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Home My WebLink About2019-0819 August 19, 2019 Regular Meeting MinutesAugust 19, 2019 Regular Meeting Minutes REGULAR MEETING MINUTES TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 BOARD OF DIRECTORS AUGUST 19, 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 August 19, 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 Frank Isola Tony Corbett General Manager District Secretary Operations Manager Finance Manager Wastewater Superintendent Legal Counsel GUESTS PRESENT: Chris Ekrut NewGen Strategies & Solutions Karam Veroni NewGen Strategies & Solutions CALL TO ORDER AND ANNOUNCE A QUORUM President Wilson announced the date of Monday, August 19, 2019, called the meeting to order and announced a quorum present at 6:30 p.m. CITIZEN COMMENTS Scott Smith 2 Salida Drive Mr. Smith would like the board to consider a tax freeze for those 65 and over. CONSENT AGENDA 1 of 5 August 19, 2019 Regular Meeting Minutes 1. Consider and take appropriate action to approve the Consent Agenda. a. July 2019 Check Register b. July 22, 2019 Regular Meeting Minutes c. July 29, 2019 Joint Meeting Minutes Motion made by Director Flynn and seconded by Director Chapman to approve the Consent Agenda. Motion carried unanimously REGULAR SESSION 2. Consider and take appropriate action to award the bid and approve Contract No. 2019081901 for Municipal Sludge Hauling services. Item is Tabled and will be brought back at a future meeting. 3. Consider and take appropriate action regarding Fiscal Year 2020 Budget Matters: a. Report from Rate Committee b. Consider and take appropriate action regarding rate assumptions and projections for FY2020 Budget. c. Discussion regarding the Draft Fiscal Year 2020 Budget. Chris Ekrut, District Rate Consultant, presented the rate scenarios for fiscal year 2020. Director Wilson presented the findings of the rate committee and stated that the committee did not agree. Director Chapman would like to have a small increase to the tiered water rates and Director Wilson does not want to raise rates and feels there are funds available in the unallocated fund balance. Directors do not recommend any increase to sewer rates. Steven Krolyczk, Finance Manager stated that the funds allocated to the reserve accounts are approximately 8% of the budget. Staff recommends a $1.00 increase to the base rate. (Water only) for rate stabilization. Discussion ensued. Director Rose feels that it is prudent to make sure the rates are set so the budget is funded and with no increase, the budget will be underfunded. Motion made by Director Chapman and seconded by Director Rose to direct staff to add a $1.00 (one dollar) rate increase to the base rate for water only. For: Chapman, Rose, Castonguay and Flynn Opposed: Wilson Motion passed 4-1 2 of 5 August 19, 2019 Regular Meeting Minutes 4. Consider and take appropriate action regarding tax rates for 2019 tax year: a. Approve proposed tax rate for 2019 tax year; and b. Schedule date and authorize publication of notice for hearing regarding adoption of final tax rates for 2019 tax year. Motion made by Director Flynn and seconded by Director Rose adopt a proposed tax rate of $0.11273 per $100 of assessed valuation for the 2019 tax year and to authorize staff to proceed with publication of a final notice of a public hearing to be conducted on September 19, 2019. Motion carried unanimously 5. Consider and take appropriate action regarding the July 2019 Combined Financials and Variance Report. a. Combined Financials b. Combined Variance Motion made by Director Flynn and seconded by Director Chapman approve the July Combined Financials and Variance Report. Motion carried unanimously 6. Consider and take appropriate action to approve Open House Event at the Wastewater Treatment Facility on September 7, 2019 from 9:00 a.m. — 11:00 a.m. Motion made by Director Castonguay and seconded by Director Flynn to approve the open house event at the wastewater treatment plant for Saturday, September 14, 2019 from 9 a.m. —11 a.m. Motion carried unanimously REPORTS & UPDATES 7. Receive report from General Manager Hiring Committee. (Castonguay/Flynn) Director Flynn provided an update to the Board regarding the activities of the Hiring committee. 8. General Manager Monthly Reports and Update: a. Regulatory Update 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 3 of 5 August 19, 2019 Regular Meeting Minutes e. Water System Operations f. Wastewater System Operations g. Finance Update •Utility Billing Report •Permits Collected •Water Budget vs. Actual •Cash Report General Manager John Carman presented his monthly report to the Board and answered questions related thereto. The Board convened into Executive Session at 8:09 p.m. EXECUTIVE SESSION 9. 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). 10. 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 8:31 p.m. REGULAR SESSION 11. 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. 4of5 August 19, 2019 Regular Meeting Minutes 12. Items for future agendas: 13. Set future Meeting dates: a. Regular Board Meeting — Monday, September 16, 2019 at 6:30 p.m. Motion to adjourn made by Director Chapman and seconded by Vice President Rose ADJOURN President Wilson called the meeting adjourned at 8:33 p.m. Gregory Wilson, President 3 we Steve Flynn, Secretary/T surer Laurie Slaght, District Secretary 5 of 5 0\,03 IM UNC Q�J •�PRRANTC,�'9�/ G• 1- • —I• -<•u-= •O • •,�• -. s O iGTi'•. TE.V' ////////��%1►oiIr? ��`�\'