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HomeMy WebLinkAboutDecember 18 2013 Agenda Packet CITIZEN ADVISORY COMMITTEE Meeting Agenda TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 100 MUNICIPAL DRIVE TROPHY CLUB, TEXAS 76262 December 18, 2013 6:30 P.M. Svore Municipal Boardroom CALL TO ORDER CITIZEN PRESENTATIONS This is an opportunity for citizens to address the Committee on any matter whether or not it is posted on the agenda. The Committee is not permitted to take action on or discuss any presentations made to the Committee at this time concerning an item not listed on the agenda. The Committee will hear presentations on specific agenda items prior to the Committee addressing those items. You may speak up to three (3) minutes or the time limit determined by the Chair or presiding officer. To speak during this item you must complete the Speaker's form that includes the topic(s) of your statement. Topics of presentation should be limited to matters over which the Committee has been designated authority. REGULAR SESSION 1. Consider and take appropriate action to approve minutes from November 7, 2013, November 13, 2013, and November 20, 2013. Attachment - November 7, 2013 Minutes Attachment - November 13, 2013 Minutes Attachment - November 20, 2013 Minutes 2. Receive update from Blue Ribbon Panel liaisons regarding any interactions since last meeting. 3. Consider and take appropriate action regarding District dissolution financial model. 4. Determine status of each financial model, identify information needed for completion, specify steps to obtain needed information, and steps for finalization of models. 5. Consider and take appropriate action regarding committee’s final report format including charts, graphs, and summaries to be included. 6. Items for future agendas. 7. Set next meeting date. Attachment -January 2014 meeting calendar ADJOURN Citizen Advisory Committee 1 of 11 December 18, 2013 Agenda Packet CERTIFICATION THE STATE OF TEXAS § COUNTIES OF DENTON AND TARRANT § THIS CERTIFIES THAT ON DECEMBER 13, 2013 A COPY OF THE ABOVE NOTICE OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1, CITIZEN ADVISORY COMMITTEE MEETING TO BE HELD ON DECEMBER 18, 2013 WAS POSTED ON THE FRONT WINDOW OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 ADMINISTRATION BUILDING LOCATED AT 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 WEBSITES OR AT A PLACE CONVENIENT TO THE PUBLIC PURSUANT TO SECTION 49.063 OF THE WATER CODE AND SECTION 551.054 OF THE OPEN MEETINGS ACT, CHAPTER 551 OF THE TEXAS GOVERNMENT CODE. _______________________________ LAURIE SLAGHT, DISTRICT SECRETARY Citizen Advisory Committee 2 of 11 December 18, 2013 Agenda Packet MEETING MINUTES CITIZEN ADVISORY COMMITTEE NOVEMBER 7, 2013 AT 6:30 P.M. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS 76262 The Trophy Club Municipal Utility District No. 1, Citizen Advisory Committee held a meeting on November 7, 2013 at 6:30 p.m. in the Trophy Club Municipal Utility District No. 1, Administration Building boardroom located at 100 Municipal Drive, Trophy Club, Texas, 76262. The meeting was held within the boundaries of the District and was open to the Public. A quorum of the District Board of Directors was not present at this meeting. COMMITTEE MEMBERS PRESENT: Jim Hase Chair Neil Twomey Co-Chair Mike Buck Committee Member Pete Reincke Committee Member Larry Hoover Committee Member Wallace Carlson Committee Member BOARD LIAISONS PRESENT: Kevin R. Carr Secretary/Treasurer DISTRICT STAFF PRESENT: Jennifer McKnight District Manager Laurie Slaght District Secretary CALL TO ORDER Mr. Hase called the meeting to order at 6:34 p.m. REGULAR SESSION 1. Consider and take appropriate action to approve the following: a. October 2, 2013 Meeting Minutes b. October 9, 2013 Meeting Minutes c. October 20, 2013 Meeting Minutes d. October 29, 2013 Meeting Minutes Motion made by Mr. Twomey and seconded by Mr. Buck to approve the minutes dated October 2, 2013, October 9, 2013, October 20, 2013 and October 29, 2013 with corrections as discussed to the October 20th and 29th minutes. For: Twomey, Hase, Hoover, Buck and Carlson Against: Reincke Motion passes Mr. Reincke asked for discussion of the four scenarios being considered in the financial models. The committee decided the following scenarios will be addressed in the models: 1) MUD as is with no future growth (Base Model) 2) MUD as-is including tax revenues from the new development in Solana but without water and Citizen Advisory Committee 1 of 3 November 7, 2013 Citizen Advisory Committee 3 of 11 December 18, 2013 Agenda Packet wastewater revenues. 3) MUD without revenues from the PID: Mr. Twomey stated this model has not yet been developed because there is additional information needed from staff and they are working to obtain it. The committee decided they will hold off on this model and develop it last to allow time for the MUD and Town to reach a new agreement for services to the PID. The committee agreed that if a new contract is executed there will be no need to develop this model. 4) MUD with PID annexed into the MUD boundaries. 5) Dissolution of the District. The committee would like to have a brief explanation added to scenario No. 4 regarding the tax advantages to residents of the PID. Chairman Hase stated that annexation of the PID into the District should be a vote by the resident’s of the PID, not the MUD. Mr. Reincke would like to make sure that the notes reflect the conversation regarding the discussion of the impact of Solana on wastewater treatment plant and the finding that there would be no impact or change to the modifications or upgrades needed at the plant with the loss of Solana. District Manager McKnight stated that she and some of the Directors had a meeting with some of the state legislators. The legislators discussed a meeting with the financial advisors from the District, Town of Trophy Club and Town of Westlake to look at numbers very soon. McKnight believes the scenario they would be most interested in is the MUD without Solana. McKnight asked the Committee to move this scenario up to review within the next few weeks. Mr. Twomey would like to speak with Dan Almond regarding defeasance of the bonds to complete the scenario of MUD dissolution. McKnight stated that the offer from Westlake should be considered in this scenario. 2. Receive update from Committee Chair regarding meetings with Blue Ribbon Panel members. Mr. Hase and Mr. Buck gave an overview of a lunch meeting they held with Nicole Fontayne from the Blue Ribbon Panel. 3. Presentation of financial model update. Mr. Twomey presented the model. Discussion ensued regarding possible changes to the model and the final presentation. The committee discussed the percent increase in property values that should be used in the models and agreed to 5%. The committee agreed that keeping the assumptions consistent throughout each model is important. 4. Consider and take appropriate action regarding model scenarios to be presented by the committee. The committee discussed the need for dissolution cost savings determined by the Town to be used in the model on dissolution. District Manager McKnight asked if it would be helpful for Town staff to come a future meeting and present the numbers they are using and the updated information regarding duplicative services. The committee would like to have the Town Manager present this information at an upcoming meeting. The committee selected Larry Hoover and Wallace Carlson to be the committee liaisons to the Blue Ribbon Panel. 5. Set next meeting date - November 13, 2013 Citizen Advisory Committee 2 of 3 November 7, 2013 Citizen Advisory Committee 4 of 11 December 18, 2013 Agenda Packet Chairman Hase adjourned the meeting at 8:32 p.m. ___________________________________ Jim Hase, Chair ___________________________________ Neil Twomey, Co-Chair ___________________________________ Laurie Slaght, District Secretary Citizen Advisory Committee 3 of 3 November 7, 2013 Citizen Advisory Committee 5 of 11 December 18, 2013 Agenda Packet MEETING MINUTES CITIZEN ADVISORY COMMITTEE NOVEMBER 13, 2013, AT 6:30 P.M. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS 76262 The Trophy Club Municipal Utility District No. 1, Citizen Advisory Committee held a meeting on November 13, 2013 at 6:30 p.m. in the Trophy Club Municipal Utility District No. 1, Administration Building boardroom located at 100 Municipal Drive, Trophy Club, Texas, 76262. The meeting was held within the boundaries of the District and was open to the Public. A quorum of the District Board of Directors was not present at this meeting. COMMITTEE MEMBERS PRESENT: Jim Hase Chair Neil Twomey Co-Chair Mike Buck Committee Member Pete Reincke Committee Member Larry Hoover Committee Member Wallace Carlson Committee Member Larry Hoover Committee Member BOARD LIAISONS PRESENT: Kevin R. Carr Secretary/Treasurer DISTRICT STAFF PRESENT: Jennifer McKnight District Manager Laurie Slaght District Secretary Chairman Hase called the meeting to order at 6:35 p.m. REGULAR SESSION 1. Receive update from Blue Ribbon Panel (BRP) liaisons regarding any interactions since last meeting. Director Carr and Mr. Hoover gave an overview of the Blue Ribbon Panel Meeting. 2. Receive update from Town Manager Mike Slye regarding possible savings from reduction of duplicative costs as refined since presentation at Town Hall meeting and presentation on status of financial model under development by Town and/or (BRP). Town Manager Slye stated that he and his staff took numbers from the 2012 budget and that they looked at the organizational charts of each entity to see which cost or expenses would “go away” or could be considered “duplicative” including personnel cost and or salary savings. Slye stated that the Town is not advocating anyone losing their job except through attrition. He stated that if the two organizations were to consolidate everyone that has a job would keep a job. He stated that the Town believes savings would be predominantly from administrative savings through reduced salaries because there would be no need for two finance directors. He stated that for example the organization may need an accountant to take on additional financial capabilities, but there would be no need to pay the extra money you pay a finance director. So, there would be savings through the restructuring. Slye stated that he would add an additional Assistant Town Manager position which would cover Public Works and reiterated that everyone who had a job today would have a job tomorrow. Mr. Buck asked Slye to clarify his remarks of administrative savings. Slye stated as an example that they would not need two Citizen Advisory Committee 1 of 3 November 13, 2013 Citizen Advisory Committee 6 of 11 December 18, 2013 Agenda Packet Town Secretaries, only one and a deputy secretary. Some administrative and finance staff may be offered different positions that would pay less and that would allow for salary savings. Regarding other opportunities for savings, Town Manager Slye stated there would be a one-time cost of $50,000 for utility billing software and an additional $50,000 for migration including the accounting restructuring which would also be a one-time cost. Slye stated the Town’s auditing firm gave them an estimate of an increase $5,000 for annual audits, but to be conservative in their numbers they used $10,000. Slye stated the Town currently has 72 full-time equivalent employees (FTE) and 89 FTE’s would be optimal. Slye stated that all MUD staff would migrate and do the same things they are doing today. Mr. Reincke asked the Town Manager about attrition of MUD employees and Slye stated he would expect one or two positions not to be backfilled and that those positions would be filled by police or fire. Mr. Buck thanked Mr. Slye for attending the meeting and stated the numbers he presented do not add up. Mr. Buck asked for backup and detail used to develop the numbers be provided to the committee. Slye stated that the BRP has a finance sub-committee working on these numbers. However they are well behind the Citizen Advisory Committee in their reviews. He stated the Town will stipulate that the BRP be involved in the committee’s model and would like to have a document that says these are the assumptions that are used in building the models and have a discussion related to the model assumptions. Mr. Reincke asked the Town Manager if he needed to speak to the BRP to obtain the savings to the residents that have been developed. Director Carr asked Mr. Slye if they have any numbers other than what was presented at the Town Hall Meeting in August. Mr. Slye stated currently they do not. Director Carr asked if the Blue Ribbon Finance Sub-committee has held a meeting yet and Mr. Slye stated they had not. Director Carr asked if the Town was going to formulate its own set of numbers or depend on the District’s Citizen Advisory Committee for financial information and Mr. Slye stated that the Town and the BRP would be using the committee information. However, Slye stated that Jay Como, chair of the BRP, has done a lot of work on his own related to savings to the Town through consolidation. Mr. Carlson asked what other scenarios the Town Manager will have the BRP look at, other than dissolution of the MUD. Slye stated he has not asked them to model anything. He stated that is was very clear from the council’s direction to him for the panel to be independent and that he is not directing their work. He stated the BRP has a much broader scope of tasks than the Citizen’s Advisory Committee. Mr. Buck asked Slye what other tasks were assigned to the BRP. Slye stated that the BRP is tasked with what the best future governance of Trophy Club will look like. Chairman Hase thanked Mr. Slye for attending and told him that he did not want anyone to lose their job. Slye stated that the Town does not want people worried about losing their jobs and that was never their intent. Slye stated that he would provide any information that the Committee needed and he would also provide backup numbers to his spreadsheet from the Town Hall meeting. Mr. Carlson asked the Town Manager to provide the one-time legal cost that would occur if the District were dissolved. Mr. Twomey asked the Town Manager what would be the fund reserve level maintained for water and wastewater if the District were dissolved and Slye stated 30%. 3. Discussion and appropriate action regarding financial model, finalization of assumptions to be included, and other matters related to the model. Citizen Advisory Committee 2 of 3 November 13, 2013 Citizen Advisory Committee 7 of 11 December 18, 2013 Agenda Packet The committee discussed the Westlake offer and some of the apparent shortfalls of the offer. Mr. Reincke stated that it would be fair to say the Westlake offer does not represent a fair cost for the MUD and that the committee has not developed the overall cost due to many unknowns. Chairman Hase stated that the District has served the land in Solana for 31 years and once the land started to develop, Westlake suddenly decided they wanted to call this off and take it back. He stated this does appeal to the District. Mr. Buck added that the offer does not present reasonable compensation for a 31 year history serving that land. Mr. Reincke would like to know who would determine where the monies received from a buyout would go if dissolution were to happen. Co-Chairman Twomey will add a column for monies received. Mr. Reincke would like to have the District Manager work with the committee to come up with the one-time legal cost associated with dissolution of the District and look at cost from this point forward regarding the total transaction. 4. Items for future agendas. Report from Mr. Twomey regarding meeting with Bond Administrator (cost for defeasance of bonds) Structure of final report Obtaining firm numbers from the Town 5. Set next meeting date: November 20, 2013 at 6:30 p.m. Chairman Hase adjourned the meeting at 6:32 p.m. ___________________________________ Jim Hase, Chair ___________________________________ Neil Twomey, Co-Chair ___________________________________ Laurie Slaght, District Secretary Citizen Advisory Committee 3 of 3 November 13, 2013 Citizen Advisory Committee 8 of 11 December 18, 2013 Agenda Packet MEETING MINUTES CITIZEN ADVISORY COMMITTEE NOVEMBER 20, 2013 AT 6:30 P.M. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 100 MUNICIPAL DRIVE TROPHY CLUB, TEXAS 76262 The Trophy Club Municipal Utility District No. 1, Citizen Advisory Committee held a meeting on November 20, 2013 at 6:30 p.m. in the Trophy Club Municipal Utility District No. 1, Administration Building boardroom located at 100 Municipal Drive, Trophy Club, Texas, 76262. The meeting was held within the boundaries of the District and was open to the Public. A quorum of the District Board of Directors was not present at this meeting. COMMITTEE MEMBERS PRESENT: Jim Hase Chair Neil Twomey Co-Chair Mike Buck Committee Member Pete Reincke Committee Member Larry Hoover Committee Member Wallace Carlson Committee Member BOARD LIAISONS PRESENT: Kevin R. Carr Secretary/Treasurer Jennifer McKnight District Manager BLUE RIBBON PANEL MEMBER PRESENT: Robert Hellman Panel Member CALL TO ORDER Mr. Hase called the meeting to order at 6:37 p.m. REGULAR SESSION 1. Receive update from Blue Ribbon Panel liaisons regarding any interactions since last meeting. Mr. Hoover updated the committee on the Blue Ribbon Panel (BRP) meeting he attended. Mr. Hoover would like to give the BRP a draft of the model. Mr. Buck is concerned that the Town, the BRP, and THE residents already have these models and is concerned they may not understand the models without fully understanding the underlying assumptions. Mr. Buck asked the District Manager if she had received the information that the committee had requested from the Town Manager at the previous meeting. McKnight stated she has not yet received any information from the Town Manager. Mr. Buck stated that before the committee shares the assumptions and models, the committee may need to recognize that reciprocity is not going to being shown by the Town to the committee. Mr. Hellman from the BRP introduced himself and explained the two sub-committees that have been established by the BRP. He stated there is a governance sub-committee and a financial sub-committee and each has specific tasks they are completing. Co-Chair Twomey provided a brief overview of the models that the committee has been developing and the assumptions that are used in each. Mr. Carlson stated that the Town Manager’s presentation showed an annual savings of approximately $110,000 per year if the MUD is dissolved and the amount savings per household that amount represents. He stated the committee would like to know what the savings will be used for in the future and what will it would do for the community. Mr. Carlson asked Mr. Hellman if the BRP is looking into that. Mr. Hellman stated that the BRP may consider it but the BRP is structured with two subcommittees and do not meet as often as they would like to due to many conflicts. Mr. Hellman stated that they have Citizen Advisory Committee 1 of 2 November 20, 2013 Citizen Advisory Committee 9 of 11 December 18, 2013 Agenda Packet four or five people on the finance sub-committee and they are working on similar scenarios as the Citizen Advisory Committee. He stated they will present their information to the entire BRP when they have completed their financial review. He stated at that point the two sub-committees will get together to begin compiling a final report for the Town Council. Mr. Hellman states he is not on the finance sub-committee but assumes they have met a couple of times. The committee requested that the District Manager set up a joint meeting with the BRP finance sub- committee with an agreed upon agenda. 2. Update from District Manager regarding Board of Directors’ actions at November 19, 2013 meeting related to reprioritization of tasks as requested by the Committee. District Manager McKnight stated that the Board removed the task of reviewing the rate study from the Citizen Advisory Board as the committee had requested. 3. Discussion and appropriate action regarding financial model, finalization of assumptions to be included, and other matters related to the model. Co-Chair Twomey reviewed recent updates to the financial models as follows: 1) Solana with growth 2) PID annexed into the District 3) Dissolution of the District 4) District without the PID Co-Chair Twomey reviewed model number two (PID annexed into the District). The committee discussed the infrastructure and cost associated with the annexation of the PID. The committee would like to take a conservative approach regarding the figures associated with this option. The committee will need accurate information and data from the Town Manger to complete models. The committee does not want to use the Westlake offer in the model. 4. Items for future agendas. Update from Mr. Twomey regarding bonds. Review Scenario No.2 Update Scenario No.3 5. Set next meeting date - December 2, 2013 at 6:30 p.m. Chairman Hase adjourned the meeting at 6:28 p.m. ___________________________________ Jim Hase, Chair ___________________________________ Neil Twomey, Co-Chair ___________________________________ Laurie Slaght, District Secretary Citizen Advisory Committee 2 of 2 November 20, 2013 Citizen Advisory Committee 10 of 11 December 18, 2013 Agenda Packet 112/13/2013 9:36 AMLaurie SlaghtSu Mo Tu We Th Fr Sa123456789101112 13 14 15 16 17 1819 20 21 22 23 24 2526 27 28 29 30 31January 2014Su Mo Tu We Th Fr Sa12345678910111213141516 17 18 19 20 21 2223 24 25 26 27 28February 2014January 2014Dec 29 - Jan 4Dec 293031Jan 1, 142346:30pm 8:30pm Citizens Advisory Committee (Svore Municipal Boardroom)7:00pm 10:00pm P&Z Commission (CouncilChambers)7:00pm 9:00pm TCWC Board Meeting (Fire Dept Training Room)Jan 5 - 115678910116:00pm 11:00pm Council (MUD Bd Rm)9:00am 10:00am Routine Staff Meetin4:00pm 5:00pm Police Chaplain Meeting (in6:30pm 8:30pm Parks Beautification Sub C6:30pm 8:30pm Citizens Advisory Committee (Svore Municipal Boardroom)6:00pm 9:00pm Citizens Fire Academy (Fire Dept Training Room)Jan 12 - 18121314151617186:30pm 10:00pm EDC B(Svore Municipal Building Boardroom)9:00am 10:00am Routine Staff Meeting (PS Confere7:00pm 9:00pm Parks & Recreation Board (Svore Municipal Buil12:00pm 8:00pm COURT (Svore Munic6:30pm 9:00pm TCWC - Trophy Gardeners (6:30pm 8:30pm Citizens Advisory Co10:00am 11:30am Special Events Com6:00pm 9:00pm Citizens Fire Academ7:00pm 10:00pm P&Z Commission (Council6:00pm 7:30pm Girl Scouts (Fire Dept Training Room)2:00pm 4:30pm Heartsaver CPR/AEDClass (Fire Dept Training Room) - Kari SchultzJan 19 - 2519202122232425 Auditors (FS Conference Room)6:00pm 11:00pm Council Meeting (Svore Municipal Bo7:00pm 9:00pm Northwest Optimist 9:00am 10:00am Routine Staff Meeting (PS Confere7:00pm 12:00am TCMUD No.1 Meetin6:30pm 8:30pm Citizens Advisory Committee (Svore Municipal Boardroom)6:00pm 9:00pm Citizens Fire Academy (Fire Dept 6:00pm 8:00pm Public Safety Advisory ComJan 26 - Feb 1262728293031Feb 1 Auditors (FS Conference Room)9:00am 10:00am Routine Staff Meetin4:00pm 5:00pm TBD - Z7:00pm 9:30pm Trophy7:00pm 9:00pm Citizen6:30pm 8:30pm Citizens Advisory Committee (Svore Municipal Boardroom)6:00pm 9:00pm Citizens Fire Academy (Fire Dept Training Room)SundayMondayTuesdayWednesdayThursdayFridaySaturdayCitizen Advisory Committee11 of 11December 18, 2013 Agenda Packet