Minutes TC 11/13/2008 - Joint SessionMINUTES OF JOINT WORKSHOP BETWEEN TOWN COUNCIL AND THE TROPHY
CLUB MUNICIPAL UTILITY DISTRICT NO.1
And TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.2
dba TROPHY CLUB MASTER DISTRICT AND SPECIAL SESSION FOR THE TOWN
COUNCIL AND MASTER DISTRICT FOR THE TOWN OF TROPHY CLUB and
SPECIAL SESSION FOR THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB
THURSDAY, NOVEMBER 13, 2008 AT 7:00 P.M.
LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS
STATE OF TEXAS §
COUNTY OF DENTON §
The Town Council of the Town of Trophy Club, Texas, met in a Joint/Special Session
on Monday, Thursday, November 13, 2008. The meeting was held within the
boundaries of the Town and was open to the public.
TOWN COUNCIL MEMBERS PRESENT:
Nick Sanders Mayor
Susan Edstrom Council Member
...Iim Moss Council Member
Kathleen Wilson Council Member
Glenn Strother Council Member
TOWN COUNCIL MEMBERS ABSENT:
Philip Sterling Mayor Pro Tem
Master District Directors Present:
Connie White Chair
Carol Borges Vice Chair
James Thomas SecretarylTreasurer
James Budarf Board Member
Kevin Carr Board Member
Jim Hase Board Member
Dean Henry Board Member
Steven Kohs Board Member
Neil Twomey Board Member
Gary Cantrell Board Member
Master District Directors Absent:
Jim Budarf Board Member
STAFF AND GUEST(S) PRESENT:
Brandon Emmons Town Manager
Stephen Seidel Assistant Town Manager
November 13, 2008 Town Council Minutes
Lisa Hennek Town Secretary
Patricia Adams Town Attorney
Danny Thomas Fire Chief
Stephanie Gohlke Interim Finance Director
Mary Moore Recording Secretary
Robert Scott Utility Superintendent
Bob West Attorney
Pam Liston Attorney arrived at 7:06 p.m.
A.1 Master District Chair White called the Master District to prder at 7:00 p.m.
noting a quorum was present.
A.2 Mayor Sanders called the Town Council to order at 7:00 p.m. noting a
quorum was present.
A.3 Public Comments or Presentations
B.1 Receive a report from Lewis McLain with CityBase.Net on the Town/MUD
study and discussion of same. .
Lewis McLain began has presentation by stating the report was a difficult assignment
and he hoped his report was received in the spirit intended. Mr. McLain read his eight
page report titled "Reliance on Arithmetic to Resolve a Fractured Governance Issue."
Director Cantrell questioned Mr. McLain's statement regarding the level of
subsidization Solana contributes to MUD 1 and asked if McLain studied the fire rating
charge or Westlake water rates. Director Cantrell said that he does not believe
Westlake felt like they were subsidizing.
Mayor Sanders stated there is value in the reported information and confirmed Mr.
McLain would produce the combined spreadsheets for the remaining balance owed to
McLain. Mr. McLain explained that numbers can always be challenged and even
discredited. He stated it was virtually impossible to provide a conclusive set of
numbers that would yield answers to satisfy everybody.
Mr. McLain stated the best overall solution that would benefit the community as a
whole, would be to dissolve the MUDs and allow the Town to run the utility operations.
McLain stated that the Town would have to accept the MUD debt of the Town merged
with the MUDs.
Chair White is concerned that Mr. McLain misunderstood the $2,300 PID impact fee.
White questioned if the Town financial problems are typical of a Town with minimal
commercial and ask~d why MUD 1 would want to give up Solana. Mr. McLain
explained that he did not mention giving of Solana, but recommend providing an
alternate service that is cost neutral. Chair White stated the funds are restricted and
November 13, 2008 Town Council Minutes 2
only can pay for the Fire Department. White expressed disappointed in McLain's
report and stated that there are other alternatives rather than blowing it all up.
pirector Hase stated that the $2,300 PIDimpact fee resulted from a study conducted
by Robert McLain. Hase stated that Lewis McLain has misled the community
regarding the PID. Mr. McLain attempted to explain the term cost neutral.
Council member Edstrom confirmed that Mr. McLain's interpretation is a fractured
governance issue and the reaction of some has demonstrated the issues. Edstrom
suggested everyone focus on what can be done today that is in the best interest for the
whole community rather than getting caught up in history, and why not's. Edstrom said
that the Town/MUDs cannot pretend that Westlake has not looked at other options for
utility services. Everyone should review Mr. McLain's report, forget about the past and
move forward.
Director Carr stated that MUD 2's taxes have not fluctuated but have remained
consistent.
Director Thomas stated that he was horribly disappointed in Mr. McLain's report but
ecstatic about his suggestion to consolidate MUD 1 and MUD 2. Thomas stated there
are MUDs all over the state of Texas that work, and asked Mr. McLain at what cost or
tax increase to the citizens would McLain suggest that the Town and MUD split sheets.
Chair White suggested the group think about the information presented and then
commit to a joint session with Council to discuss. Mayor Sanders agreed.
Director Twomey asked Mayor Sander's the Council's position regarding MUD 1 and
MUD 2 merging. Mayor Sanders said that Council had not yet had the opportunity to
discuss the report and directed Town Manager Emmons to post an item to a future
agenda.
Mayor Sanders asked Director Twomey the MUD's position should the Town take over
MUD2. Vice-Chair Borges stated tllat question would be better directed to Director
Budarf as the MUD 2 Chairperson. Borges asked that the Town consider MUD 1 and
MUD 2 consolidation rather than negative action such as taking over MUD 2.
Town Manager Emmons commented that the discussion is indicative of the problem
and the reality of the governance issues considering all the individual entities.
Council member Wilson agreed with Emmons' statement and said we must all come
together with a respectful attitude and take personal accountability, being mindful for
whom we all serve.
Director Thomas personally apologized to Mr. McLain for being rude.
Item B.3 was considered prior to B.2
November 13, 2008 Town Council Minutes 3
8.2 Discuss and take appropriate action concerning the position of Finance
Director, as it relates to the MUDs.
Director Hase referenced former Finance Director, Sakura Moten-Dedrick's
recommendation that the MUDs hire one person solely dedicated and funded by the
MUDs who could help the Town as needed. Hase asked if the Agreement allowed the
MUDs to have a say in the Finance Director hiring.
Vice-Chair Borges restated Moten's suggestion and asked Town Manager Emmons if
it would be a workable solution.
Director Thomas stated that he felt Robert Scott's request to have input regarding the
shared employees was reasonable.
Director Twomey stated that Sakura Moten-Dedrick would not have recommended
what she did lightly considering how many hours she worked.
Town Manager Emmons stated the work being performed could be streamlined and
would improve efficiency if a clear chain of command was implemented. Emmons said
he was not always aware, nor could he control the assignments and tasks by assigned
to Sakura Moten-Dedrick since assignments came for several different Directors.
Chair White asked Robert Scott and Town Manager Emmons work together and come
up with a suggestion for streamlining the process. "
Town Manager Emmons reported that to date, approximately six resumes have been
received for the Finance Director's position. Emmons stated that there has never been
a desire for the District Manager to be involved in hiring a shared employee before.
Director Cantrell asked Town Manager Emmons if he had a problem with Robert's
involvement and input on the hiring process for the Finance Director. Town Manager
Emmons stated that there has never been a desire from the MUDs to be involved in
the hiring of a shared employee. Based on a conversation with Robert Scott, Town
Manager Emmons understood that Scott was not interested in being involved in the
Finance Director selection.
(Robert Scott's response was inaudible.) Pam Liston said given Robert's response,
she hate to throw herself into this and encouraged Town Manager Emmons and
Patricia Adams to review Section IX, Policies and Decisions before determining a
position whether the MUDs have input on the hiring of the new Finance Director.
Council member Strother stated that the situation is being overcomplicated; it comes
down to trust. Strother said that he is confident Town Manager Emmons will consult
Robert Scott regarding the needs of the department. The Council hired a Town
Manager to run the business and questioned whether Emmons could be the Chief
Administrator and Robert Scott the person who runs the department. Strother stated
that everyone can agree what is best for each entity but not as a whole.
November 13, 2008 Town Council Minutes 4
Director Henry stated that there are 'fiduciary responsibilities and the District Manager
needs to report to the Board.
Chair White and Mayor Sanders recommended that Town Manager Emmons and
Robert Scott work together regarding the issue of staff receiving assignments directly
for elected officials and report back at a joint workshop.
Council took a ten-minute break and reconvened in the Public Services Conference
room and 9:35 p.m.
B.3 Discuss and take appropriate action concerning the possible amendment
of 2008 Intergovernmental Contract for Employee Services.
Chair White explained the amendments to Section III (Master District Management)
and Section IX (Policies and Decisions) as recommended by Bob West. The revisions
were handed out at the meeting. White said the Master District Manager is subject to
the personnel policies of the Town but reported directly to the Master District.
Council member Edstrom questioned the amendment under Section IX; All Town
employees performing services in the operations of the Master District shall be
supervised and directed by persons approved by the Master District Board.2.
Bob West stated that the amendment is not ready for final action but it is an attempt to
get something on the table. West said the intent of the contract is to provide the
employee benefits and provides a reporting mechanism. These employees are
governed by the personnel policies.
Town Manager Emmons clarified the reporting structure for a shared employee; stating
that the practice was determined by who paid for a particular task, Town or MUD. Is
causes confusion and angst among the employees.
Town Manager Emmons quoted the following sections from the Personnel Manual:
101.01 POLICY/PURPOSE
B. With the exception of matters reserved by state law or the Home Rule Charter to the
Town Council, the general and final authority for personnel administration rests with
the Town Manager.
101.02 THE TOWN
B. The term 'Town" as used herein is a designation utilized to indicate the Town of
Trophy ClUb, Texas, acting in its capacity of Employer pursuant to an Interlocal
Cooperation Agreement between the Town of Trophy Club and the Trophy Club
Master District; hereinafter "Agreement". Pursuant to that Agreement, the Town
provides employee services to the Trophy Club Master District with the Master District
controlling operational aspects of those services and the Town's Personnel policies
controlling policies contained herein applicable to all employees.
November 13, 2008 Town Council Minutes 5
D. The Trophy Club Municipal Utility Districts Number 1 and Number 2
All employees who are employed by the Town and providing services to the Municipal
Utility Districts are required to follow the Master District's SOPs governing the
operational aspects of Master District's assets and facilities.
101.03 ADMINISTRATION
A. Town Manager. The Town Manager is designated as the chief operations officer
and the head of the administrative branch of the Town government, responsible to the
Town Council for the operations and administration of all the affairs of the Town,
including the hiring, and when necessary for the welfare of the Town, removal of any
employee, in conformity with the provisions of the Town's personnel policies, charter,
and other applicable law. References to the Town Manager in this handbook will
involve the Municipal Utility District Manager when appropriate and to the extent
provided under the Agreement and/or any amendments to the Agreement approved in
writing by all parties.
Town Manager Emmons said the issues are with the supervision of an employee not
governed by a structured organization chart. When an employee of the Town reports
outside of the organization chart the supervision is governed by a contractual
agreement. Chair White suggested the group consider the relationship of a contract
employee; the Town provides the employee benefits and the contracting company
controls and directs their work.
Director Henry said the issue did not exist ten years ago and that some of the things
discussed tonight would strangle the MUDs.
Town Manager Emmons said it is a governance issue; just because we call them an
employee of the Town does not make them so. If the Town is going to be merely an
Employer of Record the Agreement, needs to be revised as such.
Chair White stated that is comes down to whether the Town controls everything or just
the administrative aspects and personnel policies. White said that it was never the
intent of the contract to give operational control to the Town.
The group discussed that the Agreement still needed some work and that it was not
ready to be ratified. The Agreement was originally intended to better utilize employee
management.
The group agreed that the Town Manager, MUD Manager, Master District Chair and
attorneys should work out some details and report back.
Director Hase stated that Robert Scott is in full control of his work force.
Robert Scott stated that he has been here a long time and will continue as such and
will not tell any Town employee what to do.
November 13, 2008 Town Council Minutes 6
End of Joint Workshop
C.1 Town Council to Reconvened into Special Session at 9:35 p.m. in
thePublic Services Conference Room
. C.2 Discuss and take appropriate action regarding the report 'from Lewis
McLain with CityBase.Net on the Town/MUD study.
Mayor Sanders said that he does not want to return Mr. McLain's money as feels there
is value in receiving the data. Sanders said he appreciated the Council's willingness to
accept McLain's report.
Council member Strother asked Mr. McLain to rate his recommendation. Mr. McLain
explained that he had to meet with Sakura Moten-Dedrick offline as there were always
too many cooks in the kitchen. McLain said that although future budgets are
important, he would 'first review the Budgets approved for 2009; good, bad and
indifferent. Mr. McLain stated he does not have an interest in being coy or playing
mediator. He would prefer to work with Town Manager Emmons, Robert Scott and/or
the Finance Director/Analyst.
Council member Moss agreed with the Mayor's comments that Mr. McLain should be
paid. Moss stated that not everyone got the gist of the report and he does not need to
see any more numbers. Moss feels that MUD 1 and MUD 2 needs to consolidate as
evidence in their petty bickering.
Council member Wilson appreciated Mr. McLain's frankness and stated he is entitled
.to payment. Wilson stated that the Council needs to go above and beyond and get the
job done.
Mr. McLain asked that his work be conducted with the Finance Director's replacement,
stating that additional information will not tell the Council anything that they do not
already know.
Council member Edstrom stated that it was the desire to receive numbers from an
outside source. Edstrom is concerned with the age of the infrastructure in MUD1 and
commented that different people were involved during the Westlake fallout and we all
need to move past that incident.
Mayor Sanders requested the following items be added to the December 1, 2008
Agenda:
Discuss and take appropriate action regarding direction on McLain report, where to
fund additional costs from, what data we want to receive, extending scope of services
and additional action for finding funding.
November 13, 2008 Town Council Minutes 7
Discuss and take appropriate action regarding the Town's position on MUD 1 and
MUD 2 consolidation (time frame and plan) and requesting encouragement from the
MUDs. Council expressed consensus on adding these items to a future agenda.
Council member Wilson requested that we act in a sincere and respectful manner, as
our attitude are like cause and affect.
Council member Strother requested legal advice prior to taking action.
Ben Brewster, 222 Fresh Meadow Brook -Stated that he was on the DPS Board when
the contract with Westlake was breached and contrary to Director Hase's statement,
Westlake wanted control.
Peggy Sweeney, 51 Meadowbrook -Stated her embarrassment over the appearance
of three different groups all playing in their own sandboxes, and guarding them just the
same. I\IIs. Sweeney asked what could be done.
Mayor Sanders explained that legally the Town can not take over MUD 1 due to MUD
1 extending outside the Town limits to serve Solana. Sanders stated that an
agreement or compromise is not impossible. The Town Council could vote to take
over MUD2, and the Town Charter allow the residents to file a petition for a
referendum in May.
Pearl Ford, 2 Sprint Creek Court -Stated that there have been more MUDs in Trophy
Club and that they can be merged. I\IIs. Ford said that McLain's report hit the right nail
and apologized to him for the treatment he received.
Mr. McLain stated that in order to resolve the governance issues, anybody and
everybody who is a barrier needs to be removed. Mr. McLain said that he is very
impressed with Town Manger Emmons and said that in order for this to work people
are going to have to give up a lot and not look back but forward.
Margi Cantrell, 1105 Sunset Drive -Asked Mr. McLain's recommendation for the PID.
Ms. Cantrell requested the Town Council not mess with the Solana.
No action taken.
C.3 Discuss and take appropriate action concerning the Master District's
action regarding the following Items:
• Discuss and take appropriate action concerning the position of
Finance Director, as it relates to the MUDs. ,
• Discuss and take appropriate action concerning the possible
amendment of 2008 Intergovernmental Contract for Employee
Services
November 13, 2008 Town Council Minutes 8
• Discuss and take appropriate action regarding discussions held in
Closed Session.
District Manager
MUD Secretary
Amendment of 2008 Intergovernmental Contract for Employee
Services
No discussion or action taken.
C.4 Adjourn.
Motion made by Edstrom, seconded by Wilson to adjourn.
Meeting adjourned at 10:15 p.m.
a ennek, Town Secretary Nick Sanders, Mayor
Town of Trophy Club, Texas Town of Trophy Club, Texas
November 13, 2008 Town Council Minutes 9