Minutes TC 09/09/2010 - Joint SessionMINUTES FROM SPECIAL JOINT SESSION BETWEEN THE TOWN COUNCIL AND TCMUD No. 1
FOR THE TOWN OF TROPHY CLUB
LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS
Thursday September 9, 2010 7:00 PM
Svore Municipal Building Boardroom
STATE OF TEXAS §
COUNTY OF DENTON §
The Town Council of the Town of Trophy Club, Texas, met in a Special Joint Session with Trophy Club
Municipal Utilities District No. 1 on Thursday, September 9, 2010. The meeting was held within the
boundaries of the Town and was open to the public.
TOWN COUNCIL MEMBERS PRESENT:
Connie White
Mayor
Bill Rose
Mayor Pro Tem
Glenn Strother
Council Member
J.D. Stotts
Council Member
Margi Cantrell
Council Member
Larry Hoover
Council Member
TCMUD No. 1 MEMBERS PRESENT:
Jim Thomas
President
Jim Moss
Vice President
Kevin Carr
Secretary/Treasurer
Bill Armstrong
Director
Nick Sanders
Director
STAFF AND GUEST(S)
PRESENT:
Stephen Seidel
Acting Town Manager
Robert Scott
District Manager
Lisa Hennek
Town Secretary
Mary Moore
MUD Secretary
Patricia Adams
Town Attorney
Danny Thomas
Fire Chief
Scott Kniffen
Police Chief
Kathy DuBose
Finance Director
Mayor White announced the date of September 9, 2010, called to meeting to order and announced
a quorum at 7:02 p.m.
President Thomas announced a quorum for TCMUD No. 1.
JOINT SESSION
1. Receive update from Police Chief Kniffen regarding Town Manager search and discussion of
same.
Police Chief Kniffen provided the update, stated that the candidates and spouses would arrive on Friday
for the following - take a tour, meet with the Management Team, attend the reception on Friday evening
and then interview with the Council on Saturday.
Town Council Minutes dated September 9, 2010
Council discussed whether to allow citizens to sit on the interview panel. Mayor White confirmed that only
the Elected Officials and one MUD representative will sit on the interview panel.
Council members Cantrell, Hoover and Stotts agree that only the Council should interview the candidates
and the citizens will have a chance to meet the candidates on Friday evening. President Jim Thomas
appreciates the Council allowing one of the Directors to sit in.
Director Carr felt as though District Manager Scott should sit on the interview as he will be working
directly with the Town Manager. Mayor White stated that Scott will be included in the Management Team
meeting. Director Thomas stated that any Directors who want to sit in and listen should be allowed to do
so. Mayor White stated said that it becomes a bit intimidating when the room is full of people.
Council members Cantrell and Mayor Pro Tem Rose understood that the MUD Director would be included
in the discussion, not the vote.
President Thomas stated he will gladly participate, however if he is unable to make it, Vice President
Moss will attend.
Council confirmed that the reception will be held in an open meeting and will be posted accordingly,
however the Council invitations were extended to only certain people. The dress is business causal for
the Management Team meeting and reception. Town Secretary Hennek will send the list of citizen
names to the Council.
Noting no objections the group considered Item 6
2. Discuss and take appropriate action regarding the Intergovernmental Contract for Employee
and Contractual Services.
Director Sanders questioned the Termination and Discipline sections.
Town Attorney Adams explained the terms regarding default of the agreement. Adams stated that the
notice of default must be approved by the Board. Directors Sanders would like to clarify the language
tonight as not to delay approval any longer.
The group discussed the contract and made amendments.
The group questioned whether exclusive control, mentioned under 3.01 Jointly Funded Employees
conflicts with Section 113 of the Town's Personnel Policy, concern was raised about two different
personnel policies. Town Attorney Adams stated that she and the MUD Attorneys are comfortable going
with the language from an IRS standpoint. Mayor White asked what type of information would differ in the
two personnel policy manuals. District Manger Scott stated that a violation for falsifying TCEQ
documentation would result in termination. Acting Town Manager Seidel stated that he; Patricia, Robert
and Mary all agree that the fundamental policies need to stay consistent. The TCEQ violation would be
included in the Standard Operating Procedures and that this type of violations would be terminable.
Seidel suggested having a separate section applicable to TCMUD No. 1.
Mayor Pro Tem Rose requested confirmation that all employees are Town employees, including the
Firefighters. Rose asked if the Town's Health Insurance policy will cover the employees dedicated to
work for TCMUD No. 1. District Manager Scott stated that TCMUD No. 1 has already checked and can
get BCBS and TMRS cheaper than what the Town has. Council member Strother clarified that all
employees receive a paycheck issued by the Town of Trophy Club and that TCMUD No. 1 reimburses the
Town for that payroll. The insurance company receives the premium check from the Town. Mayor White
stated that the group is currently paying three attorneys to draft the contract and they should know with no
uncertain terms whether the language is legal. Mayor Pro Tem Rose is not comfortable with the
Insurance portion until written consent is received from each company providing insurance coverage.
Town Council Minutes dated September 9, 2010 2
Council member Stotts stated that the group's time is being wasted if they continue to rehash all of the
points and technicalities that the attorneys have agreed to and not have a problem with.
Council member Cantrell asked if Town Attorney Adams was performing legal services for TCMUD No. 1
and if consideration should be given for sharing costs, or simply assume everything is equal. District
Manager Scott said that he will not submit payment in lieu of continuing to allow the Town to use TCMUD
No. 1 offices for $1.00 per year.
Motion made by Strother, seconded by Hoover to approve the Intergovernmental Contract for Employee
and Contractual Services draft dated September 9, 2010 as amended.
Motion passed 5:1, with Rose voting against.
3. Discussion regarding construction of Town's Elevated Water Storage Tank as per the 2007
Contract for Water and Wastewater Operational Services between Town of Trophy Club and
Trophy Club MUD 1; possible action regarding same.
Mayor White explained that the contract in question is the contract that was created for the PID. Acting
Town Manager Seidel explained that the bid for the elevated tank bid came in higher than anticipated last
year. Discussion regarding what the best size of elevated water tank would satisfy future needs for
additional water pressure.
President Thomas stated that he feels that the Council is in default on this contract due to the fact that the
elevated water tank was not started "immediately" per the PID contract with TCMUD No. 1. Additionally,
President Thomas stated the only place to put a storage tank is where the Police Department is located.
District Manager Scott said that it will cost more to move the elevated tank to another location. Council
member Strother is in favor of exploring all options for the betterment of the community rather that what is
best for the Town or TCMUD No. 1 individually. The residents do not care whose taxes are higher, they
care what the bottom line is. The group needs to plan for Capital improvement projects together.
Council member Stotts suggested the Council move forward with the 500,000 gallon elevated storage
tank.
President Thomas stated that TCEQ has advised that a larger tank is needed than a 500,000 gallon
storage tank and this is due to the fact that recently the levels of water in the storage tank had dropped
radically, thus causing the urgency of moving forward with plans to construct the elevated tank north of
the high school and a water storage tank on the site of the current police facilities.
Director Sanders suggested a task force be created with both Council and TCMUD No. 1 representatives
and the Town Manager and District Manager to discuss these issues and keep these two issues on each
entity's agendas.
Council member Stotts asked for clarification regarding when the developer would be in a better position
to pay in February or March and that the bid could go out in December. Acting Town Manger Seidel
stated that designing the tank is not the issue, but rather it is whether or not it will fit in the area.
Council member Hoover volunteered to serve on the task force and Council members Strother and Stotts
agreed to serve as well. Directors Sanders and Carr will serve on this task force.
4. Discussion regarding transferring electrical account for Admin Building from Town Account
to MUD Account and possible action regarding same.
Currently, the cost for electricity for the Admin Building is shared by both entities. The electricity rate for
MUD 1 is $0.077, which is lower than the Town's rate. In December of 2011, MUD 1's electricity rate will
Town Council Minutes dated September 9, 2010 3
drop to $0.0638. By transferring the Admin Building account over to the TCMUD No. 1 account, both
entities would realize a cost savings.
District Manager Scott stated that he reviewed this with Town Attorney Adams and that transferring the
account would be more trouble than it is worth.
Mayor White thanked TCMUD No. 1 for thinking of the possibility.
No action taken.
5. Discussion regarding Capital Improvements and/or Capital Expense Items affecting Town
and/or MUD 1 Budget(s) and possible action regarding same.
District Manager Scott stated that TCMUD No. 1 needs to ensure that they budget for replacing the pipes
at the time the Town repairs the streets and asked the Town to give TCMUD No. 1 advance notice.
The group discussed affluent water at Harmony Park. Acting Town Manager Seidel explained that it
could be done now, however the development is moving along and the developer would have to change
lines again within eight months.
6. Discussion regarding TCMUD No. 1's relationship with the Town Council relative to the hiring
of a new Town Manager and possible action regarding same.
Discussed under Item #1.
7. Discussion regarding the potential of both entities working together and possible action
regarding same.
Mayor White explained how productive the Council's retreat had been and invited TCMUD No. 1 to join
the retreat next time to discuss long term items. President Thomas thought this was a good idea.
President Thomas asked District Manager Scott to get with Acting Town Manager Stephen to discuss.
Council member Stotts stated that it is very important to develop a long range plan and that the Town
and TCMUD No. 1 need to work together in order to facilitate better financial planning for the community
as a whole.
8. Discuss and take appropriate action regarding request for temporary exception to Noise
Nuisance Ordinance, Chapter 8, Article 1, Section 1.01(a) 7 to drill a new Trinity Well at the
northwest end of Crooked Creek Court.
TCMUD No. 1 sent out a RFP to drill a Trinity Water Well. All of the RFPs came in way over anticipated
costs. In order to reduce drilling costs, the Well Company would need to drill 24 hours a day for two (2)
weeks. TCMUD No. 1 respectfully requests a temporary exception to the Town's current Noise Nuisance
Ordinance in order to drill for a Trinity Well at the end of Crooked Creek Court. The temporary exception
would be 24/7 for approximately two weeks barring any unforeseen circumstances. Approval of this
Temporary Exception is in the best interest of all of the Trophy Club Residents and Businesses due to the
economic benefit realized in just a very short period of time.
District Manager Scott stated that it becomes very costly to shut the rig down. Scott volunteered to speak
to each resident who would be impacted and even suggested paying for hotel rooms for these residents.
Town Council Minutes dated September 9, 2010 4
Council member Cantrell confirmed that the drilling would be within 150 feet of the residents and would
last approximately 4 weeks. Acting Town Manager Seidel suggested a rebate of their water bill in lieu of
a hotel room.
Mayor Pro Tem Rose would like to have residents' approval before he approves this action.
District Manager Scott stated that this item first needs to go before the TCMUD No. 1 Board, then the
residents need to be consulted and lastly, the item will come before the Council.
No action taken.
9. Set Next Joint Session Meeting Dates.
Scheduled for Thursday, November 11, 2010 at 7:00 p.m. and Wednesday, February 9, 2011 at 7:00 p.m.
Mayor Pro Tem Rose suggested moving the February 9 meeting to February 10. Council member
Strother is better with Thursdays. Mayor White moved the meeting to Thursday, February 11, 2011.
ADJOURN
Meeting adjourned at 9:45 p.m.
i
hannon DePrater, 1F erim Town Secretary
Town of Trophy Club, Texas
Connie White, Mayor
Town of Trophy Club, Texas
Town Council Minutes dated September 9, 2010 5