Meeting Minutes 2017-01-11

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8 MINUTES OF REGULAR MEETING

JANUARY 11, 2017

The Board of Directors (the “Board” or “Directors”) of Montgomery County Municipal Utility District No. 8 (the “District” or “MCMUD 8”) met in regular session, open to the public, on Wednesday, January 11, 2017, at 9:00 a.m., at the Walden Yacht Club, 13101 Melville Drive, Montgomery, Texas 77356, a designated meeting place located inside the boundaries of the District, and the roll was called of the duly constituted officers and members of the Board, to-wit:

John Tryon – President
Bob Leasure – Vice President
Margie Barlow – Secretary
Daniel L. Davis – Assistant Secretary
John L. Patton – Director

All members of the Board were present, except for Director Davis.  Also attending were Katherine Turner of Municipal Accounts & Consulting L.P. (“Bookkeeper”); Erich Peterson and Justin Abshire of Jones & Carter, Inc. (“Engineer” or “J&C”); Danny Wright and Phillip Wright of Hays Utility North Corporation (“Operator”); John F. Howell of the GMS Group, LLC (“Financial Advisor”); Harry Peyton of AquaSurance, LLC; Ernie Harris and Charles Barron of Montgomery County Municipal Utility District No. 9 (“MCMUD 9”); Elliot M. Barner of Radcliffe Bobbitt Adams Polley PLLC (“Attorney” or “RBAP”); and all persons on the attached Attendance Roster.

The President, after finding that the notice of the meeting was posted as required by law declared it open for such business as may come before it.

  1. The President, after finding that the notice of the meeting with posted as required by law and determining that a quorum of the Board was present, called the meeting to order and declared it open for such business as may come before it.
  2. Public Comment. The President first opened the meeting to public comment.
    1. Mike McLaughlin, a representative of the Lake Conroe Condominiums (the “Condos”), presented information to the Board about a private waterline leak at the Condos, a copy of which is attached hereto as Exhibit “A,” and requested a refund or a credit. Barner stated that the request would be added to next month’s meeting agenda.
    2. Drainage Report.
      • Director Tryon reminded members of the public about the Drainage Report and discussed storm sewer street inlet (“Inlet”) improvements. Director Tryon stated that the District plans on upsizing certain Inlets identified by J&C.
      • Director Patton noted that the District continues to attempt to schedule a meeting with County Commissioner Mike Meador concerning overall drainage concerns.

As no further public comments were offered, the President directed the Board to proceed with the agenda.

  1. Financial Advisor’s Report. Howell presented the Financial Planning for Potential Series 2017 Bonds, a copy of which is attached hereto as Exhibit “B.”
  2. Insurance Renewal.
  3. Peyton next presented the AquaSurance LLC Insurance Proposal for the policy term of March 15, 2017 through March 15, 2018.  Discussion ensued.

Upon a motion by Director Patton, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board approved the insurance renewal proposal, a copy of which is attached hereto as Exhibit “C.”

Director Leasure exited the meeting at this time.

  1. Minutes.  The President directed the Board to the approval of the minutes of the regular meeting of December 14, 2016. Upon a motion by Director Barlow, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board approved the minutes of the regular meeting of December 14, 2016, as presented.
  2. Tax Assessor-Collector’s Report.  The Tax Assessor-Collector’s Reports for the month of December 2016 was next presented by Ms. Turner, a copy of which is attached hereto as Exhibit “D.”
  3. Turner reviewed the past monthly collections and credits as reported by Tammy McRae, Tax Assessor-Collector for the District, and reported that 62.27% of the 2016 taxes have been collected as of December 31, 2016.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the Tax Assessor-Collector’s Report, as presented.

  1. Bookkeeper’s Report.  The Bookkeeper’s Report, a copy of which is attached as Exhibit “E,” was next presented by Ms. Turner.
  2. After a review of current fund balances, expenditures and investments, Ms. Turner reviewed current year-to-date revenues and expenditures against the budget.
  3. The Board reviewed a Snap Shot Financial Report as of January 11, 2017, and a Revenue and Expenditure Comparison for 2015 and 2016 as of January 11, 2017, prepared by the Bookkeeper, copies of which are attached to the Bookkeeper’s Report.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the Bookkeeper’s Report, as presented; authorized payment of check number 1182 from the Capital Projects Fund; authorized payment of checks numbered 7735 through 7796 from the General Operating Fund; and authorized payment of checks numbered 1699 through 1703 from the Sewage Treatment Plant Fund.

  1. Engineer’s Report.  The Engineer’s Report was next presented by Mr. Abshire, a copy of which is attached hereto as Exhibit “F.”
  2. Drainage Investigation.  Abshire reported that the preliminary drainage report is complete for the drainage investigation related to the 2016 flooding events.  A copy of the preliminary drainage report was distributed to the Board.  Mr. Abshire reported that as requested at the December Board meeting, a list of Inlet improvements was prepared and provided to the Operator.  Upon Board authorization, J&C and the Operator are prepared to proceed with the Inlet improvement project.  Extensive discussion ensued.
  3. Sanitary Sewer Manhole Rehabilitation.
    1. Abshire next reported that Standard Cement Materials, Inc. (“Standard”) anticipates completion of the sanitary sewer manhole rehabilitation project by the end of January 2017.  Mr. Abshire noted that recent rainfall has caused a delay in final completion.  Mr. Abshire went on to report that Standard has completed all cementitious grout coating, but still has some epoxy coating remaining, to be followed by final vacuum testing.
    2. Abshire presented Pay Estimate No. 6 in the amount of $46,815.56 payable to Standard for the Board’s approval.
  4. Wastewater Treatment Plant (“WWTP”) Expansion.  Abshire reported that J&C is underway with the early stages of design of the WWTP Expansion project.  Mr. Abshire went on to report that the WWTP design will include a Sequencing Batch Reactor (“SBR”) method of reducing phosphorus in the system.
  5. WWTP TPDES Permit Renewal.  Abshire next reported that in December 2016, J&C was authorized to proceed with finalizing the WWTP TPDES permit application to include the SBR method.  Mr. Abshire further reported that the J&C is in the process of preparing the flow diagrams and technical report associated with the selected treatment method and will be ready for submittal to the Texas Commission on Environmental Quality (“TCEQ “) in mid-February 2017.
  6. Feasibility Study for Reclaimed Water Use Along Walden Road for the Walden Community Improvement Association (“Walden CIA”).  Abshire next reported that J&C is nearing completion of the reclaimed feasibility study.  Mr. Abshire went on to report that the Engineer is in coordination with the Walden CIA to obtain necessary irrigation data and water usage projections in order to complete the evaluation.  Mr. Abshire indicated that he expects to present the results of the study at the February Board meeting.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the Engineer’s Report, as presented; and approved payment of Pay Estimate No. 6 in the amount of $46,815.66 to Standard.

  1. Operator’s Report.  The Operator’s Report was next presented by Philip Wright, a copy of which is attached hereto as Exhibit “G.”
  2. Wright reported that the combined water accountability for the District and MCMUD 9 was 96.74%.  Mr. Wright next reported that the District had two (2) paid taps last month and the District has a total of 1,684 connections.
  3. Wright reviewed the list of service termination notices and noted that 192 notices were mailed and no accounts were terminated.
  4. Discussion next ensued regarding the proposed Inlet improvement project. Director Patton requested a scope of services and a breakdown of Inlet work.

Upon a motion by Director Barlow, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board approved the Operator’s Report, as presented, including authorizing Hays to coordinate with J&C on improvement of five (5) Inlets.

  1. State and Local Agency Reports.
  2. TCEQ. No items were reported.
  3. TWDB/Region H. No items were reported.
  4. Lone Star. No items were reported.
  5. San Jacinto River Authority (“SJRA”). No items were reported.
  6. Miscellaneous Reports.
  7. Walden CIA. No items were reported.
  8. MCMUD 9 Regular Meeting. Director Barlow reported that Nancy Eargle was appointed to the MCMUD 9 board to fill Jerry Nispel’s position.
  9. Lake Conroe Communities Network. No items were reported.
  10. MCMUD 8 Website. Director Patton suggested the addition of the Rate Order and certain information regarding water usage and payment options to the District’s website.
  11. Attorney’s Report.
  12. Ground Lease with Montgomery County ESD No. 2. Barner reported that this item will be removed from the agenda.
  13. Amendment to Wastewater Treatment Facilities Contract with MCMUD 9. Barner stated that he is coordinating with Mr. Lord regarding the draft agreement.
  14. MCMUD 8 and MCMUD 9 GRP Facilities. No updates were reported.
  15. Bed and Banks Water Reuse. No updates were reported.
  16. Authorize Director Attendance at Post-Issuance Tax Compliance Officer Training on February 25, 2017. Barner requested the Board authorize the District’s Compliance Officer, Director Leasure, to attend Post Issuance Tax Compliance Officer Training on February 25, 2017.

Upon a motion by Director Barlow, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board authorized the Compliance Officer to attend training on February 25, 2017.

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned.

 

EXHIBITS:

A   –     Information regarding leaks

B   –     Financial Planning for Potential Series 2017 Bonds

C   –     Insurance Renewal Proposal

D   –     Tax Assessor-Collector’s Report for September 2016

E    –     Bookkeeper’s Report

F    –     Engineer’s Report

G   –     Operator’s Report