Minutes TC 10/26/2000 - Special SessionMINUTES OF TOWN COUNCIL
SPECIAL TOWN COUNCIL MEETING
FOR THE
TOWN OF TROPHY CLUB
OCTOBER 26, 2000
STATE OF TEXAS
COUNTY OF DENTON
The Town Council of the Town of Trophy Club, Texas met in a Special Session on Thursday, October 26, 2000.
The meeting was held within the boundaries of the Town and was open to the public.
SPECIAL SESSION
TOWN COUNCIL MEMBERS PRESENT:
Marshall Engelbeck
Mayor
Susan Edstrom
Mayor Pro Tem
Barry Huizenga
Council Member
Bill Matthai
Council Member
Scott Smith
Council Member
Barb Tweedie
Council Member
STAFF AND GUEST(S) PRESENT
Donna Welsh
Town Manager
Diane Cockrell
Town Secretary
Jim Buxton
Finance Director
Paul Rosenberger
Patricia Adams
Assistant to Town Manager/MUD Manager
Town Attorney
CALL TO ORDER AND ANNOUNCE A QUORUM
Mayor Engelbeck called the regular meeting to order at 8:02 a.m.
INVOCATION: Council Member Tweedie gave the invocation.
PLEDGE OF ALLEGIANCE TO THE AMERICAN AND TEXAS FLAG: Mayor Engelbeck led the
pledges.
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 PERAIITTED TO TAKE ACTION ON ANY PRESENTATION MADE TO THE
COUNCIL AT TIIIS 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:
There were no citizen presentations.
Page 2 WORKSHOP/REGULAR SESSION October 26, 2000
TOWN COUNCIL TO CONSIDER AND ADOPT AN ORDINANCE OF THE TOWN OF TROPHY
CLUB, TEXAS, AUTHORIZING THE PARTICIPATION OF THE TOWN OF TROPHY CLUB,
TEXAS IN THE CAUSE OF ACTION STYLED THE CITY OF DENTON, TEXAS VS. TEXAS
UTILITIES COMPANY AND LONE STAR GAS COMPANY OR SUCH OTHER CAUSES OF
ACTION AS THE "STEERING COMMITTEE OF CITIES PARTICIPATING IN THE TXU
FRANCHISE LITIGATION" MAY DETERMINE SEEKING DELINQUENT FRANCHISE FEES
FROM TXU, LONE STAR GAS AND OTHER ENTITIES ASSOCIATED WITH TXU; AUTHORIZING
THE EXPENDITURE OF FUNDS FOR ATTORNEY AND EXPERT WITNESS FEES; PROVIDING
FOR THE DESIGNATION AND AUTHORIZATION OF A PRIMARY CONTACT OR LIAISON FOR
THE STEERING COMMITTEE; PROVIDING SEVERABILITY; PROVIDING FOR ENGROSSMENT
AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE:
Council Member Matthai made a motion to bring this agenda item to the Floor for discussion. Mayor Pro Tem
Edstrom seconded, motion carried unanimously.
Mr. Dick Hobday, Utility Franchise Committee, has looked at agreements and spoke to attorneys and Jim
Buxton. This revolves around two things, the $220,000 and sales tax. The sales tax is being included in tariff but
not used to figure franchise fee, the Town could gain $75,000 - $100,000. TXU has chosen not to give us a letter
and will not agree to our attorney's letter.
Council Member Matthai added that this must be viewed as a business deal. Our loss would be a maximum of
$2000. Council Member Matthai has also been under the impression of receiving a letter from TXU.
Harriet Gibbons explained that there is a letter being signed and put in the mail but it would not contain the
language that was submitted by Patricia Adams or cover the cost of an independent audit. In the Houston
lawsuit, all was overturned but a small amount, ruled that there was not a fraud. This is not a class action
lawsuit, Houston will appeal. Customers Aid In Contribution (CAIC) and miscellaneous fees of $1.2 million was
awarded. There is not sales tax on residential electric or gas (according to TXU). There is sales tax on
commercial; cities, churches and schools do not pay sales tax. We will treat all the cities the same and all will be
given the same consideration as Denton. The Town of Trophy Club would need to consider $2000 and audit
costs.
Donna Welsh stated that the staff recommends joining the lawsuit. The Town owes it to the residents to make
sure this is right. If the fees have been figured correctly, that will show.
Mayor Engelbeck called for a vote to approve this Ordinance, as written vote was unanimous. Mayor Pro Tem
Edstrom made an amendment to the Ordinance to designate Paul Rosenberger as designee under Section 3 with
Donna Welsh as a second contact. Council Member Matthai seconded, both motions carried unanimously.
ADJOURN:
Mayor Pro Tem Edstrom made a motion to adjourn at 8:43 a.m. Council Member Tweedie seconded, motion
carried unanimously.
Mayor, own of Troph3kClub, Texas
ATTEST:
Town Secretary, )rown of Trophy Club, Texas