Meeting Minutes 2017-02-08

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

FEBRUARY 8, 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, February 8, 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.  Also attending were Katherine Turner of Municipal Accounts & Consulting L.P. (“Bookkeeper”); Erich Peterson and Justin Abshire of Jones & Carter, Inc. (“Engineer” or “Jones Carter”); Phillip Wright of Hays Utility North Corporation (“Operator” or “Hays”); 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 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.

LAKE WALDEN COVE CONDOMINIUM OWNERS ASSOCIATION (the “COA”)

Mr. Barner stated that Mr. Mike McLaughlin, a representative of the COA, requested an adjustment to the COA’s account at last month’s Board meeting.  Mr. McLaughlin then reminded the Board that Hays had recently discovered a leak in the private water line owned by the COA (the “Water Line”).  The Water Line leak resulted in abnormally high water bills for the COA in 2016.  Mr. McLaughlin next stated that the Water Line had been repaired.  Mr. Wright then advised that the District has previously adjusted customer accounts with high water usage caused by leaks by charging for the previous month’s water usage and any additional water usage at the lowest tiered rate of $1.50 per 1,000 gallons of water.  Mr. Wright stated that the COA’s situation is unique in the fact that its high water usage was for the entire 2016 year.  Discussion ensued.  It was the consensus of the Board that Hays adjust the COA’s account to reflect charges for its average 2015 water usage and all additional water usage at the lowest tiered rate of $1.50 per 1,000 gallons for water.

PUBLIC COMMENT

Mr. and Mrs. Duryea, owners of a condominium at the Lodge at Walden located on Melville Road, addressed the Board regarding the flooding at the Lodge that has occurred during certain rain events since construction of the Madeley Ranch Elementary School (the “School”). Mrs. Duryea explained that Montgomery Independent School District investigated the Lodge’s flooding complaints and provided them with a copy of a report on the School’s drainage system.  Messrs. Barner and Abshire requested that Mrs. Duryea provide them with a copy of the report at her earliest convenience.  Director Tryon instructed Hays to investigate whether or not any of the storm sewer street inlets (the “Inlets”) might be obstructed.  It was also noted that the School is actually within the boundaries of MCMUD 9.

DRAINAGE REPORT

Director Tryon and Mr. Abshire next provided an update on the Inlet and discussed improvements.  Mr. Abshire further reported that Jones Carter is coordinating with the Operator to complete the authorized Inlet improvements, five (5) of which were performed since the last Board meeting.  Discussion ensued regarding options for proceeding with additional Inlet improvements. Director Tryon then state that the District continues to attempt to coordinate with Montgomery County Commissioner Mike Meador, who has not responded to the District’s request for a meeting to-date.

APPROVAL OF MINUTES.

The President directed the Board to the approval of the minutes of the regular meeting of January 11, 2017.  Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the minutes of the regular meeting of January 11, 2017, as presented.

TAX ASSESSOR-COLLECTOR’S REPORT

Mr. Barner next stated that no such report had been received from the Montgomery County Tax Assessor-Collector this month.

The Board then considered approval of the Order Determining Ad Valorem Tax Exemptions for the 2017 tax year, a copy of which is attached hereto.  Mr. Barner explained that in 2016, the Board granted a residential homestead exemption to any individual who is disabled or is 65 years of age or older in the amount of $30,000 as provided in §11.13(d), Texas Property Tax Code.

The Board next discussed adopting the Resolution Authorizing Petition Challenging Appraisal Records, a copy of which is attached hereto.  Mr. Barner explained that the Board adopts this resolution on an annual basis authorizing its Tax Assessor-Collector to challenge the appraisal records on behalf of the District, if the Tax Assessor-Collector identifies a need for such challenge.

The Board then discussed adopting the Resolution Implementing Penalty on 2016 Delinquent Taxes and Contracting with Attorneys to Collect Delinquent Taxes, a copy of which is attached hereto.  Mr. Barner explained that pursuant to Sections 6.30, 33.07, 33.08 and 33.11 of the Texas Property Tax Code, as amended, the District may levy an additional 20% penalty on 2016 real property taxes that remain delinquent as of July 1, 2017, and an additional 20% penalty on 2016 personal property taxes that remain delinquent as of April 1, 2017, to help defray the costs of collection, if the Board has entered into an agreement with an attorney for the collection of delinquent taxes and if adequate notice of such penalty is provided to property owners.

Upon a motion by Director Leasure, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board approved the Order Determining Ad Valorem Tax Exemptions, Resolution Authorizing Petition Challenging Appraisal Records and Resolution Implementing Penalty on 2016 Delinquent Taxes and Contracting with Attorneys to Collect Delinquent Taxes.

BOOKKEEPER’S REPORT

Ms. Turner then reviewed the Bookkeeper’s Report, including the current fund balances, expenditures and investments.  Ms. Turner next reviewed current year-to-date revenues and expenditures against the budget.  Ms. Turner noted that operating revenue is under budget since maintenance and operation taxes have not been reported, a copy of which is attached hereto.

Ms. Turner next reviewed a Snap Shot Financial Report as of February 8, 2017, and a Revenue and Expenditure Comparison for 2016 and 2017 as of February 8, 2017, copies of which are attached to the Bookkeeper’s Report.  Ms. Turner stated that the 2016 maintenance and operation taxes have not yet been reported and do not appear on the Revenue and Expenditure Comparison.

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 checks numbered 7797 through 7821 from the General Operating Fund; authorized payment of check number 1183 from the Capital Projects Fund; and authorized payment of checks numbered 1704 through 1709 from the Sewage Treatment Plant Fund.

ENGINEER’S REPORT

Mr. Abshire then presented the Engineer’s Report, a copy of which is attached hereto.

Regarding the Sanitary Sewer Manhole Rehabilitation project, Mr. Abshire next reported that Standard Cement Materials, Inc. (“Standard”) anticipates completion of all work by the week of February 13, 2017.  Mr. Abshire further reported that Jones Carter anticipates a final pay estimate to be presented for approval at the March Board meeting.

Mr. Abshire next reported that Jones Carter is underway with the Wastewater Treatment Plant (“WWTP”) Expansion project.  Mr. Abshire went on to report that Jones Carter met with the Operator on January 26, 2017, to discuss the preliminary design and scope.  Mr. Abshire presented the preliminary site layout and project schedule, a copy of which is attached to the Engineer’s Report.  Mr. Abshire next requested authorization for preparation and solicitation of a bid package to clear and grub the new WWTP site, within the boundaries of the buffer zone.  Upon a motion by Director Patton, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board authorized the Engineer to prepare a bid package to clear and grub the new WWTP site.

Mr. Abshire then reported that the WWTP TPDES permit renewal application is complete and, upon execution by the Board, is ready for submittal to the Texas Commission on Environmental Quality (“TCEQ”) later this week. Discussion next ensued regarding a 150-foot (150′) buffer zone and the need for an easement.

Mr. Abshire next reported that Jones Carter is nearing completion of the feasibility study for reclaimed water use along Walden Road for the Walden Community Improvement Association (“Walden CIA”) and plans to present the results of the study at the March Board meeting.

Mr. Abshire then reported that Jones Carter has recently updated its hourly rates and reimbursable expenses for 2017, a copy of which is attached to the Engineer’s Report.

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

OPERATOR’S REPORT

Mr. Wright then presented the Operator’s Report, a copy of which is attached hereto.  Mr. Wright reported that the combined water accountability for the District and MCMUD 9 was 97.80%.  Mr. Wright next reported that the District had two (2) paid taps last month and has a total of 1,685 connections.

Mr. Wright next reviewed the list of service termination notices and noted that 180 notices were mailed and two (2) accounts were terminated.  Mr. Wright also presented a Write-Off List for the Board’s approval.

Mr. Wright then reported that Hays will soon begin the annual flushing valve maintenance program.

Mr. Wright next reviewed Browning Street Catahoula Well operations and reported that Hays upgraded the chlorination system after the system’s pump failed.  The Board asked Mr. Wright to ensure that the new chlorination system was reported to MCMUD 9 at its next Board meeting.

Upon a motion by Director Barlow, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board approved the Operator’s Report, including the Write-Off List, as presented.

MISCELLANEOUS REPORTS

The Board next discussed preparing a short article regarding the WWTP project for inclusion in Walden CIA newsletter.

Concerning the most recent MCMUD 9 Board meeting, Director Tryon reported that discussions included:  1) the status of the Bed and Banks permit; and 2) the WWTP project, including financing.

Director Patton next reported that there has been a fair amount of usage on the District’s website.

ATTORNEY’S REPORT

Mr. Barner next reported that he continues to work on the Amendment to Wastewater Treatment Facilities Contract with MCMUD 9.

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

February 8, 2017 Minutes Signature