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Minutes TC 05/07/2007MINUTES OF REGULAR TOWN COUNCIL MEETING FOR THE TOWN OF TROPHY CLUB LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS Monday, May 7,2007 7:00 P.M. STATE OF TEXAS 5 COUNTY OF DENTON 5 The Town Council of the Town of Trophy Club, Texas, met in a Regular Session on Monday. May 7, 2007. The meeting was held within the boundaries of the Town and was open to the public. TOWN COUNCIL MEMBERS PRESENT: Nick Sanders Roger Williams Pam Cates Susan Edstrom Philip Sterling Gregory Lamont STAFF AND GUEST(S) PRESENT: Brandon Emmons Lisa Ramsey Patricia Adams Sakura Moten-Dedrick Scott Kniffen Danny Thomas Carolyn Huggins Kirk Wilson Jim Sabonis Robert Miklos Lila Marsh Trip Davenport Keenan Rice Jim Wiegert Greg Schaecher Mehrdad Moayedi Mayor Mayor Pro Tern Council Member Council Member Council Member Council Member Town Manager Town Secretary Town Attorney Finance Director Police Chief Fire Chief Planning Coordinator Centurion Development Group First Southwest Company Hughes and Luce Bond Counsel, Vinson & Elkins Bank of America MuniCap Carter and Burgess McCall, Parkhurst and Horton L.L.P. Centurion Development Group A.l Mayor Sanders called the Regular Session to order at 7:08 p.m. noting a quorum was present. A.2 Reverend Barry Clingan with The Church at Trophy Lakes gave the Invocation. A.3 Police Chief Kniffen led the Pledges. Mayor Sanders introduced and welcomed the new Planning and Zoning Coordinator, Carolyn Huggins. A.4 Discuss and take appropriate action regarding a Proclamation proclaiming May 13-19, 2007 as National Police Week. Mayor Sanders read the proclamation. Motion made by Williams, seconded by Edstrom to approve. Motion passed unanimously without further discussion. A.5 Tarrant County Commissioner Gary Fickes to address Council on transportation issues, and Council discussion of same. Commissioner Fickes was unable to attend due to illness, his presentation has tentatively been rescheduled for the July 2, 2007 Town Council meeting. Mayor Sanders read a statement regarding the freedoms of speech and said that he is deeply saddened by the activities of political zeal and noted that the defacement of a political sign last week has prompted him to speak out. Sanders requested that all candidates and supporters act only with the highest degree of integrity and in a way that is fitting of the residents of the Town of Trophy Club. A.6 Citizen presentations: Janet Lamont, 15 Avalon Drive - Submitted a letter thanking the Police Department for acting so promptly regarding the hate crime committed in the defacement of one of Council member Lamont's signs. Bob Radder, 1 Lee Court - Addressed Council regarding Council member Lamont's campaign actions. Rhonda Radder, 1 Lee Court- Deferred her time to Bob. Jennifer Radder, 1 Lee Court - Deferred her time to Bob. Council member Lamont asked permission to respond. Mayor Sanders advised that the rules and procedures do not do not allow for him to comment or debate. Mayor Pro Tem Williams understood that Council member Lamont could not respond, but feels Mr. Radder's comments were inappropriate and residents should not be allowed to attack Council members personally during the Citizen Presentation. TOWN COUNCIL CONVENED INTO PUBLIC HEARING PUBLIC HEARING 8.1 Public Hearing: To consider the Petition for the Creation of a Public Improvement District within the Town of Trophy Club for the Highlands at Trophy Club Residential Development. Public Hearing Opened at 7:27 p.m. Margi Cantrell, 1105 Sunset Drive - Encouraged the Council to consider if the PID approval would unnecessarily overload the future residents and questioned if the Council is creating a separate class of Trophy Club residents by approving the PID. Gary Cantrell, 1105 Sunset Drive - Deferred his time to Margi. Public Hearing Closed at 7:40 p.m. TOWN COUNCIL RECONVENE INTO REGULAR SESSION 'REGULAR SESSION C.1 Discuss and take appropriate action relative to Final Plat approval of an approximate 12.23 acre tract of land legally described as A. Medlin Survey, Abstract No. 832, known as Churchill Downs. Applicant: Southwest T.O.O. Development L.L.C. (FP-07-011) A. Discuss and take appropriate action regarding the approval of the Subdivider's Agreement for a 12.23 acre tract of land legally described as A. Mediin Survey, Abstract No. 832, known as Churchill Downs. Mayor Sanders announced staff's recommendation to move this item to the next meeting, as they are waiting on written approval for the right-of-way easement on the sanitary sewer line from the Corps of Engineers. There were no objections from Council. Item moved to the May 21"' 2007 meeting. C.2 Discuss and take appropriate action on a request for Preliminary Plat approval for Lots 1 and 2, Block 1 and Lots 1 and 2, Block 2, NWlSD High School No. 2, being 92.655 acres of land located in the T. Calaway Survey, Abstract 272, the T. Kelly Survey, Abstract 704m and the J. Henry Survey, Abstract 529. Applicant: MJ Thomas Engineering, LLC. (PP-07-015) Mayor Sanders introduced Mickey Thomas from MJ Thomas Engineering, Stephan Eiwood with Corgan and Mehran Aghili, NISD Construction Manager. Stephan Eiwood presented aerial views of the High School layout. Planning and Zoning Chairman Hill said the Commission recommended approval of this Preliminary Plat by a vote of 5-1 at their April 19, 2007. Commissioner Sheridan voted in opposition and did not express a reason. Motion made by Cates, seconded by Edstrom to approve. Council member Sterling requested Mr. Elwood explain the handouts. Eiwood explained the site analysis, schematic design, design development, elevation studies, perspectives, site plan, floor plans and Academic wing. Eiwood added that there will be around 40 class rooms with a student body of approximately 2,400. Mayor Sanders questioned the library as a joint use facility. Stephens explained the sidewalk with green area on both sides would serve as the separate entrance into the library allowing for joint use. On behalf of NISD, Mehran Aghili thanked the Council and said that NlSD is glad to be part of this. Motion passed unanimously without further discussion. C.3 Discuss and take appropriate action regarding awardlrejection of bid(s) for Paving and Drainage Improvements for portions of Trophy Club, Greenleaf and Timberline Drives. Town Manager Emmons said the bids came in lower than expected. The recommendation received by Teague Nail and Perkins, was to award the bid to the low bidder, McMahon Contracting L.P. with the total bid of $1,429,090.02. Motion made by Edstrom, seconded by Williams to award the bid to McMahon Contracting L.P. Mayor Sanders asked if Council is limited to awarding the bid to the lowest bidder. Town Manager Emmons explained there are provisions to allow Council not to award to the lowest bidder; however the provisions do not apply in this case. Town Engineer, Tom Rutledge from Teague Nall and Perkins confirmed that the Town has used this firm twice before. Rutledge said McMahon worked the first phase of the Indian Creek repairs and the Town's concern of the inadequate supervision that occurred was expressed to McMahon. McMahon said that supervisor is no longer with their company. Mayor Pro Tem Williams questioned when the new Street Superintendent was expected to be hired and requested this employee be present when the concrete is poured. Town Manager Emmons intends to make an offer tomorrow. Emmons added that the MUDS are aware of their responsibility to repair their portion of the line in the amount of $166,744.75. Motion passed unanimously without further discussion. C.4 Discuss and take appropriate action regarding an Ordinance authorizing the issuance and sale of Town of Trophy Club, Texas, Combination Tax and Revenue Certificate of Obligation, Series 2007, in the principal amount of $474,000; levying an annual ad valorem tax and providing for the additional security and payment of said Certificate of Obligation; awarding to purchaser; and enacting other provisions relating to the subject. Town Manager Emmons said this Is a continuation of the Harmony Park project improvements and is the finalization of the bonds. Mayor Sanders announced that Greg Schaecher from McCall, Parkhurst and Horton L.L.P. was in attendance. Motion made by Edstrom, seconded by Cates to approve. Mayor Pro Tem Williams expressed concern that this document does not reflect A- paper. Finance Director, Sakura Moten-Dedrick explained that EDC already approved a Resolution for up to 6%. Williams responded that the Certificates of Obligation have changed. Motion to amend by inserting Whereas, EDC 4A has agreed to fund the CO's; and made by Williams, seconded by Cates. Council member Edstrom thinks this sends a bad message that Council does not trust the Corporation. Council member Cates feels it tightens up the legal aspect Motion to amend passed 5:l; with Edstrom opposing. Council member Cates pointed out the clerical error of the repeated Now therefore. Main motion passed unanimously without further discussion. C.5 Discuss and take appropriate action regarding the approval of an expenditure of EDC 4A funds not to exceed sixty one thousand nine hundred and thirty four dollars and seventy nine cents ($61,934.79) for the replacement and repair of pool infrastructure and additional shade structure and furniture amenities. Town Manager Emmons explained the determination by two different consultants that the pool pumps at the community pool are the wrong product for our system and need to be replaced prior to the beginning of the season. The additional upgrades will reduce staff time and problems staff has consistently experienced with the chemical operations of the pool. The shade structures are being requested as there is a lack of coverage in this area for the residents that use the pool and are the number one complaint of parents that monitor their children from outside the pool. Emmons added that EDC 4A has already approved. Motion made by Edstrom, seconded by Sterling to approve Council member Sterling is in favor of replacing the pumps and questioned if there is any recourse against the original contractor for installing an incorrect pump. Town Manager Emmons explained that the warranty has expired and suggested the Town send a letter asking for reimbursement, as litigation would be too costly. Council member Cates questioned the internal inspection and does not feel the Town can request reimbursement for not providing adequate oversight. Council member Lamont questioned if the Community Pool Evaluation as included on page 79 of the packet is routine. Mayor Sanders and Council member Edstrom responded that this is the first time they have seen this. Mayor Pro Tem Williams requested the Parks Director report back all deficiencies at the pool. Motion passed unanimously without further discussion. C.6 Discuss and take appropriate action regarding the Petition for the Creation of a Public Improvement District within the Town of Trophy Club for the Highlands at Trophy Club Residential Development and a Resolution authorizing the creation of the District. Motion made by Edstrom, seconded by Williams to approve. Council member Sterling questioned why the agreement differed from the verbal commitment of 150 tap fees per year. Mayor Sanders referred Council to the revised copy that reflects 150 tap fees per year. The mover and second agreed to the correction. Kirk Wilson, corrections should be under C.7. This item is for the creation of the PID. Mr. Wilson feels that all requirements have been satisfied for approval of the petition and hopes to return on June 4Ih for the approval of the service and assessment plan. Mr. Wilson said the cost of the total assessment is determined by five lot categories. Trip Davenport of Bank of America commented that they have worked with the developer and cautioned it is critical not to over burden the land issues as this is within the norm and is very conservative. Council discussed whether the PID fees are tax deductible. Kirk Wilson would not give a tax opinion. Council member Sterling questioned if the developer has intentions of creating an HOA. Mehrdad Moayedi said in order to enforce their deed restrictions, which are stricter than the Towns', there will need to be an HOA. Jim Sabonis from First Southwest Company said the cap is the assessment plan put into place; this is the actual per lot fees that are calculated and cannot be Increased. Kirk Wilson added that even after Council approval of the Agreement, they would still have the discretion to change the numbers when approving the Service and Assessment Plan. Mayor Pro Tem Williams confirmed that Council is only approving the $30 million cap tonight. Mayor Sanders clarified that the developer could have taken all of this and simply raised the price of the lots and then raised the prices over several years and in several pieces. This option allows municipalities to sell bonds with favorable interest, which allows the Town to build projects that they did not have the tax base to do so before and allows the Town to complete the building of the existing infrastructure. Sanders confirmed that the amounts in the Exhibit are interchangeable and that only the formation of the PID is before Council. Mehrdad Moayedi ensured that they have been working diligently on the connector road. Council preference for the maintenance of roads and the amenities is that the project be a Town project that all residents pay for, rather than a particular HOA. Margi Cantrell, 1105 Sunset Drive - Challenged Council if this is the right group to approve as the Council could change over the weekend. Motion passed unanimously without further discussion, C.7 Discuss and take appropriate action regarding the Highlands at Trophy Club Development and Public Improvement District Agreement. Mayor Sanders confirmed the correction of changing 100 to 150 meter fees under Section 3.3 and replacing the word ordinance with official action under Section 13.4. Mehrdad Moayedi added another correction, as just agreed by the MUDS, that at the end of the five year term the developer would pay 10%. Robert Miklos read the language to be inserted in Section 3.3; On or after May 7, 2013, the Town shall calculate the total amount of master fees paid by the Owner. The Town shall provide the Owner written notice of any amount paid less than $3,260,000 (the "Meter Fee Remainderq. The Meter Fee Remainder shall either be paid in thirty (30) days of notice, or a letter of credit, or other financial security, as approved by the Town, shall be submitted to the Town, securing ten percent (10%) annual rate of interest of the Meter Fee Remainder. Each May fh thereafter, the Owner shall provide a letter of credit or other financial security, approved by the Town, securing the ten percent (70%) annual rate of interest of any remaining amount of meter fees paid less than $3,260,000, until the full $3,260,000 is paid. Payments towards the Owner's Guarantee will be credited toward future meter fee obligations and are not a penalty. Town Manager Emmons commented this agreement is between the Town and Developer and if the developer would like to offer this agreement to the Town as a pass through to the MUD, the Town would then enter into contract with the MUD. Town Attorney, Patricia Adams agrees the Master District is not a party to this agreement and the Council could address this as a pass through fee. MUD1 President, Dean Henry thinks this is a legal question that should be deferred to the MUD attorney. Mayor Sanders clarified that the MUDS are not part of this agreement and that there will be two other agreements between the Town and MUDs. Sanders said the Council could not guarantee to the amount and to do so would be inappropriate. Mehrdad Moayedi confirmed the money would pass through the Town to the MUDs. Motion made by Edstrom, seconded by Williams to approve with the corrections in Section 3.3 changing 100 to 150, section 13.4 to replace ordinance or resolution to official action and section 3.3 to include the following: On or after May 7, 2013, the Town shall calculate the total amount of master fees paid by the Owner. The Town shall provide the Owner written notice of any amount paid less than $3,260,000 (the "Meter Fee Remainder'?. The Meter Fee Remainder shall either be paid in thirty (30) days of notice, or a letter of credit, or other financial security, as approved by the Town, shall be submitted to the Town, securing ten percent (10%) annual rate of interest of the Meter Fee Remainder. Each May 7th thereafter, the Owner shall provide a letter of credit or other financial security, approved by the Town, securing the ten percent (10%) annual rate of interest of any remaining amount of meter fees paid less than $3,260,000, until the full $3,260,000 is paid. Payments towards the Owner's Guarantee will be credited toward future meter fee obligations and are not a penalty, and replace the Master District with the Town. Council member Lamont would like to see the rate changed based upon square footage and lot sizes. Keenan Rice from MuniCapp said the assessments would be targeted on the lots not the value of the home. Mayor Pro Tem Williams clarified the PiD improvements at $23 million and the Council's discretion to change the levy in order for the developer to complete the projects within the $23 million budget. Kirk Wilson responded that the developer is trying to set the amount. Council member Edstrom fervently opposes a HOA. Mehrdad Moayedi explained the deed restrictions will be more stringent than what the Town requires. Council member Sterling questioned the 15-year repayment on the bond and the projected life span of the streets and monuments. Mehrdad Moayedi advised the public streets and monuments become the Town's responsibility once put in. Council member Lamont would like to insert allocated separately to the Shared Cost Water Tower Costs in section 8.2. Mayor Sander called a 6 minute recess. Council member Cates expressed concern that the disclosure does not indicate that this is a PiD. Kirk Wilson assured the builders will require more information and disclosure than the Town could add to an agreement. Cates questioned if the Town could legally limit the implementation of a HOA. Town Attorney, Patricia Adams said the subdivision regulations would address this and did not want to comment without researching. Mehrdad Moayedi requested the attorneys meet and discuss the deed concerns. Mayor Pro Tem Williams amended his motion to include the revisions discussed in Sections 3.3 and 8.2; the second agreed. The amendment passed unanimously. Council member Lamont verified that Mehrdad Moayedi had received no offers, incentives or financial incentives. Motion passed unanimously without further discussion. C.8 Items for Future Agenda. Mayor Sanders added the agreement for the US Mayors Climate Protection Agreement on Global Warming, discussion about North West Commerce Community Development Survey and review of the Sign Ordinance. Council member Cates requested the Ordinance establishing the Town's Emergency Management System be pushed up. Council member Edstrom requested an item to appoint a new EDC 4A Liaison. C.9 Reports. Town Manager's Report. Town Council did not convene into Executive Session. TOWN COUNCIL CONVENED INTO EXECUTIVE SESSION *EXECUTIVE SESSION D.l Pursuant to Texas Government Code, Annotated, Subchapter 551, Section 551.071 (a) & (b) "Consultation with Attorney", the Council will enter into executive session to discuss the following: (A) Consultation with Town 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 (b)). (1) Legal advice relative to The Highlands at Trophy Club Development and Public Improvement District Agreement and Petition for Creation of the PID. TOWN COUNCIL RECONVENED INTO REGULAR SESSION *REGULAR SESSION E.l Discuss and take appropriate action relative to Executive Session Item Number Dl F.l Adjourn. Motion made by Sterling, seconded by Edstrom to adjourn. Meeting adjourned at 10:05 p.m. / /30 , ~ka Ramsey, Town secretay Nick Sanders, Mayor Town of Trophy Club, Texas Town of Trophy Club. Texas