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Minutes TC 03/19/2007MINUTES OF REGULAR TOWN COUNCIL MEETING FOR THE TOWN OF TROPHY CLUB LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS Monday, March 19,2007 6:30 P.M. STATE OF TEXAS 5 COUNTY OF DENTON 5 The Town Council of the Town of Trophy Club, Texas, met in a Regular Session on Monday, March 19, 2007. The meeting was held within the boundaries of the Town and was open to the public. TOWN COUNCIL MEMBERS PRESENT: Nick Sanders Roger Williams Susan Edstrom Philip Sterling Gregory Lamont TOWN COUNCIL MEMBERS ABSENT: Pam Cates STAFF AND GUEST(S) PRESENT: Brandon Emmons Lisa Ramsey Patricia Adams Beth Ann Gregory Sakura Moten-Dedrick Jim Buxton Adam Adams Scott Kniffen Mayor Mayor Pro Tem Council Member Council Member Council Member Council Member Town Manager Town Secretary Town Attorney Community Development Director Finance Director Financial Analyst Parks and Recreation Director Police Chief A.l Mayor Sanders called the Regular Session to order at 6:31 p.m. noting a quorum was present. A.2 Work Session: Discuss and review items posted to the March 19, 2007 Agenda, including but limited to Items C.4 and C.6. Town Manager Emmons addressed Item C.6 and pointed out the overages mentioned in the Auditor's letter had Council's prior approval. For the line items needing to be amended, Emmons referenced page 66 of the packet, explaining the Ordinance would allow for the expenditures in addition to off setting the revenue accounts. Council member Lamont confirmed the $474,000 expense was for Harmony Park not Trophy Club Park as indicated. Mayor Pro Tem Williams asked if the PID could reimburse the engineering expense. Town Manager Emmons said part of the expense was a result from DR Horton and the Town is unable to hold Horton accountable. Town Attorney Patricia Adams confirmed part of this overage was related to the Horton applicatio,~ and is not reimbursable under the PID; the remaining $20,000 was the annual engineering costs. Mayor Pro Tem Williams asked at what point the auditors take note of overruns on any given line item. Finance Director, Sakura Moten-Dedrick responded the auditors review the overruns by department and how often it occurs; the Town is held to the total fund amount. Mayor Sanders questioned if the expense of the approved water study was included under professional outside service and asked if the Town needed to conduct another study. Finance Director, Sakura Moten-Dedrick said staff was asking to increase the expense with no revenues associated. Town Manager Emmons said the MUDs have asked for a water model of the whole town, which would not, be a cost incurred to the Town. Council member Lamont confirmed that affluent water would not be used at Harmony Park. Finance Director, Sakura Moten Dedrick explained in order to present a balanced budget, provide cost allocation and separate the Administration department, staff would be frequently communicating with Council to help them better understand the change in the budget process. Special packages would be presented to Council to determine the special needs that need to be added. Dedrick listed the major changes; a grant fund that would be amended mid-year, a hotellmotel fund in 2007-08, the breakdown of Administration into three separate departments; Manager's Office, Human Resources and Finance; the proposition of a separate Recreation budget to better track costs and allocations and Streets moving out from under Community Development. A.3 Mayor Sanders gave the Invocation. A.4 Council member Sterling led the Pledges. A.5 Citizen presentations. No citizens addressed the Council. A.6 Recognition of John DeRocha, winner of the design competition for the new patrol car. Mayor Sanders introduced John DeRocha and congratulated him for his winning design of the new police car. Sanders said there were approximately 20 entries submitted and commended the Police Department for putting together the competition. All matters listed as Consent Agenda are considered to be routine by the Town Council and will be enacted by one motion. There will not be a separate discussion of these items. If discussion is desired, that item will be removed from the consent agenda and will be considered separately. Motion made by Edstrom, seconded by Lamont to approve the Consent Agenda, Item B.1. Motion passed unanimously without further discussion B.l Consent Agenda: Discuss and take appropriate action to approve Minutes dated, January 29, 2007. (Workshop Session) TOWN COUNCIL CONVENED INTO REGULAR SESSION *REGULAR SESSION C.l Discuss and take appropriate action regarding The Highlands at Trophy Club Development and Public Improvement District Agreement. Town Manager Emmons explained the version presented reflected the changes discussed at the last Council meeting. On page 6, definitions for utility fees were included; this is the amount the Town will have to remit to the MUDs to connect to the current infrastructure. Page 7, section 4.2, acknowledges that the Town will provide water from an outside source; section 4.3 reflects the change in the amount of the water tank construction, section 4.4 shows the adjustments for the connector road and Article 7 addresses issues regarding security. Council member Lamont asked why the water tower and the connector road were not specifically addressed under shared public improvements. Town Attorney Patricia Adams said the only place that specifically addressed these two items was the $250,000 letter of credit for the water tower and for the connector road and sought Council's directions for security on cost overruns and PID improvements. Town Manager Emmons clarified that section 7.2 delineates the maximum reimbursement of 50% up front and that the developers would have to hit a certain benchmark before the remaining funds were reimbursed. Emmons said the only outstanding issue is the connector road and questioned if Council feels comfortable enough withholding the public funds or if they wanted to pursue additional security for cost overruns. Mayor Sanders said in the initial discussions with Centurion he had expressed the need for the connector road. Sanders questioned if the Town could legally stop the issuance of permits should the road not be completed by the time the developer had 300-400 homes on the ground. Town Attorney, Patricia Adams said this would be based on the traffic impact analysis. Community Development Director, Beth Ann Gregory said a plat would not be approved should it cause them to exceed the current level of service. The final plat approval is based on the current infra structure. Council member Lamont requested shared public improvements be clarified as the water tower and connector road and would like a breakout of the 4.5 million on the capitalization interest and reserves. Mayor Sanders confirmed the current capacity of the water storage system is 400,000 gallons which covers 65% of the Town. Sanders said the addition of the Highlands would add 33 - 35% number of lots to the Town and questioned why the Town is considering only building a tank with the capacity to hold 500,000 gallons. Town Manager Emmons responded as part of the MUD negotiations, in lieu of cash, they agreed that an increase in the water tower itself would be compensation for their system. Sanders confirmed that Council would like a further definition of shared costs and how it relates to cost overruns. Town Manager Emmons addressed the red lined Exhibit B; $21,675,000.00 is the correct amount. Contingency has been reduced to 800,000 and a 200,000 line item has been added for the Wireless Internet Infrastructure expenses. Emmons said the Town needs to continue to work on securing a water source, continue review of the agreement and the developers need to file the PID Petition. Once filed there is a 16-day waiting period; therefore the PID could not be approved until the April 16'~ meeting. Emmons is to revise the list of outstanding items and forward to the Council. Mayor Pro Tem Williams would like a clean PID document presented by the next meeting. Town Manager Emmons verified the Council's satisfaction with the letter of credit as security in relation to the water tower. Town Manager Emmons asked for Council's direction in regard to the securities, specifically for the shared public improvements and questioned if Council was comfortable with the holdback arrangement for the reimbursement of public lands. Mayor Sanders referred to the letter of opinions from McDonald Sequest stating some of the points seemed to differ from Council's interpretations; the Town's agreement to sell bonds prior to any performance by the developer, the payment of the developer for public infrastructure prior to any developer performance and the lack of security for any cost overruns. Sanders confirmed that the Town would not pay the developer up front, for any public infrastructure other than the right of way. Town Attorney, Patricia Adams answered that progress payments would be made from the PID Bonds as the project proceeds. Town Manager Emmons clarified progress payments would be made to the contracted party performing the work related to the public improvements, and the developer would only be reimbursed for parkland and right of way acquisition costs without going through the contracted procedures for the Town. Town Attorney Adams added that the connector road would not be paid for by the PID funds; therefore the 50% holdback would not go to cost overruns associated with the road. Sanders said the fact that two other municipalities are involved with the connector road makes it hard for anyone to guarantee. Mayor Sanders asked if the Town could issue a moratorium on permit issuance. Town Attorney, Patricia Adams said that a moratorium has to be reasonable and could not be put in place for poor planning. The direction Council takes relies heavily on the Town's engineer's input. Mayor Sanders confirmed Council is comfortable approving the PID without seeing a service and assessment plan and with the security of the PID bonds and contingency. Mayor Sanders noticed Hillwood owns part of Trophy 831 LP and asked if they should sign the agreement as well. Patricia Adams understood that Hillwood was to sign and said she would get clarification by the next meeting. Mayor Sanders asked for Dan Almon's opinion of the ascending assessment. Mr. Almon said according to Fran Busby, Bank of America Underwriter, they have been successful with ascending assessments. Sanders questioned the bullet, Attorneys to provide a simplified, bullet point, outline of the foreclosure process pledged as security for PID Bonds. Almon commented worse case scenario would be if the Town had to exercise their legal right foreclosing on a property and suggested an outline, if the process included was too vague. Almon commented that if there was a foreclosure all parties would be better served if the land has some existing equity, so that the value is exultant to the outstanding PID bonds as in bullet 4, Developer to provide a written explanation of the land acquisition cost and financing terms as it relates to developer equity and the ratio of PID Debt to unencumbered value. Sanders requested Mr. Almon submit in writing and forward to the Council his comments about the ascending assessments (discussion with BOA) and his notes and concerns of his review of the due diligence report; specifically in regard to the land acquisition. Mayor Sanders confirmed the plan for a clean copy of the agreement at the April 2nd meeting and for the agreement to be provided to the Council days in advance for review. Town Manager Emmons said the agreement would be presented at the April 16'~ meeting in order to correspond with the petition. Town Attorney, Patricia Adams committed to have a response to the developer on Wednesday, March 22nd. No action was taken C.2 Discuss and take appropriate action to approve Minutes dated, February 5, 2007. Motion made by Sterling, seconded by Lamont to approve. Motion passed unanimously 3:0:l, with Edstrom abstaining. C.3 Discuss and take appropriate action on the expenditure of EDC 4B funds and contract with the Buxton Group for psychographic profiling for the Town of Trophy Club. Town Manager Emmons said the funds would be used for a psychographic study and used as an Economic tool. The $60,000 fee is payable over the next two years, half upon execution of the agreement and the other in next years budget. Motion made by Lamont, seconded by Sterling to approve with the funds to be paid over the next two- year budget cycles. Mayor Pro Tem Williams confirmed the proposal is for four distinct retail locations. Motion passed unanimously without further discussion C.4 Discuss and receive input regarding amendments to EDC 4B's FY 2006-07 Budget. Mayor Sanders suggested that the Buxton Group be listed as a separate line item and is in favor of the changes suggested to the EDC 4B budget. Although Sanders understands the concern of the administrative reimbursement, he supports the reimbursement and wishes there was a way for EDC 4A to fund totally. Town Manager Emmons clarified that EDC 4B currently budgets for administrative reimbursement and the amendment is for an increase that will better reflect the time being spent. Council member Edstrom is not in favor of the increase and feels it would be reallocating the expense by reimbursing the operating budget, thus only offsetting a budget crisis. Mayor Pro Tem Williams agreed with Mayor Sanders especially if the time expended can be identified. No action was taken. Town Manager Emmons was directed to move forward with public hearing. C.5 Discuss and take appropriate action regarding the approval of an interlocal agreement with the NlSD for the operation of a Summer Day Camp program to be operated on the premises of Medlin Middle School. Town Manager Emmons acknowledged Joe Herrington, Vice Principal of Medlin Middle School. Emmons said Parks and Recreation Director, Adam Adams approached NlSD to establish a greater amount of recreational opportunities for the youth within the Town and the School District. Emmons said the agreement would be considered by the School District at their next two meetings. Council member Sterling questioned the revenue cost of $68,000. Town Manager Emmons responded that the cost per week, per individual is $155.00. Mr. Herrington feels this will be successful and said this is not limited to just Trophy Club kids but offered to all kids in the NISD. Motion made by Edstrom, seconded by Williams to approve. Town Attorney, Patricia Adams said the words by Resolution need removed from the last whereas clause. Both the mover and second agreed with the modification. Motion as modified passed unanimously without further discussion C.6 Discuss and take appropriate action regarding an Ordinance amending the Town's FY 2006-07 Budget. Motion made by Lamont, seconded by Williams to approve. Motion passed unanimously without further discussion. C.7 Discuss and take appropriate action to approve financials and variance report dated February 2007. Motion made by Williams, seconded by Edstrom to refer Motion passed unanimously without any discussion. C.8 Discuss and take appropriate action to approve Southwest Securities as the Town's Financial Advisor. (a) Discuss and take appropriate action to approve the authorization and sale of $3,260,000 General Obligation Bonds, Series 2007 (the "Bonds'). Motion made by Edstrom, seconded by Lamont to approve. Mayor Pro Tem Williams supports only because the Town needs the money for the roads and said that the former Mayor misled the community when bonds were approved in 2000. Williams said there are costs associated with the passing of these bonds, in the amount of 3 to 4 cent tax increase to the Interest & Sinking portion of the budget. Dan Almon reminded the Council that the developer has agreed to reimburse the Town for these bonds and suggested that a contract be drafted to this effect. Town Manager Emmons added there is no guarantee until the PID is approved. There is no incentive for the developer to sign until we get to the developer's or PID Agreement. Council directed Town Manager Emmons to contact the developer to see if they will submit in writing, their commitment once the PID is approved. Council further directed staff to get a letter from Dan Almon authorizing them to bid. Motion passed unanimously without further discussion. C.9 Discuss and take appropriate action regarding an Ordinance amending Ordinance No. 2007-03 calling a JointIGeneral Election for May 12, 2007 between the Town and NISD, to include a joint election with Denton County. Motion made by Sterling, seconded by Lamont to approve. Motion passed unanimously without further discussion. C.10 Discuss and take appropriate action relative to an Ordinance amending Chapter 8 of the Code of Ordinances of the Town, entitled "Nuisances", by adding Article 6, Entitled "Standing or Stagnant Water." Motion made by Edstrom, seconded by Lamont to approve. Town Manager Emmons said the Ordinance presented was based on Council's direction at the last meeting. Council member Lamont is concerned about charging people for water in their birdbaths. Community Development Director, Beth Ann Gregory said at Council's request, definitions for body of water had been added to the Ordinance. Mayor Pro Tem Williams and Council member Lamont feel the Ordinance needs to be more specific to what staff is trying to address; swimming pools. Town Manager Emmons commented under our current Nuisance Abatement Ordinance staff does not have the authority to go into a vacant back yard of a home to remedy a-situation. In order to address all issues, staff feels some of the smaller items presented in the Ordinance, need to be addressed. Emmons said if Council prefers, staff would revise in the direction of pools. Council member Edstrom requested Council look at what staff is saying, in that swimming pools are not the only problems. Edstrom understands Council's concern of people going into resident's backyards to look at birdbaths, but clearly there are issues with vacated property and absentee landlords that staff cannot remedy without this Ordinance. Council member Sterling is in favor of an all-encompassing Ordinance that addresses all stagnant water Mayor Sanders agreed with Council member Lamont and asked that manmade bodies of water be clarified or removed totally. Motion to refer until the April 2nd meeting with clarification of Section 2. Definitions made by Sterling; seconded by Williams. Council member Edstrom would like to be sure that the Council is giving code enforcement what they need in order to enforce. Mayor Pro Tem Williams would like the number of complaints and the details. Motion to refer passed unanimously without further discussion. C.11 Town Town Town Manager Emmons to designate an Acting Town Manager. Manager Emmons designated Community Development Director, Beth Ann Gregory as Acting Manager for a period of three months. C.12 Town Manager Emmons to update the Council on the members who have returned the acknowledgment forms for receipt of the Appointed and Elected Official Handbook and SB286 Open Government Training. Town Council to provide direction to staff for the members who have not returned the acknowledgement forms. Mayor Sanders commented that Steven Gregory returned his form yesterday. Town Manager Emmons added that Dennis Sheridan had completed his as well. Town Attorney, Patricia Adams confirmed that there is no punishment or corrective action in state code for Board members who have not completed the training. Mayor Sanders suggested staff send a letter to the people who have not returned their acknowledgement forms reminding them to do so. C.13 Items for Future Agenda. Council member Sterling asked that the Ordinance amending Chapter 8 of the Code of Ordinances of the Town, entitled "Nuisances", Article Ill, entitled "Weeds", amending Section 3.01, entitled "Unlawful to Permit Weeds, Grass or any other Plant to Grow Higher than Twelve Inches" be removed. Council member Edstrom requested an item be added for staff to research grant possibilities regarding phase two street calming (sidewalks.) C.14 Reports. (a) EDC 4B Liaison, Council member Sterling gave his report to Council. (b) Town Manager Emmons gave his report. D.l Adjourn. Motion made by Sterling, seconded by Williams to adjourn. Meeting adjourned at 9:46 p.m. Town of ~roph~ Club, Texas - Town of Trophy club, Texas