HomeMy WebLinkAbout2019-0318 March 18, 2019 Regular meeting minutesMarch 18, 2019 Regular Meeting Minutes
REGULAR MEETING MINUTES
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
BOARD OF DIRECTORS
March 18, 2019 at 6:30 P.M.
Trophy Club Municipal Utility District No. 1 Board of Directors, of Denton and Tarrant Counties, met in a
regular session on March 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
Kelly Castonguay Director
BOARD MEMBERS ABSENT:
Mark Chapman Director
STAFF PRESENT:
John Carman
Laurie Slaght
Mike McMahon
Tony Corbett
General Manager
District Secretary
Operations Manager
Legal Counsel
GUESTS PRESENT:
Aaron Hall 406 Hershey Lane
David Stout 661 Sheldon Drive
Chris Ekrut NewGen Strategies & Solutions
Michael Summerdorf NewGen
Andrew Friedman Samco Capital
Kevin Glovier CP&Y
Scott Wetzel CP&Y
CALL TO ORDER AND ANNOUNCE A QUORUM
President Wilson announced the date of March 18, 2019, called the meeting to order and announced a
quorum present at 6:30 p.m.
CITIZEN COMMENTS
Aaron Hall
406 Hershey Lane
CONSENT AGENDA
1. Consider and take appropriate action to approve the Consent Agenda.
a. February 2019 Check Register
b. February 18, 2019 Regular Meeting Minutes
1 of 7
March 18, 2019 Regular Meeting Minutes
Motion made by Director Flynn and seconded by Director Rose to approve the Consent Agenda.
Motion carried unanimously
REGULAR SESSION
2. Consider and take appropriate action regarding approval of Compromise Settlement Agreement and
Release providing for resolution of claims and disputes pertaining to alleged property damage at 1040
Trophy Club Drive.
Motion made by Director Rose and seconded by Director Castonguay to approve the Compromised
Settlement Agreement and Release between Trophy Club Municipal Utility District No. 1 and Guillermo
and Patricia Zepeda.
Motion carried unanimously
3. Consider and take appropriate action regarding noise assessment performed near the wastewater
treatment plant. (staff)
General Manager John Carman presented an overview of the results of the Noise Study performed by
SRP Environmental LLC.
Director Flynn is concerned that the District would be spending funds when there has been no way to
replicate the noise that the resident is hearing. Director Rose stated that the recorded decibels in the
study are less than an air conditioner running or a normal conversation. Director Rose would like staff
to be alert for the increased noise that Mr. Hall hears. Discussion was held about garbage along the
fence line of the 3' hole; the General Manager will speak to the Town Manager regarding the issue.
Discussion only, no action taken
4. Discussion and possible action regarding Winter Average Analysis completed by NewGen Strategies &
Solutions.
Chris Ekrut and Michael Summerdorf with NewGen Strategies & Solutions presented the winter average
analysis and answered questions related thereto.
Discussion only, no action taken
5. Consider and take appropriate action to adopt Rate Order No. 2019-0318A amending Section 2.02. Sewer
Service Rates and set an effective date of April 1, 2019.
Director Rose would also like to amend the language in section 2.02 to the following:
"A customer with a water leak during the averaging months may request a reduction in the sewer usage
calculation. Any customer filling a pool after resurfacing, construction or major repairs during the
2 of 7
March 18, 2019 Regular Meeting Minutes
averaging months may request that their winter average calculation be adjusted. Requests must be in
writing to the General Manager and have documentation showing the construction or repairs as
applicable to the issue. The General Manager or a duly authorized 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."
Motion made by Director Rose and seconded by Director Flynn to adopt Rate Order No. 2019-0318A and
amending Section 2.02. Sewer Rates and set an effective date of April 1, 2019.
Motion carried unanimously
6. Consider and take appropriate action relating to issuance of $7,200,000 Trophy Club Municipal Utility
District No. 1 Water and Sewer System Revenue Bonds, Series 2019:
a. Receive report from Financial Advisor regarding Bids Received for Purchase of Bonds;
b. Award the Sale of the Bonds;
c. Adopt Order No. 2019-0318B Authorizing the Issuance of $7,200,000 Trophy Club Municipal Utility
District No. 1 Water and Sewer System Revenue Bonds, Series 2019; Prescribing the Terms and
Provisions Thereof; Making Provision for the Payment of the Interest Thereon and the Principal
Thereof; Authorizing the Sale of the Bonds; Approving a Paying Agent/Registrar Agreement, Escrow
Agreement and Preliminary Official Statement; and Containing Other Provisions Relating to the
Subject;
d. Approve Engagement of Special Tax Counsel for Sale of Bonds;
e. Approve Payment of Attorney General Filing Fee; and
f. Authorize the District's Officers and Directors, Financial Advisor, General Counsel and Bond Counsel
to take other actions necessary, appropriate or convenient in connection with the sale of the Bonds,
including, without limitation, executing appropriate documents in connection therewith.
Andrew Friedman, District Financial Advisor with Samco Capital said the bonds received 6 bids and the
low bidder was IFS Securities, Inc. with a 3.34% net effective interest cost which was 7% basis points
better than the next bidder. Friedman stated this presents a great savings for the District. The Bonds
close on April 23, 2019. The bonds will be callable after 10 years or September 21, 2028 and could then
be refunded if interest rates were somehow lower.
Motion made by Director Rose and seconded by Director Flynn to approve the award of the sale of the
bonds to IFC Securities, Inc. at a net interest cost of 3.342290% in accordance with the Financial Advisor's
recommendation.
For: Rose, Castonguay & Flynn
3 of 7
March 18, 2019 Regular Meeting Minutes
Opposed: Wilson
Abstained:
Motion passed 3-1
Motion made by Director Flynn and seconded by Director Rose to Adopt Order No. 2019-0318B Authorizing
the Issuance of $7,200,000 Trophy Club Municipal Utility District No. 1 Water and Sewer System Revenue
Bonds, Series 2019; to authorize the issuance of the bonds and adopt other changes necessary to reflect
the final bid and Authorize the sale of the bonds.
For: Rose, Castonguay & Flynn
Opposed: Wilson
Abstained:
Motion passed 3-1
Motion made by Director Rose and seconded by Director Castonguay to engage the firm of Mclean and
Howard, LLP to act as Special Tax Counsel for Sale of bonds for Trophy Club Municipal Utility District No.
1. for the purposes set forth in the letter dated March 8, 2019.
For: Rose, Castonguay & Flynn
Opposed: Wilson
Abstained:
Motion passed 3-1
Motion made by Director Rose and seconded by Director Flynn to Approve payment of Attorney General
Filing Fee; and authorize the District's Officers and Directors, Financial Advisor, General Counsel and Bond
Counsel to take other actions necessary, appropriate or convenient in connection with the sale of the
Bonds, including, without limitation, executing appropriate documents in connection therewith.
For: Rose, Castonguay & Flynn
Opposed: Wilson
Abstained:
Motion passed 3-1
7. Receive report and presentation from CP&Y, Inc. (Project Engineer) relating to substantial completion of
construction of the Wastewater Treatment Plant Improvements.
Kevin Glovier PE., project engineer updated the Board regarding ongoing issues with the contractor and
4 of 7
March 18, 2019 Regular Meeting Minutes
provided a timeline for final completion of the wastewater treatment plant improvement project.
Discussion only, no action taken
8. Consider and take appropriate action to adopt Resolution No. 2019-0318A Cash Reserve Policy.
Motion made by Director Rose and seconded by Director Wilson for the Reserve Policy Sub- Committee
to review suggested changes by legal counsel and bring it back to the next meeting for approval.
Motion is withdrawn by the first and second.
Attorney Corbett suggest that the board work with the District Financial advisor and obtain his insight to
create a policy that would best suit the District. General Manager John Carman stated that he would like
to take the policy back to the subcommittee with the advice of counsel. Carman would like to receive
input from the financial advisor and include debt management in the policy and bring it back to the Board
for review. Director Wilson feels that the number of fund accounts needs to be reduced to three or four.
Director Rose is not interested in adding debt management in the cash reserve policy. Attorney Corbett
suggested removing the unassigned fund. Director Flynn will work on a policy that contains less fund
accounts and send it to the committee for review and discussion. Attorney Corbett feels the policy can
be changed to achieve everyone's goals.
Discussion only, no action taken
9. Consider and take appropriate action regarding the February 2019 Combined Financials and Variance
Report.
a. Combined Financials
b. Combined Variance
Motion made by Director Flynn and seconded by Director Rose to approve the February 2019 Combined
Financials and Variance report.
Motion carried unanimously
REPORTS & UPDATES
10. General Manager Monthly Reports and Update:
a. Regulatory Update
• Emergency Expenditure recap
b. Capital Improvement Projects
• Interconnect Water Transmission Line Phase 2
• Wastewater Treatment Plant Upgrade Project
• High Service Pump
c. System Repairs
d. Fire Department Summary
5 of 7
March 18, 2019 Regular Meeting Minutes
e. Water System Operations
f. Wastewater System Operations
g. Finance Update
• Utility Billing Report
• Permits Collected
• Cash Report
General Manager John Carman presented his monthly update to the board and answered questions
related thereto.
The Board 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 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. Consultation with Legal Counsel regarding Legislation providing Authorization for Release of Lands
from the District's corporate boundaries.
12. 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
REGULAR SESSION
13. Consider and take appropriate action on matters deliberated in Executive Session:
The Board did not convene into Executive Session.
14. Items -for future agendas:
15. Set future Meeting dates: Regular Board Meeting — Monday, April 22, 2019 at 6:30 p.m.
The April Regular Board meeting is moved to Tuesday, April 23, 2019 at 6:30 p.m.
6 of 7
ADJOURN
Motion made by Director Flynn to adjourn
President Wilson called the meeting adjourned at 9:07 p.m.
William C. Rose, hlfce President
Steve Flynn, Secretary/Measurer
Laurie Slaght, District
tary
7 of 7
March 18, 2019 Regular Meeting Minutes
011111II///�/ j
GLUB MUN
421.• p.RRAA/ /Cio
O•
�
• 0 (SEA G
•1,.., Z• =
••Z --1•
•
6.
ii /••. T•EXPS�• P,
���/D f STM , ���``�
11111