HomeMy WebLinkAbout2017-0620 Regular Meeting MinutesJune 20, 2017 Regular Meeting Minutes AMENDED REGULAR MEETING MINUTES-AMENDED** TROPHY ClUB MUNICIPAl UTiliTY DISTRICT NO. 1 BOARD OF DIRECTORS June 20, 2017 at 6:30P.M. 100 Municipal Drive, Trophy Club, Texas 76262 Trophy Club Municipal Utility District No. 1 Board of Directors, of Denton and Tarrant Counties, met in a Regular Session on June 20, 2017 at 6:30 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 § BOARD MEMBERS PRESENT: Kevin R. Carr Greg Wilson Jim Hase Jim Thomas Bill Rose STAFF PRESENT: Shane Jeff laurie Slaght Renae Gonzales Mike McMahon Steven Krolczyk Tony Corbett GUESTS PRESENT: President Vice President Secretary/Treasurer Director Director General Manager District Secretary Finance Manager Water Superintendent HR Manager/Financial Analyst Special Counsel Andrew Friedman SAMCO Financial Kevin Glovier, PE CP&Y Gil Barnett, PE CP&Y CAll TO ORDER AND ANNOUNCE A QUORUM President Carr announced the date of June 20, 2017, called the meeting to order and announced a quorum present at 6:30p.m. CITIZEN COMMENTS Joyce Baker 1801 Seville Cove, Westlake Texas** 1. Consider and take appropriate action to approve the Consent Agenda. a. May 2017 Check Register b. May 16, 2017 Regular Meeting Minutes c. lnterlocal Agreement with Denton County for tax collection in FY 2018 Director Carr removed Item c. from the Consent Agenda for further discussion. 1 of 9
June 20, 2017 Regular Meeting Minutes AMENDED Motion made by Director Carr and seconded by Director Wilson to approve items a. and b. on the Consent Agenda. Motion carried unanimously Director Carr stated that the lnterlocal Agreement with Denton County for tax collection requires that the District assign a designee and taking into consideration the likely retirement of the current Finance Manager, a new designee must be named for FY2018. Motion made by Director Carr second by Director Thomas to approve the lnterlocal Agreement with Denton County for tax collection for FY2018 and assign Steven Krolczyk as the District designee. Motion carried unanimously REGULAR SESSION 2. Update regarding incompatibility of office of Director Greg Wilson as they relate to another office. (Corbett) Attorney Corbett stated he was instructed to research the matter of incompatibility of office and bring back a recommendation to the Board if an Attorney General opinion should be sought on the matter. Corbett stated that in orderfor there to be incompatibility there must be two incompatible Public Offices and there is legal authority that clarifies EDCB4 is not a Public Office for purposes of the incompatibility doctrine. Therefore, Attorney Corbett does not recommend that the Board seek an opinion from the Attorney General. 3. Consider and take appropriate action concerning requests for reduction of calculated winter average volumes. (Rose/Wilson) a. 2859 Earl Drive b. 5511ndian Creek c. 2 Meadowbrook Lane d. 1 Turnbury Court e. 1 Cypress Court f. Confidential Account "A" Director Rose stated that a few residents have contacted him to have their winter average amounts reviewed for reduction. Director's Carr and Wilson feel that residents must follow the policy and procedures in the rate order. Director Rose stated that he had communicated with the General Manager regarding the addresses listed and had asked for guidance, however he received no response back. Motion made by Director Rose to set the winter average for 2859 Earl Drive at 3300 gallons taking into consideration the historical usage. Motion died for the lack of a second. Motion made by Director Carr and seconded by Director Rose to set the winter average rate at 4500 for 2859 Earl Drive. 2 of 9
For: Rose, Wilson, Carr, and Thomas Opposed: Hase Motion passed 4-1 June 20, 2017 Regular Meeting Minutes AMENDED Motion made by Director Rose and seconded by Director Thomas to set the winter average for SSllndian Creek at 2333 and credit their bill back to April 2017 and have any credit applied to the bill. For: Rose, Wilson, and Thomas Opposed: Hase and Carr Motion passed 3-2 Motion made by Director Hase and seconded by Director Carr to give the General Manager discretion to review and make adjustments on the remaining 4 accounts. Motion carried unanimously Director Rose would like to have the General Manager keep the board informed on adjustments that are made. 4. Consider and take appropriate action regarding District Legal Services: a. Accept resignation ofthe Liston Law Firm, P.C. as District General Counsel; b. Consider and take appropriate action regarding engagement of new General Counsel, including consideration of Responses to District's Request for Proposals; and c. Approve engagement of Dubois, Bryant & Campbell, LLP as construction and litigation counsel in connection with the District's contract with Webber-Cadagua Partners for construction of wastewater treatment plant improvements. Motion made by Director Hase and seconded by Director Carr to accept the resignation of the Liston Law firm PC as District General Counsel. Motion carried unanimously Director Thomas asked Attorney Corbett if he would consider serving as the District's General Counsel. Attorney Corbett stated that he would be able to serve the Board in that capacity under the current terms of the legal contract. Director Rose stated that he respects Attorney Corbett's work however he is concerned about the distance and feels it would be beneficial to contract with a local firm for legal services. Motion made by Director Hase and seconded by Director Carr to continue to operate with Mclean and Howard Law Firm. For: Carr, Wilson, Thomas and Hase Opposed: Rose Motion passed 4-1. Director Rose stated that he respects Attorney Corbett's work however he is concerned about the distance 3 of 9
June 20, 2017 Regular Meeting Minutes AMENDED and feels it would be beneficial to contract with a local firm for legal services. Motion made by Director Carr to move Agenda Item 4. c. to Closed Session. Motion died for the lack of a second. Motion made by Director Wilson and seconded by Director Rose to approve engagement of Dubois, Bryant & Campbell, LLP. as construction and litigation counsel in connection with the District's contract with Webber-Cadagua Partners for construction of wastewater treatment plant improvements. Motion carried unanimously Director Wilson requested that agenda item No.'s 8 & 9 be brought forward for consideration by the Board. With no objections, those items are moved. 5. Consider and take appropriate action regarding Order No. 2017-0620A Adopting Trophy Club Municipal Utility District No. 1, Organization, Policy, Procedure and Code of Ethics. (Rose/Wilson) a. Discussion and possible action regarding Treasurer duties and responsibilities. b. Discussion and possible action regarding other verbiage within the Organization, Policy, Procedure and Code of Ethics document. Agenda Item No. 5 is moved for consideration to the July 18, 2017 regular meeting. 6. Consider and take appropriate action regarding Order No. 2017-0620A Adopting Trophy Club Municipal Utility District No. 1 Code of Ethics, Travel Expenditures Policy, Professional Services Policy, and Management Information Policy. (GM) Agenda Item No.6 is moved for consideration to the July 18, 2017 regular meeting. 7. Consider and take appropriate action to elect the following officers of the Board of Directors (Rose/Wilson): i. President ii. Vice President iii. Secretary/Treasurer Acting President Carr called for nominations for President of the Board of Directors. Director Hase nominated Director Carr for Board President For: Hase, Thomas and Carr] Oppose: Rose and Wilson Director Rose nominated Director Wilson for Board President. For: Rose and Wilson Oppose: Hase, Thomas and Carr Director Kevin R. Carr will continue to serve as President of the Board of Directors. Director Carr calls for a vote on the nominations for Vice President. Director Thomas nominates Director Greg Wilson for Vice President of the Board of Directors. 4 of9
For: Carr, Hase, Rose, Thomas and Wilson Oppose: none June 20, 2017 Regular Meeting Minutes AMENDED Director Greg Wilson will continue to serve as Vice President of the Board of Directors. Director Wilson nominates Director Rose for Secretary/Treasurer of the Board of Directors. For: Carr, Hase, Rose, Thomas and Wilson Oppose: none Director Bill Rose will serve as Secretary/Treasurer of the Board of Directors. 8. Consider and take appropriate action regarding funding and construction of proposed 16-inch water transmission line project from the District's ground storage tank to elevated tank located on T.W. King Road: a. Presentation by District engineering consultants regarding necessity and benefits of project. b. Discussion and possible action regarding potential issuance of revenue bonds for funding water transmission line improvements: i. Discussion and possible action regarding adoption of Resolution No. 2017-0516 Authorizing Application to the Texas Commission on Environmental Quality for Approval of Water Transmission Line Project and Issuance of Bonds; and ii. Discussion and possible action regarding approval of Proposal by District Engineering Consultants for Preparation of an Application to the Texas Commission on Environmental Quality for Approval of Water Transmission Line Project and Issuance of Bonds. c. Discussion and possible action regarding alternative funding methods. d. Other matters related thereto. Motion made by Director Thomas and seconded by Director Hase to adopt Resolution 2017-0620A Authorizing preparation and submittal of application to the Texas Commission on Environmental Quality for approval of the issuance of revenue bonds to fund this this waterline transmission project. Motion carried unanimously Motion made by Director Thomas and seconded by Director Rose to approve the contract with Halff and associates for an amount not to exceed $4,750.00. (Contract No. 2017062001) Motion carried unanimously** 9. Consider and take appropriate action regarding District Capital Improvement Program for Repair and Replacement of Infrastructure Assets: a. Discussion regarding prioritization of infrastructure repair and replacement projects; b. Discussion and possible action regarding funding of capital improvement projects; c. Potential Coordination with Town ofTrophy Club Capital Improvement Projects; and d. Other matters related to the establishment, funding and implementation of a capital improvement program for repair or replacement of District infrastructure assets. e. Discussion regarding the General Manager recommendations for funding. 5 of 9
June 20, 2017 Regular Meeting Minutes AMENDED Mike McMahon, Water Superintendent stated that he received an email from Tom Rutledge, engineer for the Town which stated at this point, participation by the District would hold up the Town projects. Motion made by Director Hase and seconded· by Director Carr to have the Water Superintendent present board with line repair necessity list for 2018 budget and also work in conjunction with the Town capital improvement projects whenever possible. Motion carried unanimously. 10. Consider and take appropriate action regarding possible transfer of ownership of the District's fire station and fire equipment and long-term lease of the fire station land. (Thomas/Hase) Main Motion Motion made by Director Thomas and seconded by Director Hase to immediately start the process of developing an Asset Conveyance Agreement with the Town of Trophy Club whereby we transfer ownership of MUD1's fire station, all fire equipment, and all associated debt to the Town of Trophy Club as quickly as possible; and definitely before our respective 2017-2018 budgets are finalized. I further propose that we direct our attorney to prepare an appropriate 99 year lease agreement whereby we lease the current property associated with the fire station itself, to the Town for an amount not to exceed $1 per year or the minimum legal requirement by the State of Texas for as long as a formal fire station remains on that property. Director Carr does not want to expend legal fees if the Town is not interested in the proposal. Director Wilson and Director Rose agree with the motion however, they would like to remove the lease arrangement and have the land deeded to the Town in the agreement. Director Thomas stated that he was in attendance at the last Town Council meeting and this item was discussed. The council is waiting for the outcome of the meeting tonight to take any action. Attorney Corbett stated that language could be added to state that Legal counsel will not commence with any activity regarding the agreement until we receive confirmation from the Town that it desires to proceed with the proposed agreement. The first and the second agree to the addition of a clarification statement in the Main Motion. Motion is amended by Director Rose and seconded by Director Wilson to remove lease portion of the main motion and replace with the land will be included with the Fire Station. For: Hase, Rose and Wilson Opposed: Carr and Thomas Amendment to the Main Motion passed 3-2 Main Motion as Amended Motion made by Director Thomas and seconded by Director Hase to develop an Asset Conveyance Agreement with the Town of Trophy Club, whereby we transfer ownership of MUD1's fire station, land where it sits, all fire equipment, and all associated debt to the Town ofTrophy Club as quickly as possible; and definitely before our respective 2017-2018 budgets are finalized. I further propose that subject to 6 of9
June 20, 2017 Regular Meeting Minutes AMENDED confirmation from the Town that it is interested in going forward, then District Legal Counsel is authorized to proceed. Main Motion as amended passed unanimously 11. Consider and take appropriate action regarding the May 2017 combined financials and variance report. a. Combined financials b. Variance report Motion made by Director Hase and seconded by Director Thomas to approve the May 2017 combined financials and variance report. Motion carried unanimously 12. Consider and take appropriate action regarding formatting of Meeting Agendas (Corbett) Attorney Corbett stated that many entities write their agendas with the flexibility to go into executive session for any item on the agenda item provided it is allowed under the open meetings act. Attorney Corbett would like direction from the Board if they wish to have agenda's structured this way on future agenda's that will allow them to convene into a closed session if a matter should arise. The Board is in favor of the proposed changes and directs Attorney Corbett to structure future agenda's in this manner. REPORTS & UPDATES 13. General Manager Monthly Reports and Updates a. Water System Operation • Water usage • City of Fort Worth proposed rates for FY2018 • LAS Building update • New VFD Pump • Well #3 • Northside II 30-inch Water Main and Allocated Capacity b. Wastewater System Operation c. Update regarding signage for wastewater treatment plant located at Indian Creek Drive and Junction Way d. Wastewater Treatment Plant Permit renewal update e. Enforcement Case No. 52342, TCEQ Texas Commission on Environmental Quality f. Finance Update • Utility Billing Reports • Permits Collected g. Project Status Updates • Wastewater Treatment Plant Upgrade Project The General Manager and staff reviewed monthly updates with the Board and answered questions related thereto. The Board convened into Closed Session at 8:38 p.m. CLOSED SESSION 14. Pursuant to section 551.071 of the Texas Open Meetings Act, the Board may consult with its attorney in closed session on a matter in which the duty of the attorney to the Governmental Body under the 7 of 9
June 20, 2017 Regular Meeting Minutes AMENDED 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. Contractor breach, performance and payment issues related to District's contract with Webber-Cadagua Partners for construction of the Wastewater Treatment Plant Improvements b. Settlement Agreement relating to Ratepayers' Appeal of the Decision of Trophy Club Municipal Utility District No. 1 to Change Rates pending before the Public Utility Commission of Texas (SOAH Docket No. 473-16-1836; PUC Docket No. 45231) 15. Pursuant to Section 551.074 of the Texas Open Meetings Act, the Board may in closed session deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee, or to hear a complaint or a charge against an officer or employee: a. Employment, evaluation, reassignment, duties, discipline, or dismissal of the District's General Manager, including consideration of any claims or charges relating thereto. The Board reconvened into Regular Session at 11:47 p.m. REGULAR SESSION 16. Consider and take appropriate action on matters deliberated in Closed Session: Regarding Agenda Item 14. a. Contractor breach, performance and payment issues related to District's contract with Webber-Cadagua Partners for construction ofthe Wastewater Treatment Plant Improvements. Motion made by Director Carr and seconded by Director Wilson to approve District participation in mediation and if necessary arbitration proceedings with engineer and contractor regarding claims made by and against the contractor. Motion carried unanimously Regarding Agenda Item 14. b. Settlement Agreement relating to Ratepayers' Appeal of the Decision ofTrophy Club Municipal Utility District No. 1 to Change Rates pending before the Public Utility Commission of Texas (SOAH Docket No. 473-16-1836; PUC Docket No. 45231) Motion made by Director Wilson and seconded by Director Carr to approve the settlement agreement with the Trophy Club Mud 1 Taxpayers with one change to Section 1.2 change the period from three years to one year. For: Carr, Wilson, Thomas and Hase Abstain: Rose Oppose: Motion passed 4-1-0 Regarding Agenda item 15. a. a. Employment, evaluation, reassignment, duties, discipline, or dismissal of the District's General Manager, including consideration of any claims or charges relating thereto. Motion made by Director Wilson seconded by Director Carr to accept the resignation of General Manager Shane Jeff, effective immediately and appoint Mike McMahon as acting General Manager and adjusting his salary to that of the General Manager position until a replacement General Manager can be found. Motion carried unanimously 8 of9
June 20, 2017 Regular Meeting Minutes AMENDED 17. Consider and take appropriate action relating to wastewater treatment plant improvement project: a. Approve arbitration with respect to claims by and against Webber-Cadagua Partners. b. Authorize litigation counsel to take such other action as may be necessary or convenient to ensure timely and proper completion of improvements by project contractor or its surety. Item was discussed in Closed Session. 18. Personnel Matters: a. Consider and take appropriate action relating to the reassignment and duties of District employees. b. Consider and take appropriate action relating to the appointment, recruitment or employment of District personnel. c. Consider and take appropriate action relating to amendment of District Personnel Policy Manual to authorize Employee Performance Bonus Plan. Director Rose would like to move item 18. c. for consideration at the July 18, 2017 regular meeting. 19. Items for future agendas: Discussion to have legal look at de-annexation of Entrada/Granada, Westlake. June 20, 2017 Agenda Item No's: 5, 6, 7 and 18.c. 20. Set future Meeting dates: Regular Meeting on July 18, 2017 at 6:30p.m. ADJOURN Joint Meeting with Town Council on July 25, 2017 at 7:30p.m. Budget Workshop-August 10, 2017 10 a.m. Motion to adjourn made by Director Wilson and seconded by Director Carr at 12:13 p.m. Motion carried unanimously £~ 9 of 9