HomeMy WebLinkAbout2018-0417 April 17, 2018 Regular Meeting Minutes . ay 15 , 2018 Regular Meeting Minutes
REGULAR MEETING MINUTES
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
BOARD OF DIRECTORS
April17, 2018 at 6:00P.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
Regular Session on April 17, 2018 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
BOARD MEMBERS PRESENT:
Kevin R. Carr
Gregory Wilson
Jim Thomas
Jim Hase
President
Vice President
Director
Director
BOARD MEMBERS ABSENT:
William ·C. Rose
STAFF PRESENT:
John Carman
Laurie Slaght
Mike McMahon
Steven Krolczyk
Tony Corbett
Secretary/Treasurer
General Manager
District Secretary
Water Superintendent
Finance Manager
Legal Counsel
CALL TO ORDER AND ANNOUNCE A QUORUM
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Director Carr announced the date of April 17, 2018, called the meeting to order and announced a quorum
present at 6:03 p.m.
CITIZEN COMMENTS
There were no speakers
· CONSENT AGENDA
1. Consider and take appropriate action to approve the Consent Agenda .
a. Quarterly Investment Reports-2"d quarter
b. Tax Collections
c. March 2018 Check Register
d. March 20, 2018 Regular Meeting Minutes
Motion made by Director Thomas and seconded by Director Hase to approve the consent agenda as
presented.
Motion carried unanimously
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REGULAR SESSION
2. Presentation of service awards to Directors Carr, Hase and Thomas by General Manager John Carman .
General Manager John Carman presented service awards to the outgoing board members and thanked
them for their service.
3. Public Statements by existing directors who are not seeking reelection relating to their service as
directors and the District's historical operations and achievements . (Thomas)
Directors Kevin Carr, Jim Hase and Jim Thomas made comments regarding their time spent on the Board
of Directors.
The Board recessed at 6:30 p.m. and returned to Regular Session at 6:41 p.m.
4. Consider and take appropriate action regarding the Amendment No. 1 to contract with Halff Associates,
Inc. for engineering services relating to the water transmission line interconnect from Pump Station to
Eastern Storage Tank.
Water Superintendent Mike McMahon stated that Amendment No . 1 is to cover the cost of additional
easement acquisitions. McMahon stated that a small portion of the alignment was changed to reduce
the amount of boring that needs to be completed for the water line. McMahon added that this will
increase the engineering cost and the construction cost should be reduced. General Manager John
Carman stated that it is anticipated the overall cost will go down when the project is bid due to the
reduced length of boring to install the pipe
Motion made by Director Thomas and seconded by Director Carr to approve Amendment No. 1 to the
contract with Halff Associates, Inc. for engineering services relating to the water transmission line
interconnect from Pump Station to Eastern Storage Tank.
For: Hase, Thomas and Carr
Oppose: Wilson
Motion passed 3-1
5. Consider and take appropriate action regarding awarding the bid for the 16-inch off site waterline to
serve Trophy Club Town Center and approve Contract No . 2018041701 providing for construction of such
waterline improvements.
Motion made by Director Carr and seconded by Director Thomas to award the bid for the 16-inch offsite
waterline to La Banda, LLC and approve Contract No. 2018041701 for construction of such waterline
improvements for an amount not to exceed $188,625.
Motion carried unanimously
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6. Consider and take appropriate action regarding adoption of Resolution No . 2018-0418A Authorizing the
General Manager to Approve Construction Contract Change Orders.·
Motion made by Director Carr and seconded by Director Hase to table this item until the May Meeting and
the new board is seated.
Motion carried unanimously
7. Discussion and possible action regarding revision of water and sewer rates for governmental customers .
(Carr)
Attorney Corbett stated that "Under the water code the board of directors of a district has broad
authority to establish different customer classes. If the Board chose to do so it could establish a customer
class for government customers. In all cases, your rates are supposed to reflect your cost of service
associated with each of those classes and obviously the DistriCt has retained NewGen to calculate those
cost of service and the revenue required for each dass of customers. So, if you went forward with this I
would recommend that a cost of service study be undertaken in connection with establishing the
revenue requirement and cost of service for such a customer class . I would note that governmental
customers don't pay taxes like your other customers do, so the cost of service for other customers would
reflect their non-rate service and contributions so it is very possible that this class may end up with a
higher rate because they are not offsetting their cost of service with any taxes. Unlike other types of
entities, MUD's are subject to appeal and review by state agencies where obviously a municipality rates
are not, so you have the authority to establish a separate customer class. But, I would urge you to
consider it carefully because it may end up being a higher rate because they don't submit and offset their
payment of service by payment of taxes."
Director Carr stated that the schools might ask to have a government rate. Attorney Corbett stated that
other customers in the District could complain that it is discriminatory for one customer class rates not
to reflect a cost of service. Corbett urged the Board to be very careful about moving forward and have
discussions with NewGen prior taking action.
Discussion only, no action taken.
8. Discussion and possible action regarding procedures for agenda preparation and packet information.
(Carr)
a. Discussion regarding agenda preparation procedures; and
b. Consider and take appropriate action regarding possible amendments to District Bylaws:
Organization, Procedures, Travel Expenditure Policy, Professional Services Policy, Management
Information Policy and Code of Ethics.
Director Carr requested that agenda items and information be brought to the board when they are
received so the board can have more information when requesting items for the agenda.
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9. Consider and take appropriate action regarding the March 2018 Combined Financials and Variance
Report.
a. Combined Financials
b. Combined Variance
Motion made by Director Thomas and seconded by Director Hase to approve the March 2018 Combined
Financials and Variance Report.
Motion carried unanimously
REPORTS & UPDATES
10. General Manager Monthly Reports arid Update:
a. Regulatory Update
b. Class and Compensation Study Update
c. Auction of Surplus Property Update
d. Election information
e. Capital Improvement Projects
• 16-inch waterline project to serve Town Center
• Wastewater Treatment Plant Upgrade Project
• High Service Pump
• Joint Projects with Town
f. Water System Operation
g. Wastewater System Operation
h. Website Analytics
i. Finance Update
• Utility Billing Report
• Permits Collected
• Cash Report
General Manager John Carman presented the March monthly reports and updates to the board and
answered questions related thereto.
The Board of Directors did not convene into Executive Session
EXECUTIVE SESSION
11. Pursuant to Section 551.071 of the Texas Open Meetings Act, the Board may consult with its attorney in
Executive Session on a matter in which the duty of the attorney to the Governmental Body under the
Disciplinary Rules of Professional Condu.ct 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.
REGUlAR SESSION
12. Consider and take appropriate action on matters deliberated in Executive Session:
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13 . Items for future agendas :
14. Set future Meeting dates-Regular Board Meeting on May 15, 2018 at 6:30p.m .
ADJOURN
Director Carr adjourned the meeting at 7:17p.m .
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