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HomeMy WebLinkAbout2016-0323 Regular Meeting minutesTrophy Club Municipal Utility District No. 1 March 23, 2016 Regular Meeting Minutes REGULAR MINUTES TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 BOARD OF DIRECTORS March 23, 2016 at 5:00P.M. 100 Municipal Drive, Trophy Club, Texas 76262 The Trophy Club Municipal Utility District No. 1 Board of Directors, of Denton and Tarrant Counties, met in a Regular Session on March 23, 2016 at 5:00 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 § COUNTIES OF DENTON AND TARRANT § DISTRICT BOARD MEMBERS PRESENT Jim Moss Neil Twomey Kevin Carr Jim Thomas Jim Hase STAFF PRESENT: President Vice President Secretary/Treasurer Director Director Jenn ifer McKnight General Manager Laurie Slaght District Secretary Renae Gonzales Mike McMahon Karl Schlielig Danny Thomas Pam Liston John Carlton Finance Manager-Present at 6:30p.m. Water Superintendent Wastewater Superintendent Fire Chief-Present at 6:30p.m. General Legal Counsel Special Counsel CALL TO ORDER AND ANNOUNCE A QUORUM President Moss announced the date of March 23, 2016, and called the meeting to order and announced a quorum present at 5:00p.m. The Board convened into Closed Session at 5:02p.m. CLOSED SESSION 1. Pursuant to section 551.071, the District will consult with its attorney on a matter in which the duty of the attorney to the Governmental Body under the Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the Open Meetings Act or to seek advice of counsel on legal matters involving pending or contemplated litigation or settlement offers: a. Legal advice regarding appeal of retail water and sewer rates pending with the Public Utility Commission of Texas. b. Legal advice regarding lnterlocal Cooperation Agreement for Administration of Fire Protection Services received from the Town of Trophy Club. c. Legal advice regarding administration of fire protection services potential sale of assets . (J. Thomas) 1 of9 Trophy Club Municipal Utility District No. 1 March 23, 2016 Regular Meeting Minutes d. Legal advice regarding settlement offer from Webber-Cadagua Partners for delay damages due to suspension of work during Town of Trophy Club permitting process. The Board reconvened into Regular Session at 6:30 p.m. REGULAR SESSION CITIZEN COMMENTS There were no citizen comments REPORTS & UPDATES 2. Fire Department Report for February 2016 a. Operations Report b. Volunteer Recruitment Report Chief Thomas presented his monthly report to the Board and answered related questions. Director Carr asked the Chief about a citizen's concerns with the District's chlorine room a few weeks ago. Director Carr said his understanding was that the Roanoke Fire Marshall was called to perform an inspection and that there were no violations or issues discovered . Chief Thomas stated that was correct. Director Carr asked the Chief if he was in charge of Emergency Management and if so to explain if there is a procedure in the Emergency Management Plan regarding chlorine gas. The Fire Chief confirmed he is in charge of Emergency Management. Carr added that his understanding was that a resident had a concern and the Mayor of Trophy Club requested that the fire department look at the chlorine room. Chief Thomas stated this was correct. Carr asked the Chief if the fire department has trained hazardous materials staff and Chief Thomas stated the department is part of NEFDA. Chief Thomas explained that they have nine Hazardous Materials Technicians, five are inspectors, and three of those inspectors are technicians. He stated that when the Town of Trophy Club wanted to get Roanoke involved with the inspection of the chlorine room he did not feel it was necessary. However he complied with the Town's request just to check because he knew that the chlorine room was up to standards. Chief Thomas stated there were no issues and the inspection was just to double check and get another opinion. Director Carr asked Chief Thomas if there is a procedure in the Emergency Management Plan for hazardous materials spills. Chief stated that there is an annex to the plan that addresses spills. Carr said he was unable to find the Emergency Management Plan on the Town's website and was told by the Town staff he would need to complete a request for public information to obtain a copy. Carr asked the Chief if other facilities in Trophy Club submit Tier II reports as they also store chemicals onsite. Chief stated that he believes they do. Chief Thomas confirmed that there is an SOP in place covering Hazardous Materials . Director Thomas asked the Chief to reiterate what the findings of the inspection of the Chlorine room were. Chief stated that there were no issues, the cylinders were secure, the room was ventilated properly and there were no violations . General Manager McKnight clarified that the District keeps twelve 150 lb cylinders of chlorine which totals 1800 lbs. Director Twomey wanted to note that the fire department had received its biennial state inspection and received no violations. 2 of9 Trophy Club Municipal Utility District No.1 March 23, 2016 Regular Meeting Minutes Director Carr wanted to clarify that the Town of Trophy Club adopted a Hazardous Mitigation Plan and in that plan the Town is in charge of the phone bank to inform residents. The Town was notified by the General Manager of the Aerial Sewer line leak and Chief stated he did not feel that the leak met the requirements of resident notification. Carr stated that if the leak had met certain criteria set by TCEQ, the District would have had to take further steps however, it did not, and so the District focused on stopping the leak and clean up. He stated that if that leak would have met any of the criteria set by Town Hazardous Mitigation Plan, it would have been the Town's responsibility to notify residents. Chief Thomas stated that was correct. CONSENT AGENDA 3. Consider and take appropriate action to approve the Consent Agenda. a. February 2016 Check Register b. January 19, 2016 Regular Meeting Minutes c. February 5, 2016 Special Meeting Minutes d. February 16, 2016 Regular Meeting Minutes e. Treated Wastewater Effluent Rate Order No . 2016-0323 f. Amend Northeast Fire Department Association (NEFDA) agreement General Manager McKnight stated that Item f . needed to be removed from the Consent agenda before consideration as legal counsel had not received information necessary from the NEFDA attorney. Item f. was removed. Motion made by Director Twomey and seconded by Director Carr to approve items a, b, c, d, and e, on Consent Agenda as presented. Motion carried unanimously REGULAR SESSION 4. Consider and take appropriate action regarding Closed Session items. Regarding Closed Session item: l.b Legal advice regarding lnterlocal Cooperation Agreement for Administration of Fire Protection Services received from the Town of Trophy Club. Motion made by Director Carr and seconded by Director Twomey to have the attorney look over the legalities of the agreement and review the comments given by Directors during the Closed Session and bring this item back in April for further review. Motion carried unanimously Regarding Closed Session item: l.d Legal advice regarding settlement offer from Webber-Cadagua Partners for delay damages due to suspension of work during Town of Trophy Club permitting process. Motion made by Director Twomey and seconded by Director Carr to direct legal counsel to draft a settlement agreement between Trophy Club Municipal Utility District No. 1 and Weber Cadagua Partners for an amount not to exceed $269,100 for delay damages pursuant to Section 16.01 of EJCDC C-700 of the contract. Motion carried unanimously 3 of9 Trophy Club Municipal Utility District No.1 March 23, 2016 Regular Meeting Minutes 5. Presentation and discussion with District Special Legal Counsel, John Carlton, regarding process and status of the appeal of retail water and sewer rates pending with the Public Utility Commission of Texas (PUCT). John Carlton, Special Legal Counsel, presented an overview of the rate appeal filed with the Public Utility Commission of Texas (PUCT) by ratepayers of the District. He explained that the appeal is initiated by a petition filed by ratepayers with the PUCT within 90 days after the effective date of the rate change. Carlton explained the PUCT must hear the appeal "de novo" meaning they will make a determination on every issue related to setting the rates . He said the PUCT must issue a final order setting the rates the governing body should have fixed in the action from which the appeal was taken. The PUCT may: •establish the effective date for PUCT's rates at the original effective date as proposed by the service provider, •may order refunds or allow a surcharge to recover lost revenues, and •may allow recovery of reasonable expenses incurred by Trophy Club MUD No. 1 in the proceedings by adding those costs into the rates. Carlton explained that once PUCT establishes the rates, they must remain in effect until September 1, 2016 or until they are changed by the District, whichever date is later. Carlton said that retail customers of the Town of Trophy Club Public Improvement District also filed an appeal of retail rates but that the District is challenging the right of another retail provider's customers to appeal District rates. Mr. Carlton said that the Administrative Law Judge will decide if PID ratepayers have the right to appeal or should be severed from the case. Carlton said other issues that will be decided through the process are: •Did the petition appealing the rate change by the MUD follow the requirements ofthe Texas Water Code and PUC Rules. •Considering only the information available to the governing body, what are the just and reasonable rates for the MUD that are sufficient, equitable, and consistent in application to each customer class and that are not unreasonably preferential, prejudicial, or discriminatory? •What is the appropriate methodology to determine just and reasonable rates for the MUD? •What is the revenue requirement that would give the MUD sufficient funds to provide adequate retail water service? •What is the appropriate allocation of the revenue to customer classes? •What is the appropriate design of rates for each class to recover the MUD's revenue requirement? •Should the Commission establish or approve interim rates to be in effect until a final decision is made? •What are the reasonable expenses incurred by the MUD in this proceeding and should the Commission allow recovery of these expenses through a surcharge to MUD customers? •What is the appropriate effective date of the rates fixed by the Commission in this proceeding? •If the Commission establishes rates different than the rates set by the MUD, should the Commission order refunds or allow surcharges to recover lost revenues? 4of9 Trophy Club Municipal Utility District No. 1 March 23, 2016 Regular Meeting Minutes He stated the pre-hearing process will last six to eight months and will include a discovery period, written questions and depositions . Carlton said after completion of the pre-hearing period, a hearing will be held before an Administrative Law Judge. The hearing will last three to four days and will be similar to a bench trial. After the hearing transcripts will be prepared, closing arguments will be filed, and finally the Administrative Law Judge will issue a 11 Proposal for Decision.~~ The proposal for Decision will be considered by the PUCT Commissioners at a public meeting. Carlton said the post-hearing process will last about three to four months. If the decision is appealed by a party then the appeal process will last from twelve to twenty-four months. An appeal is filed with the Travis County District Court. Carlton offered to put together a summary showing the cost of service and revenue requirements that the District can share with customers. Carlton stated that he, Pam Liston and Jennifer McKnight will be meeting with Mr. Rose and Mr. Mayer tomorrow to discuss their grievances. Director Carr stated he would like to clarify that the Board had directed Mr. Carlton, Attorney Liston, and Jennifer McKnight to meet with the petitioner representatives. Attorney Liston added that Mr. Carlton was in Town to give a presentation at a conference so it worked out very well that he could attend the meeting tonight. 6. Consider and take appropriate action to approve proposal from CP&Y/The Wallace Group for updating District water and sewer maps. General Manager McKnight stated that the maps have not been updated since 2010 and several subdivisions are missing from the maps. Motion made by Director Hase and seconded by Director Thomas to approve the proposal from CP&Y/The Wallace Group to update the District's existing water and wastewater master maps and then to break down into the MUD's grid mapping system; owner shall supply AUTOCAD drawings of new developments to be added to the master maps. Compensation for the CADD support shall be based on the Engineer's standard hourly rate with an amount of not to exceed of $10,000. Motion carried unanimously 7. Consider and take appropriate action regarding Water System Capital Improvement Plan (CIP) including estimated timeline and future funding options. (Twomey) Director Twomey presented the Board with a draft spreadsheet he developed that projected the District tax rate over the next several years. Twomey included in his spreadsheet estimated values for the hotels that are currently being built and PD-30 . Twomey added that realistically it will take three to four years to realize some of these new projects in the tax values. Twomey added that in his draft spreadsheet he is showing the PID as built out and the District with approximately 100 homes left to be built and this shows just the assessed value. Annually he is showing a 2% inflation rate being added to the value for the District property only. Twomey added the water system capital improvements from the timeline provided by the General Manager to the spreadsheet to show the effect of bonds for each on the tax rate. He asked the Board for any input they may have regarding the timeline and scenarios for funding . Director Thomas asked the General Manager if part of the Fort Worth line could be put off for some 5 of9 Trophy Club Municipal Utility District No. 1 March 23, 2016 Regular Meeting Minutes time or if it's needed now. McKnight stated that the portion up to Westlake must be done on the City's timeline as it's a shared project. However for the last portion of the project up to the District's meter vault from Fort Worth, it is up to the District as that portion is owned by the District. The driving force behind the timeframe for construction is water usage. McKnight stated it will take a couple of years to construct the line so we must be ahead ofthe demand for construction purposes . McKnight stated the water line projects are the priority and a decision for funding and a timeline must be made soon. McKnight stated the engineering cost is estimated at 10% of the construction cost estimate. Discussion Only 8. Consider and take appropriate action regarding mid-year budget amendment to be considered in April 2016 including: a.Security system upgrades . (J. Thomas) b.Parking bollards. (J. Thomas) c. Repair of driveway at 100 Municipal Drive. d.Other items for inclusion/exclusion. McKnight stated that staff made temporary repairs to the driveway in front of the Administration building and item c. can be removed from the list of considerations for the budget amendment. McKnight stated that staff met with a security specialist that was proposed by the Board and the cost was too high to consider this budget cycle. The parking bollards will cost an additional $10,000 . The Board would like staff to include a device in the budget amendment to raise the monitor up behind the podium. Director Carr would like to have all the items listed for consideration in the budget amendment to be considered next fiscal year instead of in the budget amendment. 9. Consider and take appropriate action regarding a contract extension with AT&T for tower use at 2114 TW King Road. Attorney Liston was able to review all of the documents including the original contract and all amendments to the contract and stated that it is up to the Board to determine the change in the lease price that was proposed by AT&T. General Manager McKnight stated that a thorough comparison with the surrounding area had been performed and she believes the District should be receiving $24,000 for an initial term of five years with optional five year extensions with a payment increase of 15% each additional term. Motion made by Director Twomey and seconded by Director Thomas for the General Manager to make offer to AT&T for cell tower connection for $24,000 during an initial term of five years with optional five year extensions including a 15% increase each additional 5 year term. Motion carried unanimously 10. Consider and take appropriate action regarding the February 2016 combined financials and variance report. 6 of9 Trophy Club Municipal Utility District No .1 March 23, 2016 Regular Meeting Minutes a. Combined financials b. Variance report Director Carr noted that the PID assessment amount on the variance report indicates the District has not received the full amount due from the Town. He stated that in regards to the 2008 lnterlocal Agreement for Fire Service with the Town of Trophy Club he wants to clarify that the District is not a taxing authority for the Public Improvement District and cannot impose a tax on the Public Improvement District as they are not within the boundaries of the District . Director Carr stated he does not like that the District is holding the bad debt of the Town and does not feel that the agreement is working. General Manager McKnight explained that District staff and Town staff do not agree on the interpretation of language in the agreement and Town staff will not pay the total amount due because as of January 151 they had not collected it. Motion made by Director Carr and seconded by Director Twomey to approve the February 2016 Combined financials and Variance report. Motion carried unanimously REPORTS & UPDATES 11. Fire Committee monthly report. (Twomey) Director Twomey presented his update to the Board regarding the Fire Committee meetings. Twomey handed out the status update of ESCI's short term recommended changes and reviewed the status of those changes with the Board. A handout was provided showing what equipment is sent out with each type of call received by the Fire Department. Twomey stated this is going to assist the committee working on improving response times. Twomey has been in touch with ESCI to look at possib ly having annual updates provided to the committee. Director Carr inquired about the lack of a "table top" exercises being performed. Twomey stated that no table top exercise has been performed since 1999 and that he is working with the committee to correct this issue. Carr is also concerned that the Emergency Management Plan that is maintained by the Town is not available to the public and he feels that the District should have access . Carr is very concerned about the lack of involvement and awareness of the plan. General Manager McKnight stated that the District does have its own emergency protocols in place and staff has been involved and is prepared . Twomey stated that the Emergency Management Plan was written and mainta i ned by the Town and the committee does not have oversight. However, he will pass the concerns expressed on to Town representatives. 12. Annual cost summary letters and meetings with District customers in Solana . (J.Thomas) Director Thomas stated that the letters were completed on March 1'1 and he hand delivered the letters to our commercial users in Solana. Staff was able to use current rates from the District and the Town of Westlake to show the following savings: 7 of9 Trophy Club Municipal Utility District No. 1 March 23, 2016 Regu lar Meeting Minutes TOWN OF TROPHY CLUB SAVINGS WESTLAKE MUD N0.1 Marriott-Solana $241,946.12 $123,547.46 $118,398.66 Larry North Fitness $47,004.34 $24,787.19 $22,217.15 Boy Scouts of America $10,497 .17 $2,005.37 $8,491.80 BRE SOLANA LLC. $875,665.80 $460,853.72 $414,812.08 Director Thomas stated he had an overwhelmingly positive response from the customers he spoke with. He said the District received very positive feedback for customer service and he was told that District staff was phenomenal, professional and knowledgeable. Director Thomas wanted to thank the staff for their work in providing this information and wanted everyone to know our customers in Solana are very pleased with the service they receive from the District. 13. General Manager Monthly Report for February 2016 a.Water System Operation b. Meter and Meter Head Change Out Program c. Wastewater System Operation d. Website Analytics e.Finance Update •Utility Billing Reports •Permits Collected f. Project Status Updates •Pebble Beach , Timberline, and Pin Oak Court Water Line Upgrade Project •Campus Circle Water Line Relocation Project •Wastewater Treatment Plant Upgrade Project •Repair of Aerial Sewer Line near Wastewater Treatment Plant •Ammonia Feed System •Request for Proposals for Electronic Data Management System (EDMS) g. Update on Water Fest to be held on April 2, 2016 h. Election Update i. Security System Upgrades General Manager McKnight presented the monthly update to the Board and answered related questions. Meter Change out update -As of today 111 meters of 145 . The new meters are replacing very old meters that are not registering correctly. McKnight stated that five of the old meters have been sent for testing, all of those tested were under registering and there was one meter that at low flow it was zero, mid flow it was 32% and at high flow it was 62%. Residents who received a new meter were notified in advance . McKnight stated that it cost the District $100.00 to test each meter and that is why only a few are sent out for testing. Upon completion of the meter change outs, staff will begin adding the Orion profile heads to existing meters . Pebble Beach, Timberline, and Pin Oak Court Water Line Upgrade Project-All lines have been installed on the Pebble Beach, Timberline, Pin Oak project. Walkthrough's will be completed to verify all valve pads and meter boxes are correct. 8 of9 Trophy Club Municipal Utility District No . 1 March 23 , 2016 Regular Meeting Minutes Campus Circle Water Line Relocation Project -We were pushed off for a week on the Campus Circle Water Line Relocation due to storm drain being installed that conflicts with our water line placement . As soon as the storm drain is finished, we will continue on with the new water line . Ammonia Feed System -We are waiting on the Town permit status for the LAS building which will also be the chlorine building. Town requirements state that the building should be a masonry building, however, McKnight provided the Town staff with the MSDS showing that you should not put chlorine in a masonry building. We should know something by the first of April. We are still continuing with the engineering on the project. Wastewater Treatment Plant Upgrade Project -Contractors continued the installation of 12" digester decant line. Started digging the area too core and lay down the pipe for the plant lift station . Started the installation of the MCC boxes in administration building. Contractors poured and installed concrete for the new grit chamber and fine screen building (Classifier Building). Repair of Aerial Sewer Line near Wastewater Treatment Plant -TAS Environmental finished cleaning the area around the 24" influent sewage line over the creek. Two iron 1-beams were installed to support the sewer line and fencing was installed to keep anyone from crossing the sewer line. Fort Worth Arborist planted trees around the area that was cleaned. 14. Items for future agendas: Director Thomas -requirements and timeline to hold a bond election for November 2016. Director Carr-2008 Fire Services ILA 15. Announce next regular meeting date: Tuesday, April19, 2016 at 6:00p.m. ADJOURN President Moss adjourned the meeting at 9:05p.m. Jim Mo , President ~£L_ Kevin R. Carr, Secretary 9 of9