Minutes TC 04/06/2009MINUTES OF REGULAR TOWN COUNCIL MEETING FOR THE
TOWN OF TROPHY CLUB
LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS
Monday, April 6, 2009
6:00 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, April 6,
2009. The meeting was held within the boundaries of the Town and was open to the public.
TOWN COUNCIL MEMBERS PRESENT:
Nick Sanders
Philip Sterling
Susan Edstrom
Kathleen Wilson
Jim Moss
Glenn Strother
Mayor
Mayor Pro Tem
Council Member
Council Member
Council Member
Council Member
STAFF AND GUEST(S) PRESENT:
Brandon Emmons Town Manager
Stephen Seidel Assistant Town Manager
Lisa Hennek Town Secretary
Patricia Adams Town Attorney
Kathy DuBose Finance Director
Danny Thomas Fire Chief
Scott Kniffen Police Chief
Adam Adams Parks Director
A.1 Mayor Sanders called to order and announced a quorum at 6:00 p.m.
TOWN COUNCIL CONVENED INTO EXECUTIVE SESSION A T 6:02 p.m.
EXECUTIVE SESSION (6:00 -7:00 p.m.)
A.2 Council to convene into executive session pursuant to Texas Government Code,
Annotated, Subchapter 551, Section 551.074(a) "Personnel Matters, regarding the annual
evaluation of the Town Attorney and Section 551.071 (1) and (2) "Consultation With
Attorney," in order to seek the advice of its attorney as follows:
A. Patricia Adams, Town Attorney Annual Evaluation (Section 551.074 (a)(1))
B. Legal advice related to Cause No. 200940021-362, Trophy Club MuniCipal Utility
District No.2 v. Town of Trophy Club, pending in the 362nd District Court of Denton
County, Texas, including the Intervention into the lawsuit by MUD1, pending
Declaratory Judgment suits filed by MUD1 and MUD2, pending appeals filed by MUD1
and MUD2 and Town responses to actions taken by MUD1 and MUD2.
TOWN COUNCIL RECONVENED INTO REGULAR SESSION AT 7:12 p.m.
"REGULAR SESSION
April 6, 2009 Minutes
B.1 Council member Strother offered the Invocation.
B.2 Mayor Pro Tern Sterling led the Pledges.
B.3 Citizen Presentations:
Chuck Hall, 4 Shady Oaks Court -Submitted a letter to be read into the record. Mr. Hall requested the
bushes on the median at Indian Creek and Shady Oaks be removed as it impairs visibility and is a safety
issue.
Dave Edstrom, 269 Oakhill Drive -Requested the Town Council's help to ensure residents have correct
information so residents will understand the need to vote yes on Proposition # 2 for the Town to assume
the powers, duties, assets and obligations of MUD 2 without any further delay.
Mayor Sanders introduced Kathy DuBose, Finance Director. Town Manager Emmons stated that Ms.
DuBose started three weeks ago and comes highly decorated with a vast amount of financial
experience.
The Council considered the Consent Agenda prior to the Annual update and presentation by the Park
Board.
B.4 Annual update and presentation by the Park Board; discuss and take appropriate action
regarding same.
Park Chair, J.D. Stotts announced a quorum of the Park Board.
Chair Stotts began the presentation by listing the current and future Park Board projects and programs,
events and operations.
Council member Edstrom expressed her pride in the Park Board and Park Staff for all of their hard work
on Trophy Club Park.
Park member and Chair of Park Facility Sub-Committee, Larry Lentzner thanked the Mayor and Council
for the Park Board's opportunity. Mr. Lentzer thanked the Council for their foresight several years ago
with the Park and described the amenities that will be geared to the children.
Council member Edstrom appreciated Mr. Lentzner's enthusiasm and commitment.
J.D. Stotts thanked all the residents who showed up to hear the presentation. Mr. Stotts spoke about
the Amenity Lakes and Trail System currently being constructed.
Council member Moss thanked the Park Board for their service and stated that he is proud of the
progression and enthusiasm.
Council member Wilson stated that the Board's plan is something the Council needs to hear going into
the budget season. Wilson is excited about the trails, which will be a premier amenity for the school and
will be a significant attraction. The Town was built on volunteers and she is glad to be associated with
the Park Board.
Town Manager Emmons confirmed that the sign ordinance will need to be amended to accommodate
the Park Board's suggestion on advertising.
Chair Stotts adjourned the Park Board quorum.
Motion made by Edstrom, seconded by Wilson to approve the Consent Agenda, Items C.1 -C.11.
April 6, 2009 Minutes 2
Motion passed unanimously without any discussion.
C.1 Consent Agenda: Discuss and take appropriate action regarding the approval of the
Subdivider's Agreement for an 11.047 acre tract of land known as The Highlands at
Trophy Club Neighborhood 2, Phase 2H.
C.2 Consent Agenda: Discuss and take appropriate action regarding a Resolution approving
the submission of the grant application for the Byron Nelson High School Resource
Officer Program for the 2009-2010 fiscal year and deSignating the Town Manager as the
authorized official for the Town.
C.3 Consent Agenda: Discuss and take appropriate action regarding a Resolution approving
the submission of the grant application for the extension of the current School Resource
Officer Program for the 2009-2010 fiscal year and deSignating the Town Manager as the
authorized official for the Town.
C.4 Consent Agenda: Discuss and take appropriate action to approve an amendment to the
Bank resolution naming authorized representatives on First Financial Bank and Texpool
signature accounts.
C.5 Consent Agenda: Discuss and take appropriate action to approve financials and variance
report dated:
a. February 2009
C.6 Consent Agenda: Discuss and take appropriate action to approve Minutes dated, January
26,2009.
C.7 Consent Agenda: Discuss and take appropriate action to approve Minutes dated,
February 2, 2009 Joint Session.
C.B Consent Agenda: Discuss and take appropriate action to approve Minutes dated,
February 2, 2009.
C.9 Consent Agenda: Discuss and take appropriate action to approve Minutes dated, March
1,2009.
C.10 Consent Agenda: Discuss and take appropriate action to approve Minutes dated, March
2,2009.
C.11 Consent Agenda: Discuss and take appropriate action to approve Minutes dated, March
9,2009.
End of Consent
TOWN COUNCIL RECONVENED INTO REGULAR SESSION
"REGULAR SESSION
D.1 Discuss and take appropriate action regarding issues related to the May 9, 2009 election,
including the voter's guide, ballot order, and candidate's forum.
Town Manager Emmons explained the Voter's Information Guide handed out for Council's reference.
Emmons said that there are restrictions on how Staff explains the guide in order not to be accused of
using municipal funds to sway the public's vote.
April 6, 2009 Minutes 3
Council member Wilson asked if the territory under Proposition #1 could be clarified and tagged so a
voter could actually see what they are voting on.
Pearl Ford, 2 Spring Creek Court -Questioned why the document was not included in the packet.
Council directed Staff to print Draft copies of the Voter's Guide. Council will send revisions to Town
Attorney Adams and Town Manager Emmons by Wednesday, April 18, 2009 at Noon. Upon review of
the revisions, the updated Guide will be posted to the website and announced in the Listserv.
Council member Strother agreed to represent the Town at the Candidate Forum regarding the Town's
Proposition #2.
D,2 Discuss and take appropriate action regarding the acceptance of the fiscal year audit
ending September 30, 2008 for the Town of Trophy Club.
Town Manager Emmons introduced John DeBurro, Senior Manager and Shawn Parker, Managing
Partner from Weaver and Tidwell, LLP.
John DeBurro presented and praised the Town on receiving an unqualifying opinion. Mr. DeBurro
explained the report and their consideration of the Town's internal controls over financial reporting and
the compliance tests with certain provisions of laws, regulations, contracts and grants.
Council member Wilson requested that Town Manager Emmons bring forth suggestions on how to
improve the deficiencies noted in the report.
Shawn Parker, Managing Partner, said that the remaining fund balance is very healthy. The significant
deficiency noted is a common one and typical due to the law change several years ago.
Mayor Sanders confirmed that Mr. DeBurro did not tell Town Manager Emmons anything that was not
documented in the audit.
Town Manager Emmons said the Management Discussion and Analysis is a narrative of what is found in
the Financial Statements.
Financial Highlights:
• Assets exceeded liabilities by over $35 million
• Net Assets increased by $21 million
• At year end, unreserved fund balance was $1,830, 233
Budgetary Highlights:
• Revenues -Budget was reduced by $26,000
• Expenses -All were under budget except Streets, the Street Department was over by
approximately $50k, but that was a result of the Interlocal Agreement with Tarrant County for
street repairs.
Net Positive impact of $448,073
Motion made by Edstrom, seconded by Sterling to accept the fiscal year audit ending September 30,
2008 for the Town of Trophy Club.
Motion passed unanimously without further discussion.
D.3 Discuss and take appropriate action regarding concerns expressed at the March, 2009
Council meeting about Town Financials and financial solvency, including discussion and
April 6, 2009 Minutes 4
action on a report on the budget contingency plan and the current financial position of
the Town.
No action taken, discussion only.
0.4 Discuss and take appropriate action regarding a Resolution approving the submission of
the grant application for Community Oriented POlicing (COPS) Initiative Program for the
2009-2010/2010-2011 and 2011-2012 fiscal years, designating the Town Manager as the
authorized official for the Town with the authority to execute all necessary documents.
Town Manager Emmons said the grant is part of the Reinvestment Act and the grant will fund salary and
benefits at 100% for the officer. The Town will fund testing, uniforms and equipment providing the
employee remains employed with the Town for at least four years.
Council member Edstrom said the timing is perfect considering the projected budget presented last year
communicated the need for a new officer beginning in 2010-11.
Mayor Sanders said approval of the Resolution provided Staff the authority to submit the grant, and does
not obligate the Town to accept the funds.
Motion made by Edstrom, seconded by Strother to approve a Resolution approving the submission of
the grant application for Community Oriented Policing (COPS) Initiative Program for the 2009-2010,
2010-2011 and 2011-2012 fiscal years, designating the Town Manager as the authorized official for the
Town with the authority to execute all necessary documents.
Council member Wilson questioned the cost. Mayor Sanders stated the cost of four officers over a
three-year period is approximately $250,000.
Mayor Pro Tem Sterling favored applying for the Grant.
Council member Strother clarified that approval only authorizes Staff to submit application and does not
obligate the Council to anything more.
Mover and second modified the motion to change the second whereas clause from three to four officers.
Motion passed 4:1, with Wilson opposing.
0.5 Receive and discuss the 2008 Volunteer Citizen of the Year Committees'
recommendation, and take appropriate action as necessary.
Council member Edstrom requested Council consider deferring the item until the April 20 meeting when
Council is scheduled to announce the recipients' names. Council member Edstrom said dealing with the
item now lessens the excitement when Council makes the actual announcement.
Citizen of the Year Committee (COYC) representatives Pearl Ford and Peggy Sweeny addressed the
Council. The COYC requested the Council to consider expanding the Teenage Category to include a
Youth Category for the eligibility for children under the age of twelve.
The COYC discussed the categories for each nominee; agreeing that some nominees were submitted in
a category not applicable to the definition for that category.
The COYC also requested Council provide direction to the Committee's obligation to recommend a
recipient in a particular category, should the nominees not meet the criteria for the category they were
nominated.
April 6, 2009 Minutes 5
Mayor Pro Tem Sterling suggested that the category be left blank on the nomination form, leaving the
Committee to designate the category.
Motion made by Moss, seconded by Sterling to receive 2008 Volunteer Citizen of the Year Committees'
recommendation.
Motion passed 4:1, with Wilson abstaining.
0.6 Discuss and take appropriate action regarding the Second Modification to the Funding
and Development Agreement between the Town of Trophy Club, Texas and Centurion
Acquisitions for Road and Utility Improvements for Northwest Parkway (Bobcat Blvd.)
Motion made by Edstrom, seconded by Sterling to approve the Second Modification to the Funding and
Development Agreement between the Town of Trophy Club, Texas and Centurion Acquisitions for Road
and Utility Improvements for Northwest Parkway (Bobcat Blvd.)
Edstrom amended the motion correcting Section 3.03, the second agreed.
Motion passed unanimously without further discussion.
0.7 Discuss and take appropriate action regarding the Town's Absorption Plan for MUD 2.
Town Manager gave a brief presentation regarding the Town's Absorption Plan.
Mayor Sanders explained that the Consolidation Task Force (CTF) assumed that the Town would try to
equalize the Fire Tax. If the Town assumed the MUD2 debt and spread it equally among all residents
then MUD1 residents would be penalized. Looking at all options, Town Manager Emmons' presentation
would be a solution. Sanders stated that the Council is still researching Tax Increment Financing (TIF).
Mayor Pro Tem Sterling requested the presentation be placed on the Town's website, with two links
titled: How will it affect me if I live in MUD1 and the other How will it affect me if I live in MUD2?
Council member Edstrom said this would be an appropriate introduction to Council member Strother's
speech at the forum next week.
MUD2 Director, Jim Thomas, 7 Meadowbrook Lane -Questioned if the Town could create a Fire District
without an election. Mayor Sanders responded that an election would be necessary.
MUD1 Director Jim Hase, 209 Inverness Drive -Stated that water billing for MUD2 is two million dollars.
The Town is looking at an increase of one third in order to recover that amount.
Council member Wilson said the presentation contained some creative language and she would like
certain sections of Mr. McLain's Report included. Wilson said that while McLain's Report cited bad
governance, Mr. McLain'S recommended that at minimum was to consolidate MUD1 and MUD2. Wilson
encouraged citizens to refer to page seven of the McLain report.
Council member Strother confirmed that the presentation language was taken directly from McLain's
report. Strother clarified that the McLain report did not provide one definite recommendation and rather
presented four different scenarios and the impact of all four scenarios.
Council Member Edstrom stated the Town is not touching MUD1 and although water rates may increase,
the tax rate was decreased which will create an offset.
Pearl Ford, 2 Spring Creek Court -Asked if the presentation had been cleared with the Bond Council.
April 6, 2009 Minutes 6
Mayor Sanders responded that Staff is researching options to back the bonds.
Roger Williams, 215 Phoenix Drive -Commented that the MUD Directors are insincere since they
dismissed Mr. McLain's report to the extent of being rude to Mr. McLain. Yet now, the MUD Directors
are hanging their hats on McLain's remarks. Council member Wilson interjected and Mr. Williams
responded that Wilson was at that meeting. Council members Moss and Edstrom called point of order.
Mayor Sanders called point of order.
Council member Wilson stated that she is hanging her hat, bows and whistles on Mr. McLain's report per
Mr. Holifield's review of the Town's governance issues.
Council directed Town Manager Emmons to work with Staff to place the presentation on the website.
MUD1 Director, Jim Hase said this was based on the numbers provided by Town Manager Emmons.
Town Manager Emmons stated that the 1.B million dollars is based on the final report created by the
CTF and the MUD Directors. Emmons stated that the MUD1 Directors voluntarily pulled out the
contribution paid by Solana and that there will only be a debt service in MUD1 for water and wastewater.
Emmons said the original document to the CTF was the best route at the time presented; however,
concerns regarding double taxing MUD1 by redistributing the MUD2 Debt have been raised.
Council member Edstrom reiterated the Town's plan does not include any changes to MUD1 and the 1.B
million dollars revenue from Solana does not come in to affect and is mute at this point.
Mayor Sanders recognized Bill Rose, 219 Inverness, MUD2 Director Jim Thomas and MUD1 Director
Jim Hase.
Mayor Sanders clarified that should the Fire District go forward, the Council would govern as they have
in the past.
MUD1 Director Connie White, 119 Trophy Club Drive -Stated that the CTF report was generated based
on the assumptions provided to the task force. White asked when the Town planned to hold an election
for the Fire District and stated it would only create more governance issues.
MUD1 Director, Jim Hase -Stated if the Town takes over MUD2, the Town would incur the note as well.
Town Manager Emmons responded that the funds have not been expended.
Mayor Sanders said that they would use reserves until potentially November, at which time the Town
would call an election.
Council member Wilson said that MUDs allowed the Council to participate in the CTF at the Council's
request. Wilson said that she, Council member Strother and Town Manager Emmons put in a lot of
hours, and she takes personal offense to the criticism and demeaning comments regarding the work of
the CTF and that it is disrespectful to the elected officials and Town Manager Emmons who served on
the Task Force.
Motion made by Edstrom, seconded by Sterling to approve the proposed plan of action should
Proposition #2 pass with the addiflon that Council member Strother and Town Manager Emmons work
together to address the questions brought forth.
Motion passed unanimously without further discussion.
0.8 Discuss and take appropriate action relative to Executive Session Item Number A2.
A. Patricia Adams, Town Attorney Annual Evaluation (Section 551.074 (a)(1))
April 6, 2009 Minutes 7
No action taken.
B. Legal advice related to Cause No. 2009-40021-362, Trophy Club Municipal Utility
District No.2 v. Town of Trophy Club, pending in the 362nd District Court of Denton
County, Texas, including the Intervention into the lawsuit by MUD1, pending
Declaratory Judgment suits filed by MUD1 and MUD2, pending appeals filed by MUD1
and MUD2 and Town responses to actions taken by MUD1 and MUD2.
Peggy Sweeny, 51 Meadowbrook Lane asked the status of the lawsuit.
Town Attorney Patricia Adams advised that the Fort Worth Court of Appeals sent letters to the MUDs
expressing concern regarding whether the Court had jurisdiction over the pending appeal. MUD1 lawyer
Bruce James is lead legal counsel and filed a response to the Court's letter on April 1,2009. The Town
should have an indication within the next seven to ten days with regard to how the Court will proceed.
The MUD brief is due April 11, 2009. After the MUD brief is filed, the Town will have twenty days to file
its brief. After the Town files its brief, the MUD has approximately eight to ten days to file a responsive
brief; however, the Court of Appeals can go ahead and rule before the second MUD brief is submitted.
No action taken.
D.9 Items for Future Agenda.
Council member Wilson moved #1 to the April 20 meeting, address solutions to the culvert issues at
Skyline Park.
1. Discussion of drainage ditch that runs between Village Trail and Lakeshore Drive and
consideration of improvements for area to create a linear park. (Mayor Sanders -Cates)
2. Town Manager Emmons to report on the sound barrier issues on the east side and
conversations with TXDOT, and discussion of same. (Wilson)
3. Establish and implement a process for Hotel inspections. (Edstrom added on 1/21/08)
4. Discuss and consider options to approve the upkeep of rental property, with or without
creating a Building Standard Commission. (Edstrom -4121/08)
5. Discuss and receive an update on the Comprehensive Land Plan. (Edstrom -10/20/08)
6. Council to announce the 2008 Citizen of the Year. (April 20)
7. Discuss and take appropriate action regarding a Library Focus Group or other plan for
exploring options and compiling data for a future library. (Wilson)
8. Discuss and take appropriate regarding a TIF as it relates to taking over MUD2. (Mayor
Sanders)
E.1 Adjourn.
Motion made by Wilson, seconded by Sterling to adjourn. Meeting adjourned at 10:49 p.m.
(/ k. ; L<fua d Oo.i/
Lisa Hennek, Town Secretary
Town of Trophy Club, Texas
April 6, 2009 Minutes
C~~
Nick Sanders, Mayor
Town of Trophy Club, Texas
8