HomeMy WebLinkAbout2020-0120 January 20, 2020 Regular Meeting MinutesJanuary 20, 2020 Regular Meeting Minutes
REGULAR MEETING MINUTES
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
BOARD OF DIRECTORS
JANUARY 20, 2020 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 meeting on Monday, January 20, 2020 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:
Susan LaFollett with LaFollett & Company, PLLC.
CALL TO ORDER AND ANNOUNCE A QUORUM
President Wilson announced the date of January 20, 2020, stated a quorum was present and called the
meeting to order at 6:30 p.m.
CITIZEN COMMENTS
Brock Harwell 55 Sonora Drive (Agenda Item #2)
CONSENT AGENDA
1. Consider and take appropriate action to approve the Consent Agenda.
a. December 2019 Check Register
b. December 16, 2019 Regular Meeting Minutes
c. Quarterly Investment Report —151 Quarter FY2020
d. Tax Collections Report — 15C Quarter FY2020
Motion made by Director Flynn and seconded by Director Chapman to approve the Consent Agenda.
Motion carried unanimously
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REGULAR SESSION
2. Discussion and possible action regarding sewer line break at 55 Sonora Drive and request for District
payment for related repairs and damages.
General Manager John Carman provided a timeline of events that occurred at 55 Sonora Drive as well as
a video showing the line.
Mr. Brock Harwell who resides at 55 Sonora Drive stated that he had 3 plumbers to his home to look at
the line and they all stated the line break was on the District side.
Discussion ensued regarding the location of the line dislocation and the most cost effective way to make
that determination.
Attorney Corbett would like to discuss the legal implications related to this matter with the Board in
Executive Session.
The General Manager will follow up with the homeowners following the meeting.
This item is Tabled for further discussion in Executive Session. **
3. Receive update from the Audit Committee. (Rose/Wilson)
Director Rose and Director Wilson met with the auditor and reviewed the report and the adjustments
made to the audit.
4. Consider and take appropriate action to accept the Fiscal Year 2019 Annual Financial Audit performed
by LaFollet & Company, PLLC.
Susan LaFollett with LaFollett & Company, PLLC., provided the findings of the 2019 audit. The District
received an Unmodified Audit Opinion "Clean Audit" and no deficiencies or material weaknesses were
noted. The audit identified no material misstatements and found no unexplainable transactions. There
were 6 audit adjustments made. The only material adjustments identified by the audit firm related to
the new debt and pension balances. Ms. LaFollet stated that Finance Manager, Steven Krolczyk and the
Finance Department as well as the Audit Committee did a great job.
The Board commended staff for their work.
Motion made by Director Flynn and seconded by Director Rose to accept the Fiscal Year 2019 Annual
Financial Audit performed by LaFollet & Company, PLLC.
Motion carried unanimously
5. Consider and take appropriate action to approve Contract No. 2020012001 with Rey -Mar Construction
for construction of a building and installation of a sound mitigation improvements at the wastewater
treatment plant.
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Motion made by Director Rose and seconded by Director Flynn to approve Contract No. 2020012001 with
Rey -Mar Construction for construction of a building and installation of a sound mitigation improvements
at the wastewater treatment plant for an amount not to exceed $75,000 and authorize the general
manager to make necessary actions required for this project
Motion to amend by Director Rose and seconded by Director Flynn to fund the project out of
undesignated reserve funds.
Amendment withdrawn by the first and the second
Motion to amend the made by Director Rose and seconded by Director Flynn to fund the project out of
contributions to funds that are going to the reserve fund.
Motion to approve the amendment carried unanimously
Motion as amended carried unanimously
6. Consider and take appropriate action regarding approval of bid and award Contract No. 2020012002 for
20 inch Valve Replacement to include Line Stop at Trophy Club Drive and Oak Hill Drive as part of Fiscal
Year 2020 Capital Improvement projects.
Motion made by Director Rose and seconded by Director Chapman to award Contract No. 2020012002 to
Rey -Mar Construction for 20 inch Valve Replacement to include Line Stop at Trophy Club Drive and Oak
Hill Drive for an amount not to exceed $69,874.48 and to fund the project out of Fiscal Year 2020 Capital
Improvements and authorize the General Manager to execute necessary documents.
Motion carried unanimously
7. Consider and take appropriate action regarding approval of change orders submitted by Rey -Mar
Construction for the High Service Pump Station project:
a. Change Order #2 Lower short circuit rating pump 1 $28,716.45
b. Change Order #4 32" OD Flange Leveling $9,285.53
Mike McMahon, Operations Manager stated that Change Order #2 would be brought back to the Board
for consideration as a FY 2021 Capital Improvement Project and asked the Board to consider Change
Order #4 at this time.
Motion made by Director Chapman and seconded by Director Flynn to approve Change Order #4 submitted
by Rey -Mar Construction for the High Service Pump Station project 32" OD Flange Leveling for an amount
not to exceed $9,285.53 and to fund the projected out of allocated reserve funds.
Motion carried unanimously
Board Recessed from 7:53 p.m. to 7:57 p.m.
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8. Discussion and Action Regarding Adoption of Resolution 2020-0120A Authorizing the Acquisition of Real
Property by Purchase or Condemnation, including Consideration of the Use of Eminent Domain to
Condemn Property, and Containing Other Matters Related Thereto, for Purposes of Acquiring Easements
Required for the Construction and Operation of Water Transmission Line Improvements from the District
Pump Station to the Elevated Water Tank Located on T.W. King Road. Trophy Club Municipal Utility
District No. 1 (the "District") must acquire certain parcels, easements and/or related property interests
from real estate in Trophy Club, Denton and Tarrant County, Texas in connection with the construction
and operation of new public water transmission lines. If, for any reason, a negotiation to acquire a parcel
reaches an impasse, the District intends to use its power of eminent domain to condemn the following
property:
a. Parcel 2(a), an easement taking of 0.0054 acres, from 0.0793 acres of real estate, owned by the
County of Denton, Trustee, and located along the southern line of Indian Creek Drive, just east of
Troon Drive, Denton County, Texas;
b. Parcel 2(b), an easement taking of 0.0695 acres, from 0.43 acres of real estate, owned by Citibank,
N.A., and located northeast of the intersection of Davis Blvd and the north frontage road of State
Highway 114, Tarrant County, Texas; and
c. Parcel 6, an easement taking of 0.0693 acres, from 2.925 acres of real estate, owned by Trophy
Lodging, Ltd., and located at 2900 State Highway 114, Trophy Club, TX 76262, Tarrant County, Texas.
Motion made by Director Chapman and seconded by Director Rose to move that the Board of Directors of
Trophy Club Municipal Utility District Number 1, authorize the use of the power of eminent domain to
acquire an easement interest in the following properties located in Trophy Club, Tarrant and Denton
County, Texas:
• Parcel 2(a), an easement taking of 0.0054 acres, from 0.0793 acres of real estate, owned by the County
of Denton, Trustee, and located along the southern line of Indian Creek Drive, just east of Troon Drive,
Denton County, Texas;
• Parcel 2(b), an easement taking of 0.0695 acres, from 0.43 acres of real estate, owned by Citibank, N.A.,
and located northeast of the intersection of Davis Blvd and the north frontage road of State Highway
114, Tarrant County, Texas; and
• Parcel 6, an easement taking of 0.0693 acres, from 2.925 acres of real estate, owned by Trophy Lodging,
Ltd., and located at 2900 State Highway 114, Trophy Club, Texas 76262, Tarrant County, Texas;
with each aforementioned parcel being necessary for the construction, operation, and maintenance of
water lines from the district Pump Station to the Elevated Water Tank located on T.W. King Road.
My motion includes approval of the proposed Resolution 2020-0120A, and the first record vote on this
matter applies to all units of property to be condemned.
Motion carried unanimously
9. Consider and take appropriate action to approve matters related to May 2, 2020 General Election:
a. Adopt Order No. 2020-0120A calling the May 2, 2020 General Election
b. Approve Notice of Appointment of Agent
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c. Authorize General Manager to sign and execute all necessary documents relating to the election
d. Adopt Resolution No. 2020-0120B adopting the new Hart Verity Voting System for District Elections
conducted in Tarrant County, Texas
e. Authorize other necessary actions as may be necessary or convenient for conducting the May 2, 2020
General Election
Motion made by Director Rose and seconded by Director Castonguay to Adopt Order No. 2020-0120A
calling the May 2, 2020 General Election; Approve Notice of Appointment of Agent; Authorize General
Manager to sign and execute all necessary documents relating to the election; Adopt Resolution No. 2020-
0120B adopting the new Hart Verity Voting System for District Elections conducted in Tarrant County,
Texas; and Authorize other necessary actions as may be necessary or convenient for conducting the May
2, 2020 General Election
Motion carried unanimously
10. Discussion and possible action regarding the assignment of undesignated reserve funds.
Steven Krolczyk, Finance Manager reviewed current reserve funds. The Finance Manager will bring back
updated information on reserve allocations in April for Board action.
11. Consider and take appropriate action regarding the December 2019 Combined Financials and Variance
Report.
a. Combined Financials
b. Combined Variance
Motion made by Director Flynn and seconded by Director Chapman to approve the December 2019
Combined Financials and Combined Variance Reports.
Motion carried unanimously
12. Discussion and possible action regarding approval of Third Amendment to Independent Contractor
Agreement with John Carman for General Manager services relating to compensation. (Chapman)
The Board would like to have Carman turn over the day to day obligations of the District to staff and for
him to take on a limited scope of duties. (Litigation, Completion of the wastewater treatment plant,
Computerized Maintenance Management Software "CMMS", and GIS)
Carman stated that Mike McMahon, Operations Manager is the Acting General Manager in his absence.
Attorney Corbett will write up a new employment agreement for Carman as a separate agreement for
the next meeting.
Motion made by Director Chapman and seconded by Director Flynn to approval of Third Amendment to
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Independent Contractor Agreement with John Carman for General Manager services relating to
compensation.
Motion carried unanimously
13. Discussion and possible action regarding search for General Manager candidates. (Castonguay/Flynn)
a. Receive report from General Manager Hiring Committee.
b. Review and approval of candidate search materials to be utilized by executive search firm.
c. Other action related thereto.
Director Flynn asked the Board to review the documents that were prepared by SGR and send their edits
to the District Secretary by end of day on Tuesday, January 21, 2020. The final edits will then be
documented and sent to SGR for publication.
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
• High Service Pump
c. System Repairs & Maintenance
d. Water System Operations
e. Wastewater System Operations
f. Finance Update
• Utility Billing Report
• Permits Collected
• Cash Report
Finance Software Update
g.
General Manager John Carman presented his monthly reports to the Board and answered questions
related thereto.
The Board convened into Executive Session at 9:04 p.m.
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).
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c. Potential Condemnation 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
d. Discussion and possible action regarding sewer line break at 55 Sonora Drive and request for
District payment for related repairs and damages**
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, 1501 Junction Way and
other real property owned by the District.
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
17. Pursuant to Section 551.074 of the Texas Government Code (Texas Open Meetings Act), the Board of
Directors may deliberate the employment of a new General Manager.
The Board reconvened into Regular Session at 10:00 P.M.
REGULAR SESSION
18. Consider and take appropriate action on matters deliberated in Executive Session:
No final actions, deliberations, decisions or votes were made in Executive Session
19. Items for future agendas:
Presentation regarding Hard Water & Sedimentation in District water and does the MUD have a plan
regarding addressing it and solutions for it. (Rose)
20. Set future Meeting dates - Regular Board Meeting on February 17, 2020 at 6:30 p.m.
ADJOURN
Presient•%Ji on called the meeting adjourned at 10:04 p.m.
z
Gregory Wilson, Presigent
- -'.—
Steve Flynn, Secretary/Treasurer
_ J i a_
Laurie Slaght, District Sec
tary
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