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Home My WebLink About2019-0617 June 17, 2019 Regular Meeting MinutesJune 17, 2019 Regular Meeting Minutes REGULAR MEETING MINUTES TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 BOARD OF DIRECTORS June 17, 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 June 17, 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 Mark Chapman Director STAFF PRESENT: John Carman Laurie Slaght Mike McMahon Steven Krolczyk Tony Corbett General Manager District Secretary Operations Manager Finance Manager Legal Counsel CALL TO ORDER AND ANNOUNCE A QUORUM President Wilson announced the date oflune 17, 2019, called the meeting to order and announced a quorum present at 6:31 p.m. CITIZEN COMMENTS — There were no citizen comments CONSENT AGENDA 1. Consider and take appropriate action to approve the Consent Agenda. a. May 2019 Check Register b. May 20, 2019 Regular Meeting Minutes Motion made by Director Flynn and seconded by Director Castonguay to approve the Consent Agenda For: Rose, Flynn, Castonguay, Chapman Abstain: Wilson Motion passed 4-0-1 REGULAR SESSION 2. Consider and take appropriate action to elect officers of the Board. President Wilson called for nominations for Board President 1 of 7 June 17, 2019 Regular Meeting Minutes Director Flynn nominated Director Wilson for Board President For: Castonguay, Chapman, Flynn, Rose and Wilson Oppose: None Director Wilson will serve as Board President President Wilson called for nominations for Vice President Director Flynn nominated Director Rose for Board Vice President For: Chapman, Castonguay, Flynn, Wilson Abstain: Rose Director Rose will serve as Board Vice President President Wilson called for nominations for Secretary/Treasurer Director Chapman nominated Director Flynn For Secretary Treasurer For: Castonguay, Chapman, Flynn, Rose and Wilson Oppose: None Director Flynn will serve as Board Secretary/Treasurer 3. Consider and take appropriate action regarding the 2018 Consumer Confidence Report. Motion by Director Rose and seconded by Director Chapman to approve the 2018 Consumer Confidence Report. Motion to amend the main motion by Director Rose and seconded By Director Flynn change the word "at" to "in" on the very last sentence on page 1, column 2. Amendment to the main motion carried unanimously Motion to approve the Amended 2018 Consumer Confidence Report carried unanimously 4. Consider and take appropriate action regarding sale of surplus property: a. Consider and take appropriate action to adopt Order No. 2019-0617A Declaring certain Electronic Equipment of the District to be Surplus and Authorizing the Disposition Thereof. b. Consider and take appropriate action to adopt Order No. 2019-06176 Declaring the District's Interest in certain Joint Property owned by the District and the Town of Trophy Club to be Surplus and 2 of 7 June 17, 2019 Regular Meeting Minutes Authorizing Disposition Thereof. c. Consider and take appropriate action to adopt Order No. 2019-0617C Declaring Certain Property of the District related to the Fire Department to be Surplus and Authorizing the Disposition Thereof. Motion made by Director Rose and seconded by Director Flynn to approve Order No. 2019-0617A Declaring certain Electronic Equipment of the District to be Surplus and Authorizing the Disposition Thereof. Motion carried unanimously Motion made by Director Rose and seconded by Director Wilson to approve Order No. 2019-0617B Declaring the District's Interest in certain Joint Property owned by the District and the Town of Trophy Club to be Surplus and Authorizing Disposition Thereof. Motion carried unanimously Motion made by Director Rose and seconded by Director Chapman to approve Order No. 2019-0617C Declaring Certain Property of the District related to the Fire Department to be Surplus and Authorizing the Disposition Thereof. Motion carried unanimously 5. Discussion and possible action regarding adoption of Amended and Restated Reserve Fund Policy. Director Flynn and Director Rose provided a presentation regarding AWWA guidelines. Discussion ensued. This item is tabled, and direction was provided to the Committee and will be brought back to the next meeting. 6. Discussion and possible action to appoint two (2) directors to serve on the Budget Committee to work with staff on the draft budget for fiscal year 2020. Motion made by Director Castonguay and seconded by Director Chapman to appoint Director Flynn and Director Rose to serve on the Budget Committee to work with staff on the draft budget for fiscal year 2020. Motion carried unanimously 7. Consider and take appropriate action to appoint two (2) directors to serve on the Rate Committee to work with staff to review and develop recommendations regarding water and sewer rates for Fiscal Year 2020. Motion made by Director Castonguay and seconded by Director Flynn to appoint Director Wilson and Director Chapman to serve on the Rate Committee to work with staff to review and develop 3 of 7 June 17, 2019 Regular Meeting Minutes recommendations regarding water and sewer rates for Fiscal Year 2020. Motion carried unanimously 8. Discussion and possible action regarding District organizational structure planning, including planning for future General Manager services. (Flynn/Wilson) General Manager John Carman stated that he will be leaving at the end of March or the first of April 2020. President Wilson suggested the board start looking for a replacement and have at least a 3 -month transition time. The board is seeking to hire a Tong -term employee. Director Flynn would like to put together a timeline to move forward. Motion by Director Wilson and seconded by Director Rose to authorize Director Flynn and Director Castonguay to work start initial discussions with recruiters between now and the next meeting; and to bring suggestions and a timeline back to the board regarding replacement of the General Manager. Motion carried unanimously. 9. Presentation from legal counsel regarding terms and conditions of the 2016 Interlocal Agreement with the Town of Trophy Club relating to Fire Department funding and operations (Corbett) Attorney Corbett reviewed the 2016 Interlocal Agreement with the Town of Trophy Club relating to Fire Department funding and operations and answered questions related thereto. Discussion only, no action taken 10. Presentation from legal counsel regarding bills of interest enacted by the Texas Legislature during its 2019 legislative session. (Corbett) Attorney Corbett provided an update to the board regarding the 2019 legislative session and answered questions related thereto. Discussion only, no action taken 11. Discussion and action regarding a Joint Meeting with the Town of Trophy Club Town Council for discussion of the proposed annual budget and other matters relating to the approved Interlocal Agreement for Fire Protection Services. Motion made by Director Rose and seconded by Director Flynn to hold the Joint Meeting with the Town Council on July 29, 2019 at 7:00 p.m. in the District boardroom. Motion carried unanimously 4 of 7 June 17, 2019 Regular Meeting Minutes 12. Consider and take appropriate action regarding the District's water quality sampling program, including the approval of incentives for customer participation. General Manager John Carman would like to credit customers who participate in the lead and copper sampling receive a $25.00 credit on their bill Motion by Director Chapman and seconded by Director Flynn to Authorize the General Manager to provide an incentive of a $25.00 bill credit on the bills of customers who participate in the District's water sampling program. Amendment to the main motion by Director Wilson and seconded by Director Flynn that the $25.00 credit only be applied to customers that successfully complete the sampling process. Amendment to the to the motion carried unanimously Main motion as amended carried unanimously 13. Consider and take appropriate action regarding the May 2019 Combined Financials and Variance Report. a. Combined Financials b. Combined Variance Motion made by Director Flynn and seconded by Director Rose to approve May 2019 Combined Financials and Variance Report. Motion carried unanimously REPORTS & UPDATES 14. General Manager Monthly Reports and Update: a. Regulatory Update b. Capital Improvement Projects • Interconnect Water Transmission Line Phase 2 • Wastewater Treatment Plant Upgrade Project c. System Repairs and Replacements d. Water System Operations e. Wastewater System Operations f. Finance Update • Auditor Update • Utility Billing Report • Permits Collected • Cash Report • Water Revenue Outlook General Manager John Carman presented his monthly report and answered questions related thereto. The Board convened into Executive Session at 9:15 p.m. 5 of 7 June 17, 2019 Regular Meeting Minutes EXECUTIVE SESSION 15. 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. Trophy Club Municipal Utility District No. 1 v. Acadia Services, LLC, In the District Court of Tarrant County, 141st Judicial District (Cause No. 141-299351-18). 16. 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 will also seek opinion and advice from legal counsel regarding House Bill 347.Vice President Rose asked to have House Bill 347 discussed in Executive Session. The Board reconvened into Regular Session at 10:36 p.m. REGULAR SESSION 17. Consider and take appropriate action on matters deliberated in Executive Session: President Wilson stated that no decisions, votes or actions were taken in Executive Session. 18. Items for future agendas: Employee/hiring process employment agreement (Tony) Reserve Policy Hiring Committee 19. Set future Meeting dates: a. Regular Board Meeting — Monday, July 22, 2019 at 6:30 p.m. b. Budget Workshop ADJOURN Motion to adjourn by Director Castonguay seconded by Director Rose Motion carried unanimously President Wilson called the meeting adjourned at 10:41 p.m. 6 of 7 Gregory Wilson, Board Presklent Steve Flynn, Secretary reas% rer Laurie Slaght, District Secr4tary 7 of 7 June 17, 2019 Regular Meeting Minutes