Minutes TC 09/19/2016 - Joint Session MINUTES FROM TOWN COUNCIL JOINT SESSION
FOR THE TOWN OF TROPHY CLUB
LOCATION:100 MUNICIPAL DRIVE,TROPHY CLUB,TEXAS
Monday,September 19,2016 at 6:30 P.M.
Svore Municipal Building Boardroom
The Town Council of the Town of Trophy Club,Texas, met in a Joint Session with the Trophy Club Municipal Utility
District (TCMUD) No. 1 Board of Directors on Monday, September 19, 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 Tern, 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
Steven Glickman Assistant Town Manager/CFO
Holly Fimbres Town Secretary/RMO
Adam Adams Parks and Recreation Director
Patrick Arata Police Chief
Rick Lasky Interim Fire Chief
Mike Pastor Information Services Director
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.1 BOARD MEMBERS PRESENT:
Kevin Carr President
Greg Wilson Vice President
Jim Hase Secretary/Treasurer
Bill Rose Director
Jim Thomas Director
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO.1 STAFF PRESENT:
Laurie Slaght District Secretary
Paul Liston Legal Counsel
Renae Gonzales Finance Manager
Mayor Sanders announced the date of Monday, September 19, 2016, called the Town Council to order and
announced a quorum at 6:37 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.
JOINT SESSION
1. Consider and take appropriate action regarding an Interlocal Cooperation Agreement for Administration of
Fire Protection Services between the Town of Trophy Club and Trophy Club Municipal Utility District No. 1;
and authorizing the Mayor or his designee to execute all necessary documents.
Mayor Sanders provided a presentation that displayed changes to the Interlocal Cooperation Agreement for
Administration of Fire Protection Services proposed by the Town of Trophy Club and Trophy Club Municipal Utility
District(TCMUD)No. 1.
Assistant Town Manager/CFO Glickman recommended changing "expenses" to "expenditures" within the third
proposed Whereas clause. Both entities agreed to the change so that the third Whereas clause read as follows:
the PID pays their part of the fire expenditures through an assessment from the Town.
Discussion took place that the word "portions"within the first Whereas clause included the areas that were out of
the District and out of the PID as identified in the previously approved Second Amended Interlocal Cooperation
Agreement for Fire Protection Services.
Council was in favor of extending the initial term of the agreement to five(5)years within Section 1.2,Term,and to
have a review performed in July 2017 to be consistent with the budget cycle. After the TCMUD No. 1 Board of
Directors discussed their preferences, there was consensus from both entities to change the initial trial period to
five (5) years, to have a joint meeting to review the agreement in July 2017, and for the agreement to
automatically be extended for an additional five (5) year term unless written notice of nonrenewal is given in
accordance with Section X.
TCMUD No. 1 Board Director Rose requested to remove "Emergency Medical Services" with the definition for
"Fire-fighting Activities", "Fire Protection Services", or "Fire Functions" because it would create a conflict with
Section B, Funding. There was consensus from both entities to proceed with the removal of"Emergency Medical
Services".
Council Member Shoffner suggested that the prepared budget be presented to both entities during a joint meeting
within Section 3.1, Budget and Funding, Subsection A, Budget Preparation, as opposed to being presented to both
entities separately.
Council was in favor of amending the first paragraph within Section 3.1, Budget and Funding,Subsection A, Budget
Preparation, to read as follows: Town shall prepare a budget for Fire Protection Services and present that budget
to the Town Council and District for approval at a joint meeting before August 1 of each year. Both parties shall
approve the contractual budget by August 15 of each year. Budget amendments requiring additional funding shall
be submitted for approval to both Town Council and District. This Agreement does not impact the authority of
District to set the appropriate tax rate for District.
After discussing the TCMUD No. 1 budget related to fire services and required budget deadlines, both entities
agreed to the proposed amended paragraph.
Both entities agreed not to implement the proposed addition of"with the exception of 2016" within the second
paragraph of Section 3.1, Budget and Funding,Subsection A, Budget Preparation.
There was consensus from both entities to amend Section 3.1, Budget and Funding, Subsection B, Funding,
Paragraph 3 to read as follows: District shall fund 100% of all fire capital replacement costs through an annual
capital replacement contribution as defined herein, in accordance with the terms of the approved Fire Budget
through the assessment and collection of an annual Fire Tax on the property owners of District.
Discussion took place that the District will continue to pay all outstanding debt obligations incurred and existing
prior to the commencement of the contract term,which would be subtracted from the amount owed to the Town.
Town Council Joint Session Minutes September 19,2016 Page 2 of 5
TCMUD No. 1 Board Director Rose desired to add a paragraph that dealt with budget overages and shortages for
each year. Both entities agreed to add Paragraph 6, within Section 3.1, Budget and Funding, Subsection B,
Funding, to read as follows: Budget overages or shortages shall be applied proportionally during the months of
April to September of the current budget year.
After discussing the process of the collection for the PID assessment, both entities were in favor of amending
Subsection C, Payment, within Section 3.1, Budget and Funding, to read as follows: Payments from the District for
the purpose of Fire Protection Services shall be paid to the Town on a monthly basis.The monthly payments shall
constitute the entirety of the annual contract divided by twelve (12) months, minus total PID assessment fee for
Fire Protection services, beginning on October 31 and concluding on September 30 of each fiscal year of the term
of the Agreement, and thereafter for each successive year in which this Agreement is in effect. Payments will
become past due fifteen (15) business days after the established due date. The total amount of existing fire
protection debt service shall be netted out.
There was consensus not to include TCMUD No. 1 Board Director Rose's recommendation to add "The District may
review Fire Protection Services and coordinate modifications with the Town. The District may inspect, maintain,or
repair District assets under this agreement during reasonable hours. The Town shall be informed of findings and
actions taken,or to be taken"to Section 4.1, District Obligations and Rights.
Both entities agreed to leave Section 4.2,Town Obligations and Rights,Subsection C,as originally stated and to not
include TCMUD No. 1 Board Director Rose's nor Board President Carr's proposed changes.
Discussion took place that the Town would be responsible for providing Fire Protection Services to Eligible Persons,
including but not limited to assuming full responsibility for the operational control and management of Fire
Protection Services,previously under the control and direction of District.
Both entities were in favor of the addition of Subsections G, H, and I within Section 4.2, Town Obligations and
Rights,so that they read as follows:
G. Town will provide an annual report regarding status and maintenance of fire station, engine/pumper,
brush truck, and ladder truck. Additionally, Town will continue to meet and/or exceed the requirements
set by the NFPA and TCFP.
H. District may hire Fire Auditors of their choice to review physical Fire Department assets and operator
practices on an annual basis for benefit of District and Town; audit may occur during the month of April.
(See Attachment"B").All Auditors fees will be paid by the District.
I. The Town shall provide the District timely notice of any accident, damage, dangerous or defective
condition relating to District assets under this agreement.
Lengthy conversation took place regarding ownership of assets and if one entity purchased an asset solely, then
that asset would belong to that entity if the other entity was not billed for the asset. Therefore, both entities
agreed to leave Section 5.1, Ownership, as originally written: Prior to the commencement of this agreement, all
assets owned or directly purchased by District utilized for Fire Protection Services shall remain the property of
District. This Agreement does not affect right, title or interest to such property. All assets owned or directly
purchased by Town utilized for Fire Protection Services shall remain the property of the Town. This Agreement
does not affect right,title,or interest to such property.
There was consensus to amend Section 6.1,Control and Oversight,to read as follows:Town shall have control and
oversight over Fire Protection Services and control and oversight over Emergency Medical Services. Town shall
have exclusive authority to establish Standard Operating Procedures for Fire/EMS Protection Services. (hereinafter
collectively, "SOPs").
Town Council Joint Session Minutes September 19,2016 Page 3 of 5
Additionally, both entities agreed to amend Section 6.2, Benefits and Human Resources Services, as follows: In
accordance with Town personnel policies,Town shall provide benefits and human resources services to all eligible
employees providing Fire Protection Services. DISTRICT shall provide funding as set forth in Subsection 3.1(8).The
Parties understand and agree that on and after the effective date of this Agreement, all employees providing Fire
Protection Services shall be Town employees and shall be solely subject to Town personnel policies and SOPs.
RECESSED AT 8:55 P.M. FOR A BREAK
RECONVENED AT 9:04 P.M. INTO JOINT SESSION
Both were in favor of removing the original Section 10.1:This Agreement may be terminated during the last year
of the Initial Term without cause by either party giving written notice to the other party on or before April 1, 2021
for termination effective September 30, 2021 or by written notice on or before April 1 during the last year of any
renewal term of this Agreement for termination effective on September 30 of the last year of the then current
five(5)year renewal term.
Additionally,there was consensus to change 90 days to 180 days within the new Section X, Default/Termination so
that it read as follows: In the event that either party hereto breaches any term or condition of this Agreement,this
Agreement may be terminated by the aggrieved party if such default is not cured within a period of one hundred
eighty (180) days after receipt of written notice of default by the party allegedly in breach of its obligations
hereunder. At the option of the aggrieved party, if such default is not cured within the one hundred eighty (180)
day period, this Agreement shall immediately terminate without further notice, unless an extension is mutually
agreed and approved by both Town and District.
TCMUD No. 1 Board President Carr and Board Secretary/Treasurer Hase were in favor of adding Section XV,Annual
Financial Audit, to read as follows: Town shall provide any documents requested by auditors of District no later
than November 30 of each year.
Both entities agreed to the addition of Section XV,Annual Financial Audit.
There was agreeance from both entities to strike the statement"Audit to be performed by independent consultant
retained by the District" and to strike Item No. 8, "Check for replenishment of major assets through GASB
accounts"from Attachment B.
Motion to Table:
Motion made by Mayor Sanders,seconded by Council Member Shoffner,to table Agenda Item No. 1.
Motion passed unanimously.
After proceeding to Agenda Item No. 2, in order to allow Town Attorney Dodd and TCMUD No. 1 Legal Counsel
Liston to make the appropriate amendments to the Interlocal Cooperation Agreement for Administration of Fire
Protection Services, both entities came back to Agenda Item No. 1.
Motion to Remove from the Table:
Motion made by Mayor Sanders, seconded by Council Member Rowe, to remove Agenda Item No. 1 from the
table.
Motion passed unanimously.
Motion:
Motion made by Council Member Shoffner, seconded by Mayor Pro Tem Lamont, to approve the Interlocal
Cooperation Agreement for Administration of Fire Protection Services,as amended at the dais.
Motion passed unanimously.
Assistant Town Manager/CFO Glickman advised that an item would be added to the September 27, 2016 Council
meeting to adopt the contractual amount for Fire Protection Services as stipulated in the approved agreement.
Town Council Joint Session Minutes September 19,2016 Page 4 of 5
2. Discussion of future joint meetings and agenda items.(N.Sanders)
Mayor Sanders placed this item on the agenda to allow for discussion of proposed topics and dates for future joint
meetings.
Mayor Pro Tern Lamont was in favor of adding an item to the next joint session to review the negotiation of
transferring the title of land that the Annex Building was built on to the Town of Trophy Club.
Discussion took place to hold off on the purchase of the Fire Chief Vehicle for another year since repairs were
being made to the current vehicle.
Mayor Sanders requested to add an item to the next joint session for TCMUD No. 1 to provide a status of their
water and wastewater capacity specific to their treatment plant.
Both entities agreed to schedule their next joint meeting in January 2017.
RECESSED AT 9:26 P.M. FOR A BREAK
RECONVENED AT 10:14 P.M. INTO JOINT SESSION
(Town Secretary Note:After the break, both entities went back to Agenda Item No. 1 to remove the item from the
table and take final action)
ADJOURN
Motion made by Council Member Reed,seconded by Council Member Kurtz,to adjourn the meeting at 10:18 p.m.
Motion passed unanimously.
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Town Council Joint Session Minutes September 19,2016 Page 5 of 5