Minutes TC 02/02/2009 - Joint SessionMINUTES FROM
SPECIAL JOINT SESSION BETWEEN
TROPHY CLUB TOWN COUNCIL and
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.1
And TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.2
MONDAY, FEBRUARY 2,2009 at 6:00 p.m.
STATE OF TEXAS §
COUNTY OF DENTON §
The Town Council of the Town of Trophy Club, Texas, met in a JoinUSpecial Session on Monday,
Thursday, February 2, 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
Jim Moss
Glenn Strother
Mayor
Mayor Pro Tem
Council Member
Council Member
Council Member
TOWN COUNCIL MEMBERS ABSENT:
Kathleen Wilson Council Member
MUNICIPAL UTILITY DISTRICT NO.1 DIRECTORS PRESENT:
Dean Henry President
Gary Cantrell Vice President
Connie White SecretarylTreasurer
Jim Hase Asst. SecretarylTreasurer
Neil Twomey Director
MUNICIPAL UTILITY DISTRICT NO.2 DIRECTORS PRESENT:
Jim Budarf
Kevin Carr
James C. Thomas
Carol Borges
Steven Kohs
President
Vice-President
SecretarylTreasurer
Director
Director
STAFF AND GUEST(S) PRESENT:
Brandon Emmons Town Manager
Stephen Seidel Assistant Town Manager
Lisa Hennek Town Secretary
Patricia Adams Town Attorney
Danny Thomas Fire Chief
Mary Moore Recording Secretary
Robert Scott Utility Superintendent
Bob West Attorney
Pam Liston Attorney
'SPECIAL JOINT SESSION (6:00 P.M. -7:00 P.M.)
A.1 Call to Order and Announce a Quorum.
Mayor Sanders called the Town Council to order at 6:01 p.m. noting a quorum was present.
Town Council Minutes -February 2,2009 Joint Session (Town Council, TCMUD1 and TCMUD2) 1
MUD1 President Dean Henry called MUD1 to order at 6:01 p.m. noting a quorum was present.
MUD2 President Jim Budarf called MUD2 to order at 6:01 p.m. noting a quorum was present.
• All Entities were allowed to participate in the following discussions. The Items were posted with the
Specific Entity that will be voting on the matter.
B.1 Discuss and take appropriate action to approve Agreed Court Order between the Town of
Trophy Club (Town) and Trophy Club Municipal Utility District No.2 (TCMUD2) whereby the
Town would discontinue any attempts to abolish TCMUD2 until after the canvassing of the
May 9, 2009 election and TCMUD2 would dismiss the injunction lawsuit currently pending
in Denton County. (Voting Entity: Town Council)
Noting no objections, Mayor Sanders took the group into a Committee of a Whole. Mayor Sanders
referenced Director Budarfs suggestion at the Council's January 26, 2009 meeting to have the Attorneys
work on ballot language to cover both issues (MUD1 and MUD2 consolidation and MUD2 absorption by
the Town.) A draft of the Agreed Court Order was provided.
Town Attorney Adams said the Agreed Court Order and ballot language is a draft based upon the concept
indicated at the January 26, 2009 Council meeting. Adams said that under the TRO the Town could not
take action but could provided input. MUD2 Attorney Pam Liston explained that there had been multiple
discussions between the Town, MUD and Bond Attorney. Liston was not certain that the group should
dive into the document yet as the Attorneys were still working out logistics.
Town Attorney Adams stated the complexity is the ballot language that would produce inconsistent results.
Adams said State law allows the Town to absorb MUD2 by Ordinance, not Election. The Charter provides
for a referendum should the qualified voters not approve of Council's action regarding an Ordinance.
MUD2 Attorney Pam Liston stated concern about both issues on the ballot passing. The Election could be
challenged even if all entities agreed that the one with the most votes win. Liston said they are trying to
work through these issues now, rather than after the election.
MUD2 Vice President Kevin Carr suggested allowing the citizens vote on the consolidation of MUD1 and
MUD 2 and if the issue fails, the Town could then absorb MUD2. MUD Attorney Pam Liston agreed that
this is a clean option
Council member Edstrom stated had Council had the opportunity to take action last week, Council would
not be in this situation. Everyone disagrees with what they feel is best and requested that Council's
legislative process be allowed to happen as well.
Mayor Pro Tem Sterling stated the Council was trying to give the citizens the right to vote. Therefore
Council had to take action on an Ordinance in order to get the issue on the May ballot.
MUD2 Director Thomas stated Jim Hase was in charge of the task force that finished the scenario for the
consolidation of MUD1 and MUD2.
Mayor Sanders advised the group they were getting off the topic and discussion should be on the Agreed
Court Order and debate of going to Court.
MUD2 Attorney Pam Liston asked for direction on how to proceed given the time constraints.
Council member Edstrom is not in favor of delaying the TRO as she does not like to be hampered by what
action the Council can or cannot take when Council is governed by State Law. Edstrom asked for an
Town Council Minutes -February 2, 2009 Joint Session (Town Council, TCMUD1 and TCMUD2) 2
explanation regarding the revisions to the Master District Agreement passed by the Board several weeks
ago. Edstrom understood the changes to be that should another entity take over MUD2, their assets
would go to MUD1 and not the entity who took over MUD2.
MUD2 President Budarf explained that the ownership of the assets would not be affected. The changes
only relate to issues outside of the Town and were implemented to protect the Master District.
Master District Chair Connie White asked if the Council would agree to allow the vote for MUD1 and
MUD2 consolidation to occur in May, and if the vote fails the Town could then take over MUD2.
MUD2 President Jim Budarf stated that this has always their intention, if the residents voted it down, then
the Town would take over.
Lou Opipare, 32 Crestwood Drive-Addressed the group with a Trophy Club Positive message.
Both the Town and MUD Attorney said they have been working on the agreement and have not been
working on the hearing and, therefore agreed to ask for the extension.
Council member Strother questioned if under the TRO the Council can provide direction. Town Attorney
Adams said the Council cannot take action to absorb MUD2, and should be directing whether they want to
proceed in the lawsuit or an agreed settlement. Adams cautioned that it is better if Council can come to
an agreement in order to prevent the Town's fate from being in the hands of a third person. Adams then
stated she has ethical issues given the one tax base.
Mayor Sanders took the group out of the Committee of a Whole.
Council member Edstrom moved to amend the agreement providing that MUD2 agree not do anything
with their assets until after May. Motion died for lack of a second.
B.2 Discuss and take appropriate action regarding ballot language for a proposed referendum
for the May 9, 2009 election, pursuant to an agreement between the Town and TCMUD2, to
submit the question of Town abolition of TCMUD2 to the voters, as authorized in the Town
Charter and/or action regarding the support of the consolidation election called by
TCMUD1 and TCMUD2. (Voting Entity: Town Council)
This item died for lack of motion.
Mayor Sanders turned the meeting over to MUD2 President Budarf.
Director Carol Borges feels that the attorneys should continue working on ballot language. Borges is
disappointed that it got this far as they all promised not to take any action.
Directors Kevin Carr and Jim Thomas agreed with Borges. Director Steven Kohs stated that MUD2
should remove the TRO and allow the Town do the right thing.
MUD2 directed MUD2 Attorney Pam Liston to continue working with Town Attorney Adams on ballot
language and to request an extension for the TRO.
C.1 Discuss and take appropriate action to approve Agreed Court Order between the Town of
Trophy Club (Town) and Trophy Club Municipal Utility District No.2 (TCMUD2) whereby the
Town Council Minutes -February 2, 2009 Joint Session (Town Council, TCMUD1 and TCMUD2) 3
Town would discontinue any attempts to abolish TCMUD2 until after the canvassing of the
May 9, 2009 election and TCMUD2 would dismiss the injunction lawsuit currently pending
in Denton County. (Voting Entity: TCMUD2)
No action taken.
C.2 Discuss and take appropriate action regarding amending the consolidation election order
and proposition language and/or the ballot language for the May 9, 2009 ballot. (Voting
Entity: TCMUD2)
No action taken.
0.1 Discuss and take appropriate action regarding amending the consolidation election order
and proposition language and/or the ballot language for the May 9, 2009 ballot. (Voting
Entity: TCMUD1)
No action taken.
E.1 Adjourn.
Motion made by Council member Edstrom, seconded by Council member Sterling to adjourn at 7:02 p.m.
Motion made by MUD1 Director Jim Hase, seconded by MUD1 Director Gary Cantrell to adjourn.
MUD2 stood adjourned at 7:03. l~~~
Town of Trophy Club, Texas
Town Council Minutes -February 2, 2009 Joint Session (Town Council, TCMUD1 and TCMUD2) 4