Minutes TC 10/22/2006 - Joint SessionCORRECTED MINUTES OF JOINT WORKSHOP SPECIAL SESSION BETWEEN TOWN COUNCIL
AND THE TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
And TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 2
dba TROPHY CLUB MASTER DISTRICT AND SPECIAL SESSION FOR THE TOWN COUNCIL AND
MASTER DISTRICT FOR 'THE TOWN OF TROPHY CLUB AND SPECIAL SESSION FOR THE TOWN
COUNCIL AND MASTER DISTRICT FOR THE TOWN OF TROPHY CLUB
SUNDAY, OCTOBER 22,2006
1:00 P.M.
LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS
STATE OF TEXAS 5
COUNTY OF DENTON 5
The Town Council of the Town of Trophy Club and the Board of Directors of the Trophy Club Master
District of the Town of Trophy Club, Texas, met in a WorkshopISpecial Session on Sunday, October 22,
2006. The meeting was held within the boundaries of the Town and was open to the public.
TOWN COUNCIL MEMBERS PRESENT:
Nick Sanders Mayor
Roger Williams Mayor Pro Tem
Pam Cates Council Member
Susan Edstrom Council Member
Gregory Lamont Council Member
TOWN COUNCIL MEMBERS ABSENT:
Philip Sterling Council Member
MASTER DISTRICT DIRECTORS PRESENT:
Jim Thomas Vice Chairman
Jim Hase Secretarynreasurer
Carol Borges Secretarynreasurer
James Budarf Board Member
Kevin Carr Board Member
Dean Henry Board Member
Connie White Board Member
MASTER DISTRICT DIRECTORS ABSENT:
Gary Cantrell Chairman
Neil Twomey Board Member
Andy Hayes Board Member
STAFF AND GUEST(S) PRESENT:
Brandon Emmons Town Manager
Roger Unger Finance DirectorIAssistant Town Manager
Lisa Ramsey Town Secretary
Patricia Adams Town Attorney
Walter Fitzpatrick District Manager
Bob West MUD Attorney
Pam Liston MUD Attorney
Mehrdad Moayedi Centurion Development Group
Robert Murray Centurion Development Group
A.l Mayor Sanders announced a quorum and called the meeting to order 1 :10 P.M.
A.2 Chairman Thomas announced a quorum and called the meeting to order at 1:10 P.M.
TOWN COUNCIL AND MASTER DISTRICT TO CONVENE INTO A WORKSHOP SESSION
WORKSHOP SESSION (1:OO - 3:00)
B.l Joint workshop between Town Council and Master District to discuss water and waste water
services for all future development within the Town, including the Highlands at Trophy Club.
Director Budarf confirmed that the two pods in MUD2, identified as 10 and 11 and are not part of this
agreement.
Both Director Budarf and Chairman Thomas believe that the water tank needs to be mentioned in the
agreement, even if it is listed in the PID.
Town Manger Emmons thinks that the water tank should be left out of the agreement as it will be owned
by the Town and may be included in the PID.
Director White stated that the water tank was included in the letter from Centruion that they reviewed the
other night and feels that it is reasonable to include.
Director Henry does not feel that it is necessary to include in the agreement as the infrastructure will be
owned by the Town.
Finance Director Unger suggested that a statement reflecting that the MUDs would have no provisions to
serve any of the infrastructures in the PID areas, be added to the motion.
Mayor Pro Tem Williams feels that although the proposed PID may include the water tower that it should
be added to the agreement.
Director White questioned why this is different. Currently the developer builds the infrastructure and then
deeds it over to the MUDs. Mayor Sanders explained that it would be deeded to the Town, which
would put the Town in the water and wastewater business and the Town would purchase these
services from the MUDs.
Town Manger Emmons advised that Frank Crum with Fort Worth would like some assurance that if the
Town buys Fort Worth water through the MUDs there would not be any long term issues. Fort
Worth would still bill the Master District for water who would then bill'the Town.
MUD Attorney West said that this contract would be similar to the contract the Master District previously
had with Southlake to provide water and wastewater to the area of land around Sabre, as it was
outside both boundaries of the MUD and Town.
Director White confirmed that the Town would have total maintenance responsibilities.
Town Manager Emmons commented that this is the first step in a multi step process and is to determine
the cost up front. First the rate has to be established and then negotiations begin in the
developer's agreement, after that the Town will enter into a separate agreement with the Master
District for services.
Director Budarf said that the Master District is guaranteed by both MUDs and tax dollars to cover all
maintenance costs.
I.
Director Hase added that the water rates cover normal maintenance but not extreme maintenance items
for which both MUD1 and MUD2 contribute to the Master District in order to cover.
Mayor Sanders clarified that the idea for today's workshop was for the Master District to come up with an
agreement determining the payment terms and sum to be paid by the Town of Trophy Club to the
Trophy Club Municipal Utility Districts for delivery of water and wastewater services to the
Highlands of Trophy Club
Mehrdad Moayedi from Centurion clarified his intent is to pay 10% interest of the balance, per annum until
the balance is paid off and that the $2300 per permit is a fixed rate for the whole five years.
End of Workshop Session
TOWN COUNCIL AND MASTER DISTRICT TO RECONVENE INTO REGULAR SESSION
REGULAR SESSION
C.l Master District to discuss and take appropriate action to determine the payment terms and sum to
be paid by the Town of Trophy Club to the Trophy Club Municipal Utility Districts for delivery of
water and wastewater services to the Highlands at Trophy Club, Town Council to respond to
questions and discuss same.
Director Budarf feels that based on his and Director Carr's discussions with Mehrdad Ibloayedi this is a
fair and equitable offer.
Director Borges moved to approve the Town of Trophy Club to pay the Trophy Club MUDs a total of $3.8
million to connect to the existing water and wastewater infrastructure owned by the MUDs and to
provide the elevated storage.
Director Borges removed the motion.
Director Budarf moved to accept the $3.8 million with the caveat that the Town provides the infrastructure;
including the elevated tank.
Director Budarf amended the motion to include subject to the funding of the PID and contract to be
approved by the Master District; Director Carr seconded.
Motion passed unanimously.
Director Henry moved to accept the $540k offer proposed by Centurion upon closing of the PID; Director
Borges seconded.
Motion passed unanimously.
Director White moved that the remaining $3.26 million be paid at the time of permitting, $2300 per permit;
Director Hase seconded.
The mover amended the motion to include 518 inch equivalent; the second agreed.
Motion passed unanimously.
Director Henry moved to accept the guarantee of 150 permits per year (cumulative) by Centurion;
seconded by Director Carr.
Motion passed unanimously.
Director Borges moved requiring that the developers comply with the 10% per annum on the remaining
balance, paid to the Town as a pass through to the MUDs, the MUDs would accept the earnings
of 10% of the $2300.
Director Borges withdrew the motion.
Director Hase moved that a 10% interest per annum will be paid by the City to the MUDs on the unpaid
portion of the $3.26 million balance after 5 years; seconded by Director Budarf.
Director Hase amended the motion to include from the date of the first permit annually; the second
agreed.
MUD Attorney Liston clarified the motion for the record, "A 10% interest per annum will be paid by the City
to the MUDs on the unpaid portion of the $3.26 million balance after 5 years from the date of the
first permit annually."
Motion passed unanimously.
D.l Town Council to Adjourn.
Motion made by Council member Lamont, seconded by Mayor Pro Tem Williams to adjourn.
Council adjourned at 2:10 P.M.
Master District took a 10 minute recess.
Master District reconvened into workshop at 2:23 P.M.
Master District discussed the potential of the allocation of developer fees between the two MLIDs.
D.2 Master District to Adjourn.
Chairman Thomas closed the workshop at 3:00 P.M.
Master District adjourned at 3:00 P.M.
Town of Trophy Club, Texas Town of Trophy Club, Texas