HomeMy WebLinkAbout2017-0919 Public Hearing Regular Meeting Minutes AmendedTrophy Club Municipal Utility District No. 1 September 19, 2017 Public Hearing and Regular Meeting Minutes AMENDED
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
BOARD OF DIRECTORS SEPTEMBER 19, 2017
PUBLIC HEARING & REGULAR MEETING MINUTES —AMENDED**
Trophy Club Municipal Utility District No. 1 Board of Directors, of Denton and Tarrant Counties, held a Public
Hearing and Regular Meeting on September 19, 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:
Greg Wilson Vice President
William C. Rose Secretary/Treasurer
Jim Thomas Director
Jim Hase Director
BOARD MEMBERS ABSENT:
Kevin R. Carr President
STAFF PRESENT:
John Carman
General Manager
Laurie Slaght
District Secretary
Renae Gonzales
Finance Manager
Mike McMahon
Water Superintendent
Karl Schlielig
Wastewater Superintendent
Steven Krolczyk
HR Manager/Financial Analyst
Tony Corbett
Legal Counsel
GUESTS PRESENT:
Chris Ekrut NewGen Strategies
CALL TO ORDER AND ANNOUNCE A QUORUM
Vice President Wilson announced the date of September 19, 2017, called the meeting to order and
announced a quorum present at 6:31 p.m.
PUBLIC HEARING
1. Trophy Club Municipal Utility District No. 1 will conduct a Public Hearing regarding adoption of the
District Tax Rate for Tax Year 2017.
Director Wilson opened the Public Hearing at 6:38 p.m.
There were no speakers for the Public Hearing.
Director Wilson closed the Public Hearing at 6:38 p.m
CITIZEN COMMENTS
There were no Citizen Comments.
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Trophy Club Municipal Utility District No. 1 September 19, 2017 Public Hearing and Regular Meeting Minutes AMENDED
CONSENT AGENDA
2. Consider and take appropriate action to approve the Consent Agenda.
a. August 2017 Check Register
b. July 18, 2017 Regular Meeting Minutes -Amended
c. July 25, 2017 Special Meeting Joint Session Minutes
d. August 2, 2017 Special Meeting Budget Workshop Minutes
Motion made by Director Rose and seconded by Director Thomas to approve the Consent Agenda as
presented.
Motion carried unanimously
REGULAR SESSION
3. Consider and take appropriate action regarding proposed water and sewer rates including summary and
review of sewer models developed by NewGen Strategies.
Motion made by Director Rose and seconded by Director Hase to increase the sewer rate by 12% to those
shown on page 31 of the packet and to include those rates into the rate order.
Motion carried unanimously
4. Consider and take appropriate action regarding a request for reduction on June utility service bill from
the customer at 2001 Churchill Downs Lane.
Motion made by Director Rose and seconded by Director Hase to reduce the June 2017 water charge for
the customer at 2001 Churchill downs lane to $192.32. Only the water portion of the bill is to be
reduced, the remaining fees on the June 2017 bill will remain.
Motion carried unanimously
5. Consider and take appropriate action to approve Resolution No. 2017-0919A amending the Fiscal Year
2017 Budget.
Steven stated that they removed the prior year reserves and reduced all the salaries down. Gonzales
explained the increase in the O & M rate.
Motion made by Director Thomas and seconded by Director Rose to approve Resolution No. 2017-0919A
amending the Fiscal Year 2017 Budget.
Motion carried unanimously
6. Consider and take appropriate action regarding adoption of Resolution No. 2017-0919B approving
Budget for Fiscal Year 2018.
Motion made by Director Hase and seconded by Director Wilson to adopt Resolution No. 2017-0919B
approving Budget for Fiscal Year 2018.
Motion to amend the main motion made by Director Wilson and second by Director Thomas to amend
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Trophy Club Municipal Utility District No. 1 September 19, 2017 Public Hearing and Regular Meeting Minutes AMENDED
FY2018 budget to reflect the increase in wastewater revenue and also to remove the reserve amount of
$125,897.00 that being carried forward from 2017.
Amendment to the main motion carried unanimously
Main Motion as amended
For: Wilson, Hase, Thomas
Opposed: Rose
Absent: Carr
Main Motion as amended passed 3-1-1
7. Consider and take appropriate action to adopt Rate Order No. 2017-0919A amending water and sewer
rates and setting an effective date of October 1, 2017.
Motion made by Director Hase and seconded by Director Rose to set the sewer rates as stated below and
the water rates remain the same.
Base Rate:
$19.60
Residential Rates:
0-4,000
$ 3.18
4,001-8,000
$ 4.51
8,001-12,000
$ 6.43
12,001+
$ 9.14
Commercial Rates:
$ 5.48
Motion carried unanimously.
Director Rose would like to have Section 2.02 read as follows:
Section 2.02 Sewer Service Rates. The following monthly rates for the collection and disposal of
sewage shall be in effect for each separate connection within the District:
Residential Sewer Rates: The District uses winter averaging for the purpose of calculating sewer
charges on utility bills. The sewer charges are based on average water consumption for three months
(December, January and February billing). The average consumption will be analyzed annually and take effect
the first of April each year.
New customers will be assigned a default value user charge that is equal to the average winter water
use for all residential customers. The winter average used for new residential customer is 7,000 gallons.
Any resident filling a pool due to maintenance or construction during the averaging months may
request that the water used be subtracted from the usage of the month the water was used.
A resident with a water leak during the averaging months may request a reduction in the sewer usage
calculation. Requests must be in writing to the General Manager and have documentation showing
maintenance, construction or repairs as applicable to the issue. The General Manager or a duly authorized
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Trophy Club Municipal Utility District No. 1 September 19, 2017 Public Hearing and Regular Meeting Minutes AMENDED
representative may adjust the metered water usage in determining the winter average. To assist in
establishing winter averaging sewer rates, Customers are encouraged to submit requests for sewer average
reductions no later than March 15th.
A. Residential Sewer Rates: Effective October 1, 2017
Base Rate:
$19.60
0 to 4,000
$ 3.18
4,001 to 8,000
$ 4.51
8,001 to 12,000
$ 6.43
12,000+
$ 9.14
B. Commercial Sewer Rates: Effective October 1, 2017
Base Rate: $19.60
Volumetric Rate: $ 5.48/1,000 gallons
*Commercial sewer usage is billed based on actual water usage per month
C. Multi -Unit Buildings.
Each multi -unit building (apartments, townhomes, business complex, etc.) shall be billed the base rate for
each meter servicing the building and sewer usage will be billed based on actual water usage per month.
**
Motion by Director Rose and seconded by Director Thomas to adopt proposed new language for sewer
rates.
Motion carried unanimously
8. Consider and take appropriate action regarding Order No. 2017-0919B, fixing and levying Trophy Club
Municipal Utility District No. 1 Operation and Maintenance Tax Rates for 2017 Tax Year.
Motion made by Director Hase and seconded by Director Thomas to adopt Order No. 2017-09198, fixing
and levying Trophy Club Municipal Utility District No. 1 Operation and Maintenance Tax Rates for 2018 Tax
Year, is hereby set at $0.07658 per $100 of taxable value of each property included on the appraisal roll
for the District for the 2017 tax year, of which $0.06870 per $100 of taxable value shall be used to support
the Fire Department and the remaining $0.00788 per $100 of taxable value shall be used to fund other
Operation and Maintenance Expenditures of the District.
For: Wilson, Thomas, Hase
Oppose: Rose
Absent: Carr
Motion passed 3-1-1
9. Consider and take appropriate action regarding Order No. 2017-0919C, fixing and levying Trophy Club
Municipal Utility District No. 1 Debt Service tax rate for 2017 Tax Year.
Motion made by Director Hase and seconded by Director Thomas, to adopt Order No. 2017-0919C fixing
and levying Trophy Club Municipal Utility District No. 1 tax rate of $0.04363 per $100 of taxable value of
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Trophy Club Municipal Utility District No. 1 September 19, 2017 Public Hearing and Regular Meeting Minutes AMENDED
each property included on the 2017 appraisal roll for the District for the fiscal year beginning October 1,
2017 and ending September 30, 2018.
For: Wilson, Thomas, Hase
Oppose: Rose
Absent: Carr
Motion passed 3-1-1
10. Consider and take appropriate action regarding approval of Amendment to District Information Form,
including Notice to Purchaser Form.
Motion made by Director Rose and seconded by Director Thomas to approve the Amendment to District
Information Form including Notice to Purchaser.
Motion carried unanimously
11. Consider and take appropriate action regarding Resolution 2017-0919C approving FY 2017 Tax Roll for
Trophy Club Municipal Utility District No. 1.
Motion made by Director Hase and seconded by Director Thomas to approve Resolution 2017-0920C Tax
rate for (total of $0.12021 $100 assessed value) approved by the Board of Directors of Trophy Club
Municipal Utility District No. 1, which has been imposed on each property included on the certified
appraisal roll for the District for the 2017 tax year, totals $1,845,003 tax levy. The Board hereby declares
that such appraisal roll with amounts of tax entered shall constitute the District's tax roll for the 2018 tax
year.
Motion carried unanimously
12. Consider and take appropriate action regarding annual review of District Investment Policy and
Investment Strategies including:
a. Appoint District Investment Officer(s).
b. Order No. 2017-0919D Adopting Amended and Restated Investment Policy.
Attorney Corbett explained to the Board that there are two changes in the policy this year that are the
result of legislative changes.
Motion made by Director Rose and seconded by Director Thomas to adopt Order No. 2017-0919D
Amended and Restated Investment Policy.
Motion carried unanimously
13. Consider and take appropriate action regarding Order No. 2017-0919E Adopting Cash Reserve Policy.
Director Rose would like to have this item tabled and be assigned to work with staff to create a more all-
inclusive policy.
Item is tabled and Director Rose will work with the appropriate staff to create a comprehensive policy.
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Trophy Club Municipal Utility District No. 1 September 19, 2017 Public Hearing and Regular Meeting Minutes AMENDED
14. Consider and take appropriate action regarding approval of Order No. 2017-0919F Adopting Trophy Club
Municipal Utility District No. 1, Bylaws, Organization, Procedures, Travel Expenditure Policy, Professional
Services Policy, Management Information Policy and Code of Ethics. (Rose/Thomas)
Motion made by Director Rose and seconded by Director Thomas to approve the document with the
change of "District Attorney" to "General Legal Counsel", 4.05 delete "President" and add "for the Board
of Directors". 3.08 delete the section and renumber, 3.07 delete last sentence, 3.01 put period after
second line and remove all references to "Investment Officer" from the policy. **
Motion carried unanimously
15. Consider and take appropriate action regarding request by CP&Y for additional engineering fees relating
to wastewater treatment plant improvement project.
Motion made by Director Wilson and seconded by Director Rose to approve the request for additional
payment for engineering fees and authorize the General Manager to execute the necessary documents.
Motion carried unanimously
16. Consider and take appropriate action regarding selection of engineering consultant for design of 16 -inch
water transmission line improvements to be generally located between the District's existing ground
storage tank at Trophy Club Drive and existing elevated tank located on T.W. King Road:
a. Receive recommendation from staff regarding selection of engineering firm;
b. Authorize staff to negotiate a contract with the engineering firm for subsequent consideration and
approval by the Board of Directors.
Motion made by Director Hase and seconded by Director Thomas to proceed with CP&Y preparing the
application and allow staff to negotiate a contract with Halff and Associates for time and materials to
complete the water line from the ground storage tank to the elevated tank on TW King and bring the
negotiated contract back to the board for approval.
Motion carried unanimously
17. Consider and take appropriate action regarding the August 2017 combined financials and variance
report.
a. Combined financials
b. Variance report
Motion made by Director Rose and seconded by Director Thomas to approve the August 2017 combined
financials and variance report.
Motion carried unanimously
REPORTS & UPDATES
18. General Manager Monthly Reports and Updates
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Trophy Club Municipal Utility District No. 1 September 19, 2017 Public Hearing and Regular Meeting Minutes AMENDED
a. Water System Operation
• Water Main Breaks
• Wise Guys Program
b. Electricity Update
c. Wastewater System Operation
d. Finance Update
• Utility Billing Report
• Permits Collected
• Cash Report
e. Project Status Updates
• Wastewater Treatment Plant Upgrade Project
The General Manager presented the monthly update to the board and answered questions related thereto.
The Board convened into Closed Session at 9:13 p.m.
CLOSED SESSION
19. 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
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. District Application for Renewal of Waste Discharge Permit No. WQ0011593001; State Office of
Administrative Hearings (SOAH) Docket No. 582-17-5380
20. Pursuant to Section 551.074 of the Texas Open Meetings Act, the Board may deliberate the appointment,
employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee,
including General Manager, Finance Manager, and Human Resources Manager/Financial Analyst:
21. Pursuant to Texas Government Code Section 551.076, the Board will meet in closed session to discuss
internal security recommendations regarding District assets and governance.
22. Pursuant to Texas Government Code Section 551.072, the Board will meet in closed session to deliberate
the purchase, exchange, lease, or value of real property if deliberation in an open meeting would have a
detrimental effect on the position of the District in negotiations with a third person.
The Board reconvened into Regular Session at 10:13p.m.
REGULAR SESSION
23. Consider and take appropriate action on matters deliberated in Closed Session:
Regarding Closed Session item No. 21.
Motion made by Director Rose and seconded by Director Hase to authorize the General Manager to
upgrade the security system for an amount not to exceed $60,000.00.
Motion carried unanimously
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Trophy Club Municipal Utility District No. 1
24. Items for future agendas:
September 19, 2017 Public Hearing and Regular Meeting Minutes AMENDED
25. Set future Meeting dates: Regular Board Meeting — October 17, 2017 at 6:30 p.m.
ADJOURN
Vice President Wilson adjourned the Meeting at 10:16 p.m.
Gregory W' on, Vice President
William C. Rose ecretary/Treasurer
i
uri Slaght, District Secr a y
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