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HomeMy WebLinkAboutCAC - January 22, 2014 agenda packet CITIZEN ADVISORY COMMITTEE Meeting Agenda TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 100 MUNICIPAL DRIVE TROPHY CLUB, TEXAS 76262 January 22, 2014 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. Discussion and appropriate action to approve minutes from December 2, 2013 Attachments: December 2 2013 Meeting Minutes 2. Receive update from Blue Ribbon Panel Liaisons regarding any interactions since last meeting. 3. Consider and take appropriate action regarding duplicative cost information provided by the Town of Trophy Club. 4. Consider and take appropriate action regarding financial model, finalization of assumptions to be included, and other matters related to the model. 5. Consider and take appropriate action regarding draft layout for final committee report to Board of Directors and discuss target completion date. 6. Items for future agendas. 7. Set next meeting date. ADJOURN Citizen Advisory Committee 1 of 6 January 22, 2014 **NOTICE IS HEREBY GIVEN THAT A QUORUM OF THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 MAY BE IN ATTENDANCE AT THIS MEETING. ** CERTIFICATION THE STATE OF TEXAS § COUNTIES OF DENTON AND TARRANT § THIS CERTIFIES THAT ON JANUARY 17, 2013 A COPY OF THE ABOVE NOTICE OF THE TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1, CITIZEN ADVISORY COMMITTEE MEETING TO BE HELD ON JANUARY 22, 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 SETION 551.054 OF THE OPEN MEETINGS ACT, CHAPTER 551 OF THE TEXAS GOVERNMENT CODE. _______________________________ LAURIE SLAGHT, DISTRICT SECRETARY Citizen Advisory Committee 2 of 6 January 22, 2014 MEETING MINUTES CITIZEN ADVISORY COMMITTEE DECEMBER 2, 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 December 2, 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 Pete Reincke Committee Member Larry Hoover Committee Member Wallace Carlson Committee Member COMMITTEE MEMBERS ABSENT: Mike Buck Committee Member DISTRICT BOARD/STAFF PRESENT: Nick Sanders Director Jennifer McKnight District Manager Laurie Slaght District Secretary BLUE RIBBON PANEL MEMBERS PRESENT: James Como Dr. Wanda Franklin OTHER GUESTS PRESENT: Giovanni Capriglione State Representative District 98 Stephen Seidel Assistant Town Manager Steven Glickman Town Finance Manager John Zagurski Town Budget Analysis CALL TO ORDER Mr. Hase called the meeting to order at 6:37 p.m. CITIZEN PRESENTATIONS REGULAR SESSION 1. Receive update from Blue Ribbon Panel liaisons regarding any interactions since last meeting. Chairman Hase had members of the audience introduce themselves and their positions. 2. Consider and take appropriate action regarding response letter from TCMUD1 to the Town of Westlake regarding their offer to buy-out Solana area and the possible impact of deficiencies and errors in the offer on the financial model under development by the Citizen Advisory Committee. Chairman Hase complimented District Manager McKnight on the letter sent to the Town of Westlake and asked for comments regarding the same. Citizen Advisory Committee 3 of 6 January 22, 2014 3. Consider and take appropriate action regarding Town of Trophy Club Blue Ribbon Panel Finance Subcommittee progress on financial analyses and information sharing between the Town subcommittee and Citizen Advisory Committee. Co-Chair Neil Twomey presented the current financial models and invited questions and comments from those attending. Jay Como, Chair of the Blue Ribbon Panel (BRP) stated that they have two subcommittees, a finance subcommittee and a governance or organizational structure subcommittee. Mr. Como would like to have the District Manager attend a joint committee meeting and answer questions. Mr. Como questioned the revenue loss from Solana shown in the financial model for this fiscal year. Co-Chair Twomey explained the model and related assumptions. Mr. Como would like to have the Committees and staffs meet and discuss the assumptions used in the model and create scenarios. District Manager McKnight clarified with Mr. Como that it is the Town of Westlake that has asked to have the Solana area removed from the District, not our Solana customers. McKnight stated that included in the letter to the Town of Westlake, the District requested the legal basis in which the Town of Westlake believes deannexation of the Solana area can occur before all bonds are defeased. McKnight stated that the District has engaged a financial firm to look at the proposal from the Town of Westlake and they have provided a draft preliminary report. McKnight states that the financial firm ’s projected revenue loss from Solana is very close to the amount projected in the Citizen Advisory Committee’s model. McKnight asked Mr. Como upon what information the Town’s projected model was based as he stated that the model should reflect 2% grown assumption instead of 5% growth assumption the committee used. Mr. Como stated that the BRP has not yet developed any numbers. He stated he had asked the Town staff present as to what they would use as a growth percentage. Mr. Carlson questioned Mr. Como as to what is the rational for the Town of Trophy Club taking up this torch and trying to deannex Solana. Mr. Como stated that the BRP believes the numbers have to work in the benefit of customers. Mr. Carlson thanked Mr. Como for attending the meeting and also stated that he would like to see some detail to the savings given to the committee by the Town and how those savings would be applied. Chairman Hase stated that Solana represents a savings to Trophy Club and also that Westlake asked the District to annex Solana into the District 30 years ago. Hase explained that the utility contract initially executed between the District and the developer for 40 years does not apply because Solana was annexed into the District. Mr. Como thanked the committee for their work and asked Co-Chair Twomey to explain the buyout offer from the Town of Westlake. Mr. Reincke asked Mr. Como to provide the committee with the cost savings calculated by the Town for dissolution of the District and a detailed explanation so the committee can continue with the dissolution model. He stated the committee has requested this information previously from Town staff and still has not received it. Mr. Reincke would like to make sure that all one-time costs related to dissolution are accounted for in the dissolution model. District Manager McKnight asked Mr. Como if the BRP received the District budgets that were sent to them in excel format. Mr. Como stated they had received them. McKnight asked the Assistant Town Manager Stephen Seidel to send her any questions that the BRP may have regarding assumptions in the committee’s financial model. Chairman Hase stated that the Committee will run the the assumption of growth at 2% instead of 5% as the BRP has asked. Citizen Advisory Committee 4 of 6 January 22, 2014 4. Consider and take appropriate action regarding duplicative cost information provided by Town of Trophy Club Town Manager. District Manager McKnight stated that the Town Manager informed her that he would have Town staff present at the meeting tonight to answer questions and give more detail regarding duplicative services. She stated that Stephen Seidel and Steven Glickman were here from the Town staff. Mr. Seidel stated that he was not given instruction regarding this and is unsure what the committee would like to see. Mr. Seidel would like to have the committee and BRP sit down together with staff and come up with the same number. Seidel would like to come up with a set of numbers that everyone can agree upon. Mr. Carlson asked Seidel as to when the Town will have definitive numbers on the cost savings if the MUD were to dissolve. Carlson explained that the committee has been given different sets of numbers by the Town Manager and there has been no back up so he would like to know who is working on this in the Town. Seidel stated that he believes that what he would like to do is hold a meeting with District Manager McKnight and her staff to come up with numbers that they can say these may or may not go away. Seidel further stated that it is very hard to dissect through the MUD budget what something cost, is it paid by taxes, is it paid by water revenue. McKnight asked Seidel how they came up with the projected growth of 2% and asked Seidel if they had put together a model. Seidel stated that they had a copy of the Citizen Advisory Committee model of unknown version and they looked through it and they have questions regarding the committee financial model. Chairman Hase explained that the growth added into the model was calculated directly from Denton County. Mr. Seidel acknowledged that Co-Chairman Twomey put forth much effort into the financial model. Seidel stated that he feels that there is an opportunity for everyone to work together and build upon it and understand it. Seidel feels this is a great starting point and what the Citizen Advisory Committee decides to do with it and the Blue Ribbon Panel decides to do with it as a staff member, he cannot make that call. Co-Chairman Twomey stated changing the growth rate does not change the basic math. Twomey also states that in the MUD budget, all line items show if they are tax supported or as Seidel claimed, enterprise supported. Twomey further stated that he felt that Town staff and Town management have not done the proper due diligence to bring us to this point. There are now two committees looking at this. He said that the Citizen Advisory Committee is looking at the numbers and has been meeting weekly since September. W hen you look at the information that Mike Slye has provided this committee he feels it is no more than of a shot from the hip. Twomey stated that he does not know why we have gone this far with Town requesting dissolution of the MUD when due diligence was not performed by the Town to show dissolution is in the best interest of Trophy Club residents. Twomey stated he would have thought the cost savings should have been done well before the Town made any move talking to the MUD, talking to Westlake or talking to anybody or even mentioning it to the Town at large. He stated that if this were a business, he would have nothing to do with it because he would feel they do not know what they are doing. Twomey stated that the committee will meet with Town staff and/or the BRP, discuss the model to date and bring them up to speed. Twomey stated the committee will educate the Town staff about what is in the Enterprise fund and what is being taxed by the MUD and will cover every scenario. He said the committee can explain every benefit shown in the model after the many weeks of work that has gone into the models. Twomey stated that the committee has been working on this but he cannot see where the Town has done their part and has not shared information with the committee that is needed to complete their task. Mr. Reincke stated that he would like to have a joint workshop with the BRP to review the model. Mr. Carlson thought that the committee would be comparing numbers with the BRP and now it turns out there is only one set of numbers which are the committee’s numbers. Carlson would like to know how the savings determined by the Town will be used to benefit residents. Carlson said he does not find the numbers received from the Town compelling yet, and although he is still open to see them, it Citizen Advisory Committee 5 of 6 January 22, 2014 is not looking good for the Town Manager. Carlson stated that it appears there is no basis for the numbers that were presented at the Town Hall meeting or those presented to the committee and that is disappointing to him. Carlson would agree to meeting with the BRP but would want an agreed upon agenda with agreed upon people leading that meeting so that something can definitely get accomplished. District Manager McKnight asked the BRP Chair, Jay Como if the BRP had received the copy of the District budgets for the past seven years as they had requested several months ago, Mr. Como acknowledged they had received them. McKnight asked Assistant Town Manager to gather questions from the Town staff and the BRP and send them to her and she would send them to the Citizen Advisory Committee. Twomey asked State Representative Capriglione if he wanted to share his thoughts regarding the present issues. Capriglione stated that he got involved in this matter because there was no progress being made. Representative Capriglione stated that as long as talks continued and numbers were being reviewed, that is progress. He stated that the sides must work together to see if the numbers make sense and he is happy to assist if needed. Mr. Hoover would like to have the current financial model sent to the BRP. Co-Chair Twomey will update the model to reflect the 2% growth rate requested by the BRP and have the District Manager send the updated model to Mr. Como and Mr. Seidel. 5. Items for future agendas: None 6. Set next meeting date: Joint Meeting between the Citizen Advisory Committee and the Blue Ribbon Panel Finance Subcommittee to be held on December 11, 2013 6:30 p.m. in the Administration Board Room. Chairman Hase adjourned the meeting at 8:32 p.m. ________________________________ Jim Hase, Chairman ________________________________ Neil Twomey, Co-Chair ________________________________ Laurie Slaght, District Secretary Citizen Advisory Committee 6 of 6 January 22, 2014