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
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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.
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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
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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
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• 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.
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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
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