Minutes TC 10/15/2007MINUTES OF REGULAR TOWN COUNCIL MEETING FOR THE
TOWN OF TROPHY CLUB
LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS
Monday, October 15, 2007
7:00 P.M.
STATE OF TEXAS
COUNTY OF DENTON
The Town Council of the Town of Trophy Club, Texas, met in a Regular Session on Monday, October 15, 2007.
The meeting was held within the boundaries of the Town and was open to the public.
TOWN COUNCIL MEMBERS PRESENT:
Nick Sanders
Mayor
Pam Cates
Council Member
Jim Moss
Council Member
Philip Sterling
Council Member
Kathleen Wilson
Council Member
TOWN COUNCIL MEMBERS ABSENT:
Susan Edstrom Mayor Pro Tem
STAFF AND GUEST(S) PRESENT:
Brandon Emmons
Town Manager
Sakura Moten-Dedrick
Finance Director
Lisa Ramsey
Town Secretary
Patricia Adams
Town Attorney
Scott Kniffen
Police Chief
Danny Thomas
Fire Chief
Carolyn Huggins
Planning Coordinator
A.1 Mayor Sanders called the Regular Session to order at 7:01 p.m. noting a quorum was present.
A.2 Discuss and take appropriate action relative to the ratification of the Engagement Letter with Thompson
and Knight for the review of Town Management and work environment as directed by the Council with
time not to exceed ten hours.
Motion made by Cates; seconded by Wilson to ratify the Engagement Letter.
Motion passed unanimously without any discussion.
A. Discuss and take appropriate action to amend the Engagement Letter with Thompson and Knight
for the review of Town Management and work environment as directed by Council to extend the
review time from ten to fifteen hours to allow completion of the review.
Mayor Sanders explained how the ten hours were used and allotted for interviews, explaining that additional
interviews were requested therefore the time was extended to fifteen hours.
Motion made by Cates; seconded by Wilson approving the extension of hours.
Motion passed unanimously without any discussion.
Mayor Sanders read a letter for the record submitted by Dave Dickson - 311 Skyline Drive, Trophy Club, TX —
Requesting the Town Council move on to important issues of the Town.
Larry Crosser - 17 Overhill Drive, Trophy Club, TX — Expressed concern over the Town Attorney's involvement in
the investigation.
Mayor Sanders said all employees who have requested to be interviewed have been, with Town Manager
Emmons left to be interviewed. Sanders said Attorney Frank Waite will not present his findings in person but will
submit a report at the November 5, 2007 meeting and there is no intent to allow citizens to ask Mr. Waite
questions.
Mayor Sanders stated, "As far as the conflict of interest issue, Patricia Adams' law license restricts her from
putting herself in a situation where there is a true conflict interest and I realize that there is some perception of
that out there and there was some perception of that by staff. And so, Patricia just soon not have been in that role
but Council gave her that job to do and she pretty well had to execute the job. So I realize you see that perceived
conflict of interest, in one sense you can say perception becomes reality, everyone's perception becomes maybe
their own reality. I've talked with Patricia Adams about the potential conflict, she is well aware of the perception;
she assures me that her law license would be in jeopardy if she did that kind of thing and she is not going to put
her license in jeopardy and so, I want you to understand that she is not trying to do that. So those were some of
the questions that I wrote down that I have tried to at least answer. At this time I will go to Council to see if they
would like to make any statement or debate the issue."
Council member Moss questioned the $5,000.00. Mayor Sanders answered that the amount budgeted in legal for
outside services, for this fiscal year is $15,000.00. It is not uncommon for the Town to use outside services for
matters that we maybe do not have the expertise in or the time to deal with and where the 15 hours will come
from.
Council member Sterling asked how many hours have been expended to date. Mayor Sanders said Waite felt he
could finish his interviews on Friday with Mayor Pro Tem Edstrom and one staff member and finish his report in
the 15 hours and has no authorization to go over the 15 hours.
Mayor Sanders said this was a very difficult decision for him, he recognized a lot of citizens, not only at the last
meeting but who have emailed or called him since, did not want Council to spend the money but he felt like the
Town was in a situation where there was staff that wanted to be interviewed, but were not going to be interviewed
unless the amount was changed. Thirty minutes is a very small period of time for an interview and so right off the
bat we were placing limits on staff. When he made the decision, he recognized that Council wanted to finish the
issue, weighed the resident's concern about spending the money and the possible morale issues if the
investigation did not occur. Monday was a very stressful time as some staff members were upset that they were
not scheduled to be interviewed.
Council member Sterling said this is exactly what he predicted would happen and the Council has put their back
against the wall since there have been no allegations of wrong doing. Sterling is in favor of extending the hours
and feels that now the Council should complete the job.
Motion passed unanimously without further discussion
TOWN COUNCIL CONVENED INTO EXECUTIVE SESSION
EXECUTIVE SESSION
Council member Cates requested this be tabled until Mayor Pro Tem Edstrom is present
seconded by Wilson.
Mayor Sanders acknowledged the complaint submitted by Town Secretary, Lisa Ramsey against Town Attorney
Adams. Sanders said based on the sensitive nature of the issues in the complaint, only a section of the complaint
will be provided to the Council. Sanders introduced Tom Brandon from Whitaker, Chalk, Swindle & Sawyer, LLP
whom he asked to represent the Town during the executive session and stated he was involved in the review of
the personnel policies.
Council member Cates did not feel this item was posted legally to discuss the complaint and does not want to
violate the law.
Council member Wilson questioned the appropriateness and said she contacted Town Attorney Adams to
question the executive session and was informed that it was to discuss the contract.
Motion passed unanimously without further discussion.
A.3 Council to convene into executive session for Consultation with the Town Attorney on a matter in which
the duty of the attorney to the governmental body under the Texas disciplinary rules of professional
conduct of the State Bar of Texas clearly conflicts with the Texas Open Meetings Act (Govt. Code
§551.071 [1] & [2]), to and pursuant to Government Code §551.074(a) of the Texas Open Meetings Act,
to discuss or deliberate the appointment, employment, evaluation, reassignment, duties, discipline or
dismissal of a public officer or employee:
1. The employment contract between the Town and Town Secretary/HR Manager Lisa Ramsey, duties,
performance, evaluation, and terms of engagement.
TOWN COUNCIL RECONVENED INTO REGULAR SESSION
*REGULAR SESSION
Council did not convene into executive session.
A.4 Discuss and take appropriate action relative to Executive Session Item Number A.3.
No action taken.
B.1 Mayor Sanders gave the Invocation.
B.2 Town Manager Emmons led the Pledges.
B.3 Citizen presentations:
Bob Redder, 1 Lee Court — Objected to the Council's lack of action to evaluate Town Manager's Emmons on
October 1, 2007.
Barbie Kadow, 322 Village Trail — Feels the timing of Mr. Palmer's presentation is inappropriate and said Mayor
Sanders should have rescued himself from the last meeting discussing his move.
Roger Williams, 215 Phoenix Drive — Feels this Council has damaged the Town's reputation in the last two
months. Williams feels the following needs to occur in order to start the healing process; the Council should ask
the Town Attorney to resign due to conflict of interest, Neil Twomey should resign from the MUD Board and
Pauline Twomey from the Parks & Recreation Board.
B.4 Police Chief Scott Kniffen provided an update on impounding cars and referred to the information
provided to Council on April 16, 2007.
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.
Council member Cates asked for Items C.2 and C.3 be removed from the Consent Agenda.
Motion made by Moss, seconded by Sterling to approve the Consent Agenda, Item C.I.
Motion passed unanimously
CA Consent Agenda: Discuss and take appropriate action approving the ratification of the NISD Subdivider's
Agreement.
C.2 Consent Agenda: Discuss and take appropriate action to approve Minutes dated, August 20, 2007.
Council member Cates asked that the following be inserted at the last of the forth paragraph under A.2, "PID
would reimburse the costs."
Motion made by Cates to refer to the next meeting for approval with corrections; seconded by Wilson.
Motion to refer passed unanimously without discussion.
C.3 Consent Agenda: Discuss and take appropriate action to approve financials and variance report dated
August 2007.
Motion made by Cates, seconded by Moss to approve.
Motion passed unanimously without any discussion.
End of Consent Agenda
TOWN COUNCIL RECONVENED INTO REGULAR SESSION
"REGULAR SESSION
D.1 Discuss and take appropriate regarding an amendment to the Subdivider's Agreement for the Highlands -
Turnberry, Neighborhood 3 and 4 as requested by Hillwood Development.
Town Manager Emmons introduced Jay Volt from Hillwood Development and explained the request is an
amendment to allow an arrangement for the issuance of building permits for Phase 1 B under terms similar to the
arrangement for the issuance of building permits for Phase 1A. The Agreement has been amended to allow
building permits to be issued for 20% of the 178 homes proposed to be constructed in Phase 1(B) subsequent to
the completion of Street Improvements, Drainage and Storm Sewer Improvements, Sewer, Water Distribution
System, and Retaining Walls. This would allow for the issuance of approximately 36 building permits prior to the
completion of all required infrastructure and is the same as that previously approved by the Council for Phase 1A.
Just like Phase 1A, certificates of occupancy will not be issued for Phase 1 B until all items have been completed
and finally approved by the Town Council.
Motion made by Cates, seconded by Moss to approve.
Council member Wilson questioned if either Town Attorney Adams or Town Engineer Tom Rutledge had any
opposition. Town Manager Emmons said he was not aware of any objections. Town Attorney Adams was not
aware of any legal issues. Council member Cates expressed concern for houses going up prior to any paved
roads. Mr. Volt assured only landscape and sidewalks would be incomplete and the developer agreed to the
20%.
Motion passed unanimously without further discussion.
D.2 Discuss and take appropriate action to appoint a chairman and vice-chairman of the Planning and Zoning
Commission.
Motion made by Moss, seconded by Wilson to appoint Gene Hill as Chair and James Stephens as Vice -Chair
Motion passed unanimously without any discussion
D.3 Discuss and provide input relative to an amendment to Chapter 5, of the Code of Ordinances of the
Town, entitled "General Land Use", Article IV, entitled "Sign Regulations", in response to complaints
received on the signs at the Value Place hotel.
Town Manager Emmons said two separate issues were addressed by the Planning and Zoning Commission and
deferred to Chairman Gene Hill.
Chairman Hill said the recommendations for Value Place Hotel to the Town Council on October 2, 2006 included
sign criteria authorizing four signs. (Exhibits 5.6, page 77 of the packet.) There were to be a ground or
monument sign, wall signs on the front and back of the building and a Programmable Electronic Display on the
south end of the building. On February 26, 2007, the developer's requested revision to the signage on the back,
or East Side, of the building and was administratively approved, allowing installation of a second Programmable
Electronic Display that is visible to westbound SH 114 traffic. This signage, as installed, is non-compliant with the
Town's Sign Regulations, Section 4.06, Commercial and Institutional Signs. Further, under Section 4.10
Meritorious Exceptions and Appeals, a significant exception to the Sign Ordinance, such as a second
Programmable Electronic Display on a premise, would require submittal of a request for and exception to the
Planning and Zoning Commission, a favorable recommendation from the Planning and Zoning Commission to the
Town Council, and final approval thereof. The Planning and Zoning Commission's recommendation is for
direction to Value Place Hotel to discontinue use of their non-compliant electronic signage pending final action by
the Council.
Council member Wilson asked who administratively approved the requested revision. Town Manager Emmons
responded the previous Planning and Zoning Coordinator, Kerin Fleck, approved the revision with the notation of
additional review by Brandon Emmons. Emmons assured the next time a revision is requested it will be reviewed
closer.
Council member Moss directed Town Manager Emmons to pursue Chairman Hill's recommendation.
Dave Glaser, 15 Overhill Drive — Suggested the Council establish an Appearance Commission, to work hand in
hand with the Planning and Zoning Commission to review signs, lots and colors.
No action taken, posted for input only.
D.4 Presentation by Davis Palmer regarding Council working relations and working better together and
discussion of same.
Mayor Sanders introduced Davis Palmer and explained his suggestions are not intended to be critical, only
helpful.
Mr. Palmer said the structure of the NISD Board of Trustees and the Town Charter is similar. One observation
Palmer made was the Executive Session posted on the October 1s' Agenda to discuss the employment contract
between the Town and Town Manager Brandon Emmons, duties, performance, evaluation, and terms of
engagement was opted for Open Session. Palmer said the purpose of an executive session is not to hide from
the public but rather protect the rights of the people working for you. It is the Board of Trustees responsibility to
hire the right CEO, allow that person to do their job, along with good polices and a chain of command to use in an
effective manner. Palmer hopes that training opportunities and team building exercises result from this issue and
firmly believes in the appropriateness of funneling employees back through the proper chain of command.
Palmer feels the Town has a great opportunity to take advantage of the tools within the Charter, Policies and
Procedures to ensure protection of the employees and residents.
Council member Cates said Mr. Palmer has great ideas and would like to see the Town staff implement his
suggestions.
No action taken
D.5 Discuss and take appropriate action regarding an Ordinance denying the rate increase proposed by the
ATMOS ENERGY Corporation, Mid -Tex Division; Authorizing Participation in a Coalition of Cities known
as ATMOS Texas Municipalities ("ATM"); Authorizing the hiring of Lawyers and Rate Experts; Requiring
the Reimbursement of Municipal Rate Case Expenses: Finding that the meeting complied with the Open
Meetings Act; Making other Findings and Provisions Related to the Subject; and Declaring an Effective
Date.
Town Manager Emmons said Atmos Energy filed a rate filing package on September 20, 2007, to increase rates
by approximately $52 million. According to Atmos, the average residential customer will see an increase of $1.57
per month while the average small commercial customer will see an increase of $9.21 per month. Atmos has
asked for a profit guarantee mechanism to be implemented which could push rates even higher for those
customers. The Town has 35 days to act. The filing is a little suspect as we just finished one increase and saw a
90% reduction by denying. Staff recommended approval of the Resolution denying the rate increase.
Motion made by Cates, seconded by Moss to deny.
Motion passed unanimously without further discussion.
D.6 Discuss and take appropriate action regarding an Ordinance amending the Town's FY 2006-07 Budget,
Town Manager Emmons explained the purpose of amending the budget is to establish accurate expenses and
revenues throughout the year. The auditors look at the year end books and evaluate the overages. The practice
should be not to budget an amount unless absolutely necessary and amend when necessary. Finance Director,
Sakura Dedrick explained the summary page, projected budget and proposed amendments.
Motion made by Moss, seconded by Cates to approve.
Motion passed unanimously without further discussion.
Mayor Sanders noted the Sports Association was not present due to another event and asked Council to consider
Item D.10.
D.7 Discuss and take appropriate action relative to future use, funding options, operation of, and repairs to
Beck Park.
Town Manager Emmons spoke with Scott Beck who will extend the additional lease. The changes have been
sent and staff hopes to have a signed copy by the end of next week.
Motion made by Cates, seconded by Wilson to approve, using the funds from FEMA to rebuild Beck Park, Field 4.
Town Manager Emmons clarified Town Engineer Tom Rutledge is working with Parks and Recreation Director,
Adam Adams on the fencing requirements and asked for Council's direction either to proceed immediately or wait
until the FEMA funding comes in. Emmons informed the Counci that the funds are tight right now, should they
take action to proceed immediately and said EDC 4A is holding off making a commitment to contribute until the
Council makes decision.
Council member Sterling thinks we need to proceed immediately and go to EDC 4A for help.
Motion amended by Cates, seconded by Sterling approving interim funding from EDC 4A with reimbursement to
the extent the Town receives FEMA funding.
Amended motion passed unanimously.
Mayor Sanders explained this motion, as passed would not hold if EDC 4A refused to help
Council member Cates questioned a short term loan. Town Manager Emmons said the Town could secure a
short term loan but he could not guarantee a discounted rate.
Main motion to approve funds from FEMA to proceed with the rebuilding of Beck Park, Field 4, with consideration
of interim funding from EDC 4A, with reimbursement to the extent the Town receives FEMA funding.
Main motion passed unanimously without further discussion.
Mayor Sanders called a five-minute break at 9:55 P.M.
D.8 Discuss and take appropriate action relative to the Interlocal Agreement between the Town and the
Trophy Club MUDS to provide water supply and wastewater treatment and equity services to the Town
Town Manager Emmons introduced the item explaining the PID will allocate water for potable and for emergency
services; the water tank will not be isolated. Emmons feels the agreement should be left as is rather than adding
language or coming up with a third agreement. Town Attorney Patricia Adams spoke to the additional changes
proposed by the MUDs which are not reflected in the Council packet.
Motion made by Cates, seconded by Wilson to approve.
Motion passed unanimously without further discussion.
D.9 Discuss and take appropriate action relative to the Interlocal Agreement between the Town and the
Trophy Club MUDS to provide water supply and wastewater treatment and operational services to the
Town.
Motion made by Cates, seconded by Sterling to approve.
Town Attorney Adams reported the changes to section 3.1 from the MUDS.
Motion passed unanimously without further discussion.
DA Discuss and provide input regarding the following documents and matters related to the Trophy Club
Public Improvement District No. 1 (The Highlands at Trophy Club) for infrastructure and related
improvements:
A. Service and Assessment Plan for authorized public improvements
B. Discussion of Parkland Improvements for the PID and related Town parkland improvements
C. Acquisition, Funding, and Construction Agreement
D. Indenture of Trust for the proposed bond issuance to finance public improvements
E. Preliminary Limited Offering Memorandum
Town Manager Emmons introduced Robert Miklos from Hughes and Luce and Kurt Wilson from Centurion.
Emmons explained that some of the money has been moved out into reimbursements and the total cost is still
estimated at $20,449,965 with the assessment roll attached to it. Emmons said the letter by Dan Almon regarding
the absorption sales may be useful for these funds to be paid back and to have an absorption study done. Ben
Brooks from Vinson and Elkins does not know how long it takes to complete an absorption study and the issuance
of the bonds is up to the Council.
Council member Cates clarified some of the changes were recommended by the Attorney General. Lila Marsh,
Bond Counsel from Vinson and Elkins explained the changes as per the Attorney General's Office.
Motion made by Council member Wilson to require a traffic absorption study.
Town Attorney Adams advised this item is posted for input only.
Lila Marsh sought Council's direction on the bonds securities. Kirk Wilson asked Council to expedite the approval
of the MUD agreements.
No action taken.
DA 1 Discuss and take appropriate action relative to a Resolution accepting a Service and Assessment Plan for
the Town of Trophy Club Public Improvement District No. 1; setting a date for a public hearing;
authorizing the publication of notice; and enacting other provisions relating thereto.
Town Manager Emmons said if approved, Council would need to schedule a special session on October 29, 2007
for the Public Hearing.
Motion made by Moss, seconded by Edstrom to approve the Resolution setting the Public Hearing on November
5, 2007.
Motion passed unanimously without further discussion.
D.12 Items for Future Agenda.
Council member Cates requested an item on the November 19'h,2007 Agenda discussing the procurement card
invoices for last year and Council direction for the new fiscal year and an update on the police equipment and
cars on the November 51h, 2007 Agenda.
D.13 Reports. There will be no action taken regarding any individual project posted under this item and
discussion will be limited. If extensive discussion is required, the item may be placed on a future agenda.
(a) Town Manager Emmons gave his report.
(b) Report from EDC 4B Liaison, Council member Sterling gave his report.
E.1 Adjourn.
Motion made by Wilson, seconded by Moss to adjourn
Meeting adjourned at 10:30 p.m.
V isa Ramsey, Town Secretary Susan Edstrom, Mayor Pro Tem
Town of Trophy Club, Texas Town of Trophy Club, Texas