Minutes TC 05/19/2010 - Joint SessionMINUTES FROM SPECIAL JOINT SESSION BETWEEN THE TOWN COUNCIL AND TCMUD
No. 1 FOR THE OWN OF TROPHY CLUB
LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS
Wednesday 19, 2010 6:30 PM
Svore Municipal Building Boardroom
STATE OF TEXAS §
COUNTY OF DENTON §
The Town Council of the Town of Trophy Club, Texas, met in a Special Joint Session with Trophy
Club Municipal Utilities District No. 1 on Wednesday, May 19, 2010. The meeting was held within
the boundaries of the Town and was open to the public.
TOWN COUNCIL MEMBERS PRESENT:
Connie White Mayor
Bill Rose Council Member
J.D. Stotts Council Member
Margi Cantrell Council Member
Larry Hoover Council Member
TOWN COUNCIL MEMBERS ABSENT:
Glenn Strother Mayor Pro Tem
TCMUD No. 1:
Jim Thomas President
Jim Moss Vice President
Kevin Carr Secretary/Treasurer
Bill Armstrong Director
Nick Sanders Director
STAFF AND GUEST(S) PRESENT:
Stephen Seidel Acting Town Manager
Robert Scott District Manager
Lisa Hennek Town Secretary
Mary Moore MUD Secretary
Patricia Adams Town Attorney
Danny Thomas Fire Chief
Kathy DuBose Finance Director
Mayor White announced the date of May 19, 2010, called to meeting to order and
announced a quorum at 6:30 p.m.
President Thomas announced a quorum for TCMUD No. 1.
Special Joint Session
2010-293-T Consider and take appropriate action regarding the SEMO Committee's
recommendation.
Minutes dated May 19, 2010 Joint Session with TCMUD 1
Mayor White announced that the Town Council authorized Staff to begin drafting a Contract for
Services at the May 17, 2010 council meeting.
TCMUD1 President Thomas advised that TCMUD No. 1 passed a like motion at their May 18,
2010 meeting.
No action taken.
2. 2010-289-T Presentation by Council member Rose for proposed Organizational
Structure; discussion of the same.
Council member Rose explained the organizational chart includes the cost of service agreement
between the Town and the MUD No. 1; is open for changes and revisions and that it is a very
bare bones concept. The following are the key points:
■ MUD 1 is actively involved in hiring the new Town Manager to insure Manager's ability to
manager Cost of Services Agreement with MUD 1.
■ MUD 1 executes Cost of Services Agreement with Town for all operational areas (water,
waste water, Fire).
• MUD 1 retains full responsibility.
■ MUD 1 retains all current physical assets and full taxing/budgeting
authority/responsibility.
■ Town Manager shall oversee the administration of the Cost of Services Agreement per
Town Charter.
■ MUD 1 District Manager becomes Director of Public Utility Department.
■ MUD 1 has liaison seated at Town Council.
■ Town transfers EMS responsibility to MUD 1 and MUD 1 executes EMS contract for
services with the Town.
Mayor White commented that both entities are making a lot of progress, yet there are more things
to do. White feels that the processes first need to be developed before taking the step as
presented by Council member Rose and most likely not this year
TCMUD1 President Thomas agreed with Mayor White stating that both organizations are
extremely well run and do run things together at this time and that this proposal needs to be kept
as merely a possibility.
Director Armstrong stated considering all the new players, suggested that the Acting Town
Manager, District Manager and Fire Chief work together and bring their ideas back to this group
during a future joint session.
Mayor White agreed stating that the Council needs to focus and listen to the Staff and the Town
has a Council Manager form of government.
Council member Hoover questioned the organization chart, the relationship of the cost of services
agreement, and which employees would remain under the MUD.
TCMUD1 President Thomas said the first plan deals with only ten employees.
Council member Rose clarified that the chart presented is part of a four step plan developed to
create trust as each phase is implemented. The chart presented is actually of phase three of four
phases. Rose stated that he cannot advocate a total split.
Council member Cantrell said that she understands that things are much better between the
Acting Town Manager and District Manager. Cantrell asked that the entire group be mindful that
the Town cannot tax other city; however, a MUD can tax another jurisdiction. The suggested flow
Minutes dated May 19, 2010 Joint Session with TCMUD 1 2
chart might be construed as a change in taxing authority over the area outside the Town's area.
People have predicted that the Town might loose the Solana revenue stream and this could force
the loss of nearly $950,000 in revenues annually from this area. Cantrell questioned if the group
is willing to test or jeopardize this kind of money by implementing a Public Utility Department and
changing the District Manager to a department head. She reminded everyone that $950,000
equates to approximately 8 or 9 cents in tax rates to the citizens.
TCMUD1 President Thomas and Mayor White agreed that both need to be cautious in order to
protect this income and continue to find a way to work together.
Director Carr stated he felt the flow chart gives the perception the Town is over the MUD and
further that everyone needs to remember the MUD needs to work with Solana as they are a very
large customer that should be satisfied. Further stated he did feel this is simply a starting point for
the future.
Council member Rose said that he received advice from a reputable legal counselor who stated
that the MUD could implement a cost of service agreement. Rose questioned if a Cost of Service
Agreement might increase the probability of the dissolution of the MUD, and he suggested a third
party agreement on the matter between the Town, Westlake and the MUD would be necessary.
Rose stated that there are still a lot of questions that need to be answered before moving forward
and he is not interested in losing this money either.
TCMUD1 President Thomas clarified there is only one other MUD in the State with boundaries
similar to Trophy Club's and it is located in Austin.
Director Sanders questioned how a Cost of Service Agreement governs one manager reporting to
two people and whether they interface with the MUD Board or the Town Council may cause some
conflicts of interest. Sanders said that it may be beneficial for the Council to look for a Town
Manager candidate with Water/Waste Water experience when hiring the next Town Manager for
a better understanding of the MUD, as has been the case in the past.
Discussion only, no action
3. 2010-290-T Consider and provide input to Staff regarding the Emergency Medical and
Fire Services contract.
TCMUD1 President Thomas shared that Trophy Club is the only MUD with a paid full time staff
for a Fire Department with the ability to take on the operation of the EMS. Additionally, the MUD's
financial stability is the best ever. The current Fire Plan is from 1983 and will cost less than
$5,000 to be revised by legal staff, the plan then must be reviewed and accepted by TCEQ and
then voted on by the citizens via a referendum. To have a referendum on the May 2011 Ballot, it
must be submitted by February. Approval by the TCEQ may take 4 to 6 months. Thomas said
that he has spoken with Maguire Partners who supports the MUD, which should go a long way
with TCEQ. Thomas also feels confident that this can be done without raising the tax rate and
may result in a possible 2 cent savings with the inclusion of the Solana area. Like the Town, the
MUD can also cap the tax on 65+ residents. Thomas asked if the group feels this idea has merit
enough to direct staff to start revising the plan.
Director Sanders stated that this is a good concept, providing the reorganizational costs can be
balanced and not transferred from one entity to another. Sanders stated that he supports the idea
of amending the plan regardless of whether the MUD takes over EMS or not as the current plan
says the MUD won't do EMS.
TCMUD1 President Thomas clarified that the Town tax reduction would be 2 cents for the
citizens, if the Town passed the cost of EMS to the MUD. The MUD still needs to find a way to
cover costs without raising taxes and can possibly find funding in revenues or reserves thereby
Minutes dated May 19, 2010 Joint Session with TCMUD 1 3
not needing to raise MUD taxes by 5 cents. Council member Cantrell verified that the Council
would not be obligated to transfer EMS to the MUD should they decide they do not want to after
the plan is submitted to and approved by TCEQ, the MUD taking over EMS services would allow
them to offer joint fire and EMS services to another community.
Mayor White stated for the record that the Town and the MUD could offer joint services currently
as well.
Director Carr stated that the MUD only pays for the services that they receive benefit for, like IT
servers and routers. Carr supports revising the plan and including EMS as an option to the
Contract for Services. Carr cautioned that Solana is not a blank check book and the MUD needs
to consider what the EMS transfer to the MUD would do for this customer as right now Westlake
provides EMS services to Solana for free.
TCMUD1 President Thomas said that Richard Kulman from Maguire Partners is completely
willing to fund this and would consider it an insurance policy, as they have concerns with the way
some things are going on in Westlake. Thomas stated that currently all parties are paying the
same amount for fire services - the Town, Solana and the PID. Thomas said that unless the Town
Council has serious objection, TCMUD1 will direct District Manager Scott to begin revising the
plan.
Council member Rose asked how the PID plays into this. Acting Town Manager Seidel stated that
the fire tax is paid by everyone at the same cost.
Mayor White clarified that if EMS was transferred to the MUD, the city tax would not go down
seven cents as we still have capital expenditures, park bonds and maintenance and this would
only lesson the blow. She further stated that the Town Staff should begin looking at how the EMS
change would affect staff, etc., so that the Town does not wait too long to begin thinking about the
process.
Director Carr stated that the first step is for the MUD to revise the fire plan.
TCMUD1 President Thomas confirmed consensus from the TCMUD1 Board to direct staff to start
revising the fire plan.
Director Sanders suggested having a citizen work on the Fire Plan and then have the attorney
review the revisions in order to save some funds. TCMUD1 President Thomas indicated he could
work on the document and then have it reviewed by legal.
4. 2010-291-T Consider and take appropriate action scheduling Joint Sessions between
the Town Council and TCMUD No. 1.
The group agreed to schedule quarterly meetings and than cancel should it not be necessary to
meet at those scheduled times.
S. 2010-292-T Acting Town Manager Seidel's update regarding the search for a new
Town Manager; discussion of the same.
Acting Town Manager Seidel first thanked the group stating that this was the first positive Joint
Session he has participated in.
Gary Holland with The Mercer Group interviewed all departing and newly elected Council
members and Department Directors last week. Mayor White and Acting Town Manager have
already reviewed the draft profile and the opening is posted to The Mercer Group's website with a
Minutes dated May 19, 2010 Joint Session with TCMUD 1
July 9, 2010 application/resume deadline. The process should move very quickly after the July 9,
2010 deadline.
Update only, no action.
6. 2010-266-T Consider and take appropriate action regarding the Town Council's
relationship with TCMUD No. 1 relative to the hiring of a new Town Manager.
Mayor White advised that District Manager Scott was interviewed by Gary Holland with the
Mercer Group and will be included going forward. White said that this Item is posted more for an
update on attitude rather than action.
TCIVIUD1 President Thomas appreciates the Town having the MUD participate.
Mayor White asked what items the group would like to discuss at the next meeting.
Council member Rose suggested discussing Parks. Fire Chief Danny Thomas suggested
Emergency Disaster Plan.
ADJOURN
Motion to adjourn made by Cantrell, seconded by Rose to adjourn at 7A3 p.m.
Lisa Hennek, Town Secretary
Town of Trophy Club, Texas
Cofinie White, Mayor
Town of Trophy Club, Texas
Minutes dated May 19, 2010 Joint Session with TCMUD 1 5