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HomeMy WebLinkAbout2019-0218 February 18, 2019 Regular Meeting MinutesFebruary 18, 2019 Regular Meeting Minutes BOARD OF DIRECTORS REGULAR MEETING MINUTES TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 February 18, 2019 at 6:30 P.M. Trophy Club Municipal Utility District No. 1 Board of Directors, of Denton and Tarrant Counties, met in Regular Session on Monday, February 18, 2019 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: Gregory Wilson President William C. Rose Vice President Steve Flynn Secretary/Treasurer Mark Chapman Director BOARD MEMBERS ABSENT: Kelly Castonguay Director STAFF PRESENT: John Carman Laurie Slaght Mike McMahon Steven Krolczyk Tony Corbett General Manager District Secretary Operations Manager Finance Manager Legal Counsel GUESTS PRESENT: Andrew Friedman Samco Capital Leah Hodge PE Halff and Associates § CALL TO ORDER AND ANNOUNCE A QUORUM President Wilson announced the date of Monday, February 18, 2019, called the meeting to order and announced a quorum present at 6:30 p.m. CITIZEN COMMENTS There were no citizen comments. 1. Consider and take appropriate action to approve the Consent Agenda. a. January 2019 Check Register b. January 21, 2019 Regular Meeting Minutes 1 of 6 February 18, 2019 Regular Meeting Minutes c. January 31, 2019 Special Meeting Minutes Motion made by Director Flynn and seconded by Director Chapman to approve the Consent Agenda. Motion carried unanimously REGULAR SESSION 2. Discussion and possible action relating to, the sale and issuance of the District's Water and Sewer System Revenue Bonds, Series 2019. a. Receive report from Financial Advisor regarding the issuance and sale of the Bonds; b. Consider and take action regarding Preliminary Official Statement and Notice of Sale; c. Adopt Resolution No. 2019-0218A Expressing Official Intent to Reimburse Costs of Improvement Project with Bond Proceeds; and d. Authorize such other action that may be necessary or convenient to the sale and issuance of the Bonds. Andrew Friedman, with Samco Capital Markets and District Financial Advisor provided an update to the board regarding the issuance of the 2019 Bonds. The District received TCEQ approval to issue the bonds in late October. A Preliminary official statement and a timetable for issuance of the bonds has been put together for review and approval by the board. The District currently has an AA- rating with Standard and Poor's which is very exceptional and rare for a municipal utility district. He stated that there are not many districts that are able achieve this and anticipates the District will maintain this rating. March 18, 2019 would be the date to price our bonds to the market through the TCEQ. Mr. Friedman would like to use a competitive sale process and solicit the bonds to all investors and broker/dealer investment bank institutions. Investors would submit bids on March 18th, we would then award the sale of those bonds based on the bid that produces the lowest net interest cost or interest rate. The sale results will be brought back to the board at the March 18th meeting at which time all bidders would see the lowest rate and final debt service numbers for the bond sale. We are locking in a fixed 30 -year bond with a fixed call option which has been the districts prerogative when selling bonds in the past and is an industry norm for selling them. The funds would be in the bank on April 23, 2019 assuming there are no issues. Mr. Friedman states that the timetable can be adjusted accordingly and once funding is released, 3.8 million must be put in escrow. TCEQ has final authority over what projects are approved and he does not foresee any issues. Mr. Friedman added in the market overall, interest rates have worked in the district favor since about early November and rates are down 65-66 basis points since November. The Federal Reserve has indicated they do intend to raise rates again. Rates over the last few years have begun trending up as the Federal Reserve has raised their base rates, but we are still close to the all-time lows that we have experienced the last several years, so it is as good of a time as any to borrow money. and Assuming there is no huge shift, should be similar rates in March all-time lows. Andrew has reviewed the 2018 Audit and the Districts Financials, and they look great and we meet all required coverage test. March 11th will be the release of the preliminary official statement. Bonds would be priced on March 18th. Andrew does not anticipate a rate increase will be needed. 2 of 6 February 18, 2019 Regular Meeting Minutes Motion made by Director Rose to approve the Preliminary Official Statement and Notice of Sale as forwarded by the General Manager to the Board of Directors and authorize refinements by the board and staff and to have final action taken at the March 18, 2019 regular meeting. Motion dies for lack of a second Motion made by Director Rose and seconded by Director Flynn to approve the Preliminary Official Statement and Notice of Sale as forwarded by the General Manager to the Board of Directors and authorize refinements by the board and staff and others as appropriate at the March 18, 2019 regular meeting and the amount to be placed in the Preliminary Official Statement and Notice of Sale is to be $7,200,000. For: Rose, Chapman, & Flynn Opposed: Wilson Motion passed 3-1 Motion by Director Rose and seconded by Director Chapman to adopt Resolution No. 2019-0218A Expressing Official Intent to Reimburse Costs of Improvement Project with Bond Proceeds. For: Rose, Chapman and Flynn Oppose: Wilson Motion passed 3-1 3. Consider and take appropriate action regarding funding and construction of Water Transmission Line Improvements from District Pump Station to Elevated Water Tank located on T.W. King Road. a. Receive design presentation and final cost estimate from Leah Hodge PE with Halff and Associates; b. Adopt Resolution No. 2019-0218B Authorizing the Acquisition of Project Easements by Purchase or Condemnation and Containing Other Matters Related Thereto. Leah Hodge PE, Halff and Associates and the project engineer for the interconnect waterline project provided an overview of the cost estimate for the construction of Water Transmission Line Improvements from District Pump Station to Elevated Water Tank located on T.W. King Road. Motion made by Director Rose and seconded by Director Chapman to Adopt Resolution No. 2019-0218B Authorizing the Acquisition of Project Easements by Purchase or by Condemnation and Containing Other Matters Related Thereto. For: Rose, Chapman, and Flynn Opposed: Wilson Motion passed 3-1 3 of 6 February 18, 2019 Regular Meeting Minutes 4. Consider and take appropriate action to approve OpenGov Software Services Agreement Contract No. 2019021801 for the purchase of Budgeting, Planning and Operational Performance Software and Related Services. (staff) Motion made by Director Rose and seconded by Director Flynn to approve Contract No. 2019021801 OpenGov Incorporation for the acquisition and installation of an online budget preparation module and performance software with integration for a three-year (3) term for an amount not to exceed $85,061.00 to include the budget book and the first amount will be $39,887.00 and remaining two (2) years will be $22,587/per year. Motion by Director Rose and seconded by Director Flynn to amend the main motion to add the following: "and allow legal counsel to make necessary changes to comply with Texas statutes." Amendment passed unanimously Main motion as amended carried unanimously 5. Consider and take appropriate action regarding the January 2019 Combined Financials and Variance Report. e. Combined Financials f. Combined Variance Motion made by Director Rose and seconded by Director Chapman to approve the January 2019 Combined Financials and Variance Report. Motion carried unanimously. The Board convened into Recess at 8:24 p.m. through 8:30 p.m. REPORTS & UPDATES 6. Receive Director report and update regarding Association of Water Board Directors (AWBD) Mid -Winter Conference. (Rose) Vice President Rose attended the Mid -Winter Association of Water Board Directors (AWBD) Conference and provided an update and report of the conference and stated that March 21, 2019 is the registration deadline for the June AWBD conference which will be held in Fort Worth. 7. General Manager Monthly Reports and Update: a. Regulatory Update b. Capital Improvement Projects • Interconnect Water Transmission Line Phase 2 4 of 6 February 18, 2019 Regular Meeting Minutes • Wastewater Treatment Plant Upgrade Project • High Service Pump • Joint Projects with Town c. Fire Department Summary d. Water System Operations e. Wastewater System Operations f. Status of surplus vehicles g. Finance Update • Utility Billing Report • Permits Collected • Cash Report General Manager John Carman presented the January monthly reports and update to the Board and answered questions related thereto. The Board convened into Executive Session at 8:40 p.m. EXECUTIVE SESSION 8. 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 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; and b. Claims for damages caused by District facilities and/or operations to property located at 1040 Trophy Club Drive, Trophy Club, Texas. c. Consultation with Legal Counsel regarding Legislation providing Authorization for Release of Lands from the District's corporate boundaries d. Claims for damages caused by District facilities and/or operations to property located at 1040 Trophy Club Drive, Trophy Club, Texas. 9. Pursuant to Section 551.072 of the Texas Open Meetings Act, the Board may 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 governmental body in negotiations with a third person: a. Sale or Exchange of District real property located at 100 Municipal Drive and 1501 Junction Way. b. Purchase of Easements required for construction and operation of Water Transmission Line Improvements from District Pump Station to Elevated Water Tank located on T.W. King Road The Board reconvened into Regular Session at 10:06 p.m. 5 of 6 February 18, 2019 Regular Meeting Minutes REGULAR SESSION 10. Consider and take appropriate action on matters deliberated in Executive Session: Regarding Agenda item No. 8 (c) Motion made by Director Rose and seconded by Director Flynn that President Wilson is directed to execute a letter in support of draft legislation which was included in an email sent by Senator Hancock's aid, Andrew Parks and addressed to John Carman and other recipients dated Friday, February 15, 2019 at 12:57 p.m. Motion carried unanimously 11. Items for future agendas: Reserve Policy 12. Set future Meeting dates: Regular Board Meeting — Monday, March 18, 2019 at 6:30 p.m. ADJOURN Director Chapman moved to adjourn. President Wilson called the meeting adjourned at 10:10 p.m. Gregory Wilson, President 7 Steve Flynn, Secretary/Treasurer Ji Ai 0 (21'7rie.71 Laurie Slaght, District Secret ry 6 of 6