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Minutes TC 10/23/2013MINUTES FROM JOINT MEETING FOR THE TOWN OF TROPHY CLUB, TOWN COUNCIL 4mDTHE TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1BOARD OF DIRECTORS LOCATION: 1OOMUNICIPAL DRIVE, TROPHY CLUB, TEXAS WEDNESDAY, OCTOBER Z3,20l3uJ6:0DP.yN. SvoreMunicipal Building Boardroom The Town of Trophy Club Town Council met in a Joint Meeting with the Trophy Club Municipal Utility DistrictNu1 Board of Directors, of Denton and Tarrant Counties, on October 23, 2013 at 5:00 P.M., in the Boardroom of the 5vneMunicipal Building, lU0Municipal Drive, Trophy Club, Texas 76262. STATE OFTEXAS 0 COUNTY OFDENTDm § COUNTY OF TARRANT g TOWN COUNCIL MEMBERS PRESENT Connie White Mayor Jeanette Tiffany Mayor Pro -Tem Bill Rose Council Member Clint Schroeder Council Member Danny Mayer Council Member Greg Lamont Council Member TOWN STAFF PRESENT N1ikuSlye Town Manager TummyAvd Town Secretary Patricia Adams Town Attorney MUD lBOARD MEMBERS PRESENT Jim Moss President Bill Armstrong Vice President Kevin Carr Secreta ry/Treasurer Nick Sanders Director MUD zBOARD MEMBER ABSENT Jim Thomas Director STAFF PRESENT: Jennifer McKnight District Manager LauheSlaght District Secretary Paul Liston District Legal Counsel SPECIAL CALLED TOWN COUNCIL MEETING AND JOINT MEETING WITH TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 Mayor White announced the date of October 23, 2013, called the meeting to order and announced a quorum present at 6:00 p.m. The Invocation was offered byMayor Pro Tern Jeanette Tiffany. The Pledges were led by Council Member Clint Schroeder. EXECUTIVE SESSION 1. The Council will enter into executive session pursuant to Texas Government Code, Annotated, Subchapter 551, (the Texas Open Meetings Act), Consultation with Attorney to consult with its Attorney on a matter in which the duty of the attorney to the Governmental Body under the Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflict with the Open Meetings Act for legal advice regarding: (1) Water and wastewater services to PID; Wholesale and Retail Services; CCN; alternative services for the PID; legislative processes and actions; terms of interlocal agreement for provision of water and wastewater services; Town assets and related matters. CONVENE INTO EXECUTIVE SESSION - START TIME — 6:03 p.m. RECONVENE INTO SPECIAL SESSION - START TIME — 7:00 p.m. ADJOURN SPECIAL CALLED TOWN COUNCIL MEETING, ANNOUNCE A QUORUM AND CONVENE INTO JOINT MEETING WITH TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 2. Consider and take appropriate action regarding the Interlocal Agreement for Water and Wastewater Services between Trophy Club Municipal Utility District No. 1 (TCMUDI) and the Town of Trophy Club (Town) including the October 1, 2013 letter from TCMUDI to the Town of Trophy Club. a. Presentation regarding planned upgrade to wastewater treatment plant. (The Wallace Group); discussion of same. Scott Wetzel and Kevin Glovier from The Wallace Group gave an overview of the planned upgrades to the Wastewater treatment plant to the Town Council & Trophy Club MUD No. 1 and answered questions regarding the same. b. Consider and take appropriate action regarding the Town's preference for wholesale or retail service. c. Consider and take appropriate action regarding Contract for Water and Wastewater Operations Services between the Town of Trophy Club and TCMUDI. d. Consider and take appropriate action regarding the October 1, 2013 letter from TCMUDI to the Town relative to wastewater service to the PID. Motion made by Council Member Mayer, seconded by Council Member Rose to adopt the following as its response the Trophy Club MUD No. 1 letter dated October 1, 2013: The Town of Trophy Club desires that the portion of the Town that is outside Trophy Club MUD No. 1 continue to receive water and wastewater service from Trophy Club MUD No. 1 on a wholesale basis but a condition precedent to the receipt of such service is a mutually acceptable agreement between the Town & Trophy Club MUD No. 1 setting out the terms on which the services will be provided. That mutually acceptable agreement must be approved by the Town and Trophy Club MUD No. 1, and among other negotiated terms, it must include: 1. A reservation of capacity in the wastewater plant and water system to serve the PID based upon the prior payment of $3.8 million of access fees and all additional future contributions for capital improvements and for capacity necessary to service the PID and other portions of the Town outside Trophy Club MUD No. 1 boundaries. 2. The rates on which the PID would be served will be equal to the rates charged to Trophy Club MUD No. 1 customers. 3. Restrictions on rates and impact fees intended to ensure that customers in the PID do not subsidize expansions to serve Solana and/or Trophy Club MUD No. 1. 4. 5% of annual gross receipts received by Trophy Club MUD No. 1 from water and wastewater services to the PID and other customers outside of the boundaries of Trophy Club MUD No. 1 during the term of the agreement. Motion made by Council Member Rose to amend #1, to read 'A reservation of capacity in the wastewater plant and water system to serve the PID based upon the prior payment of $3.8 million of access fees and to provide credit for all additional future contributions for capital improvements and for capacity necessary to service the PID and other portions of the Town outside Trophy Club MUD No. 1 boundaries' seconded by Council Member Mayer. Motion passed unanimously. Motion made by Council Member Mayer to amend #4, to read 'S% of annual gross receipts received by Trophy Club MUD No. 1 from water and wastewater services to the PID and other customers outside of the boundaries of Trophy Club MUD No. 1 during the term of the agreement will be paid to the Town'second by Council Member Rose. Motion passed unanimously. Motion made by Council Member Lamont to amend and create a subcommittee of two members of the Town and Trophy Club MUD No. 1 to negotiate this. Town Manager Slye reminded Mayor White that a PID committee was created in January 2013. Motion failed due to a committee already in place. Nick Sanders motioned to extend the deadline of the letter to October 25, 2013. N17L611I Til Motion made by Council Member Schroeder, seconded by Council Member Mayer, to adjourn. Motion carried unanimously. Meeting adjourned at 8:27 p.m. mz Tammy Ard, Town Secretary onnie White, Mayor Town of Trophy Club, Texas Town of Trophy Club, Texas