MINUTES OF MEETING OF THE BOARD OF DIRECTORS OF NORTHTOWN MUNICIPAL UTILITY DISTRICT. December 20, 2005
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1 THE STATE OF TEXAS COUNTY OF TRAVIS MINUTES OF MEETING OF THE BOARD OF DIRECTORS OF NORTHTOWN MUNICIPAL UTILITY DISTRICT December 20, 2005 A meeting of the Board of Directors of Northtown Municipal Utility District was held on December 20, 2005, at the Wells Branch Community Center, 2106 Klattenhoff Drive, Austin, Texas. The meeting was open to the public and notice was given as required by the Texas Open Meetings Act. A copy of the Certificate of Posting of the Notice is attached as Exhibit A. The roll was called of the members of the Board: Texana Kowis - President Robin Campbell - Vice President Brenda Richter - Secretary Michael Zeniecki - Assistant Secretary William E. Henderson - Treasurer and all of the Directors were present, thus constituting a quorum. Also present at the meeting were Mike Morin of ECO Resources, Inc.; Sam Jones of Sam Jones Consulting, Inc.; Don Williams and Mona Oliver of Wells Branch Municipal Utility District; Harvey Doerring of the Northtown, Ltd.; Tom Anker representing Continental Homes of Texas, L.P.; David Gray of Gray-Jansing & Associates, Inc.; Richard Fadal of TexaScapes, Inc.; and Sue Brooks Littlefield of Armbrust & Brown, L.L.P. Deputy Keith Kinnard of the Travis County Sheriff s Department and David Armistead, Anthony Lohr and Michael McMurtray of the Wildflower Homeowners Association arrived later. Director Kowis called the meeting to order at 6:00 p.m., and stated that the Board would first consider approving the consent items on the Board s meeting agenda: the minutes of the November 29, 2005 Board meeting and an Amendment to the District s Order Establishing Rules and Regulations Governing Park and Recreational Facilities and Greenbelt, Including Wet Pond Facilities, a copy of which is attached as Exhibit B. Upon motion by Director Henderson and second by Director Richter, the Board voted unanimously to approve the consent items. There being no citizens present wishing to address the Board at this time, and no announcements by Board members, Director Kowis recognized Ms. Oliver and Mr. Williams for purposes of receiving a report under the Interlocal Agreement with Wells Branch Municipal Utility District. Ms. Oliver reviewed her restrictive covenant report with the Board, and Mr. Williams reported that it appeared that the District could begin construction of the fence by the new road, as the road construction work had been completed. Director Richter stated that the Park Subcommittee would meet with Mr. Williams in early January, and bring back a recommendation to the Board at the next meeting. 1
2 Director Kowis then stated that the Board would consider taking action regarding restrictive covenant administration. Director Kowis stated that she understood from Ms. Bridgewater in Ms. Littlefield s office that the debris at the Wetherell residence had been cleaned up. The Board agreed that it did not wish to spend unnecessary money on a lawsuit, if the owner would clean up the debris and maintain the property appropriately. The Board then discussed the covenant violations at 112 Segovia Way and, after reviewing photographs of the violations, voted unanimously to authorize suit, upon motion by Director Richter and second by Director Henderson. Director Richter noted that this was the first month that the Board had received a report from the Wildflower Homeowners Association, as required under the District s contract with the Association for restrictive covenant enforcement within the Wildflower subdivision, and that she was surprised at the brevity of the report. Director Kowis then stated that the Board would consider taking action regarding park development matters, and recognized Director Richter for a Park Subcommittee report. Director Richter stated that she had talked to Trent Rush and he had held an initial meeting with the City as well as with the grant writers regarding the District s park master plan and the grant process. She stated that she had no clear indication of the status of any grant applications at this time. Director Kowis then recognized Mr. Fadal, who reviewed his landscape maintenance report, a copy of which is attached as Exhibit C with the Board. He stated that Phase 1 of the Wildflower park revitalization was approximately 90% complete, and that his company would be beginning Phase 2 shortly. Director Kowis inquired whether Mr. Fadal had been able to locate the property line on the north side of the Wildflower trail, and Mr. Fadal indicated that he had found one of the corners, and asked for additional time to determine if he could locate the other corner. The Board agreed that additional time should be granted, to determine if the corner could be located without the expense of a survey. Director Kowis then stated that the Board would receive a report from the District s general manager, and recognized Mr. Morin. Director Kowis asked if deposit refunds could be coded as deposit refunds rather than overpayments, noting that there were many overpayments indicated on this month s report. Mr. Morin stated that these overpayments occurred when a customer s last bill was deducted from their deposit and the customer paid the bill as well. He stated that the overpayments indicated on the report were, in fact, a result of this and not deposit refunds. Mr. Morin reported that the radar gun which the District had purchased had been received, and was in use by the Travis County Sheriff s Department. He stated that he had received a response from the County on the request for a waiver of the overlay requirement, and that they had not agreed to waive the requirement in connection with repair of the copper lines in the Gaston-Sheldon subdivision. He presented the list of write-offs attached as Exhibit D and, upon motion by Director Campbell and second by Director Richter, the Board voted unanimously to approve the write-offs. He then presented the transfers attached as Exhibit E and, upon motion by Director Henderson and second by Director Zeniecki, the Board voted unanimously to approve the transfers as presented. Mr. Morin reviewed the bills and invoices received by the District, as set forth on the check register attached as Exhibit F. He pointed out that the payments included a check in payment of an invoice for a pump repair from ECO Resources. Director Henderson confirmed that he had reviewed the bills and invoices, and moved that the Board approve their payment, as presented. Upon second by Director Campbell, the Board voted unanimously to do so. Mr. Morin then reported that, in response to his inquiry, 2
3 Bart Jennings had advised him that the District s master meters had been recalibrated in August of Director Kowis asked for a credit card use report, as requested by Director Richter at the prior meeting, and Mr. Morin agreed to provide this at the next meeting. Mr. Morin stated that he had confirmed that per diems were still payable to Director Richter, pointing out that these were tracked on a fiscal year rather than a calendar year basis. Director Kowis then recognized Ms. Littlefield for purposes of receiving the attorney s report. Ms. Littlefield reviewed her directives from the previous Board meeting, and also reported that the Subcommittee consisting of Director Zeniecki and Director Campbell was working on a meeting relating to the Dessau Fountain Estates permit protest and possible passthrough service to the mobile home park. She also reported that the District had received a rebate from the Texas Municipal League Intergovernmental Risk Pool, which she had given to Mr. Morin for deposit in the District s account. Director Kowis then recognized Mr. Jones, for purposes of receiving a report from the District s engineer. Mr. Jones presented Pay Estimate No. 2 for Parkside at Northtown, Phase 1, a copy of which is attached as Exhibit G, and recommended approval of the pay estimate. Upon motion by Director Campbell and second by Director Henderson, the Board voted unanimously to approve the pay estimate as presented. Mr. Jones then presented the bid tabulation for Parkside at Northtown, Phase 2, a copy of which is attached as Exhibit H, and stated that the design engineer recommended award of the contract to Schroeder Construction. Mr. Jones concurred with the design engineer s recommendation, and recommended award of the contract to Schroeder Construction, the low bidder. Upon motion by Director Campbell and second by Director Zeniecki, the Board voted unanimously to approve the award of the contract for the Parkside at Northtown, Phase 2. Mr. Jones stated that Pond I3 in Gaston-Sheldon and Lot 10, the drainage easement lot, had been cleaned up, and that he recommended acceptance of both the pond and Lot 10 for operation and maintenance. Upon motion by Director Richter and second by Director Henderson, the Board voted unanimously to authorize the acceptance, as recommended. Director Zeniecki inquired why Change Order No. 1 had been included in the pay estimate for Parkway at Northtown, Phase 1, when the Board had not agreed to pay the cost of the work covered by the change order. Mr. Jones explained that the pay estimate covered all of the costs, whether they were eligible for reimbursement or not and, after discussion, the Board agreed that this would be evaluated at the time of the District s bond issue to reimburse for these facilities. Director Kowis then stated that the Board would consider taking action regarding water and wastewater service to Settler s Meadow. Mr. Jones stated that he had nothing to report. Ms. Littlefield stated that she had not yet been contacted by Tom Nuckols, the County s attorney, regarding the proposed interlocal agreement for the Wells Branch parkway improvements. The Board agreed that Ms. Littlefield should follow up with Joe Gieselman on the matter. Director Kowis then stated that the Board would receive reports from developers and landowners representatives. She first recognized Mr. Doerring, who stated that his partnership was making good progress with the County on the roadway agreement. Director Kowis then recognized Mr. Anker, who advised the Board that the Parkway at Northtown duplexes were 3
4 now under construction. Director Kowis inquired how big the units were, and Mr. Anker stated that they were approximately 1,200 square feet. Mr. Anker then stated that he had apparently sat through several Board meetings at which the status of Continental s obligations under its contract with the District had been on the agenda, and had not realized that he needed to request that a subcommittee be set up to consider Continental s request for an extension of time to complete the sidewalk and roadway improvements. After discussion, Director Kowis and Director Campbell agreed to set up a meeting of the subcommittee with Continental s representatives after Christmas. Mr. Anker then inquired why the change order for the waterline relocation work had been denied at the previous Board meeting. Mr. Jones explained that the change order was in three parts, and that the first part was the addition of $4,600 to add a concrete encasement to the line. He stated that he agreed that this work was necessary because of the existence of the creek, and, as a result, believed the cost was reimbursable. He stated that a second component was the addition of the 36-inch steel encasement which, in his opinion, related to the bridge requirement and, under TCEQ rules, was not eligible for reimbursement. Mr. Jones stated that this encasement would not have been required if there had been no bridge crossing. Mr. Gray stated that he wished to go on record as disagreeing with Mr. Jones analysis. Mr. Jones continued and stated that the third portion of the change order related to relocating a City of Austin waterline. He stated that he felt this relocation related to the roadway, and was not related to the utility portion of the project. Mr. Gray interjected and stated that he disagreed, and that this relocation was not a part of the bridge work. He stated that these were City lines of which there was no record at the City. Ms. Littlefield clarified that Mr. Jones position was that this was a development cost, rather than a utility system cost. Director Kowis stated that her position, which she had relayed to Mr. Jones, was that the District would not pay for the cost of relocating City utility lines, but that the District would consider Mr. Gray s comments at the time that the bond issue for these facilities was submitted. Director Kowis then noted that Deputy Kinnard had arrived at the meeting, and recognized him for purposes of receiving a security report. Deputy Kinnard stated that there had still been a high volume of calls within the District, but that most had not been property-related. He also stated that the new traffic control, utilizing the District s radar detector, was working well. Director Kowis then noted that representatives of Wildflower Homeowners Association had arrived at the meeting, and would be recognized at this time for citizens communications. She reminded the representatives that the District had a five minute per person limitation on time to address the Board. She stated that the District was in receipt of a letter from the Homeowners Association regarding Williams and Sons Management Services which included one issue pertaining to restrictive covenant enforcement, which she believed was relevant to the District s responsibilities. She requested that the Board authorize a subcommittee consisting of herself and Director Campbell to investigate the complaint and bring back a report to the Board s January meeting. Director Kowis noted that the subcommittee needed a list of addresses, names, dates and reported violations which the Homeowners Association had processed during the time period Williams and Sons had been engaged by the Association, so that this information could be compared to the District s records. She noted that the rest of the allegations contained in the 4
5 complaint related to Wells Branch Municipal Utility District, and she felt those matters should be taken up with Wells Branch and not the District. Mr. Armistead then stated that he felt it would be beneficial to have lights installed in the Wild Senna alley, and would like the Board to consider this expenditure. Director Kowis stated that the Park Subcommittee was going to do a park tour in early January, and would evaluate the request and expense at that time, and make a report back to the Board at the January Board meeting. Mr. Armistead stated that he understood the District s need for a list of covenant violations and would provide them. Director Kowis explained that she and Director Campbell would compare this information to the District s records to determine if there was any overlap or duplication. Mr. Armistead stated that the notice which had been sent to Northtown by the Homeowners Association had not been intended to invoke a conflict, but to apprise the Board of things that they had discovered. He stated that the Association appreciated the District s support. Director Kowis thanked Mr. Armistead for providing the restrictive covenant report for this month s meeting, and asked that these continue to be provided on a monthly basis, in accordance with the District s contract with the Association. Mr. Armistead noted that Director Richter seemed surprised by the number of complaints contained in the report, as she had commented that there were fewer than she had expected. He inquired how many violations the Board normally anticipated seeing. Director Richter explained that, in the past, violations reported in the Wildflower community had consisted of two or three pages of addresses. Mr. Armistead stated that the Association had repaired fences, moved cars, had homes painted, set up a website, amended its rules and made other arrangements that would make the neighborhood better. He stated that the Association was working very hard and was sending out many violation letters, which was very hard work. He stated that he appreciated any resources that the District could help with. Mr. Armistead then passed out a market study he had prepared which indicated that the average home value in Wildflower had dropped approximately seven percent. Director Richter inquired whether he had compared these values to other neighborhoods in the District, and he stated that he had not. Mr. Armistead stated that the loss of value concerned the Association, and that the Association needed help to turn this around. Director Richter pointed out that her home in the District had lost value as well, and Director Henderson stated that his, which was located in Settler s Meadow, had also lost value. Director Richter noted that, as indicated, the decline of values was not being experienced just in the Wildflower community. Director Kowis noted that the Board did not have the information needed to do a comparison for all of the neighborhoods, but confirmed that the Board was providing the resources that it had available and trying to respond to requests which the Association had made. She noted that she appreciated the fact that the Association was responding to needs within the Wildflower subdivision, and that the Board was committed to providing any resources which were available to the District to support it in its efforts. Mr. Armistead stated that he felt that, with the development of retail, there would be a positive growth in the District s tax base, and that the Association appreciated what the Board was doing. Mr. Lohr concurred and stated that if the Board or the subcommittee needed any assistance in connection with evaluating the Association s complaint, it should feel free to call on the Association Board. Director Campbell stated that he appreciated what Mr. Armistead had done with regard to this analysis of the market value, but did not feel that the result that he was presenting was legitimate, because it was missing the values of 14 homes. He also stated that he felt the information needed to include the market value of each home, in order to justify the conclusion that was presented. 5
6 There being no further business to come before the Board, the meeting was adjourned at 6:45 p.m. Date:. (SEAL) Brenda Richter, Secretary Board of Directors 6
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