HomeMy WebLinkAbout2014-01-21 Regular Meeting MinutesTrophy Club Municipal Utility District No. 1
January 21, 2014 Regular Session Minutes
REGULAR SESSION MINUTES FROM
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
BOARD OF DIRECTORS
100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS
JANUARY 21, 2014 at 7 P.M.
Svore Municipal Building Boardroom
The Trophy Club Municipal Utility District No. 1 Board of Directors, of Denton and Tarrant Counties, met
in Regular Session on Tuesday, January 21, 2014 at 7:00 P.M., in the Boardroom of the Administration
Building, 100 Municipal Drive, Trophy Club, Texas 76262. The meeting was held within the boundaries of
the District, and was open to the public.
STATE OF TEXAS §
COUNTY OF DENTON §
COUNTY OF TARRANT §
DISTRICT BOARD MEMBERS PRESENT
Jim Moss
Bill Armstrong
Kevin Carr
Nick Sanders
Jim Thomas
STAFF PRESENT:
Jennifer McKnight
Laurie Slaght
Renae Gonzales
Terri Sisk
Adrian Womack
Karl Schlielig
Danny Thomas
Bob West
President
Vice President
Secretaryrrreasurer
Director
Director
District Manager
District Secretary
Finance Manager
Human Resources Manager
Utility Superintendent
Wastewater Superintendent
Fire Chief
District Legal Counsel
GUESTS/SPEAKERS PRESENT:
Rod Abbot LaFollett & Company, PLLC.
President Moss announced the date of January 21, 2014, called the meeting to order and announced a
quorum present at 7:01 p.m.
CITIZEN PRESENTATIONS
CONSENT AGENDA
1. Consider and take appropriate action to approve the Consent Agenda.
a. December 17, 2013 Regular Meeting Minutes
b. Quarterly Investment Report: 1st Quarter FY 2014
c. Check Register-December 2013
Motion made by Director Sanders and seconded by Director Thomas to approve the Consent
Agenda.
Motion carried unanimously.
REGULAR SESSION
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2. Consider and take appropriate action to approve the Fiscal Year 2013 annual audit performed by
LaFollett & Company, PLLC.
Rod Abbott with LaFollet & Company, PLLC., presented the Fiscal Year 2013 annual audit to the Board
and answered all related questions. Mr. Abbott stated the audit went very well, staff was cooperative and
helpful, and the audit resulted in an unqualified opinion. He stated that is the best possible outcome and
complimented staff for their progress to complete and provide the end-of-year financial statements for the
first time.
Motion made by Director Thomas and seconded by Director Armstrong to approve the Fiscal Year
2013 annual audit performed by LaFollett & Company, PLLC.
Motion carried unanimously
3. Consider and take appropriate action to approve the December 2013 Financials.
a. Combined Financials
b. Variance Report
Motion made by Director Sanders and seconded by Director Carr to approve the December 2013
financials.
Motion carried unanimously
4. Consider and take appropriate action to review a Waiver Agreement regarding a conflict of interest
submitted by the District's Bond Counsel, McCall, Parkhurst & Horton L.L.P.
Attorney West informed the Board that he was contacted by the District's Bond Counsel at McCall,
Parkhurst & Horton L.L.P. He was informed by Greg Shaecher, the District's attorney, that his firm is also
representing the Town of Westlake and providing similar services. Attorney West stated that McCall,
Parkhurst & Horton L.L.P. has submitted a Waiver Agreement regarding a conflict of interest to the District
and would be submitting the same to the Town of Westlake. The Waiver Agreement states that while
they represent both entities on bond issues, they will remain neutral if there were a dispute between the
entities. Additionally procedures are in place to separate the lawyers that are working for each entity so
there is no confidential information exchanged. West stated this is a common situation as the firm
represents numerous municipal entities. West stated he recommends the Board approve the Waiver
Agreement.
Motion made by Director Sanders and seconded by Director Carr to approve the Notice of Conflict
submitted by the District's Bond Counsel, McCall, Parkhurst & Horton L.L.P. and authorize the
President to sign the agreement to the waiver.
Motion carried unanimously
5. Consider and take appropriate action to set date and guidelines for professional consultant evaluations.
District Manager McKnight stated this item was added to the agenda at the request of Director Armstrong.
McKnight provided a form that can serve as a guideline for reviewing legal consultants. McKnight
requested that the Board establish a deadline for returning completed evaluation forms to her so they can
be compiled and presented at the next meeting.
Motion made by Director Carr and seconded by Director Sanders to complete the Governmental
Entity Attorney Performance Review Rating Sheet for each attorney representing the District and
have the Directors return a separate form for each to the District Manager two weeks prior to the
next regular meeting.
Motion carried unanimously
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Attorney West informed the Board that he is not on an annual contract so a review is not required but he
agrees it is a good practice to insure the board is satisfied with the legal services provided.
6. Consider and take appropriate action regarding platting of Canterbury Hills Phase 3 and restriction to
access of District property.
District Manager McKnight informed the board that the plat for the property purchased last year by the
District adjacent to the Wastewater Treatment Plant has since been replatted and the new plat does not
provide access to the property from the new street being constructed. She stated that when the land was
purchased the plat showed access to the property without cutting through the existing wastewater plant.
She stated this will no longer be possible and wanted to ensure the board was aware of this as it
minimizes future use of the property if it is not used for the wastewater system.
The Board directed the District Manager to contact the Town and find out where the plat is in the platting
process. The Board indicated they would like to formally address the access to the District property
before the property is final platted.
Direction only, no action taken.
7. Consider and take appropriate action regarding increased capacity for water supply from the City of
Fort Worth and participation in City's 48-inch transmission line project.
District Manager McKnight stated the City of Fort Worth is planning to construct a 48" water transmission
main to serve our area. The transmission line will have a capacity of 60 million gallons per day. The
main will increase service ability to Trophy Club, Southlake, Westlake, Roanoke, Keller and Northlake.
Fort Worth is nearing completion of the design and purchasing the easements at this time. Phase 1, part
1 & 2 of the 48" line are expected to be completed by the summer of 2015 and the estimated cost for this
portion of the project is $15,959,000, excluding the cost of easements. Cost for purchasing capacity in
the line will be based on the additional capacity requested by each entity in a "per million gallons per day"
charge. Currently the million gallons per day (MGD) cost is estimated at $259,983 per MGD. McKnight
stated that staff was informed that additional capacity in the line, if available after current customers
participate, will be offered to possible new customers of the City.
McKnight stated staff estimates the District will need 10.3 MGD capacity in the line at build out of Trophy
Club. The estimate assumes well water becomes unavailable. She stated this estimate only includes
Trophy Club build-out and the existing area of Solana that is served by the District. She stated the 10.3
MGD does not include capacity for the future development in Westlake that plans to obtain service from
the Town of Westlake. McKnight stated currently the District can receive 7.9 MGD and therefore an
additional 2.4 MGD is needed. The estimated total cost for the additional 2.4 MGD is $638,359.
Motion made by Director Sanders and seconded by Director Carr to direct the the District Manager
to notify the Town Manager of the District's intent to increase capacity with the City of Fort Worth
and to let him know that the District will include capacity to serve the PID only if we are notified
within 30 days that a long-term supply agreement will be executed. Director Sanders stated that
McKnight should make sure the notice is in written form and to copy the mayor. Director Sanders
stated the Town should be advised that without an agreement in a timely manner the District will
have to move forward and not include capacity for the Town's water system.
Motion carried unanimously
8. Consider and take appropriate action to set date for Spring Open House.
District Manager McKnight suggested hosting an Open House on March 22, 2014 as it is "fix a leak week"
and would allow an opportunity to educate customers on water conservation.
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Discussion only, no action taken.
REPORTS & UPDATES
9. Receive update from Citizen Advisory Committee
Trophy Club Municipal Utility District No. 1
January 21, 2014 Regular Session Minutes
Larry Hoover from the Citizen Advisory Committee gave the Board an update on recent committee
meetings and the status of their final report.
District Manager McKnight stated that Town Manager Slye had approached her prior to tonight's meeting
and asked her if the Board would consider holding a joint meeting with the Town Council to hear the Blue
Ribbon Panel and the Citizen Advisory Committee final reports.
The Board directed to the District Manager to schedule a Special Meeting of the Board if needed so the
Citizen Advisory Committee can first present their final report to the Board of Directors first and then a
joint meeting could be held with the Town of Trophy Club Town Council to have the Blue Ribbon Panel
and the Citizen Advisory Board present their final reports and recommendations.
10. District Manager Report
a. Water System Operation: Including amended water billed report for FY 2014 to date
b. Wastewater Operation
c. Website Analytics
d. Finance Update
• Utility Billing Reports
• PID Connections
• Cash Status Report
• Fund Balance
• Permits as of December 31, 2013
e. Update on Lift Station No. 1 Access Road
f. Update on Indian Creek Water Line Replacement Project
g. Election Matters: Need for contract with Denton County and Tarrant County to conduct May
election.
District Manager McKnight presented her monthly update to the Board and answered questions related
thereto.
Director Sanders would like to obtain a pay down schedule from the Wallace Group.
11. Fire Department Report
a. December 2013
b. Status on Fire protection to out of District properties.
Chief Thomas presented his monthly update to the Board and answered questions related thereto.
The Board convened into Closed Session at 8:50 P.M.
12. Section 551.071 (2) Consultation with Attorney: Consultation with attorney on a matter in which the
duty of the attorney to the Governmental Body under Disciplinary Rules of Professional Conduct of the
State Bar of Texas clearly conflict with the Open Meetings Act and to seek advice of counsel on legal
matters involving pending or contemplated litigation, settlement offers, or legal matters not related directly
to litigation or settlement:
a. Town of Westlake proposal to purchase Solana area from District boundaries
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b. Water and wastewater services for PID; terms of inter-local agreement for provis ion of water and
wastewater services ; Trophy Club Municipal Utility District No. 1 assets and related matters; and
representation
c. Potential claim of adverse possession of District property
d. Texas Workman's Compensation Claim
The Board reconvened into Regular Session at 10:15 p.m.
13 . Consider and take appropriate action regarding Closed Session items .
Motion made by Director Sanders and seconded by Director Thomas to instruct the District
Manager to communicate to the Town Manager and council that they prefer to use a tax
equivalency method to calculate cost for future capital improvements for the MUD's charges to
the Town in the lnterlocal Agreement for Water and Wastewater Services as the board believes
this is a more equitable method and follows the same methodology if the PID were to be annexed
into the MUD.
Motion carried unanimously.
Motion made by Director Carr and seconded by Director Moss to notify the Town of Trophy Club
that in accordance with the termination clause in the contract between the Town of Trophy Club
and Trophy Club Municipal Utility District No. 1 for Operational Services for Water and Wastewater
Services (Section 6.3, Article 6 -Termination Without Default) the board directs the District
Manager to notify the Town that the board is providing a one-year notice to terminate the
operations contract.
The motion is withdrawn by the first and second to see if any progress is made on a long-term
contract by next month's regular meeting. This item is to be placed on the February agenda for
consideration of formal termination of the operations agreement.
14. Items for future agendas
Termination of Operation and Serv ice Contract with the Town of Trophy Club-Carr , Moss.
15. Set next meeting date -February 18, 2014 at 7 :00p.m.
s adjourned the meeting at 10 :27 p.m.
Kevin R. Carr,
Board Secretary/Treasurer
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