Minutes TC 06/07/2016 - Special Session MINUTES FROM A SPECIAL SESSION TOWN COUNCIL MEETING
FOR THE TOWN OF TROPHY CLUB
LOCATION: 100 MUNICIPAL DRIVE,TROPHY CLUB,TEXAS
Tuesday,June 7,2016 at 6:00 P.M.
Svore Municipal Building Boardroom
The Town Council of the Town of Trophy Club, Texas, met in a Special Session on Tuesday, June 7, 2016. The
meeting was held within the boundaries of the Town and was open to the public.
STATE OF TEXAS §
COUNTY OF DENTON §
TOWN COUNCIL MEMBERS PRESENT:
C. Nick Sanders Mayor
Greg Lamont Mayor Pro Tem, Place 5
Jim Parrow Council Member, Place 1
Garrett Reed Council Member, Place 2
Rhylan Rowe Council Member, Place 3
Tim Kurtz Council Member, Place 4
Philip Shoffner Council Member, Place 6
STAFF AND GUEST(S)PRESENT:
Stephen Seidel Town Manager
David Dodd Town Attorney
Steven Glickman Assistant Town Manager/CFO
Holly Fimbres Town Secretary/RMO
Adam Adams Parks and Recreation Director
Patrick Arata Police Chief
Pat Cooke Development Services Manager
Tony Jaramillo Parks Superintendent
Rick Lasky Interim Fire Chief
Ron Ruthven Town Planner
Mayor Sanders announced the date of Tuesday, June 7, 2016, called the Town Council to order and announced a
quorum at 6:00 p.m.
CITIZEN PRESENTATIONS
This is an opportunity for citizens to address the Council on any matter whether or not it is posted on the agenda.
The Council is not permitted to take action on or discuss any presentations made to the Council at this time
concerning an item not listed on the agenda. The Council will hear presentations on specific agenda items prior to
the Council addressing those items. You may speak up to four (4) minutes or the time limit determined by the
Mayor or presiding officer. To speak during this item you must complete the Speaker's form that includes the
topic(s)of your statement. Topics of presentation should be limited to matters over which the Council has authority.
There were no citizen presentations.
SPECIAL SESSION
1. Consider and take appropriate action regarding the appointment of the Town Attorney position;discussion
of same(N.Sanders and P.Shoffner).
Motion:
Motion made by Mayor Pro Tern Lamont, seconded by Council Member Shoffner, to appoint David Dodd as the
Town Attorney for the Town of Trophy Club.
Motion passed unanimously.
2. Consider and take appropriate action regarding Town owned property and irrigation services located within
the Highlands;discussion of same(P.Shoffner and J.Parrow).
Mayor Sanders provided a brief history regarding the irrigation within the Highlands Homeowners Association
(HOA). He presented the two major points, which were: 1)The HOA is maintaining land that the Town owns and
was provided in part of, if not all, in a parkland dedication and the land cannot be sold or given to any other
organization without the vote of the citizens of the Town; and 2) The Town is maintaining land that is owned by
the HOA. He explained that it was discovered that some of the areas known as slip roads, medians that are offset
to the left or right that have a road in front of houses,are designated as HOA areas and in other areas they are part
of the Town's right-of-way.
Frank Koen, President of the Highlands at Trophy Club HOA,apologized for missing the Council meeting on May 23,
2016.
Ery Siemoneit, Vice President of the Highlands HOA, and Joel Morace, Member at Large of the Highlands HOA,
were present to address any questions.
Assistant Town Manager/CFO Glickman provided a presentation regarding the Highlands Maintenance, which
included the following: Recap of Events to Date; Updated Information;and Potential Solutions.
Discussion ensued that the developer agreements identified that the developer shall create an HOA and they shall
be responsible to maintain all common space, therefore the HOA should maintain the common space after the
twelve months from the initial improvement. Additional discussion took place that the slip roads that are owed by
the developer could be dedicated to the Town through a separate instrument.
Malcolm Louden, Manager of Essex Community Management, 200 Bailey Avenue, Fort Worth, advised that the
common area parcels that are owned by the developer are currently in the process of being deeded over to the
HOA.
Mr. Koen stated that he had performed research through Denton Central Appraisal District(DCAD)and provided a
handout that included the water meter account number, DCAD account number, general address, owner, type of
maintenance,and an aerial of each area. He pointed out that the areas shown in red on the aerials referenced the
areas that the HOA currently maintains and that the small red circle identifies the water meter location. He
suggested leaving things as is until September 30, 2016 and form a committee that consists of two Council
Members, Essex Community Management, himself, and two staff members to meet on a regular basis in order to
create a well-defined solution.
Mayor Sanders pointed out that the HOA potentially faced having large capital expenses and that a possible
solution was to determine the cost for the HOA to reimburse the Town for their services since it would take time
to agree upon a final solution. He commented that if the Town were to take over the areas, the Town may not
water and mow as frequently as the HOA preferred.
Council Member Shoffner advised that the plats labeled the four cul-de-sacs and identified that the HOA will
maintain the right-of-way along those areas,as well as the right-of-way of the open lot on Rose Bay.
Discussion took place that the Town's standard procedure to mow and maintain is done 12 to 18 times a year in a
10 foot swath on the other side of the trail,that is opposite of the homes; for a passive area that is not irrigated
then the Town maintains 10 feet on the inside of the trail and next to homes adjacent to the trail; and the HOA is
mowing and maintaining the irrigated areas.
Mr. Louden advised that the HOA currently mows the space inside the red area shown on the aerials and that they
are on a 36 week maintenance schedule.
Town Council Special Session Minutes June 7,2016 Page 2 of 6
Mr. Koen stated that the HOA has paid an upward of$50,000 for water bills and maintenance of the areas over the
last 15 months. He advised that the HOA was turned over to the residents effective January 23, 2016 at a Board of
Directors meeting and prior to that, Essex Community Management owned and maintained the areas.
It was pointed out that the $50,000 did include funds that were paid by Essex Community Management during
their ownership, and that the estimate that the Town paid during that timeframe was approximately$15,000 per
year for water and irrigation costs for property owned by the HOA.
Council Member Shoffner wanted to clear the issue of the notation that the HOA had to use water trucks for an
extended period of time during the transition when the pumps went down for the retention ponds and then going
to a fresh water system. Parks and Recreation Director Adams stated that the transition time was about three
weeks. Mr. Louden believed that the main reason for the water trucks was because they had planted 50 to 75 new
trees.
Main Motion:
Main Motion made by Council Member Rowe,seconded by Council Member Reed,to direct Staff to work with the
appropriate party to transfer the five slip roads platted as separate parcels to Town ownership,designating rights-
of-way where necessary; to transfer the narrow grass strips currently owned by the Highlands HOA adjacent to
stone walls to Town ownership; to transfer the one strip of land running narrowly between Macquarie Street and
Redfern Drive to Town ownership;to direct Staff to take over perpetual maintenance of Town owned open space
currently maintained by the Highlands HOA accepting any areas noted otherwise in previously approved developer
agreements;and to extend the deadline for separating the Town irrigation system from irrigation on the Highlands
HOA owned land to September 30,2016.
Council Member Rowe clarified that the motion includes the small areas of land that are already tied into the
Town's irrigation system,the slip road medians, any land that is Town owned, and land that the HOA is currently
maintaining would be transferred to the Town unless there was a written agreement in place.
Discussion took place about the water meters being turned over to the Town.
Motion to Amend:
Motion to Amend made by Council Member Shoffner, seconded by Mayor Sanders, to include turning over the
meters from Highlands HOA property to Town property within 30 days.
Motion to Amend passed unanimously.
Mayor Sanders advised that there should be a deadline for the Town to take over HOA maintained areas.
Modified Main Motion:
Council Members Rowe and Reed agreed to modify the Main Motion to include a deadline of September 30,2016.
Mayor Sanders inquired if the representatives understood and agreed to the action that Council was making, and
Mr. Louden stated that they were in agreeance.
The vote for the Main Motion as Amended was taken, to direct Staff to work with the appropriate party to
transfer the five slip roads platted as separate parcels to Town ownership, designating rights-of-way where
necessary; to transfer the narrow grass strips currently owned by the Highlands HOA adjacent to stone walls to
Town ownership;to transfer the one strip of land running narrowly between Macquarie Street and Redfern Drive
to Town ownership; to direct Staff to take over perpetual maintenance of Town owned open space currently
maintained by the Highlands HOA, accepting any areas noted otherwise in previously approved developer
agreements,with a deadline of September 30,2016;and to extend the deadline for separating the Town irrigation
system from irrigation on the Highlands HOA owned land to September 30, 2016; and to include turning over the
meters from Highlands HOA property to Town property within 30 days.
Main Motion as Amended carried 6-1-0 with Mayor Sanders, Mayor Pro Tem Lamont,and Council Members Reed,
Rowe,Kurtz,and Shoffner voting for,and Council Member Parrow voting against.
Town Council Special Session Minutes June 7,2016 Page 3 of 6
RECESSED AT 7:35 P.M.FOR A BREAK
RECONVENED AT 7:45 P.M.INTO SPECIAL SESSION
3. Consider and take appropriate action regarding options for ownership, management and operations of
Trophy Club EMS,including fire protection services;discussion of same(Council).
Mayor Sanders stated that the Council directed Staff to review the cost of taking over the Fire Department. He
discussed possible Bond payments from Fiscal Year 2017 to 2031 for the Fire Station and the capital lease of the
new fire ladder truck.
Assistant Town Manager/CFO Glickman explained that the maximum recommended offer for the Fire Station of
$2,908,747 comes from the total Bond payment if called,which includes the principal and interest payments until
2021 and a full payment of the principal amount and the reimbursement reserve.
Mayor Sanders pointed out that there is approximately a 7 cent fire tax rate per$100 valuation from the Trophy
Club Municipal Utility District (TCMUD) No. 1 and in order for the Town to take over the new debt, there is a
potential to have to raise taxes about 7 cents. He noted that based on forecasts of new home development and
property values, Staff believed that it would not increase the current property tax rate. He addressed a comment
made by a TCMUD No. 1 Director that the Fire Department should be sold for fair market value. He believed that
was not appropriate because it technically belongs to the residents and paying a higher rate than the debt amount
is an undue burden. He felt that Fire and EMS services would be better managed under the Town to provide the
best safety and welfare for the residents.
Council Member Parrow inquired what Interim Fire Chief Lasky's insight was since he was the expert. Interim Fire
Chief Lasky responded that there are two boards and two different budget processes that create some difficulties
to proceed with some items. They have 15 dedicated firefighters and a new building owned by another entity that
has water leaks, amongst other issues such as protective clothing. He explained that a large concern was that Fire
staff pensions, through Texas Municipal Retirement System (TMRS), would not carry over if they switched to the
TCMUD No. 1 retirement system, which would also affect recruitment and retention of staff. His personal and
professional opinion would be for Fire and EMS services to be under the management of the Council and Town
Manager,and he acknowledged that it would be a big investment upfront but the payoff would be in the long run.
Council Member Shoffner stated that according to a State report in 2013, regarding pensions, the County
retirement had 120,000 active employees, versus the municipal system of 100,000 active employees, and had a
better rate of returns.
Discussion took place that the TCMUD No. 1 funded approximately $113,000 when they bought into their
retirement system, and that there was a significant difference between an employee who had 20 and 25 years in
TM RS.
Council Member Rowe commented that Fire and EMS needed to have a single reporting structure. He was
concerned about absorbing 7.2 cents onto to the tax rate and 1.25 cents in debt capacity to make up the
difference for not having the Solana tax base, and that there was not a guarantee that the TCMUD No. 1 would
lower their tax rate.
Additional discussion ensued that if a binding referendum was called by the Town for the purchase of the assets
for the Fire Department, it would not be binding for the TCMUD No. 1 to sell it to the Town. Conversation took
place that some of the deficiencies in the Fire Station were being taken care but there were additional repairs that
were needed. The Council discussed the appropriate action to pursue given the upcoming termination of the
Interlocal Agreement for Fire Department Personnel Services on September 30,2016.
Eric Jensen, 2218 McLean Avenue, stated that he served on the Fire/EMS Joint Sub-Committee and had addressed
the Council in 2015. He provided a recap of his findings while serving on the Sub-Committee and stated that he
could have been convinced financially to move the EMS to the TCMUD No. 1, but that the more important issue
was the pension because the firefighters should not lose their TMRS pension.
Town Council Special Session Minutes June 7,2016 Page 4 of 6
Main Motion:
Main Motion made by Mayor Sanders, seconded by Council Member Parrow, to develop a financial offer to the
Trophy Club Municipal Utility District Board No. 1 of$1.9 million for the Fire Station building and $765,000 for the
capital lease of the ladder truck and not to consider the reimbursement reserve.
Mayor Sanders explained that the maintenance issues with the building should be addressed prior to the closing of
the property and that he believed it was appropriate for the Town to make an offer to TCMUD No. 1.
Town Attorney Dodd pointed out that adding a deadline to the motion would be appropriate.
Modified Main Motion:
Mayor Sanders and Council Member Parrow agreed to add a deadline of 60 days for the offer.
Motion to Amend:
Motion to Amend made by Council Member Rowe, seconded by Council Member Shoffner, to state in the offer
that the sum total would be inclusive of all wholly and jointly owned assets of the Fire Department.
Council Member Rowe commented that part of good faith is if there is equity in an asset that has already been
funded by taxpayer funds,it should be transferred at no additional cost.
The vote for the Motion to Amend was taken, to state in the offer that the sum total would be inclusive of all
wholly and jointly owned assets of the Fire Department.
Motion to Amend passed unanimously.
Motion to Amend:
Motion to Amend made by Council Member Parrow, seconded by Mayor Pro Tem Lamont, to include that all
wholly and jointly owned assets include the land under the Fire Station with the purchase.
Motion to Amend passed unanimously.
Council Member Rowe advised that the proposal has the Town, at a minimum, cutting about $150,000 debt
capacity per year and increasing the tax rate by approximately 14 percent in the hopes that if accepted by the
TCMUD No. 1, they would offset most of that in a tax reduction since they would not be operating the Fire
Department.
Mayor Sanders clarified that his understanding from the information provided was that the Town could accomplish
taking over the Fire Department without raising the Town's tax rate for next year, based on estimated income of
property values, and all that would be affected would be how much would be available in bonding capacity for
capital projects.
Town Manager Seidel advised that the residents would not see an increase in their total tax, unless the TCMUD No.
1 did not reduce their tax rate.
The vote for the Main Motion as Amended was taken,to develop a financial offer to the Trophy Club Municipal
Utility District Board No. 1 of $1.9 million for the Fire Station building and $765,000 for the capital lease of the
ladder truck and not to consider the reimbursement reserve, with a deadline of 60 days for the offer; to state in
the offer that the sum total would be inclusive of all wholly and jointly owned assets of the Fire Department; and
to include that all wholly and jointly owned assets include the land under the Fire Station with the purchase.
Main Motion as Amended passed unanimously.
Town Council Special Session Minutes June 7,2016 Page 5 of 6
EXECUTIVE SESSION
4. Pursuant to the following designated sections of the Texas Government Code, Annotated, Chapter 551
(Texas Open Meetings Act),the Council will convene into executive session to discuss the following:
A. Section 551.071 Consultation with Attorney under Subsection (1) when the governmental body seeks
the advice of its attorney about pending or contemplated litigation and Subsection (2)for consultation
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(551.071(1)and(2)):
(1) Legal advice regarding fire and emergency medical services, Interlocal Agreements with the Trophy
Club Municipal Utility District No. 1 for Fire Department Services, Personnel Services, and related
matters.
(2) Legal advice regarding Town authority and enforcement of zoning laws, Town ordinances and
regulations.
B. Section 551.074 Personnel Matters to discuss or deliberate the appointment, employment,evaluation,
reassignment,duties,discipline or dismissal of a public officer or employee:
Personnel services relating to fire protection services.
CONVENED INTO EXECUTIVE SESSION-START TIME—9:22 P.M.
RECONVENED INTO SPECIAL SESSION-START TIME—9:54 P.M.
RECONVENED INTO SPECIAL SESSION
5. Consider and take appropriate action regarding the Executive Session.
No action was taken on this item.
ADJOURN
Motion made by Council Member Rowe, seconded by Council Member Parrow, to adjourn the meeting at 9:54
p.m. Motion passed unanimously.
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Holly Fimbres, own Secretary/ C.C. Nick Sanders, Mayor
Town of Trophy Club,Texas 4
10 Town of Trophy Club,Texas
Town Council Special Session Minutes June 7, 2016 Page 6 of 6