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HomeMy WebLinkAbout2016-0816 Regular Meeting MinutesI Trophy Club Municipal Utility District No. 1 August 16, 2016 Regular Meeting Minutes REGULAR MEETING MINUTES TROPHY ClUB MUNICIPAl UTILITY DISTRICT NO. 1 BOARD OF DIRECTORS AUGUST 16, 2016 at 6:00P.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 Regular Session on August 16, 2016 at 6:00 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 Kevin R. Carr Greg Wilson Jim Hase Jim Thomas Bill Rose STAFF PRESENT: President Vice President Secretary/Treasurer Director Director Jennifer McKnight General Manager laurie Slaght District Secretary Renae Gonzales Terri Sisk Mike McMahon Karl Schlielig Pam Liston Rick Lasky GUESTS PRESENT: Paul Liston Finance Manager Administration Manager Water Superintendent Wastewater Superintendent General legal Counsel Interim Fire Chief Attorney T any Corbett Kevin Glovier, PE Attorney, District Bond Counsel CP&Y Andrew Friedman Samco Capital Markets Justin Razor NewGen Strategies PUBLIC HEARING -REGULAR MEETING CAll TO ORDER AND ANNOUNCE A QUORUM President Carr announced the date of August 16, 2016, called the meeting to order and announced a quorum present at 6:00p.m. 1. PUBLIC HEARING -Announce and open Public Hearing regarding proposed water and sewer rates. General Manager McKnight gave a presentation regarding the proposed rate increases for October 1, 2016. McKnight explained how the District sets its water and sewer rates, the methodology and what is included in those rates. McKnight gave an overview of the scenario's that were considered 1 of 11 Trophy Club Municipal Utility District No. 1 August 16, 2016 Regular Meeting Minutes by the Board and explained the rationale behind their selection of scenarios chosen. McKnight reviewed the proposed rates and compared them with the rates of surrounding towns and cities. (The presentation is attached hereto) President Carr stated that the District had received emails from the following residents: Charles Mitchell Joe & Patti Tellez Melissa Cornish Rob Zimmerman Aaron Cornish Ted Powell Terry (gave only first name) The following residents spoke during the Public Hearing: Pat Gillis 71 Panorama Circle John Lynch 525 Indian Creek Dennis Sheridan Evan Callahan Ted Powell Eric Green Luanne Wing Dr. Wanda Franklin 1 Hillcrest Court 420 Parkview 12 Reading Court 553 Indian Creek Drive 1115 Wilshire Drive 4 Turnberry Court President Carr Closed the Public Hearing regarding proposed water and sewer rates at 7:09p.m. CITIZEN COMMENTS Renae Gonzales REPORTS & UPDATES 20 Sonora Drive 2. Fire Department Report for July 2016 a.Operations Report b.Volunteer Recruitment Report Chief Lasky gave his monthly update to the Board and stated that he is working on bolstering mutual aid agreements with Flower Mound and Southlake . CONSENT AGENDA 3. Consider and take appropriate action to approve the Consent Agenda. a. July 2016 Check Register b. July 13, 2016 Special Meeting Minutes c. July 19, 2016 Regular Meeting Minutes d. lnterlocal Agreement with Denton County for tax collections in FY 2017 Motion made by Director Rose and seconded by Director Wilson to approve the consent agenda as presented. Motion carried unanimously 2 of 11 Trophy Club Municipal Utility District No. 1 August 16, 2016 Regular Meeting Minutes REGULAR SESSION 4. Consider and take appropriate action to adopt District Rate Order No. 2016-0816A amending water and sewer rates and setting effective date of October 1, 2016. John Lynch Luanne Wing Kyle Williams 525 Indian Creek 1115 Wilshire Drive 2206 Montgomerie Avenue Director Wilson gave his explanation as to how we got here. The Board used reserves to pay the rate increases instead of passing on the cost to the customer. The PID is built out and the reserves are depleted. Wilson stated that residents should expect rates to go up for the next few years. Ted Powell Evan Callahan Ali Nur Mark Sudberry Danny Mayer Ted Powell Nick Sanders 10 Reading Court 420 Parkview Drive 2225 Veranda Avenue 3 Fresh Meadow Court 2201 Prestwick Avenue 10 Reading Court 7 Hayes Ct. Motion made by Director Rose and seconded by Director Wilson to have Section 3.02G . (Meter Data Logging Fee) be eliminated from the Rate order. Attorney Liston stated that the motion is out of order. Meter Data logging fees will be added to an upcoming agenda. Motion made by Director Carr and seconded by Director Thomas to adopt District Rate Order No. 2016-0816A amending water rates. For: Carr, Hase, Thomas Opposed: Rose, Wilson Motion passed 3-2 The Board Recessed at 8:52 p.m. Due to technical difficulties the meeting has resumed into Regular Session at 9:11 p.m. using a voice recorder. Videotaping resumed at 9:29 p.m. General Manager McKnight asked for an opinion from Justin Razor with NewGen Strategies as to how setting base rates the same for 5/8" and 1" meters could be justified. Justin stated that it could not be justified because a 1" meter flows at 60 gallons per minute and a 5/8" meter flows at 20 gallons per minute that is why the cost is higher and added that the Board could make a policy decision to charge the same base rate for 5/8" and 1" meters, however, that would be a Board policy decision only and would not be justifiable to the Public Utility Commission. Motion by Director Rose seconded by Director Wilson to amend the rate order base rate for a 1" meter be set at $24.55 and not $32.23 and that displaced revenue to be regained by adjusting the 3 of 11 Trophy Club Municipal Utility District No. 1 volumetric rates. For: Rose Opposed: Hase, Carr, Wilson, Thomas Motion failed 1-4 August 16, 2016 Regular Meeting Minutes Motion made by Director Rose and seconded by Director Wilson that commercial and residential will cover their own cost of service based on derived volumetric flows at the wastewater treatment plant with an adjustment for I & I of 10%. Commercial water that is billed, sewer charges shall be used as commercial flow at the wastewater treatment plant for the purpose of calculating percentage of service and allocating cost plus the I & I for commercial and residential customers. For: Rose, Wilson Thomas and Hase Oppose: Carr Motion passed 4-1 Motion made by Director Rose and seconded by Director to have the General Manager present the following sewer rate scenarios for consideration of the Board: 1) Commercial and residential volumetric rates with residential cap adjusted so that total residential revenue capped at actual amount processed at wastewater treatment plant adjusted for 10% I & I 2) Commercial total rate revenue equal and residential total rate revenue equal actual amounts processed at the wastewater treatment plant adjusted for 10% I & I using winter averaging on residential with no caps. 3} Same as 2 except winter averaging with an inclining block structure, blocks 0-4,000 gallons, 4,001-8,000 gallons, 8,001-12,000 gallons and +12,000 gallons. Base rate for scenario's 1, 2 and 3 shall be the same and have a customer analysis similar to the one presented at the rate workshop included. Motion carried unanimously 5. Consider and take appropriate action regarding $4,635,000 Trophy Club Municipal Utility District No. 1 Water and Sewer System Revenue Bonds, Proposed Series 2016 (the "TWDB Bonds"): a. Approval of Financing Agreement with Texas Water Development Board (TWDB) setting forth terms and conditions of financial assistance under the State Water Implementation Revenue Fund. b. Authorize other actions necessary, appropriate or convenient regarding the issuance of the TWDB Bonds. Motion made by Director Carr and seconded by Director Thomas to approve the following: c. Approval of Financing Agreement with Texas Water Development Board (TWDB} setting forth terms and conditions of financial assistance under the State Water Implementation 4 of 11 Trophy Club Municipal Utility District No. 1 August 16, 2016 Regular Meeting Minutes Revenue Fund. d. Authorize other actions necessary, appropriate or convenient regarding the issuance of the TWDB Bonds. Motion carried unanimously The Board recessed at 10:37 p.m. The reconvened into Regular Session at 10:49 p.m. 6. Consider and take appropriate action regarding adoption of Resolution No. 2016-0816A approving Preliminary Engineering Report for Waterworks System Improvement Projects. Motion made by Director Carr and seconded by Director Hase to adopt Resolution No. 2016-0816A approving Preliminary Engineering Report for Waterworks System Improvement Projects. For: Hase, Carr and Thomas Opposed: Wilson, Rose Motion passed 3-2 7. Consider and take appropriate action regarding November 8, 2016 Bond Election. a. Consider and Take Action Regarding Adoption of Order No. 2016-0816B Calling a Bond Election for Trophy Club Municipal Utility District No. 1 and Making Provisions for Conducting Such Election and Other Provisions Incidental and Related Thereto. Considerar y tamar acci6n en relaci6n a Ia adopci6n de una Orden e/ Numero 2016-0816B Para Convocar una Elecci6n de Bonos Para el Distrito Municipal de Servicios Publicos Trophy Club No. 1 y estableciendo las disposiciones para Ia conducci6n de tal elecci6n y otras disposiciones incidentales y relativas a Ia misma. b. Consider and Take Action regarding joint election and election service agreements for conducting November 8, 2016 Bond Election. Considerar y tamar acci6n en relaci6n a los convenios de elecci6n conjunta y servlc/os electorates para Ia realizaci6n de Ia Elecci6n de Bonos de/8 de noviembre de 2016. c. Authorize the General Manager, Officers and District consultants to take such other action as may be necessary or appropriate to proceed with the November 8, 2016 Bond Election. Autorizar at Gerente General, directivos y consultores del Distrito para tamar tales otras medidas segun sean necesarias o apropiadas para proceder con Ia Elecci6n de Bonos del 8 de noviembre de 2016. Director Rose strongly disagrees with the Preliminary engineering reports and feels that the Board must obtain more accurate data. Rose does not feel that an additional tank or that the district needs new lines. Director Hase would like to know if we can cancel the election if we call it tonight. Attorney Corbett stated that the Board cannot call the election and then remove it off the ballot. 5 of 11 Trophy Club Municipal Utility District No. 1 August 16, 2016 Regular Meeting Minutes Motion made by Director Wilson and seconded by Director Rose to delay the Bond until the May 2017 election. For: Rose, Thomas, Hase and Wilson Opposed: Carr Motion passed 4-1 8. Consider and take appropriate action to conduct Director Meetings with the public regarding water and sewer rates and/or District bond election. (Wilson) Motion made by Director Wilson and seconded by Director Thomas to hold public meetings as needed and authorizing Director Wilson to take the lead on these meetings. Motion carried unanimously 9. Consider and take appropriate action to approve Second Amended lnterlocal Cooperation Agreement for Fire Protection Services with the Town of Trophy Club to amend section 3.01 (Funding). Motion made by Director Carr and seconded by Director Thomas to approve Second Amended lnterlocal Cooperation Agreement for Fire Protection Services with the Town of Trophy Club to amend section 3.01 (Funding). Motion carried unanimously 10. Consider and take appropriate action to approve contract no. 20160816 for Personnel Services with Emergency Services Consulting International (ESCI) to serve as District Fire Service Administrator for up to a ninety-day period and to assist in drafting and implementing an agreement for fire/EMS services with the Town of Trophy Club. (Carr) Discussion only, no action taken 11. Consider and take appropriate action regarding fire protections services including options for management and operations ofthe District Fire Department. (Wilson) Motion made by Director Wilson and seconded by Director Carr to direct staff to work with the Town to draft an agreement within 45 days to transfer operations and management to the Town. Motion is amended to include specific deadlines for ESCI, SOP's come up with the components that create a solid ILA by Sept 15 and turn over to Legal and bring back to the Board by the end of September. Motion is amended by the first and the second to extend the deadline to November 15, 2016. Motion approve the amendment to the motion is unanimous. Director Rose asked Chief Lasky if he could take care of the Standard Operating Procedures without ESCI. Lasky replied that he could. General Manager McKnight stated that she feels that ESCI and 6 of 11 Trophy Club Municipal Utility District No. 1 August 16, 2016 Regular Meeting Minutes Chief Lasky should work together because they are experts and can come up with measurable goals so as we move forward the Board can be assured that the District assets are being taken care of because these are the measures we are going to look for on an annual basis. McKnight added that having two experts put these items into an ILA is the best option because the ILA's that are in place are not working and she does not think the Board should continue to use the ILA's that have not worked in the past whether it be the Town that writes them or the District. McKnight added that the motion was to direct staff and she feels confident that Chief Lasky is the right staff for the Town and that ESCI is the right staff for the District. McKnight stated that if the Board is choosing not to use ESCI, they need to be specific on what staff they are directing to represent the District. Director Rose makes a motion to remove ESCI from this motion, seconded by Director Wilson For: Rose, Hase, Wilson and Thomas. Opposed: Carr Amendment to remove ESCI from the amendment to the main motion passed 4-1 THE MAIN MOTION IS AMENDED BY THE FIRST AND SECOND TO STATE: Motion to amend the main motion by the first, Director Wilson and the second, Director Carr to finalize the agreement to transfer the maintenance and operations of the fire station to the Town with the District approving the budget and setting the tax rate. If the District so desires to bring in a third party to assist with the transition, that decision can be made during the negotiation process. Motion carried unanimously (Motion is amended by the first and the second to extend the deadline to November 15, 2016. Motion to approve the amendment as amended is unanimous.) 12. Consider and take appropriate action regarding sewer billing for Town of Trophy Club Splash Pad located on Parkview Drive. General Manager McKnight stated that the Splash Pad is not being charged sewer. Motion made by Director Carr and seconded by Director Wilson to waive any back fees for sewer and have the staff follow up 60 days. Motion carried unanimously 13. Consider and take appropriate action regarding elevated tank capacity necessary to serve RR Webster Family LLC for the development known as Trophy Club Village Centre MOB, Phase 2, Trophy Club Animal Hospital and to approve Non-Standard Water and Wastewater Agreement for service commitment. General Manager McKnight stated that she is not comfortable with an agreement that allocates tank capacity. McKnight stated that she would advise the Board to seek capacity from the Town of Trophy Club. Staff is directed to contact the Town and find out if we have an allocation agreement. 7 of 11 Trophy Club Municipal Utility District No. 1 August 16, 2016 Regular Meeting Minutes Motion made by Director Carr and seconded by Hase to approve the approve Non-Standard Water and Wastewater Agreement for service commitment for the development known as Trophy Club Village Centre MOB, Phase 2, Trophy Club Animal Hospital contingent upon receiving the written allocation agreement. Motion carried unanimously 14. Consider and take appropriate action to amend District Agenda Policy to allow Citizen Comments at all meetings of the Board. (Rose) Motion made by Director Rose and seconded by Director Hase to table agenda item No. 14. Motion carried unanimously 15. Consider and take appropriate action clarifying and formalizing the authority of individual Directors of the Board as related to: a. Interactions with and direction to the General Manager, staff, and consultants. (Wilson/Thomas) b.Authorization of expenditures of District funds. (Thomas) c. Procedures for conducting meetings ofthe Board. (Carr) Motion made by Director Wilson and seconded by Director Rose to levy the same power on all Directors. All request go through the General Manager and all information is shared equally. That the President should work with staff to create the agenda and that the secretary treasurer should work with finance. Motion as amended carried unanimously Director Carr asked for agenda item 15.c and wanted to state the meeting does not operate under Roberts Rules of Order. Motion made by Director Carr and seconded by Director Thomas that we limit meeting time until 11 p.m. and that the Board is not operating under Roberts rules of Order. For: Hase, Wilson, Carr, Thomas Opposed: Rose Motion passed 4-1 16. Consider and take appropriate action to increase retainage fees for professional services by NewGen Strategies related to the Public Utility Commission rate challenge. Motion made by Director Hase and seconded by Director Wilson to increase retainage fees for professional services by NewGen Strategies related to the Public Utility Commission rate challenge up to a total of $200,000. For: Hase, Thomas, Wilson and Carr 8 of 11 Trophy Club Municipal Utility District No. 1 August 16, 2016 Regular Meeting Minutes Obstain: Rose Motion passed 4-1 17. Discussion regarding status of appeal of retail water and sewer rates pending with the Public Utility Commission of Texas. Discussion only, no action taken 18. Consider and take appropriate action regarding Resolution 2016-08168, adopting the budget for Trophy Club Municipal Utility District No. 1 for the fiscal year beginning October 1, 2016 and ending September 30, 2017. Motion made by Director Rose and seconded by Director Thomas to approve Resolution 2016-08168, adopting the budget for Trophy Club Municipal Utility District No. 1 for the fiscal year beginning October 1, 2016 and ending September 30, 2017 Motion carried unanimously Motion is amended by Director Rose and seconded by Director Wilson to remove the following line items be zeroed out from the adopted budget: 135-50005-026, 135-50030-026, 135-50035-026, and 135-50040-026. Motion to amend the main motion and remove Director Fees carried unanimously Director Thomas would like to look into the W.I.S.E. Guys Irrigation Evaluation program and will bring information to a future meeting regarding this. 19. Consider and take appropriate action regarding District Governmental Accounting Standards Board (GASB} accounts: a. Reallocation offunds in GASB-IT to GASB-Sewer. b. Reallocation of other GASB account funds. Motion made by Director Carr and seconded by Director Wilson reallocate the funds from GASB IT to GASB sewer. Motion carried unanimously 20. Consider and take appropriate action regarding the July 2016 combined financials and variance report. a.Combined financials b.Variance report Motion made by Director Hase and seconded by Director Carr to approve the July 2016 combined financials and variance report. Motion carried unanimously 9 of 11 Trophy Club Municipal Utility District No. 1 August 16, 2016 Regular Meeting Minutes REPORTS & UPDATES 21. Report on AWBD new director training class. (Rose) Director Rose gave an overview of his class at AWBD 22. Update from General Manager Search Committee (Carr) Director Carr updated the Board on the status of the search committee and stated that the committee will be interviewing for the interim General Manager position on Monday, August 22, 2016. 23. General Manager Monthly Report for June 2016 a. Water System Operation b.Meter Head Change Out Program c. Wastewater System Operation d.District Personnel Changes Update e.Finance Update •Utility Billing Reports •Permits Collected f. Project Status Updates •LAS System Project •Restroom Renovation Project •Wastewater Treatment Plant Upgrade Project •Wastewater Treatment Plant Permit Renewal General Manager McKnight gave the Board her monthly update. McKnight announced that Terri Sisk is also leaving to take a new job. The Board made comments to Jennifer and gave her well wishes. THE BOARD CLOSED SESSION 24. The Board will convene into closed session pursuant to Section 551.074 of the Texas Government Code regarding Personnel Matters to deliberate a complaint submitted by Danny Mayer against Director Jim Thomas dated June 15, 2016 and receive legal counsel's findings regarding face of complaint regarding same. RECONVENE INTO REGULAR SESSION at 1:54 a.m. 25. Consider and take appropriate action regarding Closed Session items. Director Rose stated that he would like to have a hearing in an open meeting and allow the persons involved to present their information. Director Hase felt that this is a private matter and does not support this motion. Danny Mayer spoke and stated that he did not want to file this complaint. He was just seeking an apology from Director Thomas Motion made by Director Rose and seconded by Director Wilson to move the complaint forward for further review and investigation of the complaint. 10 of 11 Trophy Club Municipal Utility District No. 1 For: Carr, Rose, Wilson Abstain: Thomas Opposed: Hase Motion passed 3-1-1 26. Items for future agendas: August 16, 2016 Regular Meeting Minutes 27. Announce meeting dates: Regular Meeting on September 20, 2016 at 6:00p.m. Motion made by Director Wilson and seconded by Director Rose to adjourn the Regular Meeting. Motion carried unanimously Meeting adjourned at 2:02 a.m. ~c_ evin R. Carr, President ~ 11 of 11