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HomeMy WebLinkAbout2016-1220 Regular Meeting MinutesTrophy Club Municipal Utility District No. 1 December 20, 2016 Regular Meeting Minutes REGULAR MEETING MINUTES TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.1 BOARD OF DIRECTORS December 20, 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, December 20, 2016 at 6:00P.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 President Vice President Secretary/Treasurer Director Director DISTRICT BOARD MEMBERS ABSENT STAFF PRESENT: District Secretary Finance Manager Water Superintendent Wastewater Superintendent Laurie Slaght Renae Gonzales Mike McMahon Karl Schlielig Steven Krolczyk Paul Liston Human Resource Manager/Financial Analyst Legal Counsel GUESTS PRESENT: Kevin Glovier PE CP&Y Gil Barnett PE CP&Y CALL TO ORDER AND ANNOUNCE A QUORUM President Carr announced the date of December 20, 2016, called the meeting to order and announced a quorum present at 6:00p.m. CITIZEN COMMENTS Nick Sanders Patrick Arata CONSENT AGENDA Mayor Town ofTrophy Club Interim Town Manager 1. Consider and take appropriate action to approve the Consent Agenda. a. November 2016 Check Register b. October 18, 2016 Regular Meeting Minutes c. November 7, 2016 Special Meeting Minutes 1 of 10 Trophy Club Municipal Utility District No. 1 December 20, 2016 Regular Meeting Minutes d. Quarterly Investment Report-4'd Quarter October 2016 Director Hase would like to have Consent agenda item d. removed from the Consent agenda to be considered separately. Motion made by Director Thomas and seconded by Director Hase to approve items a. b. and c. on the Consent agenda as presented. Motion carried unanimously Motion by Director Hase and seconded by Director Carr to approve Consent agenda item d.Quarterly Investment Report-4rd Quarter October 2016 For: Carr, Hase, Thomas and Wilson Opposed: Rose Motion passed 4-1 REGULAR SESSION 2. Consider and take appropriate action regarding request of waivers from the Town of Trophy Club: a. Commercial Security Deposit for 2" and 3 u meters for an amount of $2,520.00 b. Fire Prevention System 8" meter deposit in the amount of $5,361.62 Mayor Nick Sanders stated that the Town is requesting that the Board consider the relationship between Town and the District and waive the fees for the deposits as no other Town accounts have paid deposits on meters. Mayor Sanders added that building code and fire code do not require a separate fire meter and they would like to have the fee for the 8" fire line waived as well. Finance Manager, Renae Gonzales stated that the Town HOA irrigation meters have a $75 deposit on each meter however previous to that there were no deposits taken on Town accounts. Water Superintendent Mike McMahon stated that all other commercial property have a separate fire line meters and that the meters are used to prevent and monitor water loss. Interim Town Manager, Patrick Arata spoke stating that the bypass would be installed on the line for the fire prevention system. Arata asked for the Board to make a determination on the security deposit for the water meters so the meters can be set. Motion made by Director Hase second by Director Thomas to table agenda item No. 2. a. and b. For: Hase Oppose: Rose, Carr, Thomas and Wilson Motion failed 1-4 Motion made by Director Wilson and seconded by Director Rose to wave the commercial security deposits for the 2" and 3" meters for an amount of $2,520.00. For: Wilson, Rose, Thomas and Hase Oppose: Carr 2 of10 Trophy Club Municipal Utility District No. 1 December 20, 2016 Regular Meeting Minutes Motion Passed 4-1 Motion made to table agenda item 2. b by Director Thomas and second by Director Carr. For: Carr, Thomas and Hase Oppose: Wilson and Rose Motion passed 3-2 3. Consider and take appropriate action concerning an inflow and infiltration study of the sewer system. Kevin Glovier PE with CP & Y presented the options in his proposal and three options and cost for an inflow and infiltration study with time ranging from 8 weeks to 8 months and costs ranging from $60,000 to $350,000. Director Rose does not feel there is a problem with the inflow going through the plant and therefore cannot justify funding any of the presented proposals. Director Carr asked the Board to each state where they would like to have the percentage of Inflow and infiltration set at: Director Carr-5 or 6% Director Wilson-10% Director Hase-5% Director Thomas-5 or 6% Director Rose-10% Motion made by Director Carr and seconded by Director Hase to set inflow and infiltration at five percent. Motion carried unanimously 4. Consider and take appropriate action regarding Change Order No. 6 for Revised Crane Foundations for MBR's 1 & 2 for an amount of $28,672.01 for the Wastewater Treatment Plant Project. Kevin Glovier PE, CP&Y explained to the Board the cost added into submitted bids for crane foundations added into bids are estimates because the data was not available. When a decision is made on the type and size of crane that will be used, the loading strength and quantity of cement is determined and a cost calculated. Motion made by Director Thomas and seconded by Director Hase to approve Change Order No. 6 for Revised Crane Foundations for MBR's 1 & 2 for an amount of $28,672.01 for the Wastewater Treatment Plant Project. Motion carried unanimously 5. Consider and take appropriate action regarding Liquid Ammonium Sulfate Disinfection Improvement project time delays. (Staff) Water Superintendent, Mike McMahon stated that this bid was awarded to Fryer Construction 3 of10 Trophy Club Municipal Utility District No. 1 December 20, 2016 Regular Meeting Minutes Company on August 4, 2016 and the Notice to Proceed was given on August 19, 2016. McMahon wanted to inform the Board that the project is going to run 45 days over. Discussion Only, No action taken 6. Receive update regarding meeting with CP & Y, Director Rose and staff held on November 30, 2016 for review and clarification of the Hydraulic Model and Distribution Capacity Study needed for Capital Projects. (Rose) Director Rose presented his information and follow up to the meeting held with CP & Y and Water Superintendent Mike McMahon. Director Rose stated that he does not believe that any additional storage is needed for line upgrades. Water Superintendent Mike McMahon stated that he would like to have the board look at the historical numbers and what was used during periods of drought with a lower population. Director Carr feels that we need to have enough water reserved to be able to serve the residents if there were ever any issues with repair as we had with the elevated or any other event. Gil Barnett PE, CP&Y stated that they allowed for more persons per connection which allows for growth and he feels this is the fundamental difference in numbers. Barnett said that the purpose of this study was not to look for projections in the next two or three years but to look at twenty years. Barnett stated the study does include room for growth in Solana. Ground storage requirements per TCEQ is 100 gallons per connection and the District fulfills the minimum requirement. Barnett stated that the District tries to maintain storage of one max day capacity in storage. Director Wilson asked with expected buildout would the District be able to meet the TCEQ requirement of 100 gallons per connection. Barnett stated at the projected buildout the District would still meet the requirement for TCEQ however if the District was to continue to maintain storage for one max day an additional ground storage tank would be required to do so. Mayor Nick Sanders stated that the capacity in the town elevated tank should be considered part of one system and he stated that was told to TCEQ and they are on board with that. Sanders said that if the District needs a letter from the Town stating we have access to the water in the elevated, that will be provided or if the District would like to remove the homes in the PID (Public Improvement District) from the calculations for meeting requirements, we can do that as well. Sanders added that if the agreement needs to be modified with the Town Council for access to the elevated storage, he understands the council is willing to do so. Director Thomas requested that agenda item no. 10 be moved as it pertains to agenda items 7, 8 and 9 and legal advice may be needed. With no one opposed, Agenda item No. 10 was moved for consideration. 7. Consider and take appropriate action regarding the installation of 16" diameter main to operate parallel to the existing 14" main from the ground storage tank to elevated tank located on T.W. King Road for an estimated cost of $2.18 million and determine the appropriate funding mechanism. (Thomas) Director Rose stated he supports this item however he feels that the District is mature and that we should use revenue bonds. 4of10 Trophy Club Municipal Utility District No. 1 December 20, 2016 Regular Meeting Minutes Motion made by Director Thomas and seconded by Director Hase to approve installation of 16" diameter main to operate parallel to the existing 14" main from the ground storage tank to elevated tank located on T.W. King Road for an estimated cost of $2.18 million and to use Government issued tax bonds. For: Carr, Wilson, Thomas, Hase Opposed: Rose Motion passed 4-1 8. Consider and take appropriate action regarding the construction of an additional 3 million gallon ground storage tank for a cost of $3,000,000 and determine the appropriate funding mechanism. (Thomas) Discussion Only, No Action taken 9. Consider and take appropriate action regarding adding a 24" diameter waterline from Westlake Pump Station to the District to run parallel to the existing 21" diameter main for a cost of $12,510,000 and determine the appropriate funding mechanism. (Thomas) Discussion Only, No Action taken Board recessed at 8:37 p.m. Board resumed into Regular Session 8:59p.m. 10. Consider and take appropriate action to approve Resolution No. 2016-1220A expressing official intent to reimburse with proceeds of obligations issued to finance improvements to the District's Waterworks System deemed necessary to provide water service to customers of the District. (Carr) Motion made by Director Carr and seconded by Director Thomas to approve Resolution No. 2016-1220A expressing official intent to reimburse with proceeds of obligations issued to finance improvements to the District's Waterworks System deemed necessary to provide water service to customers of the District. For: Carr Opposed: Hase, Thomas, Wilson and Rose Motion failed 1-4 The Board resumed discussion to agenda Item no. 7 Motion made by Director Thomas and seconded by Director Hase to approve Resolution No. 2016-1220A amending Section 2 to read 2.18 million, amending Section 2.a by removing items 2 and 3 and expressing official intent to reimburse with proceeds of obligations issued to finance improvements to 5 of10 Trophy Club Municipal Utility District No. 1 December 20, 2016 Regular Meeting Minutes the District's Waterworks System deemed necessary to provide water service to customers of the District Motion as amended carried unanimously 11. Consider and take appropriate action regarding repair and/or possible replacement of Water Plant motor and (VFD) Variable Frequency Drive for pump #1. (Staff) Motion made by Director Hase and seconded by Director Thomas to rebuild the water plant motor and replace VFD Variable Frequency Drive for Pump #1 for an amount not to exceed $40,000. Motion carried unanimously 12. Consider and take appropriate action to designate Paul Liston as Trophy Club Municipal Utility District No. 1 General Legal Counsel. Director Wilson stated he would like to seek proposals for legal services after using the same law firm for 19 years. Director Rose feels that it is prudent of the board to perform annual reviews of consultants and would also be in favor of an RFQ for legal counsel. Motion made by Director Hase and seconded by Director Carr to designate Paul Liston as Trophy Club Municipal Utility District No. 1 General Legal Counsel under the conditions spelled out in the engagement letter presented. For: Hase, Thomas, Carr Oppose: Rose, Wilson Motion Passed 3-2 13. Consider and take appropriate action to adopt Amended and Restated Code of Ethics Order 2016-1220A. Attorney Liston stated that he does not approve of the document presented. Section 49.199 references policies and he would like add a change from Code of Ethics and add "and Policies". Liston added that the proposed document Section 2.11 includes Roberts rules of Order and the Board determined that it was not going to follow those so that needs to be removed or reconsidered. Additionally, Liston stated that Section 3.05 under President, he believes a piece is missing from that section which is from the Water Code, Section 49.054, subsection (c) "The president is the chief executive officer of the district, presides at all meetings of the board, and shall execute all documents on behalf of the district unless the board by resolution authorizes the general manager or other employee of the district to execute a document or documents on behalf of the district. The vice-president shall act as president in case of the absence or disability of the president. The secretary is responsible for seeing that all records and books of the district are properly kept and may attest the president's signature on documents." 6 of 10 Trophy Club Municipal Utility District No.1 December 20, 2016 Regular Meeting Minutes Liston stated the first sentence, "The president is the chief executive officer of the district" is very important and it must be included. Director Carr suggested adding exact wording from the water code be inserted into the document. Liston stated the CEO is the most senior administrator in charge of managing any organization and the water code uses those words specifically and it does apply to this organization as well. Motion made by Director Hase and seconded by Director Wilson directing Director Rose and the District Secretary work a set of Organization Policies Procedure and Code of Ethics. Motion carried unanimously 14. Consider and take appropriate action to amend Order 2016-0419 Agenda Policy. (Rose) Discussion regarding Agenda Item No. 14 was included in previous item. 15. Consider and take appropriate action regarding replacement of laptops for Board of Directors. (Staff) No action taken 16. Consider and take appropriate action regarding the District Drought Contingency Policy. (Wilson/Rose) Director Wilson would like to have staff go through the document and verify that staff practices match the actual policy. Wilson would like to have watering days and times and locations listed in the policy verified with current practices. Attorney Liston stated that he did verify the language in the policy regarding enforcement and that the language is legal and common practice. Liston recommended that the Board set a higher penalty for a second offense and recommended it be set at $150.00. Discussion ensued regarding other changes that need to be made to the policy and to have it include "normal watering" included into the policy before Stage One. 17. Consider and take appropriate action regarding offer to purchase oil and gas royalty from Fort Worth Mineral Company for $540.93. Motion made by Director Carr and second by Director Rose to take no action regarding this item. Motion carried unanimously. 18. Consider and take appropriate action regarding District Fund Balance Policy adopted in accordance with Government Accounting Standards Board Statement No. 54: a. Approve Resolution No. 2016-1220B adopting amended Fund Balance Policy and providing an effective date. 7 of 10 Trophy Club Municipal Utility District No. 1 December 20, 2016 Regular Meeting Minutes Motion made by Director Rose and seconded by Director Carr to adopt 2016-12208 with the deletion in exhibit A of the last section the resolution must be approved by the board of directors. Motion carried unanimously 19. Consider and take appropriate action regarding GASB 54 designations for Fiscal Year 2017. Motion made by Director Rose and seconded by Director Wilson to approve the GASB54 designations for Fiscal Year 2017. Motion carried unanimously 20. Consider and take appropriate action to approve Order No. 2016-1220C Adopting Amended and Restated Investment Policy. Motion by Director Rose and second by Director Thomas to approve Order No. 2016-1220C Adopting Amended and Restated Investment Policy. Motion carried unanimously 21. Consider and take appropriate action to appoint Board of Directors' Audit Committee for FY 2016 Annual Financial Audit. Motion made by Director Carr and seconded by Director Thomas to appoint Director Wilson and Director Hase to the Board of Directors Audit Committee for FY 2016 Financial Audit. Motion carried unanimously 22. Consider and take appropriate action regarding the October 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 October 2016 combined financials and variance report. Motion carried unanimously 23. Consider and take appropriate action regarding the November 2016 combined financials and variance report. a.Combined financials b.Variance report Motion made by Director Hase and seconded by Director Thomas to approve the November 2016 8 of 10 Trophy Club Municipal Utility District No. 1 December 20, 2016 Regular Meeting Minutes combined financials and variance report. Motion carried unanimously REPORTS & UPDATES 24. Receive Employee Search Committee update regarding the position of General Manager. (Carr & Wilson) Director Wilson stated that the Board and staff have a phone interview tomorrow and next week the staff will be interviewing a candidate from Indiana. 25. Receive Public Meeting update (Wilson) Director Wilson will be working with staff when the audit is complete. At this time, there is nothing to report. 26. Receive update TCEQ Public Hearing regarding Wastewater Permit renewal. The District Secretary gave the Board an update regarding the Public hearing and status of the TPDES permit renewal. 27. Manager Monthly Reports and Updates a. Water System Operation •Solana Meter Change Out Update •Meter Head Change Out Program •Status of Easement for UMC water line b. Wastewater System Operation c. Website Analytics d.Finance Update •Utility Billing Reports •Permits Collected e. Project Status Updates •LAS System Project •14" In line Valve-Capital Project •Wastewater Treatment Plant Upgrade Project Staff presented their monthly updates to the board and answered related questions thereto. 28.1tems for future agendas: Rebate Program (Rose) and conservation measures VFD drive & warranty RFP for Legal Counsel 2015-0721D GASB Policy review and review fund balance policy names Westlake Vault follow up with Wendy Cost savings Bond PR 29.Announce meeting dates: Regular Meeting on January 17, 2017 at 6:30p.m. 9 of10 Trophy Club Municipal Utility District No. 1 December 20, 2016 Regular Meeting Minutes ADJOURN Motion made by Director Rose and seconded by Director Carr to adjourn the Regular Meeting. Motion carried unanimously Meeting is adjourned at 10:49 p.m. 10 of 10