage tank is currently a problem.
- One viable solution may be to swap land with the PID/City and build a storage tank at the same site for
the new elevated water tower.
- Cost for a 2M gallon storage tank at the new site would be $1.7M and 2 pumps would be required which
would cost an additional $.5M - for a total expense of $2.2M.
- Another viable option is to add 2M gallons of water storage to existing tanks by raising their height 12
feet – total cost of $1.23M.
- A 2M gallon elevated tank would cost $2.7M, split 50/50 between MUD1 and the PID/Town for a total
expense of $1.35M to MUD1.
- Ownership of the elevated tank would be based on the % of funds each entity provided for the
construction of the elevated tank (MUD / PID / Town) – if this is possible.
- Anticipated that a 3-year 3% loan can be obtained for the $1.35M.
- A $2M elevated water tower would cost $120K more versus adding the 12 feet of height to existing
tanks; but would give us the water storage capacity we need short-term, plus the ability to expand the
tanks in future years by an additional 2M gallons if needed.
- A 3-year bank loan for $1.35M at 3% interest would result in an interest expense of $40K / year for each
of the 3 years for a total expense of $1.35M + $120K or $1.47M.
- MUD1 finalizes payments on a major bond on September 1, 2011 resulting in a reduction in bonded
expense of $659,622 or a 6 cent tax reduction ($110,000 of revenue is raised with 1 cent of taxation.
Conclusion:
- A 2M gallon elevated tank appears to be the most feasible alternative for additional water storage; for
both short and long-term needs.
- MUD1 could lower its taxes for 2011-2012 (next year) another 1 cent and still have $550,000 available
annually to pay off a 3-year bank note. (5 cents X $110K per cent of taxation).
- $1.47M / $550K = 2.67 years to pay off a bank note.
- Three years from the start of expenses for a new elevated tank, MUD1 could reconsider if a new water
well is required as more PID homes should be on the ground – and Solana may even have added
additional buildings – plus the front entrance may be underway; all giving us a better picture of future
water requirements.
- We could then consider the options of another bank loan or bonding to pay for this debt, or any other
debt deemed necessary at that time.
- Applying these 5 cents to the elevated storage tank would mean that we possibly could not assume
ownership of EMS next year without a subsequent raise in MUD1 taxes, estimated to be 5 cents for
MUD1 to cover the cost for EMS.
- Unless the Town would agree to lower its tax base by whatever amount MUD1 has to apply, it may not
be financially feasible for MUD1 to assume the EMS department and its expenses next year.
- If the town would agree, it would be a tax-wash to our residents and we probably should go forward
with the idea.
- If the town so chose not to reduce the full 7 cents it pays for EMS today, it would potentially have 2
cents of taxable dollars to fund other projects it requires, without raising its taxes to do so.
TCMUD No. 1 57 of 107 18 January 2011
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-156-M1 Name:
Status:Type:M1 Order Regular Session
File created:In control:12/30/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:1/18/2011
Title:Discuss and take appropriate action regarding Order 2011-0118, the 2011 Rate Order.
Attachments:M1-O-2011-0118-Rate Order-redline.pdf
Action ByDate Action ResultVer.
Title
Discuss and take appropriate action regarding Order 2011-0118, the 2011 Rate Order.
Body
The following changes have occurred, requiring approval of a new Rate Order:
1. Reflect increased cost for Water Meters from $256.00 to $292.00.
2. Reflect increase cost for Accuracy Reading Fee from $80.00 to $125.00.
The following are for Board's consideration and input:
3. Under ARTICLE III SERVICE POLICY, Paragraph B - Residential Owners. Do we want to include
language addressing those homeowners who continually pay late, and request an increase in their
deposit amount?
4. Under ARTICLE III SERVICE POLICY, Paragraph C - Residential Leasees. Do we want to include
language addressing those renters who continually pay late, and request an increase in their deposit
amount?
TCMUD No. 1 58 of 107 18 January 2011
20110 RATE ORDER
TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1
ORDER No. 20110-091-184
AN ORDER ESTABLISHING POLICIES, PROCEDURES, AND
RATES FOR WATER AND SEWER SERVICE; PROVIDING FEES
FOR CONNECTION, RECONNECTION, INSPECTION,
ACCURACY READINGS, AND RETURNED CHECKS;
REQUIRING DEPOSITS FOR SERVICE; PROVIDING A PENALTY
FOR DELINQUENT PAYMENTS; AND CONTAINING OTHER
PROVISIONS RELATING TO THE SUBJECT.
WHEREAS, Trophy Club Municipal Utility District No. 1 (the “District”) is
the owner and/or operator of a water and sewer system designed to serve
present and future inhabitants within the District and the Trophy Club
development; and
WHEREAS, the District’s most recent Rate Order was adopted on
September 145, 20109 (the “2009-2010 Rate Order”), several additional
modifications are needed at this time, and the District desires to establish all of
its rate policies in a single new Rate Order; and
WHEREAS, the Board of Directors of the District has carefully considered
the terms of this 20110 Rate Order and is of the opinion that the following
conditions and provisions should be established as the policies, procedures, and
rates for obtaining service from the District’s water and sewer system;
THEREFORE, IT IS ORDERED BY THE BOARD OF DIRECTORS OF
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 THAT:
ARTICLE I
TAP FEES AND CONNECTION POLICY
Section 1.01. Initiation of Water and Sanitary Sewer Connections.
Each person desiring a water and sanitary sewer service connection to the
District’s System shall be required to pay such fees as set forth in this Order. No
service shall be established or re-established until such fees are paid. All service
connections are subject to all other rules, regulations, and policies of the District.
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A. Certification of System. Connections shall not be made to
the District’s System or portions of the System until the District’s engineer
or Water/Wastewater Superintendent has certified that the System or
applicable portion thereof is operable.
B. Backflow Prevention. No water connections from any public
drinking water supply system shall be allowed to any commercial
establishment where an actual or potential contamination hazard exists
unless the public water facilities are protected from contamination.
At any commercial establishment where an actual or potential
contamination hazard exists, protection shall be required at the meter in
the form of a backflow prevention assembly. The type of assembly
required shall be the one known as “Reduced Pressure Zone” (RPZ)
unless otherwise specified by the District through its Superintendent.
The existence of potential contamination hazards without installation
having been made of the means of control and prevention as set out in the
preceding paragraph; or, the same having been installed, there is a failure
to properly maintain the same, shall be considered sufficient grounds for
immediate termination of water service. Service can be restored only
when the health hazard no longer exists, or when the health hazard has
been isolated from the public water system in accordance with the
foregoing requirements.
All backflow prevention assemblies that are required according to this
section shall be tested upon installation by a recognized backflow
prevention assembly tester and certified to be operating within
specifications. Backflow prevention assemblies that are installed to
provide protection against health hazards must also be tested and certified
to be operating within specifications at least annually by a recognized
backflow prevention assembly tester.
The Customer shall, at his expense, properly install, test, and maintain
any backflow prevention device required by this Rate Order. Copies of all
testing and maintenance records shall be provided to the MUD not later
than a date to be fixed by the MUD.
If the Customer fails to comply with the terms of this Order, the MUD shall,
at its option, either terminate service or properly install, test, and maintain
an appropriate backflow prevention device at the service connection. Any
expenses associated with the enforcement of this agreement shall be
billed to the Customer.
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C. Availability of Access/Obstructions. By application for
connection to the District’s System, the Customer shall be deemed to be
granting to the District and its representatives a right of ingress and egress
to and from the meter or point of service for such installation, maintenance
and repair as the District, in its judgment, may deem reasonably
necessary. The Customer shall also be deemed to be granting to the
District and its representatives a right of ingress and egress to the
Customer’s property, including the exterior of the Customer’s premises, for
the purpose of performing the inspections and completing the Customer‘s
Service Inspection Certifications required by the District’s rules and
regulations. Taps and connections will not be made when, in the opinion
of the District, building materials or other debris obstructs the work area or
the work area is not completed or finished to grade. When sidewalks,
driveways or other improvements have been constructed prior to
application for service, such application shall be construed and accepted
as the Customer’s waiver of a claim for any damages to such
improvements resulting from the reasonable actions of the District in
installation of the connection.
Section 1.02. Residential Fire Lines, Connections, and Fees. A
residence of six-thousand (6,000) square feet and less than eight-thousand
(8,000) square feet shall have installed on its one-inch (1”) water service line, for
fire protection, and as part of said line, a one-inch (1”) U-branch, with a separate
meter and meter-box. The cost of said U-branch, meter, and meter-box shall be
in the amount of five-hundred-twenty-five dollars ($525.00), payable at the time
of permitting.
A residence of more than eight-thousand (8,000) square feet, in addition
to its regular one-inch (1”) water service line, shall have installed a separate one-
and one-half inch (1½”) water service line for fire protection with its own meter
and meter-box. The cost of connection and installation of said separate line,
meter and meter-box shall be either nine-hundred-seventy-five dollars ($975.00)
if the home is on the same side of the street as the waterline; or, if it is on the
opposite side of the street from the waterline, necessitating boring, then the
charge shall be two-thousand-three-hundred-fifty dollars ($2,350.00), payable at
the time of permitting.
Section 1.03. Connections by District. All connections to the
District’s sewer system shall be made in accordance with the District’s Plumbing
Code and its rules and regulations. No person except the District Manager or
his/her authorized agent shall be permitted to tap or make any connection to the
mains or distribution piping of the District’s water system, except for emergency
firefighting purposes, or make any repairs or additions to or alterations in any
meter, box, tap, pipe, cock or other fixture connected with the water service or
any manhole, main, trunk or appurtenance of the District’s sanitary sewer
system, unless otherwise specified by the Board of Directors of the District. No
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sewer connection shall be covered in the ground before a representative of the
District has inspected the sewer connection. No house lead shall be covered in
the ground before the water connection has been inspected and approved by a
licensed plumbing inspector with jurisdiction of the site.
Section 1.04. Inspections and Fees. Fees for permits and for
plumbing inspections (other than for sewer and backflow inspections referred to
below in subparagraphs A and B) should be paid to the city or town in which the
property is located or to the District if the property is not located within a city or
town.
A. Sewer Inspection and Fees. Sewer connections and house
service lines shall be inspected by the District. An inspection fee of one-
hundred-fifty dollars ($150.00) shall be paid to the District for each
connection to the District sanitary sewer system. Installations that fail to
conform at any time to the rules and regulations shall be disconnected.
Any customer whose connection is disconnected for such failure shall be
notified as to the basis for such disconnection. After noted deficiencies
have been corrected, a re-inspection shall be made upon payment to the
District of a re-inspection fee of twenty-five dollars ($25.00), plus payment
by the customer of all outstanding charges. If subsequent re-inspections
are required before the sewer connection and service lines are in
compliance with the rules and regulations, a re-inspection fee of twenty-
five dollars ($25.00) shall be paid to the District for each subsequent re-
inspection. Re-inspections by the District requested after regular business
hours will be charged at a minimum of one-hundred dollars ($100.00).
B. Backflow Inspections. For all backflow installations
(residential and commercial) inspected by the personnel of the District, an
inspection fee of fifty dollars ($50.00) shall be paid to the District.
Inspections that fail to conform at any time to the rules and regulations
shall be disconnected. Any customer whose connection is disconnected
for such failure shall be notified as to the basis for such disconnection.
After noted deficiencies have been corrected, a re-inspection shall be
made upon payment to the District of a re-inspection fee of twenty-five
dollars ($25.00), plus payment by the customer of all outstanding charges.
If subsequent re-inspections are required, a re-inspection fee of twenty-
five dollars ($25.00) shall be paid to the District for each subsequent re-
inspection. Re-inspections by the District requested after regular business
hours will be charged at a minimum of one-hundred dollars ($100.00).
C. Swimming Pool Discharge into Sanitary Sewer System. Any
backwash or drainage from a swimming pool shall discharge into the
sanitary sewer system. An indirect connection shall be made by means of
an air break, discharging into a tailpiece installed a minimum of six inches
(6”) (or 152 mm) above adjacent grade. The tailpiece shall be connected
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to a minimum three-inch (3” or 76 mm) p-trap not less than twelve inches
(12” or 304 mm) below grade which discharges into the yard cleanout
riser. Backwash systems shall not flow onto neighboring properties or into
the storm sewer. The tie-in and inspection fee shall be seventy-five
dollars ($75.00) to be paid at the time of issuance of the pool permit.
Section 1.05. Temporary Water Service.
A. Construction Meters. The District shall be authorized to
make a temporary connection to any fire hydrant or flushing valve upon
request for temporary water service. All temporary service shall be
metered and billed to the temporary customer as provided herein. All
unauthorized withdrawal of water from flushing valves, fire hydrants, or
other appurtenances of the District’s System without prior approval of the
District, except for emergency fire-fighting purposes, is prohibited.
B. Application and Deposit. Each temporary customer desiring
temporary water service shall be required to execute an application for
such temporary service and shall provide a minimum security deposit of
one-thousand-seven-hundred-seventy-five dollars ($1,775.00) for a three-
inch (3”) meter and RPZ; six-hundred-fifty dollars ($650.00) for a smaller
meter and smaller RPZ. The deposit shall be made by cashier’s check or
money order payable to the District. The deposit shall be used by the
District to secure the payment for temporary water supplied by the District,
the installation fee, and the cost of repair of any damages caused by the
temporary customer. The balance of the security deposit, if any, shall be
refunded after disconnection from the District’s System.
C. Fees and Rates. A fee of one-hundred dollars ($100.00) for
costs of installation, plus the cost of the metered water, shall be charged
for temporary water service. The following rate for the sale of water for
each temporary water service connection shall be in effect from the
effective date hereof until such time as the Board amends said rate:
Gallons Used Rate
Any amount $3.44 per each 1,000 gallons
D. Temporary Meter Use Constraints. To avoid damages
resulting from freezing weather, all temporary construction and irrigation
meters shall be removed from fire hydrants at the end of each day and no
later than 4:00 p.m. beginning November 1 and through the following
March 15. Any irrigation and/or construction meter found still attached to
a fire hydrant after 4 p.m. beginning November 1 and through the following
March 15, will be removed at a service charge fee of seventy-five dollars
($75.00). Should any irrigation and/or construction meter attached to a
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fire hydrant cause damage as a result of being attached to a meter during
freezing conditions beginning November 1 and through the following
March 15, renter will be responsible for all costs associated with repair of
damaged fire hydrant, to include labor costs.
Section 1.06. Service Outside the District. The rates and charges
stated in this Rate Order are for service to customers and property located within
the boundaries of the District. Any service to a customer or property located
outside the boundaries of the District shall be granted only upon special approval
by the Board of Directors of the District. Unless other provisions are established
by a special contract approved by the Board of Directors of the District, any
service to customers or property outside the boundaries of the District shall be at
the same rates and terms as specified in this Rate Order, except that regular
charges for water, sewer, and tap charges shall be doubled.
Service to Trophy Club Park at Lake Grapevine is specifically exempted
from the doubling provision of the preceding paragraph.
Section 1.07. Water Meter and Water Tap Fees.
Domestic one-inch (1”) meter: $
256292.00
Fee for MUD-made Water Tap: $1,000.00
Inspection Fee for Water Tap: $ 50.00
The one-thousand-dollar ($1,000.00) fee must be received by the District
before any residential connection is initially made by MUD personnel to the
District’s water system, which includes the cost for a one-inch (1”) meter.
When taps have been made by someone other than MUD personnel,
there is an installation/inspection fee of fifty dollars ($50.00) plus the cost of the
appropriate meter.
Any request by a customer for service from an oversized connection line
or from a meter larger than a one-inch (1”) standard meter shall be granted by
the District only if the customer agrees and makes suitable arrangements to pay
the increased costs for such larger line and/or meter as set out above in
Paragraph 1.02.
Each customer requesting an initial connection to the District’s Water
System shall also pay to the District the cost required to be paid by the District to
the City of Fort Worth as a “water impact fee” or “water access fee” for the
additional customer connection to the Fort Worth Water System.
Section 1.08. Sewer Tap Fees. The charge for all taps of sewer
lines within the District shall be equal to the cost to the District for making such
connections.
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Section 1.09. Title to Facilities. Title to all water meters, water and
sewer taps, and all other appurtenances, including meter boxes, shall lie in the
District.
ARTICLE II
SERVICE RATES
Section 2.01. Water Service. The following monthly rates for the
sale of water shall be in effect for each Separate Connection within the District
from the effective date hereof until such time as the Board of Directors amends
said rates:
A. Chemically Treated Water. Water from the District’s facilities
which has been mixed, chlorinated, or otherwise treated so that it is
suitable for human use and consumption shall be at the following rates:
(1) Single-Family Homes. Each single family home shall
be billed as follows:
Basic Charge Fee (Does not include water usage) $12.71
0-6,000 gallons per month $2.48/1,000 gallons
7,000 to 12,000 gallons per month $3.00/1,000 gallons
13,000 to 25,000 gallons per month $3.23/1,000 gallons
26,000 to 50,000gallons per month $3.34/1,000 gallons
51,000 plus gallons per month $3.44/1,000 gallons
(2) Commercial. Each business service connection shall
be deemed to be a single-family home for purposes of water
service.
(3) Clubs. Each club shall be deemed to be a single-
family home for purposes of water service.
(4) Golf Course. Each meter shall be deemed to be a
single-family home for the purposes of water service.
(5) Multi-Family Buildings.
(i) Single Meter. Each multi-family building or
complex of buildings which is served by a single
meter shall be billed for water at the same rate as a
single-family home, with a Basic Charge Fee of
$12.71 times the number of units in the building or
complex.
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(ii) Multiple Meters. If a multi-family building or
complex of buildings is served by more than one
meter, then water delivered through each meter shall
be billed at the same rate as a single family home,
with a Basic Charge Fee of $12.71 times the number
of units served by the meter.
(6) Public Access Parks. Any water or sewer services
utilized by the Town of Trophy Club in public access parks
for the operation and maintenance of such parks will be
billed at the in-district rate. Such water and sewer services
shall be for the benefit of the residents of the Town of Trophy
Club. Use for any other purpose shall require the services to
be billed at double the rate.
Section 2.02. Sewer Service Rates. The following monthly rates for the
collection and disposal of sewage shall be in effect for each Separate Connection
within the District from the effective date hereof until such time as the Board of
Directors amends said rates:
A. Single-Family Homes and Cottages. Each single-family home
and cottage shall be billed based upon the treated water used by such unit
that month, as follows:
Basic Charge Fee (Does not include sewer usage) $12.71
0-6,000 gallons per month $2.48/1,000 gallons
7,000-12,000 gallons per month $3.00/1,000 gallons
12,000 gallons maximum per month for residential
B. Commercial Buildings (including Clubs). Each commercial
building shall be billed for sewer service at the same rate as single-family
homes, based on the treated water used by such unit that month as
follows:
Basic Charge Fee (Does not include sewer usage) $12.71
0-6,000 gallons per month $2.48/1,000 gallons
7,000-12,000 gallons per month $3.00/1,000 gallons
13,000-25,000 gallons per month $3.23/1,000 gallons
26,000-plus gallons per month $3.34/1,000 gallons
51,000 plus gallons per month $3.44/1,000 gallons
C. Multi-Family Buildings. Each unit in a multi-family building or
complex of buildings shall be billed at the same rate as a single-family
home, with a Basic Charge Fee of $12.71 times the number of units in the
building or complex.
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Section 2.03. Golf Course Irrigation Water to the Lakes / Effluent Charge.
The effluent from the District’s wastewater treatment plant will be sold pursuant
to separate contracts entered into with the District and approved by its Board of
Directors. The District has contracted to sell effluent to the Trophy Club Country
Club and discharge said effluent into golf course lakes at a charge of sixty cents
($0.60) per thousand gallons for the years 2009-2011. Effective May 1, 2011
and continuing through April 30, 2013, the charge shall be $0.65 per thousand
gallons. Effective May 1, 2013 and continuing through April 30, 2015, the charge
shall be $0.70 per thousand gallons.
In addition to water usage charges, when the customer requests fresh
water on the day that established the District’s peak draw from the City of Fort
Worth, the customer shall be required to pay its respective portion of any
demand rate and/or minimal payment rate as specified in the District’s wholesale
water supply contract with the City of Fort Worth. However, if the customer’s
demand is absorbed by the District with no additional charges from Fort Worth,
the District may in its discretion waive the demand and/or minimal payment
charges to the customer.
Section 2.04. Stand-by Charge. For those lots subject to recorded
restrictive covenants that require or authorize the District to charge a stand-by
fee for water and sewer service where the lot has water and sewer service
available but the lot is not yet connected to the District’s system, the stand-by fee
shall be six dollars ($6.00) per month. Unless otherwise provided by the terms of
the recorded restrictive covenant applicable to a particular lot, the stand-by
charge shall commence on the first day of the month following the date upon
which water and sewer service is available at the property line of the lot and the
charge shall cease on the first day of the month preceding the date upon which
water and sewer use charges become due and payable to the District for water
and sewer service supplied to the lot.
Section 2.05. Master Meter (Cooling Tower Calculation).
The water usage from the master meter reading less the
reading from the “Blow Down” meter equals the
“evaporation.” Water usage less “evaporation” equals
sewer usage for billing purposes.
Section 2.06. Regulatory Assessment. Pursuant to Section 5.235, Texas
Water Code, and 30 TAC291.76, the District shall pay a regulatory assessment
to the Texas Commission on Environmental Quality (“TCEQ”) annually in the
amount required by law on the total charges for retail water and sewer service
billed to its customers annually.
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At the end of each year, the District shall prepare a written statement
indicating (i) the total charges for retail water and sewer service for the year and
(ii) the regulatory assessment due and payable to the TCEQ.
Section 2.07. No Reduced Rates or Free Service. All customers
receiving water and/or sewer service from the District shall be subject to the
provisions of this Order and shall be charged the rates established in this Order,
and no reduced rate or free service shall be furnished to any customer whether
such user be a charitable or eleemosynary institution, a political subdivision, or
municipal corporation; provided, however, this provision shall not prohibit the
District from establishing reasonable classifications of customers for which rates
differing from the rates stated herein may be adopted.
ARTICLE III
SERVICE POLICY
Section 3.01. Security Deposits. Security deposits shall be required as
follows:
A. Builder’s Deposit A seventy-five dollar ($75.00) security
deposit shall be required of builders for each tap made by the District for
such service connection, payable at or prior to the time that such tap is
made, and the security deposit is refundable to the builder when the
account is later transferred to an owner if that account and all other
accounts of the builder are current at the time of the transfer; but, if that
account or any other account of the same builder is not current at the time
of such transfer to an owner, then the security deposit shall be applied
against the outstanding balance of the builder’s account(s) at the time of
such transfer. The District shall deduct from the deposit the cost to repair
any damage caused to the District’s property by the builder or the builder’s
employees, contractors, subcontractors or agents and shall deduct any
delinquent water and sewer service bills of the builder. In the event any
amounts are so deducted from the builder’s deposit, it will be incumbent
on the builder to reinstate the original amount of the deposit, and failure to
do so will result in the suspension of any additional water taps for the
builder.
B. Residential Owners. A security deposit of fifty dollars
($50.00) shall be required from each residential owner customer for a
single-family home connected to the District’s system. The security
deposit is refundable to the customer when the account is later closed if
that account is current at the time it is closed. However, if the account is
not current at the time it is closed, then the security deposit shall be
applied against the outstanding balance of the customer’s account at that
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time. (Do we want to include language addressing those individuals who
continually pay late, and request an increase in their deposit amount?)
C. Residential Lessees. A security deposit of one-hundred-fifty
dollars ($150.00) shall be required from each residential lessee customer
for a single-family home. (Do we want to include language addressing
those individuals who continually pay late, and require an
increase/additional deposit amount?)
D. Construction Meters. See Paragraph 1.05 above.
E. Other customers. A security deposit equal to two months’
estimated average monthly water and sewer bill shall be required of all
other customers.
F. Deposits. Currently, the MUD/District does not pay
interest on deposits. The interest drawn by the MUD/District on customer
deposits is returned into the operating budget of the water/sewer fund to
help in providing the lowest possible water and sewer rates for our
customers.
Section 3.02. Billing Procedures. All accounts shall be billed in
accordance with the following:
A. Due Date and Delinquency. Charges for water service,
sewer service, and standby fees shall be billed monthly. Payment shall be
due on or before the twentieth (20th) day of the month in the month in
which the bill was received. Unless payment is received on or before the
twentieth (20th) day of the month, such account shall be considered
delinquent. If the due date falls on a holiday or weekend, the due date for
payment purposes shall be the next working day after the due date. The
District shall charge a penalty on past due accounts calculated at the rate
of ten percent (10%) per month on water, sewer and standby charges.
The rates for water and sewer service shall depend upon the type of user
and upon whether the water used has been chemically treated, as
provided in this Rate Order. All accounts not paid by the due date shall be
deemed delinquent and failure to make payment thereafter may result in
the termination of water and sewer service.
B. Notice and Appeal. Prior to termination of service, a
customer who is delinquent in payment shall be sent a notice that service
will be discontinued on or after the fifteenth (15th) day after the date of
such notice unless payment in full is received before by such day
disconnection is scheduled. Notice shall be sent by first class United
States mail and shall inform the customer of the amount of the delinquent
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bill, the date service will be disconnected if payment is not made, and of
the customer’s right to contest, explain, or correct the charges, services,
or disconnection. Service shall not be disconnected where a customer
has informed the District of his or her desire to contest or explain his bill.
If the customer appears before the Board, in person or by written
correspondence, the Board shall hear and consider the matter and inform
the customer of the Board’s determination by sending written notice to the
customer by first class United States mail stating whether or not service
will be disconnected. If service is disconnected, it shall be reconnected
only upon payment in full of all amounts due, including any late charges,
penalties, and the security deposit set out in Section 3.01. If payment is
not received prior to the date that disconnection has been scheduled, a
service charge of twenty-five ($25.00) will be added to the account.
Reconnections made outside of the District’s normal business hours at the
customer’s request will be charged at an additional after hour’s fee of one-
hundred dollars ($100.00).
C. Business Hours. For purposes of assessing the foregoing
charges, “normal” or ”regular” business hours shall mean only the hours
between 8 a.m. and 5 p.m., Monday through Friday, and between 7 a.m.
and 9 a.m. Saturdays, Sundays, and Holidays. All other times are outside
of the District’s normal business hours and will result in the higher charge.
D. Returned Checks. A twenty-five dollar ($25.00) charge will
be charged to the customer’s account for any check returned by the bank.
Any amounts due on an account which have been paid with a check that
has been returned by the bank must be paid in full by cash, cashier’s
check or money order, including all late charges and returned check
charges, within five (5) days from the day the District hangs a notice on
the customer’s door or otherwise notified the customer that the check has
been returned by the bank.
E. Confidentiality Request. A one-time charge of five dollars
($5.00) shall be made on each confidentiality request as set forth in H.B.
859.
F. Same-Day Service. An additional charge of twenty-five
dollars ($25.00) shall be made on customer requested same-day service.
As an example, this charge will be implemented upon request by a
customer for same-day service to start or terminate water and sewer
service or to perform re-reads the same day as requested.
G. Accuracy Reading Fee. A meter accuracy reading fee in
the amount of ten dollars ($10.00) shall be charged to a customer by the
District for each meter accuracy reading made by the District for such
customer when the original reading appears to be accurate. If the original
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meter reading appears to be in error, no fee will be charged. Each
customer will be allowed one accuracy meter reading per calendar year at
no charge. Should a customer request that the meter accuracy reading be
made by an outside source, then a fee of eighty ($80.00)one-hundred
twenty-five dollars ($80125.00) will be charged to the customer. If the
original meter reading is found to be in error, then the customer will be
given a credit offsetting the amount of the charge.
Section 3.03. Entitlement. Customers are not guaranteed a specific
quantity or pressure of water or specific capacity in sewer facilities for any
purpose whatsoever; furthermore, in no instance shall the District be liable for
failure or refusal to furnish water or any particular amount or pressure of water or
to provide capacity in sewer facilities.
Section 3.04. Unauthorized and Extraordinary Waste. The rates
established herein are applicable for Domestic Waste as defined herein.
Customers proposing to generate other types of waste will be assessed
additional charges as established by the District.
Section 3.05. Damage to District Facilities.
A. Damage to Meter and Appurtenances. No person other than
a duly authorized agent of the District shall open a meter box, tamper with
or in any way interfere with a meter, meter box, service line or other water
and/or sewer system appurtenance. The District reserves the right,
immediately and without notice, to remove the meter or disconnect water
service to any customer whose meter has been tampered with and to
assess repair charges to the customer, plus a damage fee not to exceed
five-thousand dollars ($5,000.00), plus any applicable charge for same
day service.
B. Repair. It shall be the responsibility of each customer to
maintain the water and sewer lines from the point of connection to the
District’s water and sewer system to the building served. The District
reserves the right to repair any damage to the District’s System and
appurtenances without prior notice and to assess against any customer
such penalties as are provided by law and such penalties provided for in
this Rate Order in addition to those charges necessary to repair the
portion of the System so damaged.
C. Video. If at any time a resident/customer wishes to have the
District video their sewer line to help the resident determine the condition
of their sewer line, the fee will be one-hundred-fifty dollars ($150.00)
payable to the District assessed on the next month’s bill.
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Section 3.06. Requested Temporary Disconnection. If service is
temporarily disconnected at the customer’s request, the charge for such
voluntary disconnection shall be ten dollars ($10.00), and the charge for
subsequently reconnecting the service shall also be ten dollars ($10.00). These
charges apply to connects and disconnects that are completed during normal
business hours.
Section 3.07. Easements. Before service is begun to any customer,
or once begun before reconnection is made, the person requesting such service
shall grant an easement of ingress and egress to and from the meter(s) for such
maintenance and repair as the District, in its judgment, may deem necessary.
Section 3.08. Required Service. No service will be given from the
District’s water and sewer system unless the customer agrees to take both water
and sewer service, except that permanent irrigation only services may receive
water only, and projects under construction may, if they wish, receive water
service only during the period of such construction.
Section 3.09. Additional Charges. In all cases where services are
performed for and equipment or supplies are furnished to a party or entity not
within MUD 1, the charge to said party or entity shall be the MUD’s cost of
providing such services, equipment and/or supplies, plus fifteen percent (15%).
This shall not apply to services; equipment and/or supplies furnished by MUD 1
under an existing Interlocal Agreement nor to the rates MUD 1 charges for out-of-
district water and sewer service.
ARTICLE IV
INDUSTRIAL WASTE
Section 4.01. Policy. The following policy regarding industrial
waste shall be effective:
A. Definition. “Industrial waste” shall mean the water-borne
solids, liquids, and/or gaseous wastes (including Cooling Water), resulting
from any industrial, manufacturing, trade, business, commercial, or food
processing operation or process, or from the development of any natural
resource, or any mixture of such solids, liquids, or wastes with water or
domestic sewage. The Clean Water Act of 1977, as amended, and the
General Pretreatment Regulations contained in 40 C.F.R. §403 contain
the requirements for user’s discharge of industrial waste into wastewater
facilities.
B. Industrial Waste Discharge-Charges and Rates. If any
customer of the District’s sanitary sewer system proposes to discharge
industrial waste into such system, the Board of Directors of the District
shall request the recommendation of the District Engineer and shall
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establish rates and charges to provide for an equitable assessment of
costs whereby such rates and charges for discharges of industrial waste
correspond to the cost of waste treatment, taking into account the volume
and strength of the industrial, domestic, commercial waste, and all other
waste discharges treated and techniques of the treatment required. Such
rates shall be an equitable system of cost recovery which is sufficient to
produce revenues, in proportion to the percentage of industrial wastes
proportionately relative to the total waste load to be treated by the District
for the operation and maintenance of the treatment works, for the
amortization of the District’s indebtedness for the cost as may be
necessary to assure adequate waste treatment on a continuing basis.
C. Pretreatment. The Board of Directors of the District shall
rely upon the recommendation of the District Engineer and shall require
pretreatment of any industrial waste that would otherwise be detrimental to
the treatment works or to its proper and efficient operation and
maintenance or will otherwise prevent the entry of such industrial waste
into the treatment plant.
ARTICLE V
ENFORCEMENT/CIVIL PENALTIES
Section 5.01. Enforcement.
A. Civil Penalties. The Board hereby imposes the following civil
penalties for breach of any rule of the District: The violator shall pay the
District twice the costs the District has sustained due to the violation up to
five-thousand dollars ($5,000.00). A penalty under this Section is in
addition to any other penalty provided by the laws of this State and may
be enforced by complaints filed in the appropriate court of jurisdiction in
the county in which the District’s principal office or meeting place is
located. If the District prevails in any suit to enforce its rules, it may, in the
same action, recover any reasonable fees for attorneys, expert witnesses,
and other costs incurred by the District before the court. The court shall
fix the amount of the attorneys’ fees.
B. Liability for Costs. Any person violating any of the provisions
of this Order and/or the rules and regulations governing water and sanitary
sewer facilities, service lines, and connections shall become liable to the
District for any expense, loss or damage occasioned by the District by
reason of such violation, and enforcement thereof shall be in accordance
with Paragraph A of Section 5.01 of this Order.
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Section 5.02. Non-waiver. The failure on the part of the District to
enforce any section, clause, sentence, or provision of this Order shall not
constitute a waiver of the right of the District later to enforce any section, clause,
sentence, or provision of this Order.
Section 5.03. Appeal. Any determination by the District of any
dispute regarding the terms and provisions of this order may be appealed to the
Board of the District, which shall conduct a hearing on the matter. The District
shall provide the customer with information regarding appeals and hearing
procedures upon the customer’s request.
ARTICLE VI
MISCELLANEOUS
Section 6.01. Amendments. The Board of the District has and
specifically reserves the right to change, alter or amend any rate or provision of
this Order at any time.
Section 6.02. Severability. The provisions of this Order are
severable, and if any provision or part of this Order or the application thereof to
any person or circumstance shall ever be held by any court of competent
jurisdiction to be invalid or unconstitutional for any reason, the remainder of this
Order and application of such provision or part of this Order shall not be affected
thereby.
Section 6.03. Headings. The section and paragraph headings used
herein are for reference only and are not to be construed as part of the text of the
section or paragraph.
ARTICLE VII
REPEAL OF PREVIOUS ORDERS
This Rate Order shall be known as the “20110 Rate Order” (Order 20110-
09140118) of the District. All previous Orders adopted by the Board of Directors
pertaining to the subject matter hereof are each hereby repealed in their entirety
as of the effective date hereof.
ARTICLE VIII
EFFECTIVE DATE
This Order shall be effective OctoberFebruary 1, 20110.
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ARTICLE IX
PUBLIC MEETING
It is hereby found that the meeting at which this Order is adopted is open
to the public as required by law, and that public notice of the time, place, and
subject matter of said meeting and of the proposed adoption of this Order was
given as required by law.
PASSED, ADOPTED, ORDERED, AND APPROVED this 184th day of
September 2010January 2011.
_________________________________
James C. Thomas, President
(SEAL)
____________________________________
Kevin R. Carr, Secretary/Treasurer
____________________________
Mary Moore, MUD Secretary
TCMUD No. 1 75 of 107 18 January 2011
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:12/14/2010
Title:Discuss and take appropriate action concerning repealing Order 2009-0915, and adopting Order 2010
-1214, to amend Attachment B, Section 2, Fees and Expense Policy, and Attachment F, Rules of
Procedure.
Attachments:M1-O-2010-1214-Code Of Conduct-TrackedChanges.pdf
M1-O-2010-1214-Code Of Conduct-ac.pdf
Agenda Item 15 Discussion Items-Sanders.pdf
Action ByDate Action ResultVer.
Trophy Club Municipal Utility
District No. 1
12/14/2010 1
Discussion only - No action takenTrophy Club Municipal Utility
District No. 1
6/15/2010 1
Title
Discuss and take appropriate action concerning repealing Order 2009-0915, and adopting Order 2010-
1214, to amend Attachment B, Section 2, Fees and Expense Policy, and Attachment F, Rules of
Procedure.
.Body
Excerpt from draft minutes of November 16, 2010 MUD 1 meeting:
Director Sanders requested that we not approve tonight. Sanders felt that some items he felt should be
included were not addressed. Sanders requested more time to review. With regard to payment of Directors'
fees, Sanders would prefer to change 30 days to 60 days. Sanders requested further clarification and/or
guidelines as to when a Director should receive compensation. Sanders stated that he would like the Board to
agree on what the guidelines should be. Director Carr suggested having the Board review the document and
then bring their suggested revisions to the December 6th Joint Session meeting. This will enable staff to have
a document available for Board’s review by the next Board meeting (Tuesday, December 14th, 2010), to which
the Board agreed. Discussion held; no action taken.
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
TCMUD No. 1 76 of 107 18 January 2011
File #: 2010-75-M1, Version: 1
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 77 of 107 18 January 2011
TROPHY CLUB MUNICIPAL UTILITY DISTRICT No. 1
ORDER NO. 2009-09152010-1214
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 Rules of Procedure;
and
WHEREAS, the Board of Directors of the District now finds it prudent and wise to adopt
amend additional Attachment B, Fees and Expense and to aAttachment F, ddress Code of
Conduct Rules of Procedure 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 201009-
12140915, 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.
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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 79 of 107 18 January 2011
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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:
(1) A fee prescribed by law to be received by a public servant or any other benefit to
which the District Official is lawfully entitled or for which he gives legitimate
consideration in a capacity other than as a District Official;
TCMUD No. 1 80 of 107 18 January 2011
TCMUD 1 – ORDER 2010-1214
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(2) A gift or other benefit conferred on account of kinship or a personal,
professional, or business relationship independent of the status of the recipient as a
District Official;
(3) A political contribution, as defined by the Election Code;
(4) A benefit consisting of food, lodging, transportation, or entertainment accepted
as a guest; or
(5) A benefit to a District Official required to file a financial statement under the
Texas Election Code that is derived from a function in honor or appreciation of the
recipient if:
(A) The benefit and the source of any benefit in excess of $50.00 is reported
in the required financial statement;
(B) The benefit is used solely to defray the expenses that accrue in the
performance of duties or activities in connection with its official duties for the
District which are non-reimbursable by the District; or
(C) An item with value of less than $50.00, excluding cash or negotiable
instrument; or
(D) 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.
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
TCMUD No. 1 81 of 107 18 January 2011
TCMUD 1 – ORDER 2010-1214
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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. 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.
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 a 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 will be
emailed or if no email address, mailed a FEE PAYMENT REQUEST by the MUD Secretary,
requesting the Director complete and sign the FEE PAYMENT REQUEST. 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.
Directors attending “outside” meetings on District business who wish to receive payment
for attendance at such meeting shall have thirty (30) sixty (60) 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) sixty (60) 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 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.
TCMUD No. 1 82 of 107 18 January 2011
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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.
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.
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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.
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).
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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.
Definitions
The following words, terms and phrases, when used in this section, shall have the following
meanings subscribed to them:
Business. A corporation, partnership, sole proprietorship, firm, holding company, joint stock
company, receivership, trust or any other for profit or non-profit entity.
MUD Board. The legislative and governing body of the District consisting of five (5) members;
MUD President, Vice-President, Secretary/Treasurer, and two Directors.
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.
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.
1. Act in the Public Interest
Recognizing that stewardship of the public interest must be their primary concern, MUD
Directors shall work for the common good of the people the District serves and not for any
private or personal. The Directors shall assure fair and equal treatment of all persons, claims and
transactions coming before the District.
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2. 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).
3. Conduct of MUD Directors
The professional and personal conduct of MUD Directors must be above reproach and avoid even
the appearance of impropriety. MUD Directors shall refrain from abusive conduct, personal
charges or verbal attacks upon the character or motives of other MUD Director(s), employees,
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.
4. Respect for Process
MUD Directors shall perform their duties in accordance with the processes and Rules Of Order
established by the MUD Board.
5. Conduct of Public Meetings
MUD Directors have an obligation to attend meetings and to be prepared for public issues; to
listen courteously and attentively to all public discussions before the body; and to focus on the
business at hand. They shall refrain from interrupting other speakers, making personal comments
not germane to the business of the body, or otherwise interfering with the orderly conduct of
meetings.
6. Decisions Based on Merit
It is expected and required that MUD Directors review material, participate in discussions and
base their decisions on the merits and substance of the matter at hand.
7. Communication
Prior to permitting final action on a matter under consideration, MUD Directors shall publicly
share substantive information, which they may have received from sources outside the public
decision-making process that is relevant to such action by the MUD Board.
8. Conflicts of Interest and Disclosure
MUD Directors shall familiarize themselves with and abide by the following conflicts of interest
and disclosure statutes and principles:
a. Chapter 171 of the Local Government Code which requires an officer, whether elected,
appointed, paid, or unpaid, of a district exercising responsibilities beyond those that are
advisory in nature, to file an affidavit disclosing a substantial interest in a business entity
or property that would be beneficially affected by a decision of the governing body or of
any other board or commission upon which the member serves and thereafter to abstain
from participation in discussion and voting on the matter. Once the disclosure is made,
the MUD Director is to remove himself from the meeting area to ensure his presence
does not hinder the discussion of the item or influence the vote.
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b. Section 176 of the Local Government Code which requires MUD Directors and the
District Manager to file a conflicts disclosure statement disclosing any business
relationship with a person or business doing business with the District or being
considered by the District for a business relationship.
c. Section 176.003(a)(2)(B) of the Local Government Code which requires the disclosure of
gifts of an aggregate value of more than $250.00 in the twelve (12) month period
preceding the date that a Director becomes aware of a transaction described in Section
176, other than gifts of food, lodging, transportation, or entertainment accepted as a
guest.
d. Sections 553.001-553.003 of the Government Code which requires the filing of an
affidavit before the date the District will acquire a property in which public servants has a
legal or equitable interest.
e. In order to assure their independence and impartiality on behalf of the public good, MUD
Directors are prohibited from using their positions to influence government decisions in
which they have a personal interest.
9. Corruption
MUD Directors shall familiarize themselves with and abide by the Texas Penal Code mandates
concerning corruption, including without limitation, Section 36.02 prohibiting receipt of
prohibited gifts, Section 39.02 concerning abuse of official capacity and Section 39.06(a)
concerning misuse of official information and all other applicable state laws regulating or related
to public service.
10. 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.
11. Confidential Information
MUD Directors shall respect the confidentiality of information concerning District property,
personnel or proceedings of the District. They shall neither disclose confidential information
without proper legal authorization, nor use such information to advance their personal interests.
12. Use of Public Resources
Directors shall not use public resources generally unavailable to the public, such as District staff
time, equipment, supplies or facilities, for private gain or personal purposes.
13. Representation of Private Interests
In keeping with their role as stewards of the public interest, Directors shall not appear on behalf
of private interests of third parties before the MUD Board or any board, commission, committee,
or proceeding of the District.
14. Advocacy
Directors shall represent the official policies or positions of the MUD Board to the best of their
ability when designated as delegates for this purpose. When presenting their individual opinions
and positions, MUD Directors shall explicitly state that they do not represent their body or the
MUD District, nor will they allow the inference that they do.
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15. Policy Role of Directors
MUD Directors shall respect and adhere to the District’s structure as outlined in the Texas Water
Code and the District’s policies and procedures. In this structure, the MUD Directors determine
the policies of the District with the advice, information and analysis provided by the public, and
District staff. Except as provided by District Order, MUD Directors therefore shall not interfere
with the administrative functions of the District or the professional duties of the District staff; nor
shall they impair the ability of Staff to implement MUD Board policy decisions.
16. Independence of Boards, Commissions, and Committees
Because of the value of the independent advice of boards, commissions, committees and advisory
groups to the public decision-making process, MUD Directors shall refrain from using their
position to influence unduly the deliberations or outcomes of any board, commission, committee,
and advisory group proceedings.
17. Positive 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.
18. 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.
19. 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.
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20. Procedure for Enforcement
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.
Within thirty (30) days of the MUD Secretary's Upon receipt of a written complaint meeting all
of the requirements set forth in the preceding paragraph, the parties (Complainant and
Respondent) may agree to have the Complaint mediated by a mutually agreed upon mediator. If
the parties do not so agree to mediate the Complaint, 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.
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.
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.
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STATEMENT OF COMMITMENT
As a member of the Trophy Club MUD No. 1 Board, I agree to uphold the Code of Conduct by
adhering to 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
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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 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
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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. Board shall
agree that no Director can 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); and
third, that the President shall state the question so that the Board may know what is before it for
consideration and action. Debate can not 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, 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.
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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 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 3.0908. 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.
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PASSED AND APPROVED by the Board of Directors of the Trophy Club Municipal
Utility District No. 1, Trophy Club, Texas, this, the 145th day of SeptemberJanuary, 201109.
_________________________________
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 94 of 107 18 January 2011
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TCMUD No. 1 95 of 107 18 January 2011
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CERTIFICATE OF ORDER (201009-12140915)
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, 2009January 18, 2011, 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
was duly introduced for the consideration of the Board of Directors. It was then duly moved and
seconded that such Order be adopted and, after due discussion, such motion, carrying with it the
adoption of such Order prevailed and carried by the following vote:
AYES:
NOES:
TCMUD No. 1 96 of 107 18 January 2011
Page 20 of 20
Order (20092010-09151214) Certificate
Trophy Club Municipal Utility District No. 1
3. That a true, full and correct copy of such Order adopted at such meeting is attached to
and follows this certificate; that such Order has been duly recorded in the minutes of the Board of
Directors for such meeting; that the persons named in the above and foregoing Paragraph 2 were
the duly chosen, qualified and acting officers and members of the Board of Directors as indicated
therein, that each was duly and sufficiently notified officially and personally, in advance, of the
time, place and purpose of such meeting, and that such Order would be introduced and considered
for adoption at such meeting, and that each consented, in advance, to the holding of such meeting
for such purpose; that the canvassing of the officers and members of the Board of Directors
present at and absent from such meeting and of the votes of each on such motion, as set forth in
the above and foregoing Paragraph 2, is true and correct; and that sufficient and timely notice of
the hour, date, place and subject of such meeting was given and posted as required by Chapter
551, Texas Gov. Code.
SIGNED AND SEALED the 185TH day of September 2009January 2011.
Secretary, Board of Directors
(SEAL)
TCMUD No. 1 97 of 107 18 January 2011
100 Municipal Drive
Trophy Club, Texas 76262Trophy Club Entities
Legislation Details (With Text)
File #: Version:12010-154-M1 Name:
Status:Type:M1 Agenda Item Regular Session
File created:In control:12/15/2010 Trophy Club Municipal Utility District No. 1
On agenda:Final action:1/18/2011
Title:Review and Approve Minutes:
a. December 14, 2010 - Regular Session
Attachments:M1-Mins-121410.pdf
Action ByDate Action ResultVer.
Title
Review and Approve Minutes:
a. December 14, 2010 - Regular Session
TCMUD No. 1 98 of 107 18 January 2011
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, December 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 December 14,
2010 at 7:00 p.m., in the Boardroom of the Administration Building, 100
Municipal Drive, Trophy Club, Texas 76262.
Call to order and announce a quorum.
MUD 1 BOARD MEMBERS
President Jim Thomas, Secretary/Treasurer Kevin Carr, Director Bill
Armstrong, and Director Nick Sanders
Present:4 -
Vice President Jim MossExcused:1 -
MUD 1 STAFF PRESENT:
Robert Scott, District Manager
Mary Moore, MUD Secretary
Renae Gonzales, Senior Accountant
Danny Thomas, Fire Chief
Bob West, Attorney
GUEST(S) PRESENT:
Neil Twomey, 203 Oakmont Drive
Dean Henry, 308 Oakmont Drive
Citizen Presentation
No citizens addressed the Board.
REGULAR SESSION
Reports & Updates
2010-153-M11.Receive Cost Analysis Presentation for Trinity Well No. 2. (Twomey)
Former MUD 1 Director Neil Twomey presented to the Board his PowerPoint
Presentation regarding a Cost-Benefit Analysis for the proposed new Trinity Well No.
2.
Mr. Twomey explained that this is a rework of a previous model regarding the Trinity
Well. The question is whether it is cost effective to drill a second Trinity Well. The
more water that we can get out of these wells the less we have to buy from Fort
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Worth, which saves the District money.
In summary, Twomey advised the total costs could be recouped within ten years.
Twomey advised that a location needs to decided and he recommends going as far
north and as close to Lake Grapevine as feasible. Twomey recommends moving
forward as quickly as possible as interest rates are extremely low right now.
2010-151-M12.Receive District Manager's Report
a. Monthly Update - Water pumped vs. billed
b. Water Report
c. Texas Municipal Utilities Association Conference - January 19-21,
2011-Fort Worth
d. Update on Water Plant Booster Pump (formerly VFD)
e. Reminder: AWBD Conference: February 4-5, 2011
f. Biomonitoring at Wastewater Treatment Plant
g. Update on recent Association of Water Board Directors' meeting
h. Update - Constellation Energy contract
District Manager Scott updated the Board regarding the above items.
Mr. Neil Twomey addressed the Board and provided a brief update regarding AWBD
- Association of Water Board Directors - meetings and other related information.
3.Receive Finance Update
a. To provide Board with a monthly update and address the Board's questions.
Senior Account Gonzales provided the following update to the Board:
1. 29 PID connection fees so far this fiscal year (2010-2011).
2. Auditors are winding down on their field work. They will be back tomorrow, and
then they will communicate by email for any requests they may have. Staff will be
working on TCEQ audit schedules.
3. Gonzales and Utility Billing Administrator Dana McMahon met with Innoprise
representatives on Monday and worked on Utility Billing. Innoprise representative are
tentatively scheduled to come back the 2nd week in January for three days to input
data into the Innoprise system and we hope to go live with Utility Billing by March or
April, 2011.
4.Receive Fire Update from Fire Chief Thomas
a. To provide Board with a monthly update and address the Board's questions.
b. Update on construction of new Fire Station
Fire Chief Thomas provided the Board with the monthly Fire Update as well as an
update regarding construction of the new Fire Station.
5.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 December 6th Town Council meeting
update to the Board:
1. Approved a Final Plat and subdividers agreement for the addition of 60 homes in
Neighborhood 4, Phase 2A (24.80 acres) located in The Highlands.
2. Approved an interlocal agreement between the Town and Denton County to
provide Ambulance Services
3. Approved a Resolution with terms of a settlement between the Town and Travelers
Companies Inc., relative to a bond claim on the Contract for Paving, Grading and
Utility Improvements for the Highlands of Trophy Club Master Improvements Phase
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Meeting Minutes
2. This was for areas of soil settlement and roadway failure.
3. Rejected a resolution authorizing the Cities Aggregation Power Project, Inc.
(CAPP) to negotiate an extension to the Towns current electric supply services
agreement with Next Era for a fixed price through 2018. Council believes that MUD 1
is receiving better rates and would like to further explore options.
4. Council discussed signalization or a Roundabout at Trophy Club Drive and Trophy
Lake Drive intersection. Elected to proceed with investigation of a two-lane
roundabout.
6.Update from Counsel regarding the possibility of MUD 1 sponsorship
of a Town-owned Park.
District Manager Scott advised that he has met with Parks Director Adams and
advised that Adam is looking into everything that will be needed to treat and move the
water from Wastewater Treatment Plant to Harmony Park. Parks Director Adams is
looking at getting costs for this required equipment.
Action Items:
2010-150-M17.Receive Update regarding Water Conservation Symposium; discuss
and take action regarding Water Conservation Plan.
a. AWBD - Association of Water Board Directors' - Water Smart
Program. (President Thomas)
President Thomas would like for MUD 1 to move forward toward collecing information
and implementing a Water Conservation Plan.
Director Armstrong agrees that we should implement a Water Conservation Plan.
Staff was directed to continue to move forward toward gathering information
regarding implementing a Water Conservation Plan. Staff will bring a Plan back to
the Board for their consideration.
2010-146-M18.Review and Approve Financial Statements & Variance Report
a. October 2010
A motion was made by Secretary/Treasurer Carr, seconded by Director
Sanders, to Approve the October 2010 Financials and Variance Report. The
motion CARRIED unanimously.
President Thomas, Secretary/Treasurer Carr, Director Armstrong, and
Director Sanders
Aye:4 -
Vice President MossExcused:1 -
2010-141-M19.Discuss and take appropriate action regarding First Financial Bank
Resolution, amending Authorized Representatives on signature
accounts.
District Manager Scott advised that due to the change in staffing, it is again
necessary to approve this bank resolution for First Financial Bank. The signers will
be District Manager Scott, MUD Secretary Moore, and Secretary/Treasurer Carr.
A motion was made by Director Sanders, seconded by Director Armstrong, to
Approve this Bank Resolution with the District Manager, the MUD Secretary,
the MUD 1 President and the MUD 1 Secretary/Treasurer as the authorized
signatures. The motion CARRIED unanimously.
President Thomas, Secretary/Treasurer Carr, Director Armstrong, and
Director Sanders
Aye:4 -
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Vice President MossExcused:1 -
2010-148-M110.Discuss and take action to accept or reject bids received for the Screen
Rake Installation at the Wastewater Treatment Plant. (Scott)
District Manager Scott explained that the original price for this project was $250,000.
The bid with the engineering fees comes to approximately $220,000. After a
complete reference check, the engineer and District Manager Scott recommend
awarding the contract to Fryer Construction, Argyle, Texas. Scott added that
Deltatek Engineering has completed about five projects for the District, and he has
consistently come in under bid on his engineering fees.
Director Carr moved; Director Armstrong seconded; to award the bid for the Screen
Rake Installation at the Wastewater Treatment Plant to Fryer Construction Company
for the total amount $199,900.00; including engineering costs Not To Exceed
$220,000. Floor opened for discussion.
Further discussion, Director Sanders, asked how this would be funded.
District Manager Scott advised that the Board agreed a few months past to fund the
Screen Rake Installation using reserves, to which Director Sanders and MUD
Secretary Moore agreed.
Director Carr amended his motion to award the bid for the Screen Rake Installation at
the Wastewater Treatment Plant to Fryer Construction Company for a Not To Exceed
$220,000.
District Manager Scott asked Counsel if it was necessary to include engineering fees
in the motion, as the engineering fees have already been approved. Attorney West
stated we should be awarding the contract for the amount that has been bid to the
lowest bidder.
Director Carr moved; Director Armstrong seconded motion to cancel the previous
motions.
A motion was made by Secretary/Treasurer Carr, seconded by Director
Armstrong, to Award this Contract for Screen Rake Installation at the
Wastewater Treatment Plant to Fryer Construction in an Not To Exceed
Amount of $199,900. The motion CARRIED unanimously.
President Thomas, Secretary/Treasurer Carr, Director Armstrong, and
Director Sanders
Aye:4 -
Vice President MossExcused:1 -
2010-89-M111.Discuss and take appropriate action to award / reject bids received for
Trinity Well No. 2 Project. (Scott)
District Manager Scott commented that based on the cost for this Well (over
engineers estimate by $375,000) and the other large expenditures were facing, Scott
would like to investigate this further. Both Scott and the Well Driller are not
comfortable with the current site for the Trinity Well. One possibility is to move the
site as far north as we can, which could be over by the Treatment Plant. Scott
advised another option is to inject chlorine into our our distribution lines. Scott
emphasized that at the present well site, we are taking a gamble as to what type of
water we may end up with.
President Thomas distributed a handout to the Board and asked the Board to review
the handout for discussion at the next meeting. It has Thomas' thoughts regarding
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Meeting Minutes
funding for the ground storage as well as for the Trinity Well.
A motion was made by Director Sanders, seconded by Secretary/Treasurer
Carr, to Reject all bids received for the Trinity Well No. 2 Project. The motion
CARRIED unanimously.
President Thomas, Secretary/Treasurer Carr, Director Armstrong, and
Director Sanders
Aye:4 -
Vice President MossExcused:1 -
2010-75-M112.Discuss and take appropriate action concerning repealing Order
2009-0915, and adopting Order 2010-1214, to amend Attachment B,
Section 2, Fees and Expense Policy, and Attachment F, Rules of
Procedure.
Director Sanders moved; Director Carr seconded the motion to approve the repealing
of Order 2009-915 and adopting 2010-1214.
Floor opened for discussion.
Director Sanders stated he had a number of items to address.
Director Sanders referred to Packet Page number 174, Attachment B, Fees and
Expense Policy under the first paragraph of Section 3.
Director Sanders moved; President Thomas seconded the motion to amend “thirty
(30) days” to “sixty (60) days”. Sanders explained that he feels 30 days may not be
enough time and would prefer to go to 60 days.
Director Carr stated he would prefer 45 days.
Director Sanders moved the previous question, the amendment only. Motion
CARRIED 3 – 1 with Director Carr voting against.
President Thomas called for a vote on this amendment. Motion CARRIED 3 – 1 with
Director Carr voting against.
Director Carr had a concern about the verbiage “verified statement” on page 175,
Reimburse, Section 6. Carr asked for a definition of a verified statement.
Attorney West stated that a verified statement is where you swear to, by signature, it
that it is correct.
Director Armstrong commented that you want a statement saying that what we’re
asking for is true and then you want it to be itemized and are also going to want
receipts? Armstrong added that he spent about 44 years with the Federal
Government, and he did not have to show receipts for food. Armstrong feels we are
way over board on this.
District Manager Scott advised that all employees are required to submit itemized
receipts.
Director Sanders suggested changing from submit a verified statement to submit
sufficient documentation, as defined in reimbursement practices or policies.
Director Armstrong confirmed that a verified statement is where you sign, to which
the Board and Attorney West agreed.
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MUD Secretary Moore advised that the reason for an itemized credit card statement
is for the Audit and is a requirement by the Auditors.
Director Sanders referred to page 177, Nepotism. Sanders would like to add
verbiage to deal with two employees who get married while they are in the
employment of the District. Sanders personally felt that we should deal with that
issue specifically.
Director Sanders moved; Director Carr seconded; to add an Item C, Individuals who
are employees of the District and who get married while employed shall be excluded
if employed by the District for greater than two (2) years.
Director Sanders asked MUD Secretary Moore to read his motion back to the Board.
MUD Secretary Moore requested to make a point of reference, asking if what Director
Sanders is referring to is a Personnel Issue and what Sanders refers to does not
address Director’s Code of Conduct.
Attorney West added that the policy we looking at relates to Code of Conduct for
Directors.
Both mover and seconder removed their motions.
Director Sanders referred to Page 178, Item 3, Conduct of MUD Directors, second to
the last sentence.
Director Sanders moved to amend to change the word “shall” to “should” and then in
the following sentence, change the word the word “shall” to “should” and the last of
that paragraph strike the words “and / or private conversations.”
President Thomas called for a second. Motion failed for lack of second.
Director Armstrong commented that without an explanation of why he needs them to
be changed prevents us from being able to provide a second.
Director Carr advised that upon offering a second, the floor opens for discussion of
the item.
Director Armstrong seconded the motion. Floor opened for discussion.
Director Sanders understands that the word “shall” is not a definitive requirement.
Sanders feels that the words “private conversations” is either redundant or is outside
of executive session and therefore isn’t confidential, unless you said to someone, “I
want you to hold this in confidence.” Sanders felt that our Order should not dictate
what someone may choose to do in a private conversation.
Director Carr advises that the word “shall” is used throughout this document. Do we
want to go through this entire document and change shall to should?
Attorney West stated there has been a real push in Texas at the Legislative level to
adopt better words to express the concepts. West’s understanding is that “shall”
does mean “must”. Shall is considered as an absolute and should is not quite that
strong. It is an encouragement but short of a must or an absolute.
Director Carr stated he agrees with the removal of the words “private conversations”.
President Thomas called for the vote. Motion failed 1-3 with Director Sanders voting
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for and Directors Armstrong, Thomas and Carr voting against.
Director Carr moved; Director Sanders seconded the motion to remove the words
“private conversations”. Motion CARRIED unanimously.
Director Sanders referred to Page 181, Item 20, Procedure of Enforcement. In the
second paragraph, the second line, after the phrase,… the MUD Secretary shall with
the approval of MUD President, then place the compliant on the next …
Director Sanders moved; President Thomas seconded the motion to include the
following words - , with the approval of MUD President.
Floor opened for discussion.
Director Carr asked what if the complaint is against the MUD President.
Mover and seconder removed their motions.
Director Sanders referred to Page 181, Section 20, second paragraph. Sanders
questioned trying to resolve the complaint in person prior to it becoming an agenda
item. In this case, shall is a “must” and if someone made a complaint and it seems to
fit the requirements of a complaint, as defined in the Order, it has to be placed on the
agenda and it has to be place on the next agenda. Sanders asked if were legislating
ourselves to not try to solve a dispute with someone else on the Board in a more
orderly fashion. Sometimes a mediator can accomplish something that two people
cannot agree upon together.
Attorney West added that the paragraph does not allow for it to be withdrawn; once it
is filed it is filed and must go forward through the process. West stated he believes
Director Sanders offers a good observation.
Director Carr offered that it could be put on the agenda and if the complaint were to
be resolved prior to the meeting, then there would be no need for action at the
meeting.
President Thomas suggested a restructure of the paragraph, and to approve the
remaining document as agreed upon.
Director Sanders stated that he would prefer to table.
A motion was made by Director Sanders, seconded by Secretary/Treasurer
Carr, that this M1 Order be Tabled. The motion CARRIED unanimously.
President Thomas, Vice President Moss, Secretary/Treasurer Carr,
Director Armstrong, and Director Sanders
Aye:5 -
2010-147-M113.Review and Approve Minutes:
a. November 16, 2010 - Regular Session Minutes
A motion was made by Director Sanders, seconded by Director Carr, to
Approve the October 2010 Regular Session minutes. The motion CARRIED
unanimously.
President Thomas, Secretary/Treasurer Carr, Director Armstrong, and
Director Sanders
Aye:4 -
Vice President MossExcused:1 -
Review & Discuss
TCMUD No. 1 105 of 107 18 January 2011
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Meeting Minutes
2010-152-M114.Set Next Meeting Date:
a. Tuesday, January 18th, 2011 at 7:00 p.m. - Regular Session
The Board agreed to meet on their next regularly scheduled meeting date and time.
15.Items for Future Agendas
a. Funding of Future Capital Projects; i.e., 2 MG Storage Tank
b. Water Rate Study
c. Disaster Planning
d. Municipal Water Rate for Town Parks (Sanders)
e. Purchase of a new Ladder Truck for Fire Department. (Chief Thomas)
Director Sanders requested to add the following agenda item to Items for Future
Agendas as Item F: Discuss and take appropriate action for establishing an entry
statute or monument for the future fire station with funding for said item.
Adjourn
Meeting adjourned at 9:30 p.m.
___________________________
James C. Thomas, President
(Seal)
____________________________
Kevin R. Carr, Secretary
____________________________
Mary Moore, MUD Secretary
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