HomeMy WebLinkAbout2019-0617 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
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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
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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
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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
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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.
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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.
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Gregory Wilson, Board Presklent
Steve Flynn, Secretary reas% rer
Laurie Slaght, District Secr4tary
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