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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 1 of 5 Trophy Club Municipal Utility District No. 1 January 21, 2014 Regular Session Minutes 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 2 of 5 Trophy Club Municipal Utility District No. 1 January 21, 2014 Regular Session Minutes 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. 3 of5 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 4 of 5 Trophy Club Municipal Utility District No . 1 January 21, 2014 Regular Session Minutes 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 5 of 5