BOARD OF DIRECTORS Regular Meeting Agenda TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 100 MUNICIPAL DRIVE TROPHY CLUB, TEXAS 76262 July 21, 2015 6:00 P.M. Svore Municipal Boardroom PUBLIC HEARING AND REGULAR MEETING CALL TO ORDER AND ANNOUNCE A QUORUM PUBLIC HEARING Public Hearing is called regarding proposed water and sewer rates. CITIZEN PRESENTATIONS This is an opportunity for citizens to address the Board on any matter whether or not it is posted on the agenda. The Board is not permitted to take action on or discuss any presentations made to the Board at this time concerning an item not listed on the agenda. The Board will hear presentations on specific agenda items prior to the Board addressing those items. You may speak up to three (3) minutes or the time limit determined by the President 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 Board has authority. Presentation materials to be provided to the Board or displayed in the meeting using District audio‐visual equipment must be submitted in advance in accordance with District Order No. 2014‐ 1204B. CONSENT AGENDA All matters listed as Consent Agenda are considered to be routine by the Board of Directors and will be enacted by one motion. There will not be a separate discussion of these items. If discussion is desired, that item will be removed from the consent agenda and will be considered separately. 1. Consider and take appropriate action to approve the Consent Agenda. a. June 2015 Check Register b. June 5, 2015 Special Meeting Minutes c. June 16, 2015 Regular Meeting Minutes d. Resolution No. 2015‐0721A authorizing wire transfers through Prosperity Bank e. Quarterly Investment Report – 3 rd Quarter FY 2015 attachments: June 2015 Check Register June 5, 2015 Special Meeting Minutes June 16, 2015 Regular Meeting Minutes Resolution No. 2015‐0721A Quarterly Investment Report REGULAR SESSION 2. Consider and take appropriate action to adopt District Rate Order No. 2015‐0721A amending water and sewer rates and setting effective date of September 1, 2015. attachment: District Rate Order No. 2015‐0721A Trophy Club Municipal Utility District No. 1 1 of 254 July 21, 2015 - Public Hearing/Regular Meeting
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BOARD OF DIRECTORS Regular Meeting Agenda
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
100 MUNICIPAL DRIVE TROPHY CLUB, TEXAS 76262
July 21, 2015 6:00 P.M. Svore Municipal Boardroom
PUBLIC HEARING AND REGULAR MEETING CALL TO ORDER AND ANNOUNCE A QUORUM PUBLIC HEARING
Public Hearing is called regarding proposed water and sewer rates. CITIZEN PRESENTATIONS This is an opportunity for citizens to address the Board on any matter whether or not it is posted on the agenda. The Board is not permitted to take action on or discuss any presentations made to the Board at this time concerning an item not listed on the agenda. The Board will hear presentations on specific agenda items prior to the Board addressing those items. You may speak up to three (3) minutes or the time limit determined by the President 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 Board has authority. Presentation materials to be provided to the Board or displayed in the meeting using District audio‐visual equipment must be submitted in advance in accordance with District Order No. 2014‐1204B. CONSENT AGENDA All matters listed as Consent Agenda are considered to be routine by the Board of Directors and will be enacted by one motion. There will not be a separate discussion of these items. If discussion is desired, that item will be removed from the consent agenda and will be considered separately. 1. Consider and take appropriate action to approve the Consent Agenda.
a. June 2015 Check Register b. June 5, 2015 Special Meeting Minutes c. June 16, 2015 Regular Meeting Minutes d. Resolution No. 2015‐0721A authorizing wire transfers through Prosperity Bank e. Quarterly Investment Report – 3rd Quarter FY 2015
attachments: June 2015 Check Register June 5, 2015 Special Meeting Minutes June 16, 2015 Regular Meeting Minutes Resolution No. 2015‐0721A Quarterly Investment Report
REGULAR SESSION 2. Consider and take appropriate action to adopt District Rate Order No. 2015‐0721A amending water and
sewer rates and setting effective date of September 1, 2015. attachment: District Rate Order No. 2015‐0721A
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3. Consider and take appropriate action regarding 2014 Consumer Confidence Report. attachment: 2014 Consumer Confidence Report
4. Consider and take appropriate action regarding findings and recommendations of the District and Town
Fire/EMS Consolidation Committee and provide direction to staff regarding the Interlocal Agreement for Fire Department Personnel Services with the Town of Trophy Club dated January 7, 2013. attachment: January 7, 2013 ILA for Fire Department Personnel Services with Town of TC
5. Consider and take appropriate action regarding compensation request from customer at 552 Indian Creek Drive, Account No. 003‐0111417‐200, for alleged damages caused by the District. attachments: Summary and Timeline
6. Consider and take appropriate action to approve Obligation Letter from the developer of Isle of Turnberry in lieu of Nonstandard Service Agreement. attachment: Standard Pacific Obligation Letter
7. Consider and take appropriate action to adopt Order No. 2015‐0721B amending District Code of Ethics
policy. attachment: Order No. 2015‐0721B Code of Ethics
8. Consider and take appropriate action regarding District Investment Policy including:
a. Appoint District Investment Officer(s). (J. Thomas) b. Adopt Order No. 2015‐0721C approving Amended and Restated Investment Policy. attachment: Order No. 2015‐0721C Investment Policy ‐redline
9. Consider and take appropriate action to adopt Order No. 2015‐0721D approving Cash Reserve Policy.
(Hase) attachment: Order No. 2015‐0721D Cash Reserve Policy
10. Consider and take appropriate action to approve an Automatic Aid Agreement for Fire Services with
Roanoke Fire Department. (D. Thomas) attachment: Automatic Aid Agreement for Fire Services with Roanoke Fire Department
11. Consider and take appropriate action to approve an Interjurisdictional Mutual Aid Agreement for Fire
Services with Denton County. (D. Thomas) attachments: Staff Report Interjurisdictional Mutual Aid Agreement
12. Consider and take appropriate action regarding mowing services for FY 2016 including:
a. Provide staff direction regarding mowing services included in 2013 Interlocal Agreement for Contractual Services with the Town of Trophy Club
b. Approve bid and award contract for mowing services at District properties starting October 1, 2015 and allow the General Manager to execute the contract.
attachments: 2013 Interlocal Agreement for Contractual Services with the Town of Trophy Club Bid Summary – Mowing Services
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13. Consider and take appropriate action regarding permitting requirements for Wastewater Treatment Plant Project through the Town of Trophy Club and request for waiver from subdivision regulations. (J. Thomas)
14. Consider and take appropriate action regarding emergency expenditure for replacement of water plant
generator. 15. Consider and take appropriate action regarding the June 2015 financials.
a. Combined Financials b. Variance Report attachments: Combined financials Variance Report
REPORTS & UPDATES 16. General Manager Monthly Report for June 2015
a. Water System Operation b. Wastewater System Operation c. Website Analytics d. Finance Update
Utility Billing Reports
PID Connections
Permits Collected
Cash Status Report e. Project Status Updates
Wastewater treatment plant upgrade project
Sewer line relocation project at Sabre Building
Sewer line relocation project at Lift Station No. 2
Water line relocation project in Solana
Pebble Beach, Timberline, and Pin Oak Court water line upgrade project
PID Connections Permits Collected Cash Status Report 17. Fire Department Report for June 2015
a. Operations Report b. Volunteer Recruitment Report
attachment: Operations Report
CLOSED SESSION The Board will conduct a Closed Session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: 18. Section 551.071 Consultation with 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
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conflict with the Open Meetings Act and/or matters of pending or contemplated litigation: a. Wastewater Treatment Plant Requirements under Texas Administrative Code, Chapter 217 and
Chapter 309. b. New service commitment obligations for water and wastewater service. (Moss) c. Interlocal Agreement for Contractual Personnel Services with the Town of Trophy Club dated January
7, 2013. (Carr) d. Interlocal Agreement for Fire Department Personnel Services with the Town of Trophy Club dated
January 7, 2013 and potential terms for future agreement. (Carr and J. Thomas) e. Interlocal Cooperation Agreement for Fire Protection Services with the Town of Trophy Club dated
December 15, 2008. (Carr)
19. Deliberations pursuant to Section 551.074(a)(1) of the Texas Open Meetings Act regarding the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee: Jennifer McKnight, General Manager (Carr)
RECONVENE INTO REGULAR SESSION 20. Consider and take appropriate action regarding Closed Session items. 21. Items for future agendas: 22. Announce upcoming meeting dates: Regular meeting ‐ August 18, 2015 at 6:00 p.m. Budget Workshop – August 19, 2015 from 8:30 a.m. to 11:00 a.m.
attachment: meeting calendar ADJOURN
*THE BOARD RESERVES THE RIGHT TO ADJOURN INTO A CLOSED SESSION AT ANY TIME DURING THE MEETING FOR THE PURPOSE OF SEEKING THE ADVICE OF ITS ATTORNEY ABOUT ANY ITEM ON THE AGENDA, PURSUANT TO SECTION 551.071 OF THE TEXAS GOVERNMENT CODE. CERTIFICATION THE STATE OF TEXAS § COUNTIES OF DENTON AND TARRANT § THIS CERTIFIES THAT BY JULY 17, 2015 BY 4 P.M. A COPY OF THE ABOVE NOTICE OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1, BOARD OF DIRECTORS REGULAR MEETING TO BE HELD ON TUESDAY, JULY 21, 2015 AT 6:00 P.M., WAS POSTED ON THE FRONT WINDOW OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1, ADMINISTRATION BUILDING LOCATED AT 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS, WHICH IS A PLACE CONVENIENT TO THE PUBLIC WITHIN THE BOUNDARIES OF THE DISTRICT. A COPY OF THIS NOTICE WAS ALSO PROVIDED TO THE COUNTY CLERKS OF DENTON AND TARRANT COUNTIES TO BE POSTED ON THEIR WEBSITES OR AT A PLACE CONVENIENT TO THE PUBLIC PURSUANT TO SECTION 49.063 OF THE WATER CODE AND SECTION 551.054 OF THE OPEN MEETINGS ACT, CHAPTER 551 OF THE TEXAS GOVERNMENT CODE. LAURIE SLAGHT, DISTRICT SECRETARY
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apackamt2 rgonzale Trophy Club MUD #1 07/13/15 10:09 Page 1
AP Checks For Date/Amount Range
Begin Date: 06/01/2015 End Date: 06/30/2015 From Amt: .00 To Amt: 99,999,999.99
Vendor Vendor Name Invoice Number Invoice Inv Dept Account Description Line Item Check Check
Totals for Fund: 135 MUD 1 General Fund 695,682.80
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apackamt2 rgonzale Trophy Club MUD #1 07/13/15 10:09 Page 13
AP Checks For Date/Amount Range
Begin Date: 06/01/2015 End Date: 06/30/2015 From Amt: .00 To Amt: 99,999,999.99
Vendor Vendor Name Invoice Number Invoice Inv Dept Account Description Line Item Check Check
Number Date Stat No Number Value Number Date
3080 THE WALLACE GROUP, INC. 44275 05/31/15 P 20 518-69005-020-000 Capital Outlays 1,225.00 35058 06/18/15
3080 THE WALLACE GROUP, INC. 44279 05/31/15 P 20 518-69005-020-000 Capital Outlays 570.00 35058 06/18/15
Totals for Check: 35058 1,795.00
Totals for Fund: 518 2015 Revenue Bond Const Fund 1,795.00
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Grand Totals: 731,549.28
****** End of Report *********
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SPECIAL MEETING TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
BOARD OF DIRECTORS JUNE 5, 2015 at 10:00 A.M.
100 Municipal Drive, Trophy Club, Texas 76262 The Trophy Club Municipal Utility District No. 1 Board of Directors, of Denton and Tarrant Counties, met in a Special Session on June 5, 2015 at 10:00 A.M., in the Boardroom of the Administration Building, 100 Municipal Drive, Trophy Club, Texas 76262. The meeting was held within the boundaries of the District, and was open to the public. STATE OF TEXAS § COUNTY OF DENTON AND TARRANT §
DISTRICT BOARD MEMBERS PRESENT Jim Moss President Jim Hase Vice President Kevin Carr Secretary/Treasurer Jim Thomas Director Neil Twomey Director STAFF PRESENT: Jennifer McKnight General Manager Laurie Slaght District Secretary Renae Gonzales Finance Manager Terri Sisk Administration Manager CALL TO ORDER AND ANNOUNCE A QUORUM President Moss announced the date of June 5, 2015, and called the meeting to order and announced a quorum present at 10:00 a.m. REGULAR MEETING 1. Consider and take appropriate action regarding proposed water and sewer rates including:
a. Summary and review of rate model developed by J. Stowe Group (aka NewGen Strategies). b. Water rate assumptions and proposed rates. c. Sewer rate assumptions and proposed rates. d. Set dates for public hearing, rate adoption, and effective date of rates.
Director Thomas read a statement into the minutes which is attached to the minutes. General Manager McKnight told the Board that she recommends holding a public hearing in July and have new rates take effect on the September 2015 utility bill. McKnight gave the board a presentation of the models reviewed by the committee and the associated rates. Director Hase stated that the committee has tried to treat all customers the same and fairly. He is not in favor of the 18,000 gallon cap. He stated that he believes the no cap scenario treats everyone the same. He feels that winter averaging is not a fair rate practice because it only benefits the higher user and is a detriment to lower users. Director Twomey commended the committee and General Manager for the presentation and for using real users for the comparisons in the presentations and models.
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Director Thomas stated that 45% of our customers use less than 10,000 gallons. Director Thomas praised Renae and Terri for their work on the committee. General Manager McKnight stated that wastewater rates are driven by quality and flow and here in Trophy Club, there are no differences in quality between commercial and residential so our rates are solely based on flow. She stated that her recommendation would be to use the “Status Quo” rates presented as it prevents rate shock and keeps the rates fair across the board. Director Thomas stated that he too prefers the status quo scenario. Director Carr concurs and feels that status quo is the most fair to residents. Motion made by Director Twomey and seconded by Director Carr to adopt table one for the water rates. Motion carried unanimously Motion made by Director Carr and seconded by Director Twomey to adopt the status quo wastewater rate scenario. For: Thomas, Moss, Carr & Twomey Against: Hase Motion carried Motion made by Director Twomey and seconded by Director Thomas to set the effective date of the new rates for September 1, 2015 and to set the Public Hearing for the July regular meeting. Motion carried unanimously ADJOURN President Moss adjourned the Meeting at 11:22 a.m. ___________________________ Jim Moss, President ____________________________ (SEAL) Kevin R. Carr, Secretary ____________________________ Laurie Slaght, District Secretary
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MUDl Rate Committee Report to the Full MUDl Board
Forward: In 2014, TCMUD1 adopted a new set of water and sewer rates based on a ten month study
and eventual recommendations from J. Stowe & Co, one of the leading consultants in the State of Texas
in helping Municipalities and MUD Districts analyze and set proper water and sewer rates. Their
recommendations were based on methodologies established by the American Water Works Association
(AWWA) and rates that are adopted by the State's regulatory agency (TCEQ). The methodology selected
by TCMUD1 used "cost of service" to determine rates, based on "customer classes". In Trophy Club we
have three customer classes: residential, commercial and out of district. The Stowe study provided a
five-year framework, and a very in-depth, intense, model for future use as the District so desired.
Entering the second year of that proposal, the MUD1 Board set up a "Rate Study Committee" to
reevaluate the original information, and ensure the best possible information was developed for the full
board as it determines what rate structure needs to be adopted for the second year. Today's report has
been developed by that committee and is being submitted for the full review and subsequent approval
by the full MUD1 Board as it determines which set of new rates best accomplishs all objectives.
Factors Used by the Committee: First and foremost, the revenues generated must be sufficient to pay
for all water and sewer expenses; and should be established so that the District can start to build up a
buffer of reserves in these areas. The overall process must treat each customer class fairly. The Stowe
"model" was used by the committee as it already has the proper breakdowns of fixed versus variable
cost percentages for every line item in the water and sewer budget. Costs are higher for this next year,
for multiple reasons, and the new rates must be set to cover these increased costs.
Objectives Set by the Committee: We decided that the two major objectives from the rate setting of
2014 were still paramount: 1) to minimize the overall cost effect on low volume users as we felt a large
percentage of these are retired home owners in Trophy Club and many may be living on a fixed budget,
and 2) to use sewer rates to "compliment" our efforts towards overall water conservation. The recovery
of $929,000 in reserves this next year was established as a major objective, and rates need to be set
accordingly. Based on recent history, $300,000 was allocated for capital water projects and another
$300,000 for capital sewer projects. In the water rate, the base rate should cover all"fixed" water costs.
Multiple approaches were investigated with the final objective of seeing exactly how each approach
affects the two major objectives carried over from last year.
Approaches Being Brought Forward for Full Board Review and Approval: Using the Stowe model, and
the "objectives" stated above, the committee is recommending one specific approach to water rates.
That approach will be shown within the General Manager's presentation. Concerning sewer rates, the
committee decided to broaden its evaluations as much as possible, and selected four different
approaches for the presentation to the full Board. 1) Continue with the Stowe numbers, keeping the
sewer cap at 18,000 gallons; 2) Winter Averaging; 3) No cap on sewer costs- every account pay for
sewer costs based on each accounts total use of water; and 4) Divide the total sewer cost by the total
number of meters, charging each meter the same amount each month for sewer costs. Staff was asked
to prepare six views of all four approaches; comparing each view to our current rate cost, and
presenting them such they can be compared against each other, for the full Board's review and eventual
decision. In each approach, the overall"cost" for water and sewer are recovered by the rates
established for that approach, and reflected in the six views for that approach. The views for residential
include usage at 5000, 10000, 15000, 20000, 25000 and 30000 gallons. Please note that we have a
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Director Thomas asked that his statement be included into the minutes of the Special Meeting held on June 5, 2015.
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number of residential accounts that use in excess of 30000 gallons monthly, but the committee felt that
these six views would provide sufficient information as they cover the majority of our residential
customer base. Just be aware that the larger volumes in excess of 30000 gallons will generate additional
cost to those customers, in several of the four approaches.
The views for commercial usage include: 25000, 50000, 75000,100000, 125000 and 150000 gallons.
The final data prepared by the committee will now be presented by our General Manager, Ms. Jennifer
McKnight.
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REGULAR MEETING TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
BOARD OF DIRECTORS June 16, 2015 at 6:00 P.M.
100 Municipal Drive, Trophy Club, Texas 76262 The Trophy Club Municipal Utility District No. 1 Board of Directors, of Denton and Tarrant Counties, met in a Regular Session on June 16, 2015 at 6:00 P.M., in the Boardroom of the Administration Building, 100 Municipal Drive, Trophy Club, Texas 76262. The meeting was held within the boundaries of the District, and was open to the public. STATE OF TEXAS § COUNTY OF DENTON AND TARRANT §
DISTRICT BOARD MEMBERS PRESENT Jim Moss President Jim Hase Vice President Kevin Carr Secretary/Treasurer Jim Thomas Director Neil Twomey Director STAFF PRESENT: Jennifer McKnight General Manager Laurie Slaght District Secretary Renae Gonzales Finance Manager Terri Sisk Administration Manager Karl Schlielig Wastewater Superintendent Mike McMahon Water Superintendent Donnie Hurd Fire Captain Pam Liston General Legal Counsel CALL TO ORDER AND ANNOUNCE A QUORUM President Moss announced the date of June 16, 2015, called the meeting to order and announced a quorum present at 6:00 p.m. CITIZEN PRESENTATIONS Danny Mayer 2201 Prestwick Ave. Bill Rose 219 Inverness Drive CONSENT AGENDA 1. Consider and take appropriate action to approve the Consent Agenda.
a. April 07, 2015 Special Meeting Minutes b. April 28, 2015 Joint Meeting Minutes c. May 19, 2015 Regular Meeting Minutes the is they d. May 28, 2015 Special Meeting Minutes were is was e. May 2015 check register f. Approve Interlocal Agreement with Denton County for tax collection.
Motion made by Director Twomey and seconded by Director Hase to approve the Consent Agenda.
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Director Thomas would like to amend the May 19, 2015 Regular Meeting minutes to correct a typo in Agenda Item No. 7. “decided the they may include” Director Carr would like to amend the April 7, 2015 Special Meeting minutes regarding Item No. 4. “agreement that were was discussed”. Motion with corrections to the April 7, 2015 Special Meeting minutes and May 19, 2015 Regular meeting minutes carried unanimously. REGULAR SESSION 2. Consider and take appropriate action to elect the following officers of the Board of Directors:
a. President b. Vice President c. Secretary/Treasurer
President Moss called for nominations for president of the Board of Directors.
Motion by Director Carr and seconded by Director Hase nominating Director Moss for President. Motion carried unanimously Motion by Director Hase and seconded by Director Thomas nominating Director Twomey for Vice President. Motion carried unanimously Motion by Director Moss and seconded by Director Hase nominating Director Carr for Secretary/ Treasurer. Motion carried unanimously 3. Consider and take appropriate action to approve Interlocal Cooperation Agreement for July 4th
Community Event with the Town of Trophy Club.
Motion made by Director Carr and seconded by Director Moss to approve the Interlocal Cooperation Agreement for July 4th Community Event with the Town of Trophy Club including District participation in the amount of $10,000 and authorize the Board President to sign the agreement after the Town Council has approved as written.
Motion carried For: Moss, Twomey, Carr Against: Hase, Thomas 4. Consider and take appropriate action regarding Bank Depository Services proposals received, award
contract, and authorize the General Manager to execute contract for services and all necessary paperwork for depository services.
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General Manager McKnight presented an overview of the bid tab and stated that staff recommends Prosperity Bank for the District’s Depository. McKnight stated that Prosperity offered the E‐box services through a third party vendor for a fee of $50 per month but there are no other monthly fees to the District. In addition Prosperity offered the highest interest rate at a floor of .35% with possible increases. Motion made by Director Hase and seconded by Director Twomey to award the contract for Bank Depository Services to Prosperity Bank and allow the General Manager to execute the contract for services and all necessary paperwork for depository services. Motion carried unanimously 5. Consider and take appropriate action regarding Fire Department Operational Assessment proposals
received, award contract, and authorize the General Manager to execute contract for services. General Manager McKnight stated that four bids were received from the following companies: ESCI (Emergency Services Consulting International), McGrath, Matrix and MGT of America. After thorough review, staff and the director committee recommends selecting ESCI (Emergency Services Consulting International).
Motion made by Director Twomey and seconded by Director Carr to award the bid and approve the contract as proposed for a Fire Department Operational Assessment with ESCI (Emergency Services Consulting International) for an amount of $28,379 and authorize the General Manager to execute the contract for services. Motion carried unanimously
6. Consider and take appropriate action to appoint Pamela Liston with Liston Law Firm as General Legal
Counsel for Trophy Club Municipal Utility District No. 1.
Motion made by Director Thomas and seconded by Director Twomey to appoint Pamela Liston with the Liston Law firm as General Legal Counsel for Trophy Club Municipal Utility District No. 1 and approve the terms of the engagement letter presented. Motion carried unanimously
7. Consider and take appropriate action to adopt Order No. 2015‐0616, amended Board of Director
Code of Ethics.
The Board requested staff to make some changes to the document including removing the wording added to Article V (Code of Conduct).
Motion made by Director Carr and seconded by Director Twomey to table this item for further review by the Board and to bring it back at the next regular meeting for consideration. Motion carried unanimously
8. Consider and take appropriate action to approve an Interjurisdictional Mutual Aid Agreement for
Fire Services with Denton County.
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Motion made by Director Carr and seconded by Director Twomey to table this item until further information can be obtained from the Fire Chief. Motion carried unanimously 9. Consider and take appropriate action regarding summary of active Interlocal Agreements between
the District and other governmental entities. General Manager McKnight presented the Board with a list of all active Interlocal Agreements between the District and other governmental entities as requested by Director Twomey.
No action taken. 10. Consider and take appropriate action regarding the May 2015 financials.
a. Combined Financials b. Variance Report
Motion made by Director Carr and seconded by Director Twomey to approve the May 2015 combined financials and variance report as presented. Motion carried unanimously Motion by Director Hase and seconded by Director Thomas to change the reserve from fund balance to cash in the bank. Motion carried unanimously The Board directed staff to include the cash flow report in the packet monthly and include the fund balance report in the packet quarterly. The Board also directed staff to prepare a Cash Reserve Policy and bring it back to the July meeting for review. REPORTS & UPDATES 11. Update from Board Committees:
a.Fire/EMS Consolidation Committee (FECC) Director Carr stated that the committee met prior to the Board meeting today. In attendance was himself, Director Twomey, Philip Shoffner, Eric Jensen and Lou Opipare phoned in. Mr. Kurtz was absent. Director Carr stated that the committee worked on their final presentation and discussed target dates for presentation to the Council and Board. Director Twomey added that it was discussed if the presentation should be to both at a joint meeting or in separate meetings. Director Hase questioned which options were discussed that would allow the Fire Chief to report to one person. Director Carr stated the three scenario’s discussed were MUD operate Fire and EMS, Town operate Fire/EMS, and status quo with changes to the existing Interlocal Agreement. Carr added that the consensus of the committee was that the Town Manager should be in charge of personnel and the District General Manager could have input on SOP’s (Standard Operating Procedures) as some have two components, a Fire side and an EMS side.
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Director Hase stated that he felt the day to day fire operations should be solely under the direction of the Town Manager, including: hiring, firing appraisals and discipline. Hase stated that the Town Manager should prepare the fire budget and submit to the Board for approval and monthly payments by the District and when necessary, interim budget adjustments for fire will be submitted to the MUD Board for approval. Hase said he would have the District’s General Manager approve the Fire SOP’s and have the Town Manager enforce them. He would keep the Fire and EMS tax assessment the same. Hase stated he feels the District General Manager should not be involved in the day to day operations of the Fire Department and the net impact would be similar to hiring an outside contractor to run the Fire Department. All Fire and EMS employees should be considered Town employees. 12. General Manager Monthly Report for May 2015
a. Water System Operation b. Wastewater System Operation c. Website Analytics d. Finance Update
Fund Balance Report Preliminary tax assessment reports from Denton and Tarrant Counties.
e. Project Status Updates Wastewater treatment plant upgrade project
Sewer line relocation project at Sabre Building Sewer line relocation project at Lift Station No. 2 Water line relocation project in Solana
Pebble Beach, Timberline, and Pin Oak Court water line upgrade project
Water System Study
Security Deposit from THB Contractors f. Sanitary Sewer Overflow in April 2015 at the inverted syphon in the Public Improvement District
General Manager McKnight presented the monthly update to the Board and answered questions related thereto.
12. Fire Department Report for May 2015
a. Operations Report b. Volunteer Recruitment Report
Captain Hurd presented the Fire operations report and answered related questions. CLOSED SESSION – THE BOARD DID NOT CONVENE INTO CLOSED SESSION The Board will conduct a Closed Session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: 14. Pursuant to section 551.071, the District will consult with its attorney on a matter in which the duty
of the attorney to the Governmental Body under the Disciplinary Rules of Professional Conduct of
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the State Bar of Texas clearly conflicts with the Open Meetings Act or to seek advice of counsel on legal matters involving pending or contemplated litigation or settlement offers:
a. Agreement with THB Construction for security for potential fines due to sewer infiltration
caused by negligent construction of sewer line in Water’s Edge at Hogan’s Glen Phase 3.
15. Consider and take appropriate action regarding Closed Session items. 16. Items for future agendas:
Cash reserves policy Meeting date for FECC reports
Budget workshop possibly on August 19th 17. Announce next regular meeting date: July 21, 2015 at 6:00 p.m.
ADJOURN President Moss adjourned the Meeting at 8:21 p.m. ___________________________ Jim Moss, President ____________________________ (SEAL) Kevin R. Carr, Secretary ____________________________ Laurie Slaght, District Secretary
Trophy Club Municipal Utility District No. 1 28 of 254 July 21, 2015 - Public Hearing/Regular Meeting
t.:*·• : I PROSPERITY BANKlW .. ....,., Resolution Authorizing Execution of Transfer of Funds (Wire Transfer) Agreements
From time to time, this corporation/bank (hereinafter referred to as "Company") electronically requests Prosperity Bank, P 0 Drawer G, El Campo, Texas 77437 (hereinafter referred to as "Bank") to transfer funds from account(s) at Bank to other banks for credit to persons/accounts designated by Company or from one Company account to another Company account in a manner that makes it inconvenient or impossible to execute the written authorizations, instructions, and releases required by Bank so that Bank may have standing instructions upon which to act pursuant to electronic requests for the transfer of funds.
Now, therefore be it resolved that the officer(s) of the Company designated below:
NAME OFFICIAL TITLE
be, and they each hereby are, authorized and empowered to execute and deliver on behalf of Company, any and all written agreements as such person deems necessary or appropriate to enable Company to establish binding contractual relationships for honoring requests for the transfer of funds, including electronic requests, such agreements to contain such terms and provisions as such person shall deem necessary or appropriate, and each of such persons is specifically authorized and empowered to name, appoint and authorize the persons who will effectuate transfers of funds on behalf of Company and to revoke such appointments and authorizations as such person in his discretion deems proper, and each of such persons is hereby further authorized and empowered for and on behalf of Company and in its name to do any and all acts necessary or appropriate to carry out the purposes of these resolutions; and
Resolved further, that the Secretary of the Company is authorized and empowered, from time to time, and at any time, to certify to Bank (I) the fact that the foregoing resolutions have been duly adopted by the Board of Directors of Company and are in full force and effect and (ii) the names and titles of the officers authorized to act pursuant to the foregoing resolutions, and to make such other and further certifications and to do any and all of the acts necessary or appropriate to carry out these resolutions.
Indemnification. Company agrees to indemnify, defend and hold the Banks (and the Controlled Disbursement Bank, if applicable), individually and collectively, their parent company, affiliates and subsidiaries, directors, officers, employees and agents harmless from and against any damage, loss or liability of any kind, including without limitation, reasonable attorney's fees and court costs which result directly or indirectly, in whole or in par from the Services.
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Trophy Club Municipal Utility District No. 1 29 of 254 July 21, 2015 - Public Hearing/Regular Meeting
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Approved by: Attest: ___________________________ ___________________________________ Jim Moss, President Kevin R. Carr, Secretary Board of Directors Board of Directors
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RESOLUTION NO. 2015-0721A
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TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
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Jennifer McKnightGeneral Manager
Certificate of Secretary
I, the undersigned, Secretary of (hereinafter referred to as "Company") do hereby certify that I am the custodian of records and the Minutes of the proceedings of the Board of Directors of Company; that on the day of _____________ , 20 , there was a regular meeting of the Board of Directors of Company that was duly called in accordance with law and the Bylaws of Company, that in said meeting resolutions authorizing designated persons to execute and deliver on behalf of Company and all agreements necessary or appropriate to effectuate wire transfers of funds were duly and legally adopted (the "Resolutions")' that a true and correct copy of the Resolutions is shown above; that the Resolutions are presently in full force and effect as of the date hereof; and the authority conferred upon the designated officers shall continue in full force and effect until written notice of its revocation shall be received by Bank's Wire Transfer Department (Domestic or International).
Name: __________ _
Title:, __________ _
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Trophy Club Municipal Utility District No. 1 30 of 254 July 21, 2015 - Public Hearing/Regular Meeting
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CERTIFICATE OF RESOLUTION NO. 2015-0721A
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Trophy Club Municipal Utility District No. 1
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RESOLUTION NO. 2015-0721A
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Trophy Club Municipal Utility District No. 1 31 of 254 July 21, 2015 - Public Hearing/Regular Meeting
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RATE ORDER TROPHY CLUB MUNICIPAL UTILITY DISTRICT No.1
ORDER NoO. 2015-0317B721A
AN ORDER ESTABLISHING POLICIES, PROCEDURES, AND RATES FOR WATER AND SEWER SERVICE; PROVIDING FEES FOR CONNECTION, RECONNECTION, INSPECTION, ACCURACY READINGS, AND RETURNED CHECKS; REQUIRING DEPOSITS FOR SERVICE; PROVIDING A PENALTY FOR DELINQUENT PAYMENTS; AND CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT.
WHEREAS, Trophy Club Municipal Utility District No. 1 (the “District”) is the owner and/or operator of a water and sewer system designed to serve present and future inhabitants within the District and the Trophy Club Development; and
WHEREAS, the District’s most recent Rate Order was adopted on January 20March 17, 2015 (Order No. 2015-0120317B), and additional modifications are needed. The District desires to establish all of its rate policies in a single new Rate Order; and
WHEREAS, the Board of Directors of the District has carefully considered the terms of this Rate Order No. 2015-0317721BA and is of the opinion that the following conditions and provisions should be established as the policies, procedures, and rates for obtaining service from the District’s water and sewer system.
THEREFORE, IT IS ORDERED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 THAT:
ARTICLE I TAP FEES AND CONNECTION POLICY
Section 1.01. Initiation of Water and Sanitary Sewer Connections. Each person desiring a water and sanitary sewer service connection to the District’s System shall be required to pay such fees as set forth in this Order. No service shall be established or re-established until such fees are paid. All service connections are subject to all other rules, regulations, and policies of the District.
A. Certification of System. Connections shall not be made to the District’s System or portions of the System until the District’s engineer or District staff has certified that the System or applicable portion thereof is operable and meets all regulatory requirements.
B. Backflow Prevention. No water connections from any public drinking water supply system shall be allowed to any residential or commercial establishment where an actual or potential contamination hazard exists unless the public water facilities are protected from contamination.
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At any residential or commercial establishment where an actual or potential contamination hazard exists, protection shall be required in the form of a backflow prevention assembly. The type of assembly required shall be specified by the District.
The existence of potential contamination hazards without installation having been made of the means of control and prevention as set out in the preceding paragraph; or, the same having been installed, there is a failure to properly maintain the same, shall be considered sufficient grounds for immediate termination of water service. Service can be restored only when the health hazard no longer exists, or when the health hazard has been isolated from the public water system in accordance with the foregoing requirements.
All backflow prevention assemblies that are required according to this section shall be tested upon installation by a recognized backflow prevention assembly tester and certified to be operating within specifications. Backflow prevention assemblies that are installed to provide protection against health hazards must also be tested and certified to be operating within specifications at least annually by a recognized backflow prevention assembly tester.
The Customer shall, at his expense, properly install, test, and maintain any backflow prevention device required by this Rate Order. Copies of all testing and maintenance records shall be provided to the District within ten (10) days after maintenance and/or testing is performed.
If the Customer fails to comply with the terms of this Order, the District shall, at its option, either terminate service to the property or properly install, test, and maintain an appropriate backflow prevention device at the service connection at the expense of the Customer. Any expenses associated with the enforcement of this agreement shall be billed to the Customer.
C. Availability of Access/Obstructions. By application for connection to the District’s System, the Customer shall be deemed to be granting to the District and its representatives a right of ingress and egress to and from the meter or point of service for such installation, maintenance and repair as the District, in its judgment, may deem reasonably necessary. The Customer shall also be deemed to be granting to the District and its representatives a right of ingress and egress to the Customer’s property, including the exterior of the Customer’s premises, for the purpose of performing the inspections and completing the Customer’s Service Inspection Certifications required by the District’s rules and regulations. Taps and connections will not be made when, in the opinion of the District, building materials or other debris obstructs the work area or the work area is not completed or finished to grade. When sidewalks, driveways or other improvements have been constructed prior to application for service, such application shall be construed and accepted as the Customer’s waiver of a claim for any damages to such improvements resulting from the reasonable actions of the District in installation of the connection.
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Section 1.02. Residential Fire Lines, Connections, and Fees. A residence of at least six-thousand (6,000) square feet but less than eight-thousand (8,000) square feet shall have installed on its one-inch (1”) water service line, for fire protection, a one-inch (1”) U-branch, with a separate meter and meter-box. The cost of installation, including parts, equipment, and labor shall be eight-hundred dollars ($800.00), payable at the time of permitting.
A residence of eight-thousand (8,000) square feet or greater, in addition to its regular one inch (1”) water service line, shall have installed a separate one-and one-half (1 ½ “) water service line for fire protection with its own meter and meter-box. The cost of connection and installation of the fire line and meter shall be either one thousand six hundred dollars ($1,600.00) if the home is on the same side of the street as the waterline; or, if it is on the opposite side of the street from the waterline, necessitating boring, then the charge shall be two thousand nine hundred seventy five dollars ($2,975.00), payable at the time of permitting with the Town of Trophy Club. If property is outside the Town of Trophy Club boundaries, fire line fees shall be paid directly to the District.
Section 1.03. Connections by District. All Connections to the District’s water and sewer system shall be made with written approval of the District and in accordance with the District’s Plumbing Code and its rules and regulations.
No person except the General Manager or his/her authorized agent shall be permitted to tap or make any connection to the mains or distribution piping of the District’s water system, or make any repairs, additions to, or alterations in any meter, box, tap, pipe, cock or other fixture connected with the water system or any manhole, main, trunk or appurtenance of the District’s sanitary sewer system. No sewer connection shall be covered in the ground and no house lead shall be covered in the ground before it has been inspected and approved by a licensed plumbing inspector with jurisdiction of the site.
Section 1.04. Inspections and Fees. Fees for permits and for plumbing inspections (other than for sewer and backflow inspections referred to below in subparagraphs A and B) should be paid to the city or town in which the property is located or to the District if the property is not located within a city or town.
A. Sewer Inspection and Fees. Sewer connections and house service lines shall be inspected by the District. An inspection fee of one-hundred-fifty dollars ($150.00) shall be paid to the District for each connection to the District sanitary sewer system. Installations that fail to conform at any time to the rules and regulations shall be disconnected. Any customer whose connection is disconnected for such failure shall be notified as to the basis for such disconnection. After noted deficiencies have been corrected, a re-inspection shall be made upon payment to the District of a re-inspection fee of twenty-five dollars ($25.00), plus payment by the customer of all outstanding charges. If subsequent re-inspections are required before the sewer connection and service lines are in compliance with the rules and regulations, a re-inspection fee of twenty-five dollars ($25.00) shall be paid to the District for each
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subsequent re-inspection. Inspections by the District requested after regular business hours will be charged at a minimum of one-hundred dollars ($100.00).
B. Backflow Inspections. For all backflow installations (residential and commercial) inspected by the personnel of the District, an inspection fee of fifty dollars ($50.00) shall be paid to the District. Inspections that fail to conform at any time to the rules and regulations shall be disconnected. Any customer whose connection is disconnected for such failure shall be notified as to the basis for such disconnection. After noted deficiencies have been corrected, a re-inspection shall be made upon payment to the District of a re-inspection fee of twenty-five dollars ($25.00), plus payment by the customer of all outstanding charges. If subsequent re-inspections are required, a re-inspection fee of twenty-five dollars ($25.00) shall be paid to the District for each subsequent re-inspection. Re-inspections by the District requested after regular business hours will be charged at a minimum of one-hundred dollars ($100.00).
C. Swimming Pool Discharge into Sanitary Sewer System. New swimming pools permitted on or after June 24, 2005, shall have all backwash and/or drainage from said pool discharge into the sanitary sewer system. Owners of pools built or permitted prior to July 1, 2005 are not required to retrofit the pool equipment and tie into the sanitary sewer. However, swimming pool backwash and drainage must drain to grassy areas and is not permitted to flow into the storm drain system, creeks, or other waterways.
For swimming pools discharging to the sanitary sewer system, an indirect connection shall be made by means of an air break, discharging into a tailpiece installed a minimum of six inches (6”) (or 152 mm) above adjacent grade. The tailpiece shall be connected to a minimum three-inch (3” or 76mm) p-trap not less than twelve inches (12” or 304 mm) below grade which discharges into the yard cleanout riser. Backwash systems shall not flow onto neighboring properties or into the storm sewer. The tie-in and inspection fee shall be seventy-five dollars ($75.00) to be paid at the time of issuance of the pool permit.
Section 1.05 Temporary Water Service-Construction Meters.
A. Construction Meters. The District shall be authorized to make a temporary connection to any fire hydrant or flushing valve upon request for temporary water service. All temporary service shall be metered and billed to the temporary customer as provided herein. All unauthorized withdrawal of water from flushing valves, fire hydrants, or other appurtenances of the District’s System is prohibited. B. Application and Deposit. Each temporary customer desiring temporary water service shall be required to execute an application for such temporary service and shall provide a minimum security deposit of one-thousand-seven-hundred-seventy-
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five dollars ($1,775.00) for a three-inch (3”) meter and RPZ; one-thousand-four-hundred-twenty-five dollars ($1,425.00) for a smaller meter and smaller RPZ. The deposit shall be made by cashier’s check or money order payable to the District. The deposit shall be used by the District to secure the payment for temporary water supplied by the District, the installation fee, and the cost of repair of any damages caused by the temporary customer. The balance of the security deposit, if any, shall be refunded after disconnection from the District’s System.
C. Construction Meter Fees and Rates. Construction meters will be charged the same monthly rates (base fee and volumetric rate) for water as commercial accounts as set forth in Article II of this Rate Order.
D. Temporary Construction Meter Use and Billing. Construction meters can be rented by filing an application at the District office and payment of all required deposits. Upon approval of the application, a temporary meter and RPZ will be provided to the applicant. Installation on any fire hydrant or flush valve must be approved by the District and District meters may only be used within the District’s service area. The location of installation must be indicated on the application and cannot be relocated unless notification is provided to and approved by the District in advance. Temporary meters may only be rented for a period of ninety (90) days and extensions may be approved upon request and approval. Failure to return a temporary meter or request a usage extension by the due date will result in repossession of the meter and forfeiture of the deposit. Upon return of a temporary construction meter, an inspection of the meter and RPZ will be performed. Any and all damages to the meter and/or RPZ will be charged to the customer and deducted from the deposit. If the deposit does not cover the total amount of damages, the balance will be billed to the customer and payment must be received by the due date. Failure to pay all charges due will result in suspension of rental privileges until payment in full and may result in collection procedures. E. Return of Temporary Meter at District Request. The District reserves the right to request the return of a temporary construction meter at any time determined necessary by the District. Should Stage 2 Drought Restrictions or more stringent restrictions be implemented, all temporary construction meters must be returned within three (3) business days of notification by the District. Failure to promptly return the temporary meter within three business days will result in repossession of the meter and forfeiture of the deposit. Should District personnel be unable to locate the temporary meter for repossession, theft charges will be filed against the meter holder with local law enforcement.
Section 1.06 Service Outside the District. The rates and charges stated in this Rate Order are for services to customers and property located within the boundaries of the District.
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Any service to a customer or property located outside the boundaries of the District shall be granted only upon approval by the Board of Directors of the District. Out of District customers will pay the adopted rates for in district customers plus 15% for both water and sewer base and volumetric rates. For the purpose of customer classification, Trophy Club Park at Lake Grapevine is considered “in-district” and subject to all rates and service provisions related to in-district customers.
Section 1.07 Service to New Development and Extension of Facilities.
A. New Service Connections and Extension of Facilities. New service connections and extension of facilities must be constructed and installed in accordance with the District’s Rules Governing New Service Connections and Extension of Facilities as approved through separate Resolution by the Board of Directors. Applicants for Non-Standard Service must submit all required information and pay all fees prior to conveyance of facilities and service commencement.
B. Application Fee for Non-Standard Service. Upon request for non-standard service an application fee of $150 must be submitted.
C. Design of Facilities. All water and wastewater facilities to be constructed to extend service to new developments must be designed by a professional engineer licensed in the State of Texas at the applicant’s expense. The District must approve the plans and specifications prior to the commencement of construction. At the time of plan review submittal, the applicant must provide payment to the District in the amount of $2,500.00 as deposit for review of each set of plans and specifications reviewed by the District’s engineer. The actual final fee for plan review by the District’s engineer shall be provided to the applicant upon approval of the plans. If there is a balance due over the $2,500 paid by the applicant at submittal, the balance due shall be paid by the applicant prior to receiving District approval of plans and specifications. District construction plans and specifications shall be strictly adhered to, but the District reserves the right to change order any specifications, due to unforeseen circumstances during the design or construction of the proposed facilities, or as otherwise authorized by applicable laws, to better facilitate the operation of the facility. All expenses and costs associated with a change order shall be charged to the applicant. Service to new developments is subject to available capacity in the District’s water and wastewater systems. All new potential developments must seek written
approval from the General Manager that capacity is available to serve and may be required to install offsite improvements if capacity is not available with current system infrastructure.
D. Inspection Fees. The District will inspect all infrastructure during construction. Inspection fees of $100 per lot must be paid to the District prior to a notice to proceed being issued. A minimum of $500 for inspection fees is required if less than five (5) lots are to be developed.
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Section 1.08 Water Meter and Water Tap Fees.
Domestic one-inch (1”) meter: $ 343.00 Fee for District Installed Water Tap: $ 1,000.00 Inspection Fee for Water Tap: $ 50.00
Fees must be received by the District before any residential connection is installed. When taps have been made by someone other than the District personnel, there is an installation/inspection fee of fifty dollars ($50.00) plus the cost of the appropriate meter. A customer seeking service through an oversized connection line or from a meter larger than a one-inch (1”) standard meter shall submit a written request to the District detailing daily, monthly, and peak water demands. Should approval be granted by the District, the customer agrees to pay the water and sewer rates as outlined in Article II of this Rate Order. Section 1.09. Fort Worth Impact Fee. Each customer requesting an initial connection to the District’s Water System shall also pay to the District a pass-through fee for the City of Fort Worth’s impact fee. The fee is based on meter size as follows:
METER SIZE WATER IMPACT FEE
5/8" $469
3/4" $704
1" $1,173
1-1/2" $2,345
2" $3,752
3" $10,201
4" $17,588
6" $37,520
8" $65,660
10" $98,490 Section 1.10. Sewer Tap Fees. The fee for sewer line taps shall be the actual cost to the District plus ten percent (10%). Section 1.11. Title to Facilities. Title to all water meters, water and sewer taps, and all other appurtenances, including meter boxes, shall lie in the District.
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ARTICLE II SERVICE RATES
Section 2.01. Water Service Rates. The following monthly rates for water service shall be in effect for each separate connection within the District. The base rate for each connection (meter) is calculated upon meter size and will be charged for each residential and commercial meter:
(1) Water Rates BASE RATES:
METER SIZE MONTHLY BASE RATE
5/8" & 3/4" $12.7112.99
1" $16.7120.39
1.5" $26.4232.23
2" $38.0646.43
3" $65.2379.58
4" $104.04126.93
6" $201.06245.29 VOLUMETRIC RATES:
Gallons Used Rate per
1000 gallons
0 to 6,000 $2.703.03
6,001 to 17,000 $3.143.53
17,001 to 25,000 $3.644.09
25,001 to 50,000 $4.234.75
50,001 + $4.915.52
(2) ) Multi-Unit Buildings.
Each multi-unit building (apartments, townhomes, business complex, etc.) served by a single 5/8” meter or 1” meter shall be billed the base rate for the meter size servicing the building multiplied by the number of units in the building or complex.
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Section 2.02 Sewer Service Rates. The following monthly rates for the collection and disposal of sewage shall be in effect for each separate connection within the District:
A. Residential Sewer Rates:
Base Rate: $14.5815.35
0-18,000 gallons per month $2.5063/1,000 gallons *Residential sewer usage is capped at 18,000 gallons per month
Commercial Sewer Rates: Base Rate: $14.5815.35
Volumetric Rate: $2.5063/1,000 gallons *Commercial sewer usage is billed based on actual water usage per month
B. Multi-Unit Buildings. Each multi-unit building (apartments, townhomes, business complex, etc.) shall be billed the base rate for each meter servicing the building and sewer usage will be billed based on actual water usage per month.
Section 2.03 Effluent Charge. The effluent from the District’s wastewater treatment plant will be sold pursuant to separate contracts entered into with the District and approved by its Board of Directors.
Section 2.04. Master Meter (Cooling Tower Calculation). The water usage from the master meter reading minus the reading from the “Blow Down” meter equals the “evaporation.” Water usage less “evaporation” equals sewer usage for billing purposes.
Section 2.06. Regulatory Assessment. Pursuant to Section 5.235, Texas Water
Code, and 30 TAC 291.76, the District shall collect and pay an annual regulatory assessment fee to the Texas Commission on Environmental Quality (“TCEQ”) in the amount required by law on the total charges for retail water and sewer service billed to its customers annually. The regulatory assessment fee will be detailed separately on customer bills.
Section 2.07. No Reduced Rates or Free Service. All customers receiving
water and/or sewer service from the District shall be subject to the provisions of this Order and shall be charged the rates established in this Order. No reduced rate or free service shall be furnished to any customer whether such user be a charitable or eleemosynary institution, a political subdivision, or municipal corporation; provided, however, this provision shall not prohibit the District from establishing reasonable classifications of customers.
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ARTICLE III SERVICE POLICY
Section 3.01. Security Deposits. Security deposits shall be required as follows:
A. Builder’s Deposit. A seventy-five dollar ($75.00) security deposit shall be required of builders for each tap made by the District for such service connection, payable at or prior to the time that such tap is made, and the security deposit is refundable to the builder when the account is later transferred to an owner if that account and all other accounts of the builder are current at the time of the transfer; but, if that account or any other account of the same builder is not current at the time of such transfer to an owner, then the security deposit shall be applied against the outstanding balance of the builder’s account(s) at the time of such transfer. The District shall deduct from the deposit the cost to repair any damage caused to the District’s property by the builder or the builder’s employees, contractors, subcontractors or agents and shall deduct any delinquent water and sewer service bills of the builder. In the event any amounts are deducted from the builder’s deposit, it will be incumbent on the builder to reinstate the original amount of the deposit, and failure to do so will result in the suspension of any additional water taps for the builder.
B. Residential Owners. A security deposit of seventy-five ($75.00) shall be required from each residential owner customer for a single-family home connected to the District’s system. Upon discontinuation of service, the deposit shall be applied against amounts due, including disconnection fees. C. Residential Lessees. A security deposit of one-hundred-fifty dollars ($150.00) shall be required from each residential lessee customer for a single-family home. Upon discontinuation of service, the deposit shall be applied against amounts due, including any disconnection fees.
D. Construction Meters. See Section 1.05 above. E. Other customers. A security deposit equal to two (2) months’ estimated average monthly water and sewer bill shall be required of all other customers including commercial and multi-unit accounts. F. Deposits. The District does not pay interest on deposits. The interest drawn by the District on customer deposits is returned into the operating budget of the water/sewer fund to help in providing the lowest possible water and sewer rates for our customers.
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Section 3.02. Billing Procedures. All accounts shall be billed in accordance with the following:
A. Due Date and Delinquency. Charges for water and sewer service shall be billed monthly. Payment shall be due on or before the twentieth (20th) day of the month in the month in which the bill was received. Unless payment is received on or before the twentieth (20th) day of the month, such account shall be considered delinquent. If the due date falls on a holiday or weekend, the due date for payment purposes shall be the next working day after the due date. The District shall charge a penalty on past due accounts calculated at the rate of fifteen percent (15%) per month on water and sewer charges. The rates for water and sewer service shall depend upon the type of user and upon whether the water used has been chemically treated, as provided in this Rate Order. All accounts not paid by the due date shall be deemed delinquent and failure to make payment thereafter may result in the termination of water and sewer service. B. Notice and Appeal. Prior to termination of service, a customer who is delinquent in payment shall be sent a notice that service will be discontinued on or after the fifteenth (15th) day after the date of such notice unless payment in full is received before by such day disconnection is scheduled. Notice shall be sent by first class United States mail and shall inform the customer of the amount of the delinquent bill, the date service will be disconnected if payment is not made, and of the customer’s right to contest, explain, or correct the charges, services, or disconnection. Service shall not be disconnected where a customer has informed the District of his or her desire to contest or explain the bill. If the customer appears before the Board, the Board shall hear and consider the matter and inform the customer of the Board’s determination by sending written notice to the customer by first class United States mail stating whether or not service will be disconnected. In the event that a service is disconnected more than two (2) times per calendar year (January through December) for non-payment, an additional Security Deposit of $100.00 will be required for Residential homeowners and $100.00 for Lessees to restore service in addition to a $25.00 service fee, an afterhours re-connection charges if applicable, and any outstanding balance on the account to satisfy the minimum amount due. As set out above in Section 3.01. If payment is not received prior to the date that disconnection has been scheduled, a service charge of twenty-five dollars ($25.00) will be added to the account. Reconnections made outside of the District’s normal business hours at the customer’s request will be charged at an additional after hour’s fee of one-hundred dollars ($100.00). C. Business Hours. For purposes of assessing the foregoing charges, “normal” or “regular” business hours shall mean only the hours between 8 a.m. and 5 p.m., Monday through Friday. All other times, including District holidays, are outside of the District’s normal business hours and will result in the higher charge.
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D. Returned Checks and Bank Drafts. A twenty-five dollar ($25.00) charge will be charged to the customer’s account for any check or ACH bank draft returned by the bank. Any amounts due on an account which have been paid with a check or ACH bank draft that has been returned by the bank must be paid in full by cash, cashier’s check or money order, including all late charges and returned check charges, within ten (10) days from the day the District mails notice to the customer or otherwise notifies the customer that the check or ACH bank draft has been returned by the bank. E. Same-Day Service. An additional charge of twenty-five dollars ($25.00) shall be made when a customer requests same-day service. As an example, this charge will be implemented upon request by a customer for same-day service to start or terminate water and sewer service or to perform re-reads the same day as requested. F. Accuracy Reading Fee. A meter accuracy reading fee in the amount of ten dollars ($10.00) shall be charged to a customer by the District for each meter accuracy reading made by the District for such customer when the original reading appears to be accurate. If the original meter reading appears to be in error, no fee will be charged. Each customer will be allowed one accuracy meter reading per calendar year at no charge. Should a customer request that the meter accuracy reading be made by an outside source, then a fee of one-hundred-twenty-five dollars ($125.00) will be charged to the customer. If the original meter reading is found to be in error, then the customer will be given a credit offsetting the amount of the charge. G. Meter Data Logging Fee. A fee of twenty-five dollars ($25.00) shall be charged to a customer by the District for each meter data logging service. Meter data logging service can only be provided during regular business hours.
Section 3.03 Entitlement. Water and sewer service shall be provided to
customers in accordance with all TCEQ rules covering minimum water and sewer standards. Section 3.04. Unauthorized and Extraordinary Waste. The rates established
herein are applicable for Domestic Waste as defined herein. Customers proposing to generate other types of waste will be assessed additional charges as established by the District.
Section 3.05. Damage to District Facilities.
A. Damage to Meter and Appurtenances. No person other than a duly authorized agent of the District shall open a meter box, tamper with or in any way interfere with a meter, meter box, service line or other water and/or sewer system appurtenance. The District reserves the right, immediately and without notice, to remove the meter or disconnect water service to any customer whose meter has been tampered with and to assess repair charges to the customer, plus a damage fee not
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to exceed five-thousand dollars ($5,000.00), plus any applicable charge for same day service. The District also reserves the right to file civil and/or criminal charges against any person or entity tampering with the District’s public water system and/or sewer system.
B. Repair. It shall be the responsibility of each customer to maintain the sewer line including the tap, from the point of connection to the District’s sewer system and to the building served. It is the responsibility of the customer to maintain and repair the water service line from the point of connection to the District’s water meter. The District reserves the right to repair any damage to the District’s System and appurtenances without prior notice and to assess against any customer such penalties as are provided by law and such penalties provided for in this Rate Order in addition to those charges necessary to repair the portion of the System so damaged.
C. Video. If at any time a resident/customer wishes to have the District video their sewer line to help the resident determine the condition of their sewer line, the fee will be one-hundred-fifty dollars ($150.00) payable to the District assessed on the next month’s bill.
Section 3.06. Easements. Before service is established to any customer, the
person requesting such service shall grant an easement of ingress and egress to and from the meter(s) for such maintenance and repair as the District, in its judgment, may deem necessary.
Section 3.07. Required Service. No service will be provided by the District
unless the customer agrees to receive both water and sewer service, except that permanent irrigation only meters may receive water service only. Irrigation meters cannot be connected to any building plumbing.
Section 3.08. Additional Charges. In all cases where services are performed
and equipment or supplies are furnished to a party or entity not within the District, the charge to said party or entity shall be the District’s cost of providing such services, equipment and/or supplies, plus fifteen percent (15%). This shall not apply to services, equipment and/or supplies furnished by the District under an existing Interlocal Agreement nor to the rates the District charges for out-of-district water and sewer service.
ARTICLE IV
INDUSTRIAL WASTE Section 4.01. Industrial Waste Policy. The following policy regarding industrial
waste shall be effective:
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A. Definition. “Industrial waste” shall mean the water-borne solids, liquids, and/or gaseous wastes (including Cooling Water), resulting from any industrial, manufacturing, trade, business, commercial, or food processing operation or process, or from the development of any natural resource, or any mixture of such solids, liquids, or wastes with water or domestic sewage. The Clean Water Act of 1977, as amended, and the General Pretreatment Regulations contained in 40 C.F.R. 403 contain the requirements for user’s discharge of industrial waste into wastewater facilities.
B. Industrial Waste Discharge-Charges and Rates. If any customer of the District’s sanitary sewer system proposes to discharge industrial waste into such system, the Board of Directors of the District shall request the recommendation of the District Engineer and shall establish rates and charges to provide for an equitable assessment of costs whereby such rates and charges for discharges of industrial waste correspond to the cost of waste treatment, taking into account the volume and strength of the industrial, domestic, commercial waste, and all other waste discharges treated and techniques of the treatment required. Such rates shall be an equitable system of cost recovery which is sufficient to produce revenues, in proportion to the percentage of industrial wastes proportionately relative to the total waste load to be treated by the District for the operation and maintenance of the treatment works, for the amortization of the District’s indebtedness for the cost as may be necessary to assure adequate waste treatment on a continuing basis.
C. Pretreatment. The Board of Directors of the District shall rely upon the recommendation of the District Engineer and shall require pretreatment of any industrial waste that would otherwise be detrimental to the treatment works or to its proper and efficient operation and maintenance or will otherwise prevent the entry of such industrial waste into the treatment plant.
A. Civil Penalties. The Board hereby imposes the following civil penalties for breach of any rule of the District: The violator shall pay the District twice the costs the District has sustained due to the violation up to ten-thousand dollars ($10,000.00). A penalty under this Section is in addition to any other penalty provided by the laws of this State and may be enforced by complaints filed in the appropriate court of jurisdiction in the county in which the District’s principal office or meeting place is located. If the District prevails in any suit to enforce its rules, it may, in the same action, recover any reasonable fees for attorneys, expert witnesses, and other costs
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incurred by the District before the court. The court shall fix the amount of the attorneys’ fees. B. Liability for Costs. Any person violating any of the provisions of this Order and/or the rules and regulations governing water and sanitary sewer facilities, service lines, and connections shall become liable to the District for any expense, loss or damage occasioned by the District by reason of such violation, and enforcement thereof shall be in accordance with Paragraph A of Section 5.01 of this Order.
Section 5.02. Non-waiver. The failure on the part of the District to enforce any
section, clause, sentence, or provision of this Order shall not constitute a waiver of the right of the District later to enforce any section, clause, sentence, or provision of this Order.
Section 5.03. Appeal. Any determination by the District of any dispute regarding
the terms and provisions of this order may be appealed to the Board of Directors of the District, which shall conduct a hearing on the matter. The District shall provide the customer with information regarding appeals and hearing procedures upon the customer’s request.
ARTICLE VI
MISCELLANEOUS Section 6.01. Amendments. The Board of the District has and specifically
reserves the right to change, alter or amend any rate or provision of this Order at any time. Section 6.02. Severability. The provisions of this Order are severable, and if any
provision or part of this Order or the application thereof to any person or circumstance shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Order and application of such provision or part of this Order shall not be affected thereby.
ARTICLE VII
REPEAL OF PREVIOUS ORDERS
This Rate Order shall be known as the “2015-0317721BA Rate Order” (Order No. 2015-0317721BA) of the District. All previous Orders adopted by the Board of Directors pertaining to the subject matter hereof are each hereby repealed in their entirety as of the effective date hereof.
ARTICLE VIII EFFECTIVE DATE
This Order shall be effective March 17September 1, 2015.
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ARTICLE IX PUBLIC MEETING
It is hereby found that the meeting at which this Order is adopted is open to the public as required by law, and that public notice of the time, place, and subject matter of said meeting and of the proposed adoption of this Order was given as required by law.
PASSED, ADOPTED, ORDERED, AND APPROVED this 17th 21st day of March July 2015.
_________________________________ Jim Moss, President Board of Directors _________________________________ (SEAL) Kevin R. Carr, Secretary/Treasurer Board of Directors _________________________________ Laurie Slaght, District Secretary
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Trophy Club Municipal Utility District No. 1 Public Water System ID No. TX0610018
2014 Annual Drinking Water Quality Report
Consumer Confidence Report June 2015
This information is provided to you by: Trophy Club Municipal Utility District No. 1 100 Municipal Drive, Trophy Club, Texas 76262, Phone: (682) 831-4600
District Contact: Jennifer McKnight, General Manager
Special Population Advisory
You may be more vulnerable than the general population to certain microbial contaminants, such as Cryptosporidium, in drinking water. Infants, some elderly, or immunocompromised persons such as those undergoing chemotherapy for cancer; those who have undergone organ transplants; those who are undergoing treatment with steroids; and people with HIV/AIDS or other immune system disorders can be particularly at risk from infections. You should seek advice about drinking water from your physician or health care provider. Additional guidelines on appropriate means to lessen the risk of infection by Cryptosporidium are available from the Safe Drinking Water Hotline at (800) 426-4791.
Our Drinking Water Meets or Exceeds All Federal (EPA) Drinking Water Requirements
This report is a summary of the quality of the water we provide our customers. The analysis was made by using the data from the most recent U.S. Environmental Protection Agency (EPA) required tests and is presented in the following pages. We hope this information helps you become more knowledgeable about what is in your drinking water. Should you have questions or need additional copies of this report, please call the District office at (682) 831-4600. The report is also available on our website at www.tcmud.org.
Water Sources: The sources of drinking water (both tap water and bottled water) include rivers, lakes, streams, ponds, reservoirs, springs, and wells. As water travels over the surface of the land or through the ground, it dissolves naturally-occurring minerals, and in some cases, radioactive material, and can pick up substances resulting from the presence of animals or from human activity. Contaminants that may be present in source water before treatment include:
Microbial contaminants, such as viruses and bacteria, which may come from sewage treatment plants, septic systems, and agricultural livestock operations.
Inorganic contaminants, such as salts and metals, which can be naturally-occurring or result from urban storm water runoff, industrial or domestic wastewater discharges, oil and gas production, mining, or farming.
Pesticides and herbicides, which may come from a variety of sources such as agriculture and urban storm water runoff, and residential uses.
Organic chemical contaminants, including synthetic and volatile organic chemicals, which are by-products of industrial processes and petroleum production, and can also come from gas stations, urban storm water runoff, and septic systems.
Radioactive contaminants, which can be naturally-occurring or be the result of oil and gas production and mining activities.
Este informe incluye información importante sobre el agua potable. Si tiene preguntas o
comentarios sobre éste informe en español, favor de llamar al tel. (682) 831-4600 para hablar con una
persona bilingüe en español.
Public Participation Opportunities Date: July 21, 2015 Time: 6:00 p.m. Location: Svore Administration Building
100 Municipal Drive Trophy Club, TX 76262 En Español
Where Do We Get Our Drinking Water? Our drinking water is obtained from both surface and groundwater sources. Surface water is purchased from the City of Fort Worth and its sources are Lake Worth, Eagle Mountain Lake, Lake Bridgeport, Richland Chambers Reservoir, Cedar Creek Reservoir, and the Clear Fork Trinity River (from Lake Benbrook). Groundwater sources are from four wells including three from the Paluxy Aquifer and one from the Trinity Aquifer. The Texas Commission on Environmental Quality (TCEQ) completed an assessment of your drinking water sources and results indicate that some of your sources are susceptible to certain contaminants. The sampling requirements for your water system are based on this susceptibility and previous sample data. Any detection of these contaminants may be found in this report. Some of the source water assessment information is available on Texas Drinking Water Watch at http://dww.tceq.texas.gov/DWW/. For information regarding our source water protection efforts please contact the District office at (682) 831-4600.
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All Drinking Water May Contain Contaminants When drinking water meets federal standards there may not be any health based benefits to purchasing bottled water or point-of-use devices. Drinking water, including bottled water, may reasonably be expected to contain at least small amounts of some contaminants. The presence of contaminants does not necessarily indicate that water poses a health risk. In order to ensure tap water is safe to drink, the EPA and TCEQ prescribe regulations which limit the amount of certain contaminants in water provided by public water systems. FDA regulations establish limits for contaminants in bottled water, which must provide the same protection for public health. More information about contaminants and potential health effects can be obtained by calling the EPA's Safe Drinking Water Hotline at (800) 426-4791.
Water Quality Data The table in this report lists all the drinking water contaminants we detected during tests conducted from the previous calendar year, unless otherwise noted. The state requires us to monitor for certain contaminants less than once per year because the concentrations of these contaminants are not expected to vary significantly from year to year. Therefore, some of the data, though representative of the water quality, is more than one year old.
Secondary Constituents Many constituents (such as calcium, sodium or iron) which are often found in drinking water, can cause taste, color and odor problems. The taste and odor constituents are called secondary constituents and are regulated by the State of Texas, not the EPA. These constituents are not causes for health concerns. Therefore secondary constituents are not required to be reported in this document but they may greatly affect the appearance and taste of your water.
About The Following Pages The pages that follow list all of the federally regulated or monitored contaminants which have been found in your drinking water. The United States Environmental Protection Agency (EPA) requires water systems to test up to 97 constituents. Please note that not all constituents are required to be sampled every year. Only the most recent year for sampling of a constituent is included in the report.
Definitions Action Level (AL): The concentration of a contaminant which, if exceeded, triggers treatment or other requirements which a water system must follow. Action Level Goal (ALG): The level of a contaminant in drinking water below which there is no known or expected risk to health. ALGs allow for a margin of safety. Maximum Contaminant Level (MCL): The highest permissible level of a contaminant in drinking water. MCLs are set as close to the MCLGs as feasible using the best available treatment technology. Maximum Contaminant Level Goal (MCLG): The level of a contaminant in drinking water below which there is no known or expected health risk. MCLGs allow for a margin of safety. Maximum Residual Disinfectant Level (MRDL): The highest level of disinfectant allowed in drinking water. There is convincing evidence that addition of a disinfectant is necessary for control of microbial contaminants. Maximum Residual Disinfectant Level Goal (MRDLG): The level of a drinking water disinfectant below which there is no known or expected risk to health. MRDLGs do not reflect the benefits of the use of disinfectants to control microbial contamination. Treatment Technique (TT): A required process intended to reduce the level of a contaminant in drinking water.
Abbreviations MFL - million fibers per liter (a measure of asbestos) pCi/L - picocuries per liter (a measure of radioactivity) N/A - not applicable ppm - parts per million, or milligrams per liter (mg/l) NTU - Nephelometric Turbidity Units ppb - parts per billion, or micrograms per liter (ug/l) ppq - parts per quadrillion, or picograms per liter mrem/yr – millirems per year ppt - parts per trillion, or nanograms per liter ND – (not-detectable) lab analysis indicates not present UMHO/CM - micromhos Maximum Residual Disinfectant Level
Year Disinfectant Average
Level Minimum
Level Maximum
Level MRDL MRDLG
Unit of Measure
Violation (Y or N)
Source of Disinfectant
2014 Chloramine Residual
(Total Chlorine) 2.9 1.0 3.8 4.0 <4.0 ppm
N
Disinfectant used to control microbes.
Disinfection By-Products
Year Contaminant Highest Level
Detected
Range of
Levels Detected
MCL Unit of
Measure Violation (Y or N)
Source of Contaminant
2014 HAA5 Total
Haloacetic Acids 5.9 2.1 – 8.1 60 ppb N Byproduct of drinking water disinfection.
2014 Total
Trihalomethanes 9.4 4.8 – 12.9 80 ppb N Byproduct of drinking water disinfection.
*Highest level detected is based on a running annual average calculated from quarterly samples as required by TCEQ. Trophy Club Municipal Utility District No. 1 49 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Radioactive Contaminants
Year Contaminant Highest Level
Detected Range of Levels
Detected MCLG MCL
Unit of Measure
Violation (Y or N)
Source of Contaminant
2013 Combined Radium
(-226 & -228) 1.0 1.0 – 1.0 0 5 pCi/L N
Decay of natural and man-made deposits.
2013 Gross Alpha
(including Radon & Uranium)
2.0 2.0 – 2.0 0 15 pCi/L N Erosion of natural deposits.
2013 Beta/Photon
Emitters 6.3 6.3 – 6.3 0 50 pCi/L N Erosion of natural deposits.
Organic Contaminants TESTING WAIVED, NOT REPORTED, OR NONE DETECTED
Inorganic Contaminants
Year Contaminant Highest Level
Detected
Range of Levels
Detected MCLG MCL
Unit of Measure
Violation (Y or N)
Source of Contaminant
2011 Antimony ND 0 - 0 6 6 ppb N Discharge from petroleum refineries; fire retardants; ceramics; electronics; solder;
test addition.
2011 Arsenic 3.51 3.51 – 3.51 0 10 ppb N Erosion of natural deposits; runoff from
orchards; runoff from glass and electronics production wastes.
2012 Asbestos ND ND 7 7 MFL N Decay of asbestos cement water mains;
erosion of natural deposits.
2011 Barium 0.0615 0.0615 – 0.0615
2 2 ppm N Discharge of drilling wastes; discharge from metal refineries; erosion of natural
deposits.
2011 Beryllium ND 0 - 0 4 4 ppb N Discharge from metal refineries and coal
burning factories; discharge from electrical, aerospace, and defense.
2011 Cadmium ND 0 - 0 5 5 ppb N Corrosion of galvanized pipes; erosion of
natural deposits; discharge from metal refineries; runoff from waste batteries.
2011 Chromium 2.63 2.63 – 2.63 100 100 ppb N Discharge from steel and pulp mills;
erosion of natural deposits.
2014 Cyanide 35.5 35.5 – 35.5 200 200 ppb N Discharge plastic and fertilizer factories;
discharge from steel/metal factories.
2014 Fluoride 0.468 0.468 – 0.468 4 4 ppm N Erosion of natural deposits; water additive
which promotes strong teeth; discharge from fertilizer and aluminum factories.
2011 Mercury ND 0 – 0 2 2 ppb N Erosion of natural deposits; discharge
from refineries and factories; runoff from landfills; runoff from cropland.
2014 Nitrate *
(measured as nitrogen)
0.727 0.727 – 0.727 10 10 ppm N Runoff from fertilizer use; leaching from septic tanks, sewage; erosion of natural
deposits.
2011 Selenium 7.56 7.56 – 7.56 50 50 ppb N Discharge from petroleum and metal refineries; erosion of natural deposits;
discharge from mines. *Nitrate Advisory: Nitrate in drinking water at levels above 10 ppm is a health risk for infants of less than six months of age. High nitrate levels in drinking water can cause blue baby syndrome. Nitrate levels may rise quickly for short periods of time because of rainfall or agricultural activity. If you are caring for an infant you should ask advice from your health care provider.
Lead and Copper
Year Contaminant The 90th
Percentile
No. of Sites Exceeding
Action Level
Action Level
MCLG Unit of
Measure Violation (Y or N)
Source of Contaminant
2013 Lead 0.00357 1 0.015 0 ppm N Corrosion of household plumbing systems;
erosion of natural deposits.
2013 Copper 0.493 0 1.3 1.3 ppm N Corrosion of household plumbing systems; erosion of natural deposits; leaching from
wood preservatives. If present, elevated levels of lead can cause serious health problems, especially for pregnant women and young children. Lead in drinking water is primarily from materials and components associated with service lines and home plumbing. Trophy Club Municipal Utility District No. 1 is responsible for providing high quality drinking water, but cannot control the variety of materials used in plumbing components. When your water has been sitting for several hours, you can minimize the potential for lead exposure by flushing your tap for 30 seconds to 2 minutes before using water for drinking or cooking. If you are concerned about lead in your water, you may wish to have your water tested. Information on lead in drinking water, testing methods, and steps you can take to minimize exposure is available from the Safe Drinking Water Hotline or at http://www.epa.gov/safewater/lead.
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Turbidity is a measure of the cloudiness of water and has no health effects. It is monitored because it is a good indicator of the effectiveness of the filtration system.
Microbiological Contaminants
Year Contaminant MCL Highest Single Measurement
Lowest Monthly % of Samples
Meeting Limits
Violation (Y or N)
Source of Contaminant
2014 Fecal Coliform & E. Coli N/A N/A N/A N Human and animal fecal waste.
2014 Total Coliform Bacteria One positive
monthly sample. 0 100% N Naturally present in the environment.
Total Coliform Bacteria are used as indicators of microbial contamination of drinking water because testing for them is easy. While not disease-causing organisms themselves, they are often found in association with other microbes that are capable of causing disease. Coliform are more hardy than many disease-causing organisms; therefore, their absence from water is a good indication that the water is microbiologically safe for human consumption.
Total Organic Carbon (Source Water: City of Fort Worth)
Year Contaminant MCL MCLG Highest
Measurement Lowest
Measurement Average
Violation (Y or N)
Source of Contaminant
2014 Total Organic Carbon TT =
% removal N/A 1.0 1.0 1.0 N Naturally occurring.
Total Organic Carbon is used to determine disinfection by-product precursors. The City of Fort Worth was compliant with all monitoring and treatment technique requirements for disinfection by-product precursors.
Secondary and Other Constituents Not Regulated (No associated adverse health effects.)
Year Constituent Average
Level Minimum
Level Maximum
Level Secondary
Limit Unit of
Measure Violation (Y or N)
Source of Constituent
2011 Bicarbonate 144 144 144 N/A ppm N Corrosion of carbonate rocks such as
limestone.
2014 Chloride 22.7 22.7 22.7 300 ppm N Abundant naturally occurring element; used in water purification; byproduct of
oil field activity.
2014 Conductivity 348 348 348 N/A UMHO/CM N Measure of the ability of the water
sample to conduct electricity.
2011 pH 8.4 8.4 8.4 8.2 units N Measure of corrosivity of water.
2014 Sulfate 25.1 25.1 25.1 300 ppm N Naturally occurring; common industrial
byproduct; byproduct of oil field activity.
2014 Total Alkalinity as CaCO3
107 107 107 N/A ppm N Naturally occurring soluble mineral
salts.
2010 Total Hardness as CaCO3
96 103 194 N/A ppm N Naturally occurring soluble mineral
salts.
2014 Total Dissolved Solids
200 200 200 1000 ppm N Total dissolved minerals in water.
Water Loss for 2014 The water loss audit submitted to the Texas Water Development Board for the time period of January 2014 through December 2014 indicates our system lost an estimated 55 million gallons of water (7.36% of production).
Year-Round Outdoor Watering Restrictions In Effect
Please water outdoors in accordance with the following schedule:
Residential addresses ending in even numbers may water on Wednesday and Saturday.
Residential addresses ending in odd numbers may water on Thursday and Sunday.
Non-residential locations (commercial, HOA, common areas, medians, etc.) may water on Tuesday and Friday.
No watering is permitted on Monday.
No watering is permitted between 10:00 am and 6:00 pm on any day.
These restrictions are mandatory and will be enforced in accordance with Section XI of the Drought Contingency and Emergency Water Management Plan. Violators are subject to administrative penalties and/or citations by law enforcement.
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TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 ORDER NO. 2015-
06160721B_
AN ORDER OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NoNO. 1, REPEALING ORDER 2014-0819A, AND ADOPTING AN AMENDED CODE OF ETHICS ORDER 2015-0616721B_.
WHEREAS, Trophy Club Municipal Utility District No. 1 (the “District”) is a
Water District operating pursuant to Chapter 54 of the Texas Water Code; and
WHEREAS, on August 19, 2014, the District adopted Order 2014-0819A per the Texas Water Code Ann. §49.199 which requires the Board of Directors of the District to adopt certain policies and procedures in writing, including; a code of ethics that contains an expense policy, policies and procedures for the selection and review of consultants, policies concerning the use of management information, and the formation of an audit committee and Rules of Procedure; and
WHEREAS, the Board of Directors of the District now finds it prudent and wise to amend the District’s Code of Ethics and adopt Amended Order 2015-0616721B_.
NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 THAT THE ATTACHED CODE OF ETHICS IS HEREBY ADOPTED AND EFFECTIVE ON JUNELY 1621, 2015:
Jim Moss, President Board of Directors ATTEST: Kevin R. Carr, Secretary Board of Directors
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TABLE OF CONTENTS
ARTICLE I – Code of Ethics .....................................................................................................3 ARTICLE II – Fees and Expense Policy...................................................................................5 ARTICLE III – Professional Consultants ................................................................................7 ARTICLE IV – Audit Committee .............................................................................................7 ARTICLE V – Code of Conduct................................................................................................8 ARTICLE VI - Rules of Procedure……………………………………………………….….13 EXHIBIT A - Statement of Commitment……………………………………………………18 CERTIFICATE OF ORDER....................................................................................................19
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ARTICLE I
CODE OF ETHICS
SECTION 1. Purpose. The purpose of this Code of Ethics is to set forth the standards of
conduct and behavior for the members of the Board of Directors of Trophy Club Municipal Utility District No. 1 (the “District”), and its officers, and employees of the District (collectively with the Directors, the “District Officials”).
SECTION 2. Policy. It is the policy of the District that District Officials shall conduct
themselves in a manner consistent with sound business and ethical practices; that the public interest shall always be considered in conducting District business; that the appearance of impropriety shall be avoided to ensure and maintain public confidence in the District; and that the Board shall control and manage the affairs of the District fairly, impartially, and without discrimination.
Section 2.01 Qualification of Directors.
A. A person shall not serve as a Director if he is disqualified by law from doing so. As of
the date of adoption of this Code of Ethics, Section 49.052, Texas Water Code, disqualifies certain person from serving as directors of the District.
B. Within sixty (60) days after the Board determines that any Director is disqualified from serving on the Board, it shall replace such Director with a person who is not disqualified.
C. Any Director who is disqualified from serving on the Board under Section 2.01(A) who willfully occupies an office and exercises the duties and powers of that office may be subject to penalties under Section 49.052(g), Texas Water Code, including possible conviction of a misdemeanor and imposition of a fine.
D. A Director is not qualified to serve on the Board if the Director simultaneously serves in another civil office, either elective or appointive, entitling the Director to compensation. Article XVI, Section 40, of the Texas Constitution, Appendix “B.”
Section 2.02 Removal of Directors
The Board by unanimous vote of the remaining Directors may remove a Director from the Board if
that Director has missed one-half (1/2) or more of the regular meetings of the Board scheduled during the prior twelve (12) months. See Section 49.052, Texas Water Code.
SECTION 3. Conflicts of Interest.
A. The District adopts Chapter 171, Government Code, as its Conflict of Interest Policy, the
principal provisions of which are as follows: Except where a majority of the Board of Directors is required to abstain from participation in a vote because of conflict of interest, a Director will abstain from participating in a decision of the Board of Directors which either (1) confers an economic benefit on a business in which the Director or a close relative has a substantial interest, or (2) affects the value of property in which the Director or a close relative has a substantial interest differently from how it affects other real property in the District. For these purposes, a person is considered to have a “substantial interest” in a business if (1) he owns ten percent (10%) or more of the voting stock or shares of the business entity or owns either ten percent (10%) or more or $5,000 or more of the fair market value of the business entity; or (2) funds received from the business exceed ten percent (10%) of his gross income for the previous year. A Person has a substantial interest in real property if the interest is an equitable or legal
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interest with a market value of $2,500 or more. A “close relative” of a Director for these purposes is a person related to the Director within the first degree of affinity or consanguinity.
B. A Director who has a substantial interest in any matter involving the business entity or
real property shall disclose that fact to the other Directors by Affidavit. The Affidavit must be filed with the Secretary of the Board at a posted meeting open to the public. An interested Director shall abstain from further participation in the matter as set forth in Section 3(A).
C. The Board shall take a separate vote on any budget item specifically dedicated to a
contract with a business entity in which a Director has a substantial interest. In the event of a separate vote, the Director may not participate in that separate vote, but may vote on a final budget if the Director has complied with Section 3.
D. As of the date of adoption of this Code of Ethics, Chapter 176, Local Government Code,
requires the disclosure of certain relationships by Directors, vendors, and certain prospective vendors to the District. A Director, vendor, or prospective vendor who has a relationship that requires disclosure under Chapter 176 shall disclose that relationship by completing the form prescribed by the Texas Ethics Commission and timely filing such form with the Records Administrator. A Director or vendor violating this Section may be subject to prosecution as a Class C misdemeanor under Sections 176.003 and 176.006(f), Local Government Code, respectively.
SECTION 4. Conduct of District Business. Each District Official will conduct all business of
the District in a manner consistent with the requirements of applicable law and the Texas Open Meetings Act.
SECTION 5. Acceptance of Gifts. No District Official shall accept any benefit as consideration
for any decision, opinion, recommendation, vote, or other exercise of discretion in carrying out his official acts for the District. No District Official shall solicit, accept, or agree to accept any benefit from a person known to be interested in or likely to become interested in any contract, purchase, payment, claim, or transaction involving the exercise of the District’s Official’s discretion. As used herein, “benefit” shall not include:
(1) A fee prescribed by law to be received by a public servant or any other benefit to which
the District Official is lawfully entitled or for which he gives legitimate consideration in a capacity other than as a District Official;
(2) A gift or other benefit conferred on account of kinship or a personal, professional, or
business relationship independent of the status of the recipient as a District Official;
(3) A political contribution, as defined by the Election Code;
(4) A benefit consisting of, lodging or transportation;
(5) A benefit to a District Official required to file a financial statement under the Texas Election Code that is derived from a function in honor or appreciation of the recipient if:
a. The benefit and the source of any benefit in excess of $50.00 is reported in the required
financial statement;
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b. The benefit is used solely to defray the expenses that accrue in the performance of duties or activities in connection with its official duties for the District which are non- reimbursable by the District; or
c. An item with value of less than $50.00, excluding cash or negotiable instrument; or
d. An item issued by a governmental entity that authorizes the use of property or facilities
owned, leased, or operated by the governmental entity.
SECTION 6. Bribery
A District Official shall not intentionally or knowingly offer, confer, or agree to confer on another, or solicit, accept, or agree to accept from another, any benefit as consideration when to do so is prohibited by law. As of the date of adoption of this Code of Ethics, Section 36.02, Texas Penal Code, lists the offenses that are considered bribery when committed by District Officials. Violations of penal laws may subject a District Official to criminal prosecution.
SECTION 7. Acceptance of Honoraria.
A Director shall not solicit, accept or agree to accept an honorarium as prohibited by law.
As of the date of the adoption of this Code of Ethics, Section 36.07, Texas Penal Code, provides the circumstances in which a Director may not accept an honorarium. Violations of penal laws may subject a District Official to criminal prosecution.
SECTION 8. Lobbying.
Should the Texas Ethics Commission by rule require any District Officials directly
communicating with legislative or executive branch officials to register as lobbyists, District Officials shall comply with such rule. See Government Code, Section 305.0051.
The District shall not reimburse from District funds the expenses of any person in excess
of $50.00 for direct communications with a member of the legislative or executive branch unless the person being compensated resides in the district of the member with whom the person communicates or files a written statement which includes the person’s name, the amount of compensation or reimbursement, and the name of the affected political subdivision with the Secretary of State. This provision does not apply to registered lobbyists, a full-time employee of the District or an elected or appointed District Official.
ARTICLE II
FEES AND EXPENSE POLICY
SECTION 1. Purpose. The purpose of this Expense Policy is to set forth the policies of Trophy
Club Municipal Utility District No. 1 (the “District”) concerning per diem and travel expenses for members of the Board of Directors of the District.
SECTION 2. Fees of Office for Directors. Pursuant to Section 49.060 of the Texas Water Code,
as amended, Directors are entitled to receive as fees of office u p t o $150.00 a day for each day the Director actually spends performing the duties of a director, provided the fees shall not exceed a sum of $7,200 per annum. Fees of office are approved by the Board of Directors and are currently set at $100 a day
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and not to exceed $7,200 per annum. “Performing the duties of a Director” means substantive performance of the management or business of the District, including participation in board and committee meetings and other activities involving the substantive deliberation of District business and in pertinent educational programs. The phrase does not include routine or ministerial activities such as the execution of documents, self- preparation for meetings, or other activities requiring a minimal amount of time. Directors may attend other meetings relating to the management or business of the District and receive fees of office and expenses at the discretion of each director.
At every monthly District Board meeting, Directors will receive a ”Fee Payment Request Form.”
Each Director in attendance at said meeting will be required to complete a Fee Payment Request Form. Directors will have two options: 1) Request payment or 2) Decline payment. Any Director who fails to complete/submit a Fee Payment Request Form will be emailed or if no email address, mailed a Fee Payment Request Formby the District Secretary, requesting the Director complete and sign the Fee Payment Request Form. If the Director wishes to decline payment, the Director may indicate such via an electronic transmission, via regular mail or submit the request in person to the District Secretary.
Directors attending “outside” meetings on District business who wish to receive payment for
attendance at such meeting shall have thirty (30) days from the date of said meeting in which to submit a Fee Payment Request Form for payment. Any Fee Payment Request Form received after thirty (30) days shall come before the Board for approval. All Directors requesting and receiving reimbursement for attending District business outside of the monthly Board meetings shall be required to provide an update/report to the Board either in person at the next meeting or provide an update/report via an electronic transmission to the Board and the General Manager.
SECTION 3. Attendance at Meetings and Conduct of Other District Business. Board members
may attend conferences and meetings of the Association of Water Board Directors, at the District’s expense, whether within or outside the Town of Trophy Club. Attendance at other conferences, hearings, or other meetings outside of Trophy Club by the members of the Board of Directors must be sanctioned by the Board of Directors; attendance at local meetings or conduct of other local District business will be at each Director’s discretion. Directors attending any meeting or conducting any District business shall report to the Board concerning the meeting or activity.
SECTION 4. Expenses Outside of Trophy Club. The District will pay a reasonable room rate
for a director’s hotel room, if District business requires overnight travel, reasonable tips incurred in making the trip, roundtrip mileage at the current IRS mileage rate and parking, if any, for travel by car or roundtrip airfare at current commercial rates for standard (not first class) air fare and reasonable rental car or taxi charges. The District will pay for meals actually eaten and paid for by the Director on a sanctioned trip; provided, however, reimbursement for meals will be limited to $75.00 per day per person. Appropriate documentation listing the person in attendance and a description of the business discussed at the meeting or activity is required. All reimbursement requires receipts of purchase. No reimbursement shall be made for the purchase of entertainment or the purchase of alcoholic beverages for a director, spouse, employee or guest. No reimbursement shall be made for expenses of a spouse of a director or employee.
SECTION 5. Expenses for Local Meetings and Activities. The District will pay for roundtrip
mileage at the current IRS rate for travel by car, parking, and will pay meals directly related to the meeting or activity. Reimbursement for meals will be limited to $75.00 per day per person. Appropriate documentation listing the person in attendance and a description of the business discussed at the meeting or activity is required. No reimbursement shall be made for the purchase of alcoholic beverages for a director, spouse, employee or guest. No reimbursement shall be made for the expenses of a spouse of a director or employee.
SECTION 6. Reimbursement. Directors attending meetings or other activities and wishing to
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receive Fees of Office and/or expenses must submit a verified statement showing the number of days actually spent in service to the District and a general description of the duties performed for each day of service. To receive reimbursement for expenses, a Director must also submit an itemized expense report including receipts, to the District Finance Department before reimbursement is approved by the General Manager. Items on the expense report shall include lodging, meals, tips, parking and transportation. Directors sharing expense items may split reported expenses in any manner they deem equitable, but the Board will pay no more than 100% of the actual total cost of reimbursable items.
SECTION 7. Extraordinary Expenses. Any extraordinary expenses for a Director attending a
sanctioned activity of the District must be approved by the Board prior to incurring the expense.
ARTICLE III
PROFESSIONAL CONSULTANTS
SECTION 1. Purpose. The purpose of this Policy Concerning Selection, Monitoring, Review,
and Evaluation of Professional Consultants is to set guidelines for the Board of Directors for Trophy Club Municipal Utility District No. 1 (the “District”) concerning its Professional Consultants.
SECTION 2. Definition of Professional Consultant. “Professional Consultant” shall include
the District’s attorney, auditor, bookkeeper, financial advisor, and tax assessor/collector, and such other consultants other than employees that the District may hereafter engage.
SECTION 3. Selection of Consultants. Whenever the Board of Directors of the District decides
to terminate the services of one or more of its Professional Consultants, the Board shall solicit one or more proposals as required by the Professional Services Procurement Act, Section 2254.001 et seq., Government Code. Selection of professional consultants is to be conducted by the Board in an open meeting.
SECTION 4. Monitoring of Professional Consultants. For those Professional Consultants with
annual contracts, the Board of Directors of the District will review the performance of the Professional Consultants for the prior year at the time the contract is renewed. The Board of Directors shall review the performance of its other Professional Consultants, upon the request of one or more Directors.
ARTICLE IV
AUDIT COMMITTEE
SECTION 1. Purpose. The purpose of this policy relating to the use of management information and formation of an Audit Committee for Trophy Club Municipal Utility District No. 1 (the “District”) is to provide written policies concerning the use of management information.
SECTION 2. Annual Budget. Prior to each fiscal year, the Board of Directors of the District
shall adopt an annual budget for the next fiscal year for use in planning and controlling of costs.
SECTION 3. Audit Committee. The Board of Directors shall annually appoint an audit committee to review the annual audit prepared by the District Auditor. The Board may designate a lesser
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number than the entire Board, but not less than two (2) Directors to serve as its audit committee. The final audit must be presented to the entire Board for approval prior to submittal to regulatory agencies.
SECTION 4. Accounting Standards. The District hereby directs its auditor to adopt uniform
auditing reporting requirements that use “Audits of State and Local Governmental Units” as a guide on audit working papers and that uses “Governmental Accounting and Financial Reporting Standards” for final audit reports (subject to the standards for audits prescribed by applicable Texas Commission on Environmental Quality Rules).
ARTICLE V
CODE OF CONDUCT
Statement of Purpose
The citizens and the businesses that Trophy Club Municipal Utility District No. 1 (the “District”) serves are entitled to have a fair, ethical and accountable District, which earns the public’s full confidence through integrity. It is the strong desire of the District to fulfill this expectation; and, therefore requires that the Directors conduct themselves in accordance with the District’s adopted Code of Ethics. Directors will make every effort to act in a cooperative professional manner and:
• Fully support the decisions of the majority; • Respect the opinion of others; • Develop an understanding of District policies and projects; • Request information through proper channels; • Protect the privacy of all employees and fellow Directors; • Give other Directors equal time; • Comply with both the letter and spirit of the laws and policies affecting the operations of the
District; • Be independent, impartial and fair in their judgment and actions; and • Use their respective office or position for the public good and not for personal gain.
Directors WILL NOT:
• Make individual promises on behalf of the District to civic groups or individuals; • Obligate the Board to actions or expenditures without authorization; • Give individual direction to District staff without prior authorization from the General Manager; • Make derogatory public comments about staff members or other Board members; Provide District information to individuals or other entities without going through the proper procedure for Public Information Requests; • Make individual statements to the media concerning District issues without prior authorization of
the Board; and
To this end, the Directors have adopted this Code of Conduct in order to assure public confidence in the integrity of its government and its effective and fair operation.
Definitions
The following words, terms and phrases, when used in this section, shall have the following meanings subscribed to them:
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Business. A corporation, partnership, sole proprietorship, firm, holding company, joint stock company, receivership, trust or any other for profit or non-profit entity.
Board of Directors. The legislative and governing body of the District consisting of five (5) members including President, Vice-President, Secretary/Treasurer, and two Directors.
Employee. Any person employed by the District, including those individuals on a part-time basis, including independent contractors hired by the District for repetitive performance of services, but not independent contractors engaged for occasional services.
Nepotism. The Board shall not confirm the appointment to any position, nor award a contract, to a person related to a member of the Board within the second degree by affinity (marriage) or within the third degree by consanguinity (blood) when the salary or other compensation of such appointee is paid, directly or indirectly, from District funds, except as provided by Chapter 573, Texas Government Code.
Provisions
1. Act in the Public Interest Recognizing that stewardship of the public interest must be their primary concern, Directors shall work for the common good of the people served by the District and not for any private or personal reason. The Directors shall assure fair and equal treatment of all persons, claims and transactions coming before the District.
2. Comply with the Law Directors shall comply with the laws of the nation and the State of Texas in the performance of their public duties. These laws include, but are not limited to: the United States and Texas Constitutions; laws pertaining to conflicts of interest, election campaigns, financial disclosures, employer responsibilities, and open processes of government; and Orders, resolutions and policies of the District; the Texas Water Code; and the Texas Commission on Environmental Quality (TCEQ).
3. Conduct of Directors The professional and personal conduct of Directors must be above reproach and avoid even the appearance of impropriety. Directors shall refrain from abusive conduct, personal charges or verbal attacks upon the character or motives of other Director(s), employees, and the public. Discussions held in confidence and/or in Closed Session shall be kept strictly confidential unless otherwise authorized by the Board of Directors.
4. Respect for Process Directors shall perform their duties in accordance with the processes and Rules of Order established by the Board.
5. Conduct of Public Meetings and Committee Meetings Directors have an obligation to attend meetings and to be prepared for public issues and will treat each other and any member of the public with proper courtesy and respect. Directors will listen courteously and attentively to all public discussions before the body; and to focus on the business at hand. They shall refrain from interrupting other speakers, making personal comments not germane to the business of the body, or otherwise interfering with the orderly conduct of meetings.
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6. Decisions Based on Merit It is expected and required that Directors review material, participate in discussions and base their decisions on the merits and substance of the matter at hand.
7. Communication Prior to permitting final action on a matter under consideration, Directors shall publicly share substantive information, which they may have received from sources outside the public decision-making process that is relevant to such action by the Board.
8. Conflicts of Interest and Disclosure Directors shall familiarize themselves with and abide by the following conflicts of interest and disclosure statutes and principles:
a. Chapter 171 of the Local Government Code which requires an officer, whether elected, appointed,
paid, or unpaid, of a district exercising responsibilities beyond those that are advisory in nature, to file an affidavit disclosing a substantial interest in a business entity or property that would be beneficially affected by a decision of the governing body or of any other board or commission upon which the member serves and thereafter to abstain from participation in discussion and voting on the matter. Once the disclosure is made, the Director is to remove himself from the meeting area to ensure his presence does not hinder the discussion of the item or influence the vote.
b. Section 176 of the Local Government Code which requires Directors and the General Manager to
file a conflicts disclosure statement disclosing any business relationship with a person or business doing business with the District or being considered by the District for a business relationship.
c. Section 176.003(a)(2)(B) of the Local Government Code which requires the disclosure of gifts of
an aggregate value of more than $250.00 in the twelve (12) month period preceding the date that a Director becomes aware of a transaction described in Section 176, other than gifts of food, lodging, transportation, or entertainment accepted as a guest.
d. Sections 553.001-553.003 of the Government Code which requires the filing of an affidavit
before the date the District will acquire a property in which public servants has a legal or equitable interest.
e. In order to assure their independence and impartiality on behalf of the public good, Directors are
prohibited from using their positions to influence government decisions in which they have a personal interest.
9. Corruption Directors shall familiarize themselves with and abide by the Texas Penal Code mandates concerning corruption, including without limitation, Section 36.02 prohibiting receipt of prohibited gifts, Section 39.02 concerning abuse of official capacity and Section 39.06(a) concerning misuse of official information and all other applicable state laws regulating or related to public service.
10. Political Advocacy Directors shall not utilize the District’s name, logo, or their position for purposes of endorsing any political candidate, political position or business.
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11. Confidential Information No Director, officer, investment officer or employee of the District shall disclose confidential information concerning the property, operations, policies or affairs of the District, or use such confidential information to advance the personal interest, financial or otherwise, of such Director, officer or employee. 12. Use of Public Resources Directors shall not use public resources unavailable to the public, such as District staff time, equipment, supplies or facilities, for private gain or personal purposes. 13. Representation of Private Interests In keeping with their role as stewards of the public interest, Directors shall not appear on behalf of private interests of third parties before the District Board of Directors or any other board, commission, or committee. 14. Advocacy Directors shall represent the official policies or positions of the Board to the best of their ability when designated as delegates for this purpose. When presenting their individual opinions and positions, Directors shall explicitly state that they do not represent their body or the District, nor will they allow the inference that they do. 15. Policy Role of Directors Directors shall respect and adhere to the District’s structure as outlined in the Texas Water Code and the District’s policies and procedures. In this structure, the Directors determine the policies of the District with the advice, information and analysis provided by the public, District consultants and staff. Except as provided by District Order, Directors therefore shall not interfere with the administrative functions of the District or the professional duties of the District staff; nor shall they impair the ability of Staff to implement Board policy decisions. Directors shall take all requests of staff to the General Manager and shall not contact employees directly. 16. Independence of Boards, Commissions, and Committees Because of the value of the independent advice of boards, commissions, committees and advisory groups to the public decision-making process, Directors shall refrain from using their position to influence unduly the deliberations or outcomes of any board, commission, committee, and advisory group proceedings. 17. Positive Workplace Environment Directors shall support the maintenance of a positive and constructive workplace environment for District employees and for citizens and businesses dealing with the District. 18. Implementation As an expression of the standards of conduct for Directors expected by the District, this Code of Conduct is intended to be self-enforcing. It therefore becomes most effective when Directors are thoroughly familiar with it and embrace its provisions. Ethical standards shall be included in the regular orientations for newly elected and appointed Directors. Directors entering office shall sign a statement affirming they have read and understand the Trophy Club Municipal Utility District No. 1 Code of Conduct and agree to be bound by its terms. In addition, the Code of Conduct shall be reviewed at least annually by the Directors, and the Board shall consider recommendations for revision as it becomes necessary.
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19. Compliance and Enforcement The Trophy Club Municipal Utility District No. 1 Code of Conduct expresses standards of ethical conduct expected for Directors. Directors themselves have the primary responsibility to assure that ethical standards are understood and met, and that the public can continue to have full confidence in the integrity of government. The President of the Board, or the Vice-President if the President's conduct is in issue, has the additional responsibility to intervene when a Director’s actions appear to be in violation of the Code of Conduct and are brought to their attention. The Board may impose sanctions, such as reprimand or formal censure on a Director whose conduct does not comply with the ethical standards of the District. The Board also may censure or reprimand a Director in accordance with the procedures and subject to the limitations set forth in Section 20 of this policy. The Board finds and determines that these ethics and standards of conduct are necessary and appropriate to serve the legitimate goal of orderly governance, uphold the integrity of the District, and maintain public confidence in government. 20. Procedure for Enforcement Upon good faith and belief that a Director has violated any term or provision of this Code of Conduct, a party having such good faith and belief that a violation has occurred and wishing to initiate a formal review of the alleged violation shall file a written complaint with the District Secretary. The written complaint shall contain 1) the name of the complaining party (hereinafter “Complainant”); 2) the name of the party against whom the complaint is being filed (hereinafter “Respondent”); 3) the specific sections allegedly violated; 4) Specific dates, approximate time of day, locations and other facts evidencing the alleged violations; and 5) any documentation evidencing that a violation of the Code of Conduct occurred. Trophy Club Municipal Utility District No. 1 will not accept a request related to alleged violation(s) of ethics policies within sixty (60) days of a called director’s election. If the complaint does not meet all of the requirements set forth in the preceding paragraph, the District Secretary shall notify the Complainant in writing of the nature of the deficiency. The District Secretary will copy the Director or Directors that are the subject of the complaint, the General Manager, and District legal counsel on the letter and no further action by the District Secretary or Board shall be necessary, until a co mpla in t i s r esubmi t ted and the District Secretary determines it meets the requirements of this section. Within thirty (30) days of the District Secretary's receipt of a written complaint meeting all of the requirements set forth above, a notice will be sent to the parties (Complainant and Respondent) to determine if they agree to have the Complaint mediated by a mutually agreed upon mediator. The letter will allow both parties a minimum of 14 business days to respond and will designate a final date for responses in the letter. A copy of the complaint will be attached and all members of the Board of Directors will be copied on the letter requesting mediation. If the parties do not so agree to mediate the Complaint by the final date specified in the letter, the District Secretary shall forward the complaint to the District’s legal counsel. Once forwarded to District legal counsel, the complaint shall be reviewed by legal counsel to determine whether the complaint on its face presents a violation of this Code of Conduct for which sanctions, such as reprimand, or formal censure would be appropriate in order to serve the legitimate goal of orderly governance, integrity, and public confidence in government. Legal Counsel will be allowed a minimum of 14 calendar days to review the complaint and will present his/her findings at the next regular meeting following the 14 calendar day review period. Upon a recommendation from legal counsel that the complaint on its face presents a violation and upon a majority vote of the Board that the complaint merits further review and investigation, an item shall be placed on the next available regular District meeting agenda for which posting requirements may be legally and procedurally met. Additionally, upon majority vote, the Board may specify any and all individual items of grievance from the Complaint that merit such review and investigation and that will be considered by the Board at a subsequent hearing on the matter. At least seven (7) days prior to the hearing date, the District Secretary shall notify the parties (Complainant and Respondent) in writing of the date, time and place at which the Board will conduct a hearing on the
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merits of the alleged complaint, and if Board has by majority vote specified individual items for review and investigation at the hearing. Such notice shall advise the parties of the scope of the hearing.
Alternatively, if upon review of the complaint on its face by legal counsel, followed by a majority vote of Board, determines that further review and investigation is not warranted, then the Complainant shall be notified in writing of such vote and no further action shall be required by the District Secretary or Board.
At the subsequent Board hearing, the Complainant and Respondent may present testimonial and or documentary evidence regarding the allegations contained within the Complaint. If the Board determines that substantial evidence has been presented to support the allegation that a violation of the Code of Conduct has occurred and that the violation is detrimental to orderly governance, integrity, and public confidence in the District government, then the Board may by majority vote impose sanctions, such as reprimand, or formal censure, as determined appropriate to serve the legitimate goals of this policy. Directors may only be disqualified and/or removed from serving as a Director in accordance with the provisions of 49.052.
All procedural rules of the Board shall apply to proceedings conducted pursuant to this Section. The complaint procedure specified in this Section shall only be applicable to those Directors who are appointed and/or elected and for the conduct of such official that occurs during the official’s term of office on a Board.
ARTICLE VI RULES OF PROCEDURE
SECTION I ORGANIZATION, POWERS AND OFFICE
Section 1.01. Organization. Trophy Club Municipal Utility District No. 1 (“the District”) is a
governmental agency and body politic and corporate of the State of Texas pursuant to Chapters 49 and 54 of the Texas Water Code and Section 59, Article XVI of the Texas Constitution.
Section 1.02. Powers. The District has all of the rights, powers, privileges, authority, functions
and duties necessary and convenient to accomplish the purposes established for a municipal utility district as provided by Chapters 49 and 54 of the Texas Water Code (“Code”).
Section 1.03. Office. The chief administrative office the District shall be located within the boundaries of Trophy Club Municipal Utility District No. 1.
SECTION II
BOARD OF DIRECTORS
Section 2.01. General Powers and Number. The business and affairs of the Authority shall be conducted under the authority and direction of the Board. The number of directors of the Board shall be five (5). In the event of a vacancy in the office of director, the Board shall appoint a qualified person to the office as required by Texas Water Code 49.105.
Section 2.02. Qualifications of Directors. Each director, whether elected or appointed, shall be required to qualify by the execution of a bond to be paid by the District, and execution of the Constitutional Oath of Office and Statement of Elected Officer. A person shall not serve as a director if he or she is not qualified to do so under the provisions of the Code. Within sixty (60) days after the Board determines that any director is not qualified to serve on the Board, it shall replace such director with a person who is qualified. Any director not qualified to serve on the Board, who willfully occupies an office
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and exercises the duties and powers of that office, may be subject to penalties under the Code, as amended, including possible conviction of a misdemeanor and imposition of a fine.
Section 2.03. Tenure. Except as provided by the Code, each director shall serve for a period of four (4) years and until his or her successor is elected and qualified. Any director appointed to the Board shall serve for the remainder of the term of office to which such director is appointed.
Section 2.04. Meetings. The Board shall establish a regular meeting time and place or places.
The Board shall meet monthly except upon the occasion when it is determined that no meeting is necessary in a particular month. In any event, the Board shall meet no less than four (4) times each year.
Regular Board Meetings are normally held on the third Tuesday of every month at 6:00 P.M. in the Svore Municipal Building, Boardroom located at 100 Municipal Drive, Trophy Club, Texas 76262. The date, location and time may be changed by vote of the Board of Directors. Meeting locations must be approved by Resolution of the District and the Texas Commission on Environmental Quality (TCEQ) must be notified of any permanent change in location.
Other types of meeting may be called by the President of the Board or the General Manager.
Emergency Meetings may be called by the above persons, or by a majority of the members of the Board, with two (2) hours notice. Such Meetings are to be called only in situations where an emergency or an urgent public necessity exists and immediate action is required by the Board because of: (1) an imminent threat to public health and safety; or (2) a reasonably unforeseeable situation. The emergency or urgent public necessity shall be clearly identified.
Special Board Meetings may be called at any time with seventy-two (72) hours notice to conduct District business as may be required between Regular monthly meetings.
Work Sessions may be called prior to a regular meeting to explore one or more matters in detail.
Section 2.05. Agendas. The General Manager shall confer with the District’s attorney (s) prior to
each meeting to determine the agenda items. Directors wishing to place an item on the agenda should comply with the District’s adopted Agenda Policy.
Section 2.06. Posting Agendas and Notice to Directors. After approval of the agenda by the President and General Manager, the District Secretary shall post the agenda as required by the Texas Open Meetings Act and the Code. Notice to the directors of any meeting of the Board shall be given at least seventy-two (72) hours prior to the meeting. Such notice shall be given by electronic transmission, facsimile, or telephone if notice is given less than five (5) days prior to a meeting. Copies of the agenda will be placed on the District webpage and will be available for the public at the meeting.
Section 2.07. Quorum. A majority of the Board shall constitute a quorum for the transaction of
business at any meeting of the Board. The act of three (3) directors at a meeting for which a quorum is present shall be the act of the Board.
Section 2.08. Conduct of Meetings. The President shall preside at Board meetings. In the
absence of the President, the Vice President shall preside. The Board may provide a portion of each meeting for public comments in accordance with the policies established for receipt of public comment. Board shall agree that no Director can speak twice to the same issue until everyone else wishing to speak has spoken to it once. The Board agrees that before any subject is open to debate it is first necessary that a motion be made by a Director who has the floor; second, that it be seconded (with certain exceptions); and third, that
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the President shall state the question so that the Board may know what is before it for consideration and action. Debate cannot begin until the President has stated the motion or resolution and opened the agenda item for consideration.
OFFICERS
Section 3.01. Officers. The officers of the District shall be a President, a Vice President, a Secretary/Treasurer, and such other officers as may be elected in accordance with the provisions of this Article, including but not limited to, an Investment Officer. The Board may elect or appoint such officers including an Assistant Secretary/Treasurer as it may deem desirable, such officers to have the authority to perform the duties prescribed from time-to-time by the President.
Section 3.02. Election and Term of Office. The officers of the District shall be elected annually
by the Board at the regular meeting of the Board in June. New offices may be created and filled at any meeting of the Board. Each officer shall hold office until his successor shall have been duly elected.
Section 3.03. Removal. Any officer elected or appointed by the Board may be removed by the Board whenever the best interests of the District would be served thereby, but such removal shall not constitute a removal from the Board.
Section 3.04. Vacancies. A vacancy in any office because of death, resignation, removal,
disqualification, or otherwise must be filled by the Board for the unexpired portion of the term in accordance with Section 49.105 of the Texas Water Code regarding the filling of vacancies.
Section 3.05. President. The President shall be a member of the Board with all the rights and
privileges thereof, including the right to introduce motions before the Board and to vote on all matters. The President shall preside at all meetings of the Board. The President may sign any deeds, mortgages, bonds, contracts, or other instruments which the Board has authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Board to the General Manager; and in general, the President shall perform all duties as may be prescribed by the Board from time-to-time.
Section 3.06. Vice President. The Vice President shall be a member of the Board and in the
absence of or upon the death of the President and in the event of the inability or refusal of the President to perform; the Vice President shall perform the duties, succeed to the authority and assume the responsibilities of the powers of the office of President. A Vice President shall perform such other duties as a prescribed by the Board or assigned by the President.
Section 3.07. Secretary/Treasurer. In his or her role as Secretary, the Secretary/Treasurer is responsible for seeing that all records and books of the District are properly kept and that all notices are duly given in accordance with the provisions of these rules or as required by law. In general, the Secretary/Treasurer shall perform all duties incident to the office of Secretary and such other duties as from time-to-time may be assigned by the President or by the Board. The Secretary/Treasurer may attest the President’s signature on documents. The Secretary/Treasurer may ask the General Manager to delegate such duties as may be prudent to staff and consultants but shall not be relieved of any responsibility to perform legally required duties. In his or her role as Treasurer, the Secretary/Treasurer, with the assistance of the General Manager, shall be responsible for all funds and securities of the District, shall review the receipts of all money due and payable to the District from any source, and shall assure the deposit of all such moneys in the name of the District in such banks as shall be selected by the Board. The Secretary/Treasurer shall also review the disbursements of the District, and in general, shall perform all duties incident to the office of the Treasurer and such other duties as from time-to- time may be assigned to him or her by the President or the Board. The Investment Officer, if not the same person as the Treasurer, shall be responsible for the investment of the District’s funds, as provided in Section 3.09
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hereof.
Section 3.08. Investment Officer. Any officer or staff designee of the Board may be appointed as the Investment Officer of the District (the “Investment Officer”). The Investment Officer, so appointed by the Board, along with the Finance Director, shall be the Investment Officers of the District and, in such capacity, shall fulfill the responsibilities of such office regarding the investment of the District’s funds, pursuant to the Public Funds Investment Act, as amended, and the Investment Policy of the District, as such policy may be amended by the Board from time to time.
ADOPTED, PASSED AND APPROVED by the Board of Directors of Trophy Club Municipal
Utility District No. 1, Trophy Club, Texas, this, the 21st 16th day of Junely, 2015.
Jim Moss, President Board of Directors Kevin R. Carr, Secretary/Treasurer (SEAL)
Board of Directors Laurie Slaght, District Secretary
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EXHIBIT A
STATEMENT OF COMMITMENT
As a member of the Trophy Club Municipal Utility District No. 1 Board of Directors, I agree to uphold the Code of Conduct and adhere to the following model of behavior.
I will:
• Recognize the worth of individual Directors and appreciate their individual talents, perspectives and contributions;
• Help create an atmosphere of respect and civility where individual Directors, staff and the public
are free to express their ideas and work to their full potential;
• Conduct my personal and public affairs with honesty, integrity, fairness and respect for others;
• Respect the dignity and privacy of individuals and organizations;
• Keep the common good as my highest purpose and focus on achieving constructive solutions for public benefit;
• Avoid and discourage conduct which is divisive or harmful to the best interests of the District;
• Treat all people with whom I come in contact in a manner I wish to be treated;
• Before I speak or act I will ask myself the following questions:
1. Is it the truth? 2. Is it fair to all concerned? 3. Will it build goodwill and better relationships? 4. Will it be beneficial to all concerned?
I affirm that I have read, understand, accept and support the Trophy Club Municipal Utility District No. 1 Code of Conduct.
Print Name
Position/Title
Signature Date
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CERTIFICATE OF ORDER (2015-00616721B_)
THE STATE OF TEXAS § COUNTIES OF DENTON AND TARRANT §
I, the undersigned member of the Board of Directors of the Trophy Club Municipal Utility District No. 1 of Denton and Tarrant Counties, Texas (the "District"), hereby certify as follows:
1. That I am the duly qualified and acting Secretary of the Board of Directors of the District, and
that as such, I have custody of the minutes and records of the District.
2. That the Board of Directors of the District convened in Open Session at a Regular Meeting on Junely 1621, 2015, at the regular meeting place thereof, and the roll was called of the duly constituted officers and members of the Board of Directors, to wit:
Jim Moss President Jim HaseNeil Twomey Vice President Kevin R. Carr Secretary/Treasurer Jim Thomas Director Neil TwomeyJim Hase Director
and Directors Moss, Hase, Carr, Thomas, and Twomey were present, thus constituting a quorum, whereupon, among other business, the following was transacted at such meeting: a written
AN ORDER OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1, REPEALING ORDER 2014-0819A, AND ADOPTING AN AMENDED CODE OF ETHICS, A FEES AND EXPENSE POLICY, POLICIES AND PROCEDURES FOR SELECTION AND REVIEW OF CONSULTANTS, POLICIES CONCERNING THE USE OF MANAGEMENT INFORMATION INCLUDING THE FORMATION OF AN AUDIT COMMITTEE, CODE OF CONDUCT, RULES OF PROCEDURE AND CERTAIN OTHER MATTERS; AND PROVIDING AN EFFECTIVE DATE
was duly introduced for the consideration of the Board of Directors. It was then duly moved and seconded that such Order be adopted and, after due discussion, such motion, carrying with it the adoption of such Order prevailed and carried by the following vote:
AYES:
NOES:
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Order (2015-0616721B_) Certificate Trophy Club Municipal Utility District No. 1
3. That a true, full and correct copy of such Order adopted at such meeting is attached to and follows this certificate; that such Order has been duly recorded in the minutes of the Board of Directors for such meeting; that the persons named in the above and foregoing Paragraph 2 were the duly chosen, qualified and acting officers and members of the Board of Directors as indicated therein, that each was duly and sufficiently notified officially and personally, in advance, of the time, place and purpose of such meeting, and that such Order would be introduced and considered for adoption at such meeting, and that each consented, in advance, to the holding of such meeting for such purpose; that the canvassing of the officers and members of the Board of Directors present at and absent from such meeting and of the votes of each on such motion, as set forth in the above and foregoing Paragraph 2, is true and correct; and that sufficient and timely notice of the hour, date, place and subject of such meeting was given and posted as required by Chapter 551, Texas Gov. Code. SIGNED AND SEALED the 21st 16TH day of Junely 2015.
Kevin R. Carr, Secretary/Treasurer Board of Directors
ATTEST: (SEAL) Laurie Slaght, District Secretary
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CERTIFICATE FOR ORDER NO. 2015-0721C
ADOPTING AMENDED AND RESTATED INVESTMENT POLICY THE STATE OF TEXAS § COUNTIES OF DENTON AND TARRANT § TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 §
I, the undersigned Secretary of Trophy Club Municipal Utility District No. 1 (the
“District”), hereby certify as follows:
1. The Board convened in regular session, open to the public, on the 19th 21st day of AugustJuly, 20145, at the regular meeting place thereof, and the roll was called of the members of the Board, to-wit:
Jim Moss President Jim Hase Neil Twomey Vice President Kevin Carr Secretary/Treasurer Jim Thomas HaseJim Thomas Director Neil Twomey Jim Hase ThomasJim Hase Director
All members of the Board were present except the following, _______________, thus
constituting a quorum. Whereupon, among other business, the following was transacted at such meeting:
ORDER NO. 20145-0871921C ADOPTING AMENDED AND RESTATED INVESTMENT POLICY
was duly introduced for the consideration of the Board. It was then duly moved and seconded that such Order be adopted; and, after due discussion, such motion, carrying with it the adoption of said Order, prevailed and carried by the following vote:
AYES: ___ NOES: ___
2. A true, full, and correct copy of the aforesaid Order adopted at the meeting described in the above and foregoing paragraph is attached to and follows this Certificate; such Order has been duly recorded in said Board's minutes of such meeting; the above and foregoing paragraph is a true, full, and correct excerpt from the Board's minutes of such meeting pertaining to the adoption of such Order; the persons named in the above and foregoing paragraph are the duly chosen, qualified, and acting officers and members of the Board as indicated therein; each of the officers and members of the Board was duly and sufficiently notified officially and personally, in advance of the time, place, and purpose of such meeting and that such Order would be
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introduced and considered for adoption at such meeting and each of such officers and members consented, in advance, to the holding of such meeting for such purpose; such meeting was open to the public, as required by law, and public notice of the time, place and purpose of such meeting was given as required by Chapter 551, Government Code and Section 49.063, Texas Water Code, as amended.
SIGNED AND SEALED the 1921thst day of August July, 20145. (SEAL) ____________________________ Laurie Slaght, District Secretary
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TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 ORDER NoNO. 20145-0819721C
ADOPTING AMENDED AND RESTATED INVESTMENT POLICY
THE STATE OF TEXAS § COUNTIES OF DENTON AND TARRANT § TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 §
WHEREAS, V.T.C.A., Government Code, Chapter 2256, as amended (the “Public Funds
Investment Act”), requires the governing body of political subdivisions to adopt a written investment policy concerning the investment of its funds and funds under its control;
WHEREAS, Section 49.157(a) of the Texas Water Code, as amended, provides that all District deposits and investments shall be governed by Subchapter A, Chapter 2256, Government Code (Public Funds Investment Act);
WHEREAS, Section 49.157(b) of the Texas Water Code, as amended, provides that an authorized representative of the District may invest and reinvest the funds of the District and provide for money to be withdrawn from the appropriate accounts of the District for the investment on such terms as the board considers advisable;
WHEREAS, the Board of Directors (the “Board”) of Trophy Club Municipal Utility District No. 1 (the “District”) has previously designated one or more investment officers and adopted a policy relating to the investment of District funds in accordance with the Public Funds Investment Act;
WHEREAS, the Public Funds Investment Act requires that the Board of Directors of the District review the Investment Policy and its investment strategies not less than annually and make any changes thereto as determined by the Board of Directors to be necessary and prudent, and to adopt an order or resolution stating that it has reviewed the Investment Policy and investment strategies and recording any changes made thereto.
NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1, THAT:
Section 1. The matters and facts recited in the preamble to this Order are found to be true and correct and the same are incorporated herein as a part of this Order.
Section 2. The Board has reviewed its Investment Policy and the investment strategies set
forth therein in accordance with the requirements of Section 2256.005(e) of the Public Funds Investment Act. Based upon such review, the Board finds and declares that the Amended and
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Restated Investment Policy in the form attached hereto is hereby approved and adopted, and such Policy shall replace and supersede in its entirety the prior Investment Policy of the District, together with any and all other resolutions or orders relating to the investment of the District’s funds.
Section 3. The General Manager is authorized to do all things necessary and proper to
evidence the Board's adoption of this Order and to carry out the intent hereof. Upon execution, a permanent copy of this Order shall be filed in the permanent records of the District.
PASSED AND APPROVED by the Board of Directors of Trophy Club Municipal Utility
District No. 1 this 19th 21st day of AugusJulyt, 20145.
_______________________________ Jim Moss, President Board of Directors ATTEST:
_____________________________ Kevin R. Carr, Secretary Board of Directors (SEAL) _____________________________ Laurie Slaght, District Secretary
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TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
INVESTMENT POLICY
AUGUST July 1921, 20145
I. STATUTORY AUTHORITY
1.01 Statutory Authority. This Policy has been adopted pursuant to, and in accordance with the requirements of, Chapter 2256 of the Texas Government Code (the Public Funds Investment Act) and Chapter 2257 of the Texas Government Code (the Public Funds Collateral Act).
II. POLICY
2.01 Policy. It is the policy of the Trophy Club Municipal Utility District No. 1
(“District”) that after allowing for the anticipated cash flow requirements of the District and giving due consideration to the safety and risk of investment, all available funds shall be invested in conformance with these legal and administrative guidelines, seeking to optimize interest earnings to the maximum extent possible.
2.02 Cash Management. Effective cash management is recognized as essential to good fiscal management. Investment interest is a source of revenue to District funds. The District investment portfolio shall be designed and managed in a manner designed to be responsive to public trust, to be in compliance with legal requirements and limitations, and to maximize this revenue source. Investments shall be made with the primary objectives of: Safety and preservation of principal Maintenance of sufficient liquidity to meet operating needs Public trust from prudent investment activities Optimization of interest earnings on the portfolio
III.
PURPOSE
3.01 Purpose. The purpose of this investment policy is to comply with Chapter 2256 of the Government Code (“Public Funds Investment Act”), which requires the District to adopt a written investment policy regarding the investment of its funds and funds under its control. The Investment Policy addresses the methods, procedures and practices that must be exercised to ensure effective and judicious fiscal management of District funds.
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IV. SCOPE
4.01 Scope. This Policy applies to the investment of all funds of Trophy Club Municipal
Utility District No. 1 (the “District”) and funds under its control. The Board of the District shall review this Investment Policy and the investment strategies set forth herein not less than annually and shall make any changes thereto as determined by the Board of the District to be necessary and prudent for the management of District funds. Not less than annually, the Board shall adopt a written order or resolution stating that it has reviewed the Investment Policy and investment strategies and setting forth any changes made thereto.
4.02 This Policy shall govern the investment of all financial assets of the District. These funds are accounted for in the Basic Financial Statements and include:
* General Fund * Capital Projects Funds * Debt Service Funds, including reserves and sinking funds, to the extent not required
by law or existing contract to be kept segregated and managed separately * Any new fund created by the District, unless specifically exempted from this Policy
by the District Board of Directors or by law.
4.03 The District consolidates fund cash balances to maximize investment earnings. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.
4.04 This Policy shall apply to all transactions involving the financial assets and related activity for all the foregoing funds. However, this policy does not apply to the assets administered for the benefit of the District by outside agencies under deferred compensation programs.
V.
OBJECTIVES
5.01 Investment Objectives. Investment of funds shall be governed by the following investment objectives, in order of priority:
i. Preservation and safety of principal- The- The foremost objective of the District’s Investment Policy is to assure safety of the invested funds. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital while minimizing credit rate and interest rate risk. Investment for speculation is prohibited.
ii. Liquidity- Funds will be invested with maturities necessary to maintain sufficient liquidity
to provide adequate and timely working funds. iii. Yield- Return on investment is of least importance compared to the safety and liquidity
objectives described above.
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VI. INVESTMENT PARAMETERS
6.01. Investment Strategies. The District’s overall investment strategy shall be to purchase high credit quality investments that preserve the safety of capital, maximize liquidity, promote diversification, and provide reasonable market yield (in that order of priority), based on the District’s anticipated cash flows and the maintenance of a liquidity buffer for unanticipated liabilities. Investments are to be chosen in a manner which promotes diversity by market sector, credit and maturity. The choice of high credit quality investments and high-grade money market instruments are designed to assure the marketability of those investments should liquidity needs arise. Detailed strategies by fund type are set forth in Exhibit “A” of this Policy. The Board of the District shall review annually the investment strategies and shall make any changes thereto as determined by the Board to be necessary and prudent for the management of the District's funds. 6.02 Maximum Maturities. The District will match its investments with anticipated cash flow requirements. To match anticipated cash flow requirements, the maximum weighted average maturity of the overall portfolio shall not exceed 365 days and a benchmark of the six-month and one-year Treasury Bills shall be used to measure risk in the portfolio. Unless matched to a specific cash flow requirement, the District will not directly invest in securities maturing more than 24 months from the date of purchase. 6.03 Diversification. The District will diversify its portfolio to reduce risk. The following table sets forth the minimum diversification standards by security type:
Type of Investment Maximum Percentage of District Portfolio
US Agencies/Instrumentalities 50% Certificates of Deposit/Share Certificates 90% Local Government Investment Pools 90% Money Market Accounts 90%
6.04. Competitive Bidding Requirement. All securities, including certificates of deposit, will be purchased or sold after three (3) offers/bids are taken to verify that the District is receiving fair market value/price for the investment. Bids for certificates of deposit may be solicited orally, in writing, electronically, or any combination of these methods. 6.05. Delivery versus Payment. All security transactions entered into by the District shall be conducted on a delivery versus payment (DVP) basis. Securities will be held by a third party custodian designated by the Investment Officer and evidenced by safekeeping receipts. 6.06 Rating Declines or Loss of Rating. The Investment Officer shall monitor the credit rating on all authorized investments in the District’s portfolio based on independent information from a nationally recognized rating agency. Ratings monitoring will be performed on a monthly basis for all authorized investments except mutual funds and commercial paper. Ratings monitoring will be performed on a weekly basis for mutual funds and commercial paper. If any security falls below the minimum rating required by this Policy (i.e. Public Funds Investment Act), the Investment Officer shall immediately solicit bids for and sell the security if possible, regardless
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of a loss of principle. 6.07 Electronic Wire Transfers. The Investment Officer may use electronic means to transfer or invest funds collected or controlled by the District. Electronic transfers shall only be made with prior written approval by the Generalthe General Manager. VII. DELEGATION OF INVESTMENT AUTHORITY
7.01 Appointment of Investment Officer. The person serving as Generalas General Manager is hereby appointed the Investment Officer of the District. The Investment Officer shall be responsible for the investment of District funds in accordance with this Investment Policy. If the Board has contracted with another investing entity to invest the District’s funds, as authorized by the Public Funds Investment Act, the Investment Officer of the other investing entity is considered to be the Investment Officer of the District for such purposes. The authority hereby granted to the Investment Officer to invest the District's funds is effective until rescinded by the Board, until the expiration of the officer's term or the termination of the person's employment with the District, or if an investment management firm, until the expiration of the contract with the District.
7.02 Investment Training. The Board appointed Treasurer, General Manager/
Investment Officer, Finance Manager, Administration Manager shall attend at least one investment training session from an independent source and containing at least six (6) hours of instruction relating to investment responsibilities within 12 (twelve) months after taking office or assuming duties. The Treasurer, General Manager/Investment Officer, Finance Manager, and Administration Manager shall also attend an investment training session within each two-year period that begins on the first day of the District’s fiscal year and consists of the two consecutive fiscal years after that date after the first year and receive not less than four (4) hours of instruction relating to investment responsibilities from an independent source. Training must include education on investment controls, security risks, strategy risks, market risks, diversification of investment portfolio and compliance with the Public Funds Investment Act. Certificates and/or other documentation of completed training hours shall be maintained with this Policy as Exhibit E.
7.03 Internal Controls. The Investment Officer is responsible for establishing and
maintaining an internal control structure designed to ensure that the assets of the District are protected from loss, theft, or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.
Accordingly, the Investment Officer shall establish a process for annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points.
Control of collusion. Separation of transactions authority from accounting and record keeping.
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Custodial safekeeping. Written confirmation for telephone (voice) transactions for investments and wire
transfers. Development of a wire transfer agreement with the depository bank or third party
custodian.
7.04 Prudence. The standard of care to be used by the Investment Officer shall be prudent person standard, and shall be applied in the context of managing the overall portfolio. This standard states that the person designated as the Investment Officer shall exercise the judgment and care, under prevailing circumstances, that a prudent person would exercise in the management of the person’s own affairs. In determining whether the Investment Officer has exercised prudence with respect to an investment decision, the determination shall take into consideration (i) the investment of all funds over which the Investment Officer has responsibility rather than consideration as to the prudence of a single investment, and (ii) whether the investment decision was consistent with this Investment Policy. 7.05 Ethics. Officers and employees involved in the investment of District funds shall refrain from personal activity that could conflict with the proper execution and management of the District’s investment program. Employees and investment officials shall disclose, in writing, any material interests, including personal business relationships, with any financial institution with which it is proposed that the District conduct business. For purposes of District investments, employees or investment officials have a personal business relationship with a business organization if:
i. the individual owns 10 (ten) percent or more of the voting stock or shares of the business organization or owns $5,000 or more of the fair market value of the business organization;
ii. funds received by the individual from the business organization exceed 10 percent of the
individual’s gross income for the previous year; or iii. the individual has acquired from the business organization during the previous year
investments with a book value of $2,500 or more for the personal account of the individual. 7.06 Limitation of Personal Liability. Authorized representatives of the District who invest the District’s funds in accordance with this Policy shall have no personal liability for any individual security’s credit risk or market price changes provided deviations from expectations are reported in a timely manner and appropriate action is taken to control adverse developments.
VIII.
INVESTMENT REPORTS
8.01 Internal Management Reports. The Investment Officer shall prepare and submit not less than quarterly to the Board of Directors of the District written reports of investment transactions for all funds of the District for the preceding reporting period. The quarterly reports shall comply with the requirements of Section 2256.023 of the Public Funds Investment Act. Specifically, the quarterly report shall:
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i. Describe in detail the investment position of the District;
ii. Be prepared jointly by all Investment Officers;
iii. Be signed by each Investment Officer;
iv. Contain a summary statement of each pooled fund group that states the:
(A) beginning market value for the reporting period; (B) ending market value for the period; (C) fully accrued interest for the reporting period; (D) state the book value and market value of each separately invested asset at
the end of the reporting period by the type of asset and fund type invested; (E) state the maturity date of each separately invested asset that has a maturity
date; (F) state the account or fund or pooled group fund in the state agency or local
government for which each individual investment was acquired; and (G) state the compliance of the investment portfolio of the District as it relates
to: (i) the investment strategy expressed in this Policy; and (ii) relevant provisions of the Public Funds Investment Act.
IX. COLLATERAL, SAFEKEEPING, AND CUSTODY REQUIREMENTS
9.01 Collateral Policy. Consistent with the requirements of the Public Funds Collateral
Act, it is the policy of the District to require full collateralization of all District funds on deposit with a depository bank and for repurchase agreements. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 102% of market value of principal and accrued interest on the deposits or investments, less an amount insured by the FDIC. At its discretion, the District may require a higher level of collateralization for certain investment securities. Securities pledged as collateral shall be held by an independent third party with which the District has a current custodial agreement. The General Manager is responsible for entering into collateralization agreements with third party custodians in compliance with this Policy. The agreements are to specify the acceptable investment securities for collateral, including provisions relating to possession of the collateral, the substitution or release of investment securities, ownership of securities, and the method of valuation of securities. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the District and retained. Collateral shall be reviewed at least monthly to assure that the market value of the pledged securities is adequate.
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9.02 Authorized Collateral for Time and Demand Deposits. The District shall accept only the following securities as collateral for time and demand deposits:
i. FDIC insurance coverage.
ii. Obligations of the United States, its agencies or instrumentalities, or other evidence of indebtedness of the United States guaranteed as to principal and interest.
iii. Obligations of Texas or other states or of a county, city or other political subdivision of a state having been rated as not less than “A” or its equivalent by two nationally recognized rating agencies.
iv. A letter of credit issued by a federal home loan bank.
9.03 Authorized Collateral for Repurchase Agreements. The District shall accept as collateral for repurchase agreements only obligations of the United States, its agencies or instrumentalities.
X. AUTHORIZED INVESTMENTS
10.01 Authorized Investments. The following are authorized investments for the
District’s funds, as further described and restricted by the Public Funds Investment Act:
i. Obligations of, or guaranteed by, the United States. Obligations of the United States, its agencies and instrumentalities, excluding mortgage backed securities, and that are authorized investments under Section 2256.009 of the Public Funds Investment Act.
ii. State Obligations. Obligations of the State of Texas or any state of the United States or
their respective agencies and instrumentalities, agencies, counties, cities, and other political subdivisions rated as to investment quality by a nationally recognized investment rating firm not less than A or its equivalent, and that are authorized investments under Section 2256.009 of the Public Funds Investment Act.
iii. Other Governmental Obligations. Obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, the State of Texas or the United States or their respective agencies and instrumentalities, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States.
iv. Certificates of Deposit/Share Certificates.
(a) Fully insured or collateralized certificates of deposit or share certificates that are approved investments under Section 2256.010 of the Public Funds Investment Act: (i) from a depository institution that has its main office or a branch office in the State of Texas; and (ii) that are guaranteed or insured by the Federal Deposit Insurance Corporation or its successor, or by the National
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Credit Union Share Insurance Fund or its successor, as applicable. Authorized certificates of deposit shall include such certificates purchased through the CDARS program with a Texas bank.
(b) Fully insured certificates of deposit purchased from a broker or a bank that has
its main office or a branch office in the State of Texas and is selected from the list of qualified brokers attached to this Investment Policy. All investments in such brokered certificates of deposit shall be made on a delivery versus payment basis to the District’s safekeeping agent, and the Investment Officer shall verify that the bank is fully insured by the Federal Deposit Insurance Corporation prior to purchase. In the event any bank from which the District has purchased a brokered certificate of deposit merges with, or is acquired by, another bank in which brokered certificates of deposit are owned by the District, the Investment Officer shall immediately contact the banks and liquidate any brokered certificate that exceeds FDIC insurance levels.
v. Repurchase Agreements. Fully collateralized repurchase agreements with a defined
termination date executed with a primary dealer as defined by the Federal Reserve or a financial institution doing business in this state, and that are authorized investments under Section 2256.011 of the Public Funds Investment Act.
vi. Mutual Funds. Money Market Mutual funds that: 1) are registered and regulated by the
Securities and Exchange Commission, 2) have a dollar weighted average stated maturity of 90 days or less, 3) seek to maintain a net asset value of $1.00 per share, and 4) are rated AAA by at least one nationally recognized rating service.
vii. Investment Pools. AAA-rated, constant-dollar local government investment pools that
meet the requirements set forth in the Public Funds Investment Act for the investment of public funds, including Sections 2256.016, .017, .018, and .019, and provided further that such investments must be approved by the Board of Directors of the District by separate resolution.
XI.
AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
11.01 Authorized Financial Dealers and Institutions. The Board may contract with an investment management firm registered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) or with the State Securities Board to provide for the investment and management of public funds; provided, that a contract may not be for a term longer than two years, and any renewal or extension thereof must be made by the Board by order or resolution. XII. MISCELLANEOUS
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12.01 Policy to be Presented to Investment Officer. The Investment Officer shall be presented a copy of this Investment Policy and shall execute a written instrument substantially in the form attached hereto as Exhibit “B” to the effect that the Investment Officer has:
i. received and thoroughly reviewed a copy of this Investment Policy; and
ii. implemented procedures and controls to comply with the Investment Policy. 12.02 Policy to be Presented to Investment Firms. A written copy of the Investment Policy shall be presented to any person offering to engage in an investment transaction with the District or to an investment management firm under contract with the District to invest or manage the District's investment portfolio. The qualified representative of the business organization offering to engage in an investment transaction with the District shall execute a written instrument in a form acceptable to the District and the business organization substantially to the effect that the business organization has:
i. Received and reviewed the Investment Policy of the District; and
ii. Acknowledged that the business organization has implemented procedures and controls in an effort to preclude investment transactions conducted between the District and the organization that are not authorized by the District's Investment Policy, except to the extent that this authorization is dependent on an analysis of the makeup of the District's entire portfolio or requires an interpretation of subjective investment standards. The Investment Officer may not acquire or otherwise obtain any authorized investment described in the Investment Policy from a person who has not delivered to the District the written instrument set forth in Exhibit “B” hereof.
The District shall maintain a copy of each of the executed written statements described in
Sections 12.01 and 12.02 for the auditor and include them as Exhibit “D” of this policy.
At anytime that the District amends this Investment Policy, the Investment Officer shall present the amended Investment Policy to all persons and/or business organizations at which funds of the District are invested and shall obtain a new written instrument as described in Section 10.01(B) hereof.
12.03 Annual Financial Audit. The District, in conjunction with its annual financial audit, shall perform a compliance audit of management controls on investments and adherence to the District's established investment policies.
12.04 Selection of Authorized Brokers. The District shall annually review, revise and adopt a list of qualified brokers that are authorized to engage in investment transactions with the District. Approved Investment Brokers are those listed in Exhibit C of this Policy.
12.05 Repeal of Prior Orders. Any and all prior orders or resolutions relating to the investment of District funds are hereby repealed and this Policy shall supersede any such prior orders or resolutions as of the date of its adoption by the Board of Directors.
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12.06 Effective Date. This Policy shall be effective as of August July 1921, 20145.
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EXHIBIT A INVESTMENT STRATEGY Operating Funds
Suitability - All investments authorized in the Investment Policy are suitable for Operating Funds. Preservation and Safety of Principal - All investments shall be high quality securities with no perceived default risk. Liquidity - Investment strategies for the pooled operating funds have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. The dollar-weighted average maturity of operating funds, based on the stated final maturity date of each security, will be calculated and limited to one year or less. Constant $1 net asset value investment pools and money market mutual funds shall be an integral component in maintaining daily liquidity. Investments for these funds shall not exceed an 18-month period from date of purchase. Marketability - Securities with active and efficient secondary markets will be purchased in the event of an unanticipated cash requirement. Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows based on anticipated needs. Investment risks will be reduced through diversification among authorized investments. Yield - The District’s objective is to attain a competitive market yield for comparable securities and portfolio constraints. The benchmark for Operating Funds shall be the 91 day Treasury bill.
Reserve and Deposit Funds
Suitability - All investments authorized in the Investment Policy are suitable for Reserve and Deposit Funds. Preservation and Safety of Principal - All investments shall be high quality securities with no perceived default risk. Liquidity - Investment strategies for reserve and deposit funds shall have as the primary objective the ability to generate a dependable revenue stream to the appropriate reserve fund from investments with a low degree of volatility. Except as may be required by the bond ordinance specific to an individual issue, investments should be of high quality, with short-to-intermediate-term maturities. The dollar-weighted average maturity of reserve and deposit funds, based on the stated final maturity date of each security, will be calculated and limited to two years or less.
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Marketability - Securities with active and efficient secondary markets will be purchased in the event of an unanticipated cash requirement. Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows based on anticipated needs. Investment risks will be reduced through diversification among authorized investments. Yield - The District’s objective is to attain a competitive market yield for comparable securities and portfolio constraints. The benchmark for Reserve and Deposit Funds shall be the ninety-one (91) day Treasury Bill.
Bond and Certificate Capital Project Funds and Special Purpose Funds Suitability - All investments authorized in the Investment Policy are suitable for Bond and Certificate Capital Project Funds and Special Purpose Funds. Preservation and Safety of Principal - All investments shall be high quality securities with no perceived default risk. Liquidity - Investment strategies for bond and certificate capital project funds, special projects and special purpose funds portfolios will have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. The stated final maturity dates of investments held should not exceed the estimated project completion date or a maturity of no greater than three years. The dollar-weighted average maturity of bond and certificate capital project funds and special purpose funds, based on the stated final maturity date of each security, will be calculated and limited to two years or less. Marketability - Securities with active and efficient secondary markets will be purchased in the event of an unanticipated cash requirement. Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows based on anticipated needs. Investment risks will be reduced through diversification among authorized investments. Yield - The District’s objective is to attain a competitive market yield for comparable securities and portfolio constraints. The benchmark for Bond and Certificate Capital Project Funds and Special Purpose Funds shall be the ninety-one (91) day Treasury Bill. A secondary objective of these funds is to achieve a yield equal to or greater than the arbitrage yield of the applicable bond or certificate.
Debt Service Funds
Suitability - All investments authorized in the Investment Policy are suitable for Debt Service Funds.
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Preservation and Safety of Principal - All investments shall be high quality securities with no perceived default risk. Liquidity - Investment strategies for debt service funds shall have as the primary objective the assurance of investment liquidity adequate to cover the debt service obligation on the required payment date. Securities purchased shall not have a stated final maturity date which exceeds the debt service payment date. The dollar-weighted average maturity of debt service funds, based on the stated final maturity date of each security, will be calculated and limited to one year or less.
Marketability - Securities with active and efficient secondary markets will be purchased in the event of an unanticipated cash requirement. Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows based on anticipated needs. Investment risks will be reduced through diversification among authorized investments. Yield - The District’s objective is to attain a competitive market yield for comparable securities and portfolio constraints. The benchmark for Debt Service Funds shall be the ninety-one (91) day Treasury Bill.
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EXHIBIT B INVESTMENT OFFICER AND INVESTMENT FIRM CERTIFICATION
OF RECEIPT AND REVIEW OF INVESTMENT POLICY THE STATE OF TEXAS COUNTY OF ___________________
I,______________________________ of______________________________________, do hereby certify that I have been presented a copy of the Amended and Restated Investment Policy for Trophy Club Municipal Utility District No. 1 dated ______________. I have thoroughly reviewed the Investment Policy and acknowledge that ____________________ has implemented procedures and controls to comply with the Investment Policy.
WITNESS MY HAND THIS day of , 20145.
Name:
Title:
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EXHIBIT C APPROVED INVESTMENT FIRMS
Name of Bank Phone Number Address Town State Zip
Prosperity Bank 817‐378‐2210 217 North Main Keller TX 76248
Bank of the West 817‐399‐9400 4100 William D Tate Grapevine TX 76051
First Financial 817‐329‐8615 95 Trophy Club Dr Trophy Club TX 76262
TexPool 866‐839‐7665 1001 Texas Avenue Suite 1400 Houston TX 77002
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EXHIBIT D
EXECUTED CERTIFICATIONS OF RECEIPT
AND REVIEW OF INVESTMENT POLICY
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EXHIBIT E
TRAINING CERTIFICATES FOR INVESTMENT OFFICER
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CERTIFICATE OF ORDER NO. 2015-0721D ADOPTING CASH RESERVE POLICY
THE STATE OF TEXAS § COUNTIES OF DENTON AND TARRANT § I, the undersigned District Secretary of Trophy Club Municipal Utility District No. 1 (the “District”), hereby certify as follows:
1. The Board convened in regular session, open to the public, on the 21st day of July, 2015, at the regular meeting place thereof, and the roll was called of the members of the Board, to-wit:
Jim Moss President Neil Twomey Vice President Kevin Carr Secretary/Treasurer
Jim Thomas Director Jim Hase Director
All members of the Board were present except the following, _______________, thus constituting a quorum. Whereupon, among other business, the following was transacted at such meeting:
ORDER NO. 2015-0721D ADOPTING CASH RESERVE POLICY
was duly introduced for the consideration of the Board. It was then duly moved and seconded that such Order be adopted; and, after due discussion, such motion, carrying with it the adoption of said Order, prevailed and carried by the following vote:
AYES: ___ NOES: ___
2. A true, full, and correct copy of the aforesaid Order adopted at the meeting described in the above and foregoing paragraph is attached to and follows this Certificate; such Order has been duly recorded in said Board's minutes of such meeting; the above and foregoing paragraph is a true, full, and correct excerpt from the Board's minutes of such meeting pertaining to the adoption of such Order; the persons named in the above and foregoing paragraph are the duly chosen, qualified, and acting officers and members of the Board as indicated therein; each of the officers and members of the Board was duly and sufficiently notified officially and personally, in advance of the time, place, and purpose of such meeting and that such Order would be introduced and considered for adoption at such meeting and each of such officers and members consented, in advance, to the holding of such meeting for such purpose; such meeting was open to the public, as required by law, and public notice of the time, place and purpose of such meeting was given as required by Chapter 551, Government Code and Section 49.063, Texas Water Code, as amended.
SIGNED AND SEALED the 21st day of July, 2015. ____________________________ (SEAL) Laurie Slaght, District Secretary
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TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 ORDER NO. 2015-0721D
ADOPTING CASH RESERVE POLICY THE STATE OF TEXAS § COUNTIES OF DENTON AND TARRANT §
WHEREAS, the Board of Directors of Trophy Club Municipal Utility District No. 1 (“District”) desires to adopt guidelines for the management of the District’s cash funds for the purpose of identifying the source and methods of maintaining a sufficient cash reserve fund and specifying the target balance; and
WHEREAS, the objective of the Policy is to enhance the District’s financial position and provide clear intent for all interested parties through the establishment and maintenance of a cash reserve fund to cover potential critical losses and secure the District’s financial position in a catastrophic event; NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF DIRECTORS OF TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1, THAT: Section 1. The matters and facts recited in the preamble to this Order are found to be true and correct and the same are incorporated herein as a part of this Order. Section 2. The Board has reviewed the Cash Reserve Policy and finds and declares that the Cash Reserve Policy in the form attached hereto is hereby approved and adopted, and such Policy shall replace and supersede in its entirety any prior Cash Reserve Policy of the District. Section 3. The General Manager is authorized to do all things necessary and proper to evidence the Board's adoption of this Order and to carry out the intent hereof. Upon execution, a permanent copy of this Order shall be filed in the permanent records of the District. ADOPTED, PASSED AND APPROVED by the Board of Directors of Trophy Club Municipal Utility District No. 1 this 21st day of July, 2015. ATTEST: _______________________________ _____________________________ Jim Moss, President Kevin R. Carr, Secretary Board of Directors Board of Directors _____________________________ (SEAL) Laurie Slaght, District Secretary
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TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
CASH RESERVE POLICY
July 21, 2015
POLICY STATEMENT
A key element of prudent financial planning is to ensure that sufficient funding is available for current operating, capital, and debt service needs. Additionally, fiscal responsibility requires anticipating the likelihood of, and preparing for, unforeseen events. Trophy Club Municipal Utility District No. 1 (the “District”) will at all times strive to have sufficient funding available to meet its operating, capital, and debt service obligations. Reserve funding will be established and maintained to ensure continued delivery of water and sewer services and to enable the District to meet all financial obligations. Sufficient reserve funds will be maintained to provide adequate cash flow in a situation of unforeseen events resulting in local natural disasters, economic uncertainties or other financial hardships, and to fund unexpected system failure. This cash reserve will be available to address one-time emergencies and unanticipated expenditure requirements. The Board of Directors may withdraw funds from the cash reserve only when in its sole discretion, the Board determines at least one of the following:
a. there is the need for an emergency expenditure b. there is an unexpected revenue reduction that would result in a negative General
Fund ending fund balance.
Should the Board determine a need to draw from the reserve fund, cash reserves will begin to be restored from operating revenues as soon as possible. The cash reserve goal will be to fund at a level of 100% of the highest fiscal year operating budget over the previous three years. The District will endeavor to reach 100% in a ten year period starting October 1, 2015 and the amount to be set aside each year will be established through board action at a meeting open to the public. To ensure proper funding of the reserve, the General Manager of the District will review on a monthly basis the current unallocated/unrestricted cash status of the District and will make the determination as to the amount to be allocated to the cash reserve. Maintaining the cash reserve at an appropriate level is a prudent, ongoing business process that consists of an inclusive assessment and application of various sources of revenue. When water and sewer rates are set, the Board shall account for any deficiency in the cash reserve fund and ensure rates are set appropriately to obtain needed funds to meet the reserve goal.
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INTERLOCAL AGREEMENT FOR AUTOMATIC AID FIRE PROTECTION
THE STATE OF TEXAS §
COUNTIES OF DENTON AND TARRANT §
THIS AGREEMENT is entered into on this day of _ 20 , by and between the C ity of Roanoke (the “City”), the Town of Westlake (the “Town of Westlake”), the Town of Trophy Club “Town of Trophy Club,” and Trophy Club Municipal Utility District No. 1 (the “District”), all being municipal corporations chartered under the Constitution and laws of the State of Texas, each acting through its authorized representatives.
WHEREAS, the City, Towns and District (referred to collectively as the “Parties") desire to enter into an agreement for the automatic provision of fire protective services and emergency medical services; and
WHEREAS, this Agreement is entered into pursuant to Subchapter A, Chapter 791, Texas Government Code;
NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES AND CONSIDERATION PROVIDED FOR HEREIN, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY CONFIRMED, THE PARTIES HEREBY AGREE TO THE FOLLOWING:.
I. MUTUAL ASSISTANCE
(a) Upon the request of the Fire Chief or his designee of one of the Parties to the fire department of another of the Parties to respond to a fire emergency within the entity’s corporate boundaries or service area limits of the requesting entity, the requested en t i t y will respond with available firefighting and emergency medical services equipment and personnel in aid of the requesting entity to any point within a reasonable distance of the corporate boundary limits of the responding entity.
(b) Each entity designate the area outside the entity’s limit which is within a reasonable distance.
(c) If conditions exist within the responding city or District that prevent response outside its limits, the Fire Chief or his designee shall immediately notify the fire department of the requesting entity that no response can be made.
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II. PROCEDURES
A dispatch of firefighting and emergency medical services equipment and personnel pursuant to this Agreement is subject to the following procedure:
(1) A request for aid by street address shall specify the location by street address to which the equipment and personnel are to be dispatched.
(2) The responding department shall respond to the specified location and initiate action to mitigate the emergency or provide backup coverage if requested.
(3) A responding department shall be released by the requesting entity when the services of the responding city are no longer required.
Ill. COMMON SERVICE BOUNDARY LINES
In areas where common boundary lines exist, accurate determination of jurisdiction may not be possible upon receipt of an alarm. In these cases, the entity receiving the alarm will dispatch its firefighting and emergency medical services equipment and personnel and notify the other affected entity of the alarm. If the emergency is not within the service boundaries of the responding entity, it is agreed that the services provided will be considered to have been provided pursuant to this Agreement.
IV. CLAIMS
Each entity waives all claims against the other Parties for compensation for any loss, damage, personal injury or death occurring as a consequence of the performance of this Agreement. However, this waiver shall not apply in those cases in which a claim results from the failure of the requesting entity to accept responsibility required by Section 791.006, Texas Government Code.
v. COSTS
A responding entity shall not be reimbursed by the requesting entity for costs incurred in responding to an emergency pursuant to this Agreement. Personnel who perform duties pursuant to this Agreement shall receive the same wage, salary, pension, injury or death benefits, worker's compensation benefits,
Formatted: Indent: Hanging: 0.13"
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payment of expenses, and all other compensation and rights for the performance of those duties, as they would have received for their regular duties in the service of the entity for which they are employed. Each entity shall be solely responsible for the payment of its costs associated with providing firefighting equipment and personnel under this Agreement.
VI. SUPERVISION
The equipment and personnel of a responding entity shall be under the control and supervision of employees of the responding entity during a response pursuant to this Agreement.
VII.
LIABILITY
In accordance with Section 791.006 of the Texas Government Code, the requesting entity is responsible for any civil liability that arises from the furnishing of firefighting services pursuant to this Agreement effective action in emergency situations by those entrusted with the responsibility of saving lives and property by protecting such governmental units from liability, and their employees, agents, and officers from non-intentional tort liability to the fullest extent permitted by statutory and constitutional law. This section shall be liberally construed to carry out the intent of the governing bodies of the entities involved.
VIII. TERMINATION
Each entity has the right to terminate its participation in this Agreement with
ninety (90) days written notice to the other Parties. Additional entities may become parties to this Agreement, and an existing party may be removed as a party upon the vote of a majority of the governing bodies of the other entities.
IX. PRIOR
COMMITMENTS
This Agreement contains all commitments and agreements of the Parties regarding automatic fire protection aid, and no other prior oral or written commitments shall have any force or effect. Notwithstanding the preceding sentence, it is understood that certain signatory entities may have contracted or may contract in the future with each other for total fire protection services, and it is agreed that this Agreement shall not affect those contracts.
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X.
VENUE
Each party agrees that if legal action is brought under this Agreement, exclusive venue shall lie in Denton County, Texas.
XI. BENEFITS
When an employee or volunteer of the responding entity is performing duties under the terms of this Agreement, that person is considered to be acting in the line of duty for the purposes of 42 U.S.C.A., Section 3796; is considered to be in performance of duties within the provisions of Article 6228f, V.T.C.S., and Chapter 142, Texas Local Government Code; and shall be entitled to any other benefits which accrue under law as a result of injury, death, or loss which occurs while in the line of duty.
XII. SEVERABILITY
In case one or more of the provisions contained in this Agreement shall be for
any reason held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision, and this Agreement shall be construed as if the invalid, illegal or unenforceable provision had never been contained in the Agreement.
XIII. AUTHORIZATION
This Agreement is made pursuant to Chapter 791 and Subchapter E, Chapter 418, Texas Government Code. It is agreed that in the execution of this Agreement, no party waives any immunity or defense that would otherwise be available to it, against claims arising from the exercise of governmental powers and functions.
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EXECUTED this County, Texas.
day of , 20 _ .. at Denton
CITY OF ROANOKE, TEXAS
Scott Campbell, City Manager
TOWN OF WESTLAKE, TEXAS BY: Thomas E. Brymer, Town Manager
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 Jim Moss, Board President TOWN OF TROPHY CLUB, TEXAS Stephen Seidel, Town Manager
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Trophy Club Fire Department 295 Trophy Club Drive Trophy Club, Texas 76262 682-831-4630 Fax: 817-491-4630
~·.ci.tropbrclub.tx.uJ
Interjurisdictional Mutual Aid Agreement
This agreement is a replacement of the document signed in 2006 by the Town for mutual aid with Denton County. The new agreement will be with Trophy Club MUD # 1 for fire services. This agreement also recognizes that mutual aid is a state resource and we have the ability to call in the event of a disaster or be called. We also have the ability to recover cost through FEMA.
Trophy Club Fire Department recognize that a formal agreement for Mutual Aid would allow for better coordination of effort, would provide that adequate equipment and manpower is available, and would help ensure that Mutual Aid is accomplished in the minimum time possible in the event of a Disaster or Civil Emergency and thus desire to enter into an agreement to provide Mutual Aid.
Staff Recommendation
Staff wishes the Board to approve this document. Mutual aid has proven to be a valuable asset.
~r~ ,~ ~ ~l/t11.--Danny homas Fire Chief
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Page 1 of 9 –Interjurisdictional Mutual Aid Agreement
1 2
INTERJURISDICTIONAL 3 MUTUAL AID AGREEMENT 4
5 STATE OF TEXAS § 6 § 7 COUNTY OF DENTON § 8 9 This Mutual Aid Agreement (“Agreement”) is entered into by, between, and among the 10 political subdivisions located wholly or partially within the State of Texas that by their 11 signatures on duplicate original copies of this Agreement have consented to the terms of this 12 Agreement (collectively, “the Parties”). 13 14 15 RECITALS 16
17 The Parties recognize the vulnerability of the people and communities located within the State 18 to damage, injury, and loss of life and property resulting from Disasters and/or civil 19 emergencies and recognize that Disasters and/or civil emergencies may present equipment and 20 manpower requirements beyond the capacity of each individual Party; and 21 22 The Parties must confront the threats to public health and safety posed by possible terrorist 23 actions and weapons of mass destruction and other incidents of man-made origin, and the 24 threats to public health and safety from natural Disasters, all capable of causing severe damage 25 to property and danger to life; and 26 27 The Parties to this Agreement recognize that Mutual Aid has been provided in the past and 28 have determined that it is in the best interests of themselves and their citizens to create a plan to 29 foster communications and the sharing of resources, personnel and equipment in the event of 30 such calamities; and 31 32 The governing officials of the Parties desire to secure for each Party the benefits of Mutual Aid 33 for the protection of life and property in the event of a Disaster and/or Civil Emergency; and 34 35 The Parties wish to make suitable arrangements for furnishing Mutual Aid in coping with 36 Disasters and/or civil emergencies and are so authorized and make this Agreement pursuant to 37 Chapter 791, Texas Government Code (Interlocal Cooperation Act); Chapter 418, Texas 38 Government Code (Texas Disaster Act of 1975); Chapter 421, Texas Government Code (Home 39 Land Security); and Chapter 362, Local Government Code; and 40 41 The Parties recognize that a formal agreement for Mutual Aid would allow for better 42 coordination of effort, would provide that adequate equipment and manpower is available, and 43 would help ensure that Mutual Aid is accomplished in the minimum time possible in the event 44 of a Disaster or Civil Emergency and thus desire to enter into an agreement to provide Mutual 45 Aid. 46 47 It is expressly understood that any Mutual Aid extended under this Agreement and the 48 operational plans adopted pursuant thereto, is furnished in accordance with the “Texas Disaster 49 Act” and other applicable provisions of law. 50
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Page 2 of 9 –Interjurisdictional Mutual Aid Agreement
1 NOW, THEREFORE, the Parties agree as follows: 2 3 1. RECITALS. The recitals set forth above are true and correct. 4 5 2. DEFINITIONS. For purposes of this Agreement, the terms listed below will have the 6 following meanings: 7 8 A. AGREEMENT - this Interjurisdictional Mutual Aid Agreement, duly executed. 9 10 B. ADMINISTRATIVE AGENCY – the entity designated by the Parties to be responsible for 11 maintaining and distributing Point of Contact information and for maintaining the original 12 signature pages of the Parties to this Agreement. 13 14 C. ASSISTING PARTY - the Party furnishing equipment, supplies, facilities, services and/or 15 manpower to the Requesting Party. 16 17 D. CIVIL EMERGENCY - an unforeseen combination of circumstances or the resulting 18 consequences thereof within the geographic limits of a given jurisdiction that calls for 19 immediate action or for which there is an urgent need for assistance or relief to protect the 20 general citizenry. 21 22 E. DISASTER - the occurrence or imminent threat of widespread or severe damage, injury, or 23 loss of life or property resulting from any natural or man-made cause, including fire, flood, 24 earthquake, wind, storm, wave action, oil spill or other water contamination, volcanic activity, 25 epidemic, air contamination, blight, drought, infestation, explosion, riot, hostile military or 26 paramilitary action, energy emergency (as that term is defined in Chapter 418 of the Texas 27 Government Code), acts of terrorism, and other public calamity requiring Emergency action. 28 29 F. EMERGENCY - any occurrence, or threat thereof, whether natural or caused by man, in 30 war or in peace, which results in substantial injury or harm to the population, or substantial 31 damage to or loss of property. 32 33 G. MUTUAL AID - includes, but is not limited to, such resources as facilities, equipment, 34 services, supplies, and personnel. 35 36 H. THE PLAN –Emergency Operations Plan. 37 38 I. POINT OF CONTACT – the individual or office authorized by the governing body of each 39 Party to request or respond to a request for Mutual Aid on behalf of the Party. A Party’s 40 Emergency Management Director or Chief Executive Officer is always a Point of Contact. 41 42 J. REQUESTING PARTY - the Party requesting aid in the event of a Disaster or a Civil 43 Emergency. 44 45 3. ADMINISTRATIVE AGENCY. The Parties hereby designate the North Central Texas 46 Council of Governments (“NCTCOG”) to be the Administrative Agency under this Agreement. 47 NCTCOG is responsible for maintaining and distributing current Point of Contact information 48 to all Parties as changes occur but at least annually. NCTCOG is also responsible for 49 maintaining the original signature pages of the Parties to this Agreement. 50
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Page 3 of 9 –Interjurisdictional Mutual Aid Agreement
1 4. POINT OF CONTACT DESIGNATION. Each party shall provide the Administrative 2 Agency with a written protocol by which its designated Points of Contact may be contacted 3 twenty-four hours a day, seven days a week. This protocol will designate, by name or position, 4 the person or persons authorized to request or respond to a request for Mutual Aid on behalf of 5 a Party under terms of this Agreement and will include at least two alternate means of 6 contacting the Party’s Point(s) of Contact. Each Party must notify the Administrative Agency 7 of any change in its Point of Contact protocol as soon as practicable by submitting it in writing 8 to Denton County Department of Emergency Services and the North Central Texas Council of 9 Governments, 10 11 5. PARTY’S EMERGENCY MANAGEMENT PLAN. Each Party shall prepare and keep 12 current an emergency management plan for its jurisdiction to provide for emergency and/or 13 disaster mitigation, preparedness, response and recovery, in accordance with Chapter 418 of 14 the Texas Government Code. The emergency management plan shall incorporate the use of 15 available resources, including personnel, equipment and supplies, necessary to provide and/or 16 receive Mutual Aid. The emergency management plan shall be submitted to the Governor’s 17 Division of Emergency Management. 18 19 6. IMPLEMENTATION OF AGREEMENT. A Point of Contact for his/her respective 20 jurisdiction shall take all steps necessary for the implementation of this Agreement. 21 22 7. INITIATION OF REQUEST. A request under this Agreement may be made by a Point 23 of Contact after one of the following occurs: 24 (a) A declaration of a local state of Disaster pursuant to Chapter 418 of the Texas 25 Government Code; 26 (b) A finding of a state of Civil Emergency; or 27 (c) The occurrence or imminent threat of an emergency such that local capabilities are or 28 are predicted to be exceeded. 29 30 The provision of Mutual Aid under this Agreement shall continue, whether or not the local 31 Disaster declaration or state of Civil Emergency is still active, until the services of the 32 Assisting Party are no longer required. 33 34 8. PROCEDURES FOR REQUESTS AND PROVISION OF MUTUAL AID. A Point of 35 Contact may request Mutual Aid assistance by: (1) submitting a written Request for Assistance 36 to a Point of Contact of an Assisting Party, (2) orally communicating a request for Mutual Aid 37 assistance to a Point of Contact of an Assisting Party, which shall be followed by a written 38 request, or (3) by submitting a request in accordance with a Mutual Aid Plan developed under 39 the auspices of this Agreement. The written request shall reference that the request is made 40 pursuant to this Agreement. Mutual Aid shall not be requested by a Party unless it is directly 41 related to the Disaster or Emergency and resources available from the normal responding 42 agencies to the stricken area are deemed to be inadequate, or are predicted to be expended prior 43 to resolution of the situation. All requests for Mutual Aid must be transmitted by a Point of 44 Contact of the Requesting Party to a Point of Contact of the Assisting Party or in accordance 45 with the terms of the Plan. 46 47 A. REQUESTS DIRECTLY TO ASSISTING PARTY: The Requesting Party’s Point of 48 Contact may directly contact a Point of Contact of the Assisting Party and provide the 49 necessary information as prescribed in Section 8.B. hereto. 50
Trophy Club Municipal Utility District No. 1 119 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Page 4 of 9 –Interjurisdictional Mutual Aid Agreement
1 B. REQUIRED INFORMATION BY REQUESTING PARTY. Each request for assistance 2 shall be accompanied by the following information, to the extent known: 3 1) A general description of the damage or injury sustained or threatened; 4 2) Identification of the emergency service function or functions for which assistance is 5 needed (e.g. fire, law enforcement, emergency medical, search and rescue, transportation, 6 communications, public works and engineering, building, inspection, planning and 7 information assistance, mass care, resource support, health and other medical services, etc.), 8 and the particular type of assistance needed; 9 3) The amount and type of personnel, equipment, materials, supplies, and/or facilities 10 needed and a reasonable estimate of the length of time that each will be needed; and 11 4) The location or locations to which the resources are to be dispatched and the specific 12 time by which the resources are needed; and 13 5) The name and contact information of a representative of the Requesting Party to meet 14 the personnel and equipment of any Assisting Party at each location to which resources are 15 dispatched. 16 17 This information may be provided on a form designed for this purpose or by any other 18 available means. 19 20 C. ASSESSMENT OF AVAILABILITY OF RESOURCES AND ABILITY TO RENDER 21 ASSISTANCE. When contacted by a Requesting Party, a Point of Contact of the Party from 22 which aid is requested agrees to assess local resources to determine availability of personnel, 23 equipment and other assistance based on current or anticipated needs. All Parties shall render 24 assistance to the extent personnel, equipment and resources are deemed available. No Party 25 shall be required to provide Mutual Aid unless it determines in its sole discretion that it has 26 sufficient resources to do so based on current or anticipated events within its own jurisdiction. 27 28 D. INFORMATION REQUIRED OF THE ASSISTING PARTY. A Point of Contact who 29 determines that the Assisting Party has available personnel, equipment, or other resources, 30 shall so notify the Requesting Party and provide the following information, to the extent 31 known: 32 1) A complete description of the personnel and their expertise and capabilities, equipment, and 33 other resources to be furnished to the Requesting Party; 34 2) The estimated length of time that the personnel, equipment, and other resources will be 35 available; 36 3) The name of the person or persons to be designated as supervisory personnel; and 37 4) The estimated time of arrival for the assistance to be provided to arrive at the designated 38 location. 39 This information may be provided on a form designed for this purpose or by any other 40 available means. 41 42 E. SUPERVISION AND CONTROL: When providing assistance under the terms of this 43 Agreement, the personnel, equipment, and resources of any Assisting Party will be under the 44 operational control of the Requesting Party, the response effort to which SHALL be organized 45 and functioning in accordance with the guidelines outlined in the National Incident 46 Management System. Direct supervision and control of personnel, equipment and resources 47 and personnel accountability shall remain with the designated supervisory personnel of the 48 Assisting Party. Emergency Medical Services organizations providing assistance under this 49 agreement will utilize the medical protocols authorized by their medical director. The 50
Trophy Club Municipal Utility District No. 1 120 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Page 5 of 9 –Interjurisdictional Mutual Aid Agreement
designated supervisory personnel of the Assisting Party shall: maintain daily personnel time 1 records, material records, and a log of equipment hours; be responsible for the operation and 2 maintenance of the equipment and other resources furnished by the Assisting Party; and shall 3 report work progress to the Requesting Party. The Assisting Party's personnel and other 4 resources shall remain subject to recall by the Assisting Party at any time, subject to reasonable 5 notice to the Requesting Party. 6 7 F. MUTUAL AID PLAN. By their signatures below, each Party hereto certifies that it will 8 provide Mutual Aid assistance under this Agreement in accordance with the Requesting Party’s 9 Emergency Management Plan, County Emergency Management Plan, or North Central Texas 10 Regional Response Plan.. 11 12 G. FOOD, HOUSING, AND SELF-SUFFICIENCY: Subject to Paragraph 9 of this 13 Agreement, the Requesting Party shall have the responsibility of providing food and housing 14 for the personnel of the Assisting Party from the time of their arrival at the designated location 15 to the time of their departure. However, Assisting Party personnel and equipment should be, to 16 the greatest extent possible, self-sufficient while working in the Emergency or Disaster area. 17 The Requesting Party may specify only self-sufficient personnel and resources in its request 18 for assistance. 19 20 H. COMMUNICATIONS: Unless specifically instructed otherwise, the Requesting Party shall 21 have the responsibility for coordinating communications between the personnel of the 22 Assisting Party and the Requesting Party. Assisting Party personnel should be prepared to 23 furnish their own communications equipment sufficient only to maintain communications 24 among their respective operating units, if such is practicable. 25 26 I. RIGHTS AND PRIVILEGES: Personnel who are assigned, designated or ordered by their 27 organization’s governing body to perform duties pursuant to this Agreement shall continue to 28 receive the same wages, salary, pension, and other compensation and benefits for the 29 performance of such duties, including injury or death benefits, disability payments, and 30 workers’ compensation benefits, as though the service had been rendered within the limits of 31 the jurisdiction where the personnel are regularly employed. 32 33 J. TERM OF DEPLOYMENT: The initial duration of a request for assistance will be specified 34 by the Requesting Party, to the extent possible by the situation. 35 36 K. SUMMARY REPORT: Within ten working days of the return of all personnel deployed 37 under this Agreement, the Requesting Party will prepare a Summary Report of the event, and 38 provide copies to each Assisting Party. The report shall, at a minimum, include a chronology of 39 events and description of personnel, equipment and materials provided by one Party to the 40 other. 41 42 9. COSTS. All costs associated with the provision of Mutual Aid, including but not limited 43 to compensation for personnel; operation and maintenance of equipment; damage to 44 equipment; medical expenses; and food, lodging and transportation expenses shall be paid for 45 by the Assisting Party for the first (4) hours that assistance is provided. Thereafter, all costs 46 associated with the provision of Mutual Aid, including but not limited to compensation for 47 personnel; operation and maintenance of equipment; damage to equipment; medical expenses; 48 and food, lodging and transportation expenses shall be paid for by the Assisting Party and 49 reimbursed by the Requesting Party at actual cost unless it is compensated by the assisting 50
Trophy Club Municipal Utility District No. 1 121 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Page 6 of 9 –Interjurisdictional Mutual Aid Agreement
party insurance. Requests for reimbursement must be submitted as soon as practicable but in 1 no event later than sixty (60) days after the return of all personnel deployed under this 2 Agreement. Failure to submit a request for reimbursement within the specified time frame will 3 result in the Assisting Party not being reimbursed for the Mutual Aid provided unless the 4 Federal Emergency Management Agency (FEMA) extends the deadline for filing requests for 5 reimbursement. Such request shall identify with specificity each service, labor, or equipment 6 provided and the unit and total costs associated with each. The Assisting Party shall be 7 responsible for creating and maintaining for a period of three years a record of all costs 8 incurred, both reimbursed and unreimbursed costs, in providing aid under this Agreement. 9 Such costs and reimbursements shall be paid from current funds of the respective Party. In the 10 event federal funds are available for costs associated with the provision of Mutual Aid, the 11 Parties agree that the Requesting Party must make the claim for the eligible costs of the 12 Assisting Party on its subgrant application and will disburse the federal share of funds to the 13 Assisting Party. The Parties hereto recognize that each benefits from the existence of this 14 Mutual Aid Agreement and expect that each will both provide and receive critical aid over the 15 life of the Agreement. The Assisting Party may assume in whole or in part any costs 16 associated with the provision of Mutual Aid or may loan or donate equipment or services to the 17 Requesting Party without charge or cost. 18 19 10. INSURANCE 20 21 A. WORKERS’ COMPENSATION COVERAGE: Each Party shall be responsible for its own 22 actions and those of its employees and is responsible for complying with the Texas Workers’ 23 Compensation Act. 24 25 B. AUTOMOBILE LIABILITY COVERAGE: Each Party shall be responsible for its own 26 actions and is responsible for complying with the Texas motor vehicle financial responsibility 27 laws. 28 29 C. GENERAL LIABILITY, PUBLIC OFFICIALS LIABILITY, AND LAW 30 ENFORCEMENT LIABILITY: Each Party agrees to obtain general liability, public official’s 31 liability and law enforcement liability, if applicable, or maintain a comparable self-insurance 32 program. 33 34 D. OTHER COVERAGE: The Assisting Party shall provide and maintain their standard 35 packages of medical and death benefit insurance coverage while their personnel are assisting 36 the Requesting Party. 37 38 11. WAIVER OF CLAIMS AGAINST PARTIES; IMMUNITY RETAINED. Pursuant to 39 §§ 421.062 and 791.006, Texas Government Code, the party furnishing services under this 40 Agreement is not responsible for any civil liability that arises from the furnishing of those 41 services. No Party waives or relinquishes any immunity or defense on behalf of itself, its 42 officers, employees and agents as a result of the foregoing sentence or its execution of this 43 Agreement and the performance of the covenants contained herein. 44 45 12. EXPENDING FUNDS. Each Party that performs services or furnishes aid pursuant to 46 this Agreement shall do so with funds available from current revenues of the Party. No Party 47 shall have any liability for the failure to expend funds to provide aid hereunder. 48 49
Trophy Club Municipal Utility District No. 1 122 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Page 7 of 9 –Interjurisdictional Mutual Aid Agreement
13. TERM. This Agreement shall become effective as to each Party on the date signed and 1 shall continue in force and remain binding on each and every Party for twelve (12) months 2 from the effective date. This Agreement shall renew automatically for a period of one year 3 upon the completion of the initial term and each subsequent term unless and until such time as 4 the governing body of a Party terminates its participation in this Agreement pursuant to Section 5 22 of this Agreement. Termination of participation in this Agreement by a Party or Parties 6 shall not affect the continued operation of this Agreement between and among the remaining 7 Parties. 8 9 14. ENTIRETY. This Agreement contains all commitments and agreements of the Parties 10 with respect to the Mutual Aid to be rendered hereunder during or in connection with a 11 Disaster and/or Civil Emergency. No other oral or written commitments of the Parties with 12 respect to Mutual Aid under this Agreement shall have any force or effect if not contained 13 herein, except as provided in Sections 16 and 17 below. 14 15 15. RATIFICATION. Each Party hereby ratifies the actions of its personnel and the 16 rendering and/or receiving of Mutual Aid taken prior to the date of this Agreement. 17 18 16. OTHER MUTUAL AID AGREEMENTS. It is understood that certain Parties may have 19 heretofore contracted or may hereafter contract with each other for Mutual Aid in Civil 20 Emergency and/or Disaster situations, and it is agreed that, to the extent there is a conflict 21 between this Agreement and any other such Mutual Aid agreement, the provisions of this 22 Agreement shall be superior to any such individual contract; provided, however, that the 23 Assisting and Requesting Parties may agree to use expense reimbursement provisions of 24 another existing Mutual Aid Agreement between them. 25 26 17. INTERLOCAL COOPERATION ACT. The Parties agree that Mutual Aid in the 27 context contemplated herein is a “governmental function and service” and that the Parties are 28 “local governments or political subdivision” as that term is defined herein and in the Interlocal 29 Cooperation Act, Texas Government Code Chapter 791. 30 31 18. CONFIDENTIALITY. The Parties recognize that the provision of Mutual Aid under this 32 Agreement may result in the transfer of confidential medical information between them. The 33 parties recognize and agree to guard the confidentiality of such information as required by the 34 federal Health Insurance Portability and Accountability Act of 1996 (HIPAA), the Texas 35 Medical Practice Act, and other state privacy laws pertaining to the confidentiality of medical 36 records. 37 38 19. SEVERABILITY. If a provision contained in this Agreement is held invalid for any 39 reason, the invalidity does not affect other provisions of the Agreement that can be given effect 40 without the invalid provision, and to this end the provisions of this Agreement are severable. 41 42 20. VALIDITY AND ENFORCEABILITY. If any current or future legal limitations affect 43 the validity or enforceability of a provision of this Agreement, then the legal limitations are 44 made a part of this Agreement and shall operate to amend this Agreement to the minimum 45 extent necessary to bring this Agreement into conformity with the requirements of the 46 limitations, and so modified, this Agreement shall continue in full force and effect. 47 48 21. AMENDMENT. This Agreement may be amended only by the mutual written consent of 49 the Parties. 50
Trophy Club Municipal Utility District No. 1 123 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Page 8 of 9 –Interjurisdictional Mutual Aid Agreement
1 22. TERMINATION. Any Party may at any time by resolution or notice given to all the 2 other Parties decline to participate in the provision of Mutual Aid. The governing body of a 3 Party which is a signatory hereto shall, by resolution, give notice of termination of 4 participation in this Agreement and submit a certified copy of such resolution to all other 5 Parties. Such termination shall become effective not earlier than 30 days after the filing of 6 such notice. The termination by one or more of the Parties of its participation in this 7 Agreement shall not affect the operation of this Agreement as between the other Parties hereto. 8 9 23. THIRD PARTIES. This Agreement is intended to inure only to the benefit of the Parties 10 hereto. This Agreement is not intended to create, nor shall be deemed or construed to create 11 any rights in third parties. 12 13 24. NOTICE. Any notice required or permitted between the Parties must be in writing, 14 addressed to the attention of the Point of Contact of the necessary party or parties and shall be 15 delivered in person; by electronic mail; by mailed certified mail, return receipt requested; or 16 by facsimile transmission. A copy of all such notices shall be provided to the Administrative 17 Agency. 18 19 25. WARRANTY. The Agreement has been officially authorized by the governing or 20 controlling body or agency of each Party hereto by order, ordinance or resolution and each 21 signatory to this Agreement guarantees and warrants that the signatory has full authority to 22 execute this Agreement and to legally bind the respective Party to this Agreement. 23 24 26. GOVERNING LAW AND VENUE. The laws of the State of Texas shall govern this 25 Agreement. In the event of an Emergency or Disaster physically occurring within the geographical 26 limits of only one county that is a Party hereto, venue shall lie in the county in which the 27 Emergency or Disaster occurred. In the event of an Emergency or Disaster physically occurring in 28 more than one county that is a Party hereto, venue shall be determined in accordance with the 29 Texas Civil Practice and Remedies Code. 30 31 27. HEADINGS. The headings at the beginning of the various provisions of this Agreement 32 have been included only in order to make it easier to locate the subject covered by each 33 provision and are not to be used in construing this Agreement. 34 35
**The Rest of this Page is Intentionally Left Blank** 36
Trophy Club Municipal Utility District No. 1 124 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Page 9 of 9 –Interjurisdictional Mutual Aid Agreement
EXECUTED by the Parties hereto, each respective entity acting by and through its duly authorized official as required by law, on multiple counterparts each of which shall be deemed to be an original, on the date specified on the multiple counterpart executed by such entity. NAME OF ENTITY: _______________________________________________ I hereby certify that this entity’s participation as a party to this Interjurisdictional Mutual Aid Agreement was approved pursuant to official action of its governing body taken at a duly called meeting on ________________, 200__. Signature: _____________________________ Title: ____________________ Printed Name : ____________________________________________________ Date: ___________________________________________________________
Trophy Club Municipal Utility District No. 1 125 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Trophy Club Municipal Utility District No. 1 126 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Trophy Club Municipal Utility District No. 1 127 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Trophy Club Municipal Utility District No. 1 128 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Trophy Club Municipal Utility District No. 1 129 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Trophy Club Municipal Utility District No. 1 130 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Trophy Club Municipal Utility District No. 1 131 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Trophy Club Municipal Utility District No. 1 132 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Trophy Club Municipal Utility District No. 1 133 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Trophy Club Municipal Utility District No. 1 134 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Lawn Mowing Services
July 2015
SUMMARY
COMPANY NAME BID
Trophy Lawns Inc. $24,050.00
D & D Commercial Landscape Management $24,510.00
SCOPE OF SERVICES:
Contract for services in accordance with the following schedule:
Month Number of Mowings
January None
February None
March One per month
April Bi‐weekly
May Bi‐weekly
June Bi‐weekly
July Bi‐weekly
August Bi‐weekly
September Bi‐weekly
October Bi‐weekly
November Bi‐weekly
December None
Contract for services will include 19 mowing events per year at the following sites:
Location
Water Plant
MUD Elevated Tank
PID Elevated Tank
Well #2
Well #4
Lift Station 1
Lift Station 2
Lift Station 3
Lift Station 5
Lift Station 6
Lift Station 7
Lift Station 8
Lift Station 9
Lift Station 20
Trophy Club Municipal Utility District No. 1 135 of 254 July 21, 2015 - Public Hearing/Regular Meeting
TROPHY CLUB MUD #1 - FIRE DEPARTMENT
BALANCE SHEET
JUNE 2015
122
ASSETS FIRE DEPT.
CASH IN BANK - INVESTMENTS 833,070 PREPAID EXPENSES 4,797 ADVALOREM PROPERTY TAXES RECEIVABLE 23,165 EMERGENCY SERVICES ASSESSMENTS RECEIVABLE 1,186 UTILITY AND OTHER ACCOUNTS RECEIVABLE 4,287
TOTAL ASSETS 866,505
LIABILITIES AND FUND BALANCE
LIABILITIES
DEFERRED REVENUE - PROPERTY TAXES/ASSESSMENTS 24,351 ACCOUNTS AND OTHER PAYABLES 5,707
TOTAL LIABILITIES 30,058
FUND BALANCE
DESIGNATED FOR FUTURE ASSET REPLACEMENT - NON-SPENDABLE FUND BALANCE - UNASSIGNED FUND BALANCE 528,911 RESERVE FOR ENCUMBRANCES - NET REVENUES / EXPENDITURES 307,536
TOTAL FUND BALANCE 836,447
TOTAL LIABILITIES AND FUND BALANCE 866,505
Trophy Club Municipal Utility District No. 1 136 of 254 July 21, 2015 - Public Hearing/Regular Meeting
. glbase_tsam rgonzale Trophy Club MUD #1 Page 1 10:27 07/13/15 Budget Summary with Amendment Fund: 122 Trophy Club MUD Fire Dept. Department: Fire Revenues Program: Period Ending: 6/2015 Account Description Adopted Amended Total Current YTD % of Remaining Budget Budget Encumb. Month Total Budget Budget 122-40001-000-000 Assessment - Emerg Svcs 357,462.00- 357,462.00- 418.34- 356,068.34- 99.610 1,393.66- 122-40003-000-000 Emer Svcs Assessmen/Delinquent 8,401.96- 8,401.96 122-40010-000-000 Property Taxes/MUD Fire 872,859.00- 872,859.00- 1,957.01- 867,999.19- 99.443 4,859.81- 122-40011-000-000 Property Taxes/Fire-Delinquent 205.99- 3,878.73- 3,878.73 122-40015-000-000 Property Taxes/Assessments P&I 750.00- 750.00- 62.06- 3,295.22- 439.363 2,545.22 122-40020-000-000 Property Taxes/Fire P&I 4,500.00- 4,500.00- 366.79- 3,585.34- 79.674 914.66- 122-42014-000-000 Fire Plan Review>6,000 sq ft 6,000.00- 6,000.00- 800.00- 5,200.00- 86.667 800.00- 122-43400-000-000 Fire Inspections 700.00- 950.00- 150.00- 975.00- 102.632 25.00 122-43415-000-000 Denton County Pledge-Fire 10,000.00- 10,000.00- 10,000.00- 100.000 122-49000-000-000 Capital Lease-Oth Fin Sources 807,316.00- 807,316.14- 100.000 .14 122-49035-000-000 Prior Year Reserves 125,669.00- 171,030.00- 125,670.00- 73.478 45,360.00- 122-49900-000-000 Miscellaneous Income 6,000.00- 9,000.00- 1,600.00- 10,403.99- 115.600 1,403.99 Subtotal: 1,383,940.00- 2,239,867.00- 5,560.19- 2,202,793.91- 98.345 37,073.09- Program number: 1,383,940.00- 2,239,867.00- 5,560.19- 2,202,793.91- 98.345 37,073.09- Department number: Fire Revenues 1,383,940.00- 2,239,867.00- 5,560.19- 2,202,793.91- 98.345 37,073.09- Revenues Subtotal ----------- 1,383,940.00- 2,239,867.00- 5,560.19- 2,202,793.91- 98.345 37,073.09-
Trophy Club Municipal Utility District No. 1 137 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Explanation provided for all accounts with a Year-To-Date percentage (YTD%) less than the Revenue Variance and greater than orequal to the Expense Variance. The Revenue and Expense Variance is calculated on a straight-line method (Financials Month x8.3%), less 8.3% for revenues and plus 10% for expenses. Only accounts with current month activity will be listed
Trophy Club Municipal Utility District No. 1 234 of 254 July 21, 2015 - Public Hearing/Regular Meeting
BUDGET VARIANCE REPORTFUND: 135 - MUD 1 O&MFINANCIALS MONTH: June 2015 REVENUE VARIANCE: 67% EXPENSE VARIANCE: 85%NOTE:ACCOUNT DESCRIPTION TOTAL
BUDGET CURRENT
MONTH YTD
TOTAL YTD % DATE OF
COMMENT VARIANCE EXPLANATION
REVENUE135-40015 Property Taxes/P&I 900 56 602 67% 6/2015 Less penalties & interest on tax
payments135-47000 Water 4,747,789 289,149 2,086,645 44% 5/2015 FW Water bills one month behind, rain
has helped cut back usage*135-47005 Sewer 2,270,982 187,669 1,407,508 62% 5/2015 Rain has helped cut back water usage,
therefore sewer revenue also135-47070 TCCC Effluent Charge 86,815 2,549 18,418 21% 6/2015 Rain has helped cut back water usage
WATER 135-55105-010 Maintenance-Backhoe/SkidLoader 3,500$ 3,199$ 3,463$ 99% 6/2015 Recondition steering column on
Trophy Club Municipal Utility District No. 1 246 of 254 July 21, 2015 - Public Hearing/Regular Meeting
DEPOSIT
DATE
QTY
(5/8")
$ 2,300 QTY
(1")
$ 2,300 QTY
(1.5")
$ 7,590 QTY
(2")
$ 15,410 TOTAL
QTY
TOTAL
AMOUNT
TEXPOOL
TRANSFER
QTY
CUM
RUNNING BALANCE
$ 3,236,100
Begin 1,350 131,100
1 - -$ - -$ - -$ - -$ - - 1,350 131,100
2 - -$ - -$ - -$ - -$ - - 1,350 131,100
3 - -$ - -$ - -$ - -$ - - 1,350 131,100
4 - -$ 4 9,200$ - -$ - -$ 4 9,200 1,354 121,900
5 - -$ - -$ - -$ - -$ - - 1,354 121,900
6 - -$ - -$ - -$ - -$ - - 1,354 121,900
7 - -$ - -$ - -$ - -$ - - 1,354 121,900
8 - -$ - -$ - -$ - -$ - - 1,354 121,900
9 - -$ - -$ - -$ - -$ - - 1,354 121,900
10 - -$ -$ - -$ - -$ - - 1,354 121,900
11 - -$ 4 9,200$ - -$ - -$ 4 9,200 1,358 112,700
12 - -$ - -$ - -$ - -$ - - 1,358 112,700
13 - -$ - -$ - -$ - -$ - - 1,358 112,700
14 - -$ - -$ - -$ - -$ - - 1,358 112,700
15 - -$ - -$ - -$ - -$ - - 1,358 112,700
16 - -$ - -$ - -$ - -$ - - 1,358 112,700
17 - -$ 2 4,600$ - -$ - -$ 2 4,600 1,360 108,100
18 - -$ - -$ - -$ - -$ - - 1,360 108,100
19 - -$ - -$ - -$ - -$ - - 1,360 108,100
20 - -$ -$ - -$ - -$ - - 1,360 108,100
21 - -$ - -$ - -$ - -$ - - 1,360 108,100
22 - -$ - -$ - -$ - -$ - - 1,360 108,100
23 - -$ - -$ - -$ - -$ - - 1,360 108,100
24 - -$ 1 2,300$ - -$ - -$ 1 2,300 1,361 105,800
25 - -$ - -$ - -$ - -$ - - 1,361 105,800
26 - -$ - -$ - -$ - -$ - - 1,361 105,800
27 - -$ - -$ - -$ - -$ - - 1,361 105,800
28 - -$ - -$ - -$ - -$ - - 1,361 105,800
29 - -$ - -$ - -$ - -$ - - 1,361 105,800
30 - -$ -$ - -$ - -$ - - 1,361 105,800
31 - -$ - -$ - -$ - -$ - - 1,361 105,800
TOTAL - -$ 11 25,300$ - -$ - -$ 11 25,300 -
Approximate Total # of homes in PID at build out 1,407
Total Amount to be collected at $2,300 each $3,236,100
Total number of homes collected to date 1,361
Total amount collected to date 3,130,300$
Total number of homes remaining to be collected 46
Total amount remaining to be collected 105,800$
Upon collection of one or more Utility Fees by Town, such Utility Fees shall, within ten (10) working days, be deposited by Town into an account designated by MUDs(hereinafter "MUDs Account"). Town shall continue to collect and to deposit such Utility Fees into MUDs Account in accordance with the existing agreement between the MUDsuntil such time as the total amount paid into that account equals $3,260,000. Town shall collect and deposit a minimum of one hundred fifty (150) Utility Fees each year, for atotal of five (5) successive years commencing on May 7, 2008 (hereinafter "Collection Period"). In the event that more than 150 Utility Fees are collected by Town in anyone ormore years of the Collection Period, such Utility Fees in excess of the 150 Utility Fees required under this Section shall be carried over to the following year or years and shallbe a credit toward the total Utility Fees due for such subsequent year or years.
In the event that fewer than 150 Utility Fees are collected by Town during anyone or more year(s) of the Collection Period, including those Utility Fees carried over from anygiven year in which more than 150 Utility Fees were collected by Town, Town shall within ten (10) working days of collection of such Utility Fees from Developer, pay intoMUDs Account the difference between the amount that would have been paid had 150 Access Fees been paid at $2,300 each and the amount of Utility Fees actually collectedby Town. On or about May 7, 2013, Town shall calculate the total amount of Utility Fees paid to MUDs. Town shall provide MUDs written notice of any amount paid less than$3,260,000 (the "Utility Fee Remainder").
Trophy Club Municipal Utility District No. 1 247 of 254 July 21, 2015 - Public Hearing/Regular Meeting
MUD Permits Collected by Town (Incode)
Month: June 2015
MUD
Date of Permit # New home starts
Customer Deposit 135-25030
Due to FW Water 135-20500 Oversize Meter 135-49075
135-10154 Bank of the West-THB (X6718) $35,000 $0 $35,000
$17,733,207 $585,465 $18,318,672
Amount available in cash $585,465
Amount available for spending $585,465
* Restricted Cash includes $307,207 for Customer Water Deposits, $137,000 for Revenue Bond Interest Payment and $2,211,629 for 25% of Unassigned Fund Balance
CASH STATUS AS OF 06-30-15
Trophy Club Municipal Utility District No. 1 249 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Cash Status as of 12-31-14
and includes WWTP expenses reimbursed 1-7-15
Cash Needs for the current fiscal year
Assigned Funds Budgeted
Amount to be Paid
Within One
Calendar Yr Balance (Balance reflects unrestricted cash available for expenditures)
$585,465
Fort Worth Water Line Yes Yes -836,008
Water Line Study Yes Yes -$100,000
-$250,543
NOTE: AMOUNT TO BE PAID IS NOT NECESSARILY THE TOTAL PROJECT COST. THIS IS ONLY TO REPRESENT CASH TO BE
EXPENDED THIS FISCAL YEAR ON CURRENTLY COMMITTED PROJECTS/CAPITAL ASSETS.
FUND
Amount to be Paid
Within One
Calendar Yr Balance BOTTOM LINE REMAINDER
-$250,543
Trophy Club Municipal Utility District No. 1 250 of 254 July 21, 2015 - Public Hearing/Regular Meeting
Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15
Trophy Club Municipal Utility District No. 1 253 of 254 July 21, 2015 - Public Hearing/Regular Meeting
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