Meeting Minutes 2017-03-08

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

MARCH 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, March 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”); Philip Wright of Hays Utility North Corporation (“Operator” or “Hays”); Ernie Harris and Charles Barron of Montgomery County Municipal Utility District No. 9 (“MCMUD 9”); Ross J. Radcliffe and 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.

DRAINAGE REPORT

Director Tryon and Mr. Abshire provided an update on repairs to storm sewer street inlets (the “Inlet”) and discussed improvements.  Director Tryon reported that he and Messrs. Peterson and Abshire expect to meet with Montgomery County Commissioner Mike Meador.  Director Tryon noted that Montgomery County had recently requested the legal boundaries of the District, likely related to the Walden Road widening project.  The Board requested the Engineer prepare a schedule/timeline for design and construction of the potential drainage improvement project for review at the April Board meeting.

PUBLIC COMMENT

There were no public comments at this time.

 

APPROVAL OF MINUTES.

The President directed the Board to the approval of the minutes of the regular meeting of February 8, 2017.  Upon a motion by Director Barlow, seconded by Director Davis, after full discussion and with all Directors present voting aye, the Board approved the minutes of the regular meeting of February 8, 2017, as presented.

TAX ASSESSOR-COLLECTOR’S REPORT

Ms. Turner reviewed the Tax Assessor-Collector’s Report for the month of January 2017, a copy of which is attached hereto, including past monthly collections and credits as reported by Tammy McRae, Tax Assessor-Collector for the District.  Ms. Turner reported that 88.23% of the 2016 taxes have been collected as of January 31, 2017.

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

BOOKKEEPER’S REPORT

Ms. Turner reviewed the Bookkeeper’s Report, a copy of which is attached hereto, including the current fund balances, expenditures and investments.  Ms. Turner next reviewed current year-to-date revenues and expenditures against the budget.

Ms. Turner next reviewed a Snap Shot Financial Report as of March 8, 2017, and a Revenue and Expenditure Comparison for 2016 and 2017 as of March 8, 2017, copies of which are attached to the Bookkeeper’s Report.  Ms. Turner stated that the financial reports need to be updated to show operations and maintenance taxes received to-date.

In response to a question from Mr. Barner, Mr. Turner stated that an investment report will be provided next month.  Discussion then ensued regarding the use of surplus funds.

Upon a motion by Director Leasure, 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 7819 through 7853 from the General Operating Fund; authorized payment of check number 1184 from the Capital Projects Fund; and authorized payment of checks numbered 1710 through 1715 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 reported that the final inspection with Standard Cement Materials, Inc. (“Standard”) was held on February 23, 2017, and Standard is addressing minor punch list items which are expected to be completed this week.  In response to a question from Director Leasure, Mr. Abshire reported that MCMUD 9 is currently undertaking the cleaning and televising of certain sanitary sewer lines and will then repair manhole; the District is nearing completion of its manhole repairs.  Mr. Abshire noted that Jones Carter expects to issue the final pay estimate and certificate of acceptance at the April Board meeting.  Mr. Abshire presented Pay Estimate No. 7 in the amount of $56,389.05 payable to Standard for the Board’s approval.

Mr. Abshire next reported that Jones Carter presented the results of the 2016 Water Plant Inspections at the District’s November 2016 Board meeting and indicated that the Hydro-Tank No. 2 (“HPT”) at the Poe Water Plant showed signs of corrosion which needed to be addressed.  Mr. Abshire reported that Jones Carter initially recommended to only touch-up the HPT and budget for a full recoating in a couple of years, but the Operator has since received a quote from a subcontractor to recoat the interior and exterior of the HPT in the amount of $15,000.  Mr. Abshire noted that cost for recoating an HPT of this size would typically be in the range of $20,000 to $25,000.  Mr. Abshire stated that due to the competitive quote, Jones Carter recommends the Board authorize the Operator to proceed with recoating the interior and exterior of the HPT.  Upon a motion by Director Barlow, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board authorized the Operator to proceed with recoating the interior and exterior of the HPT to Jones Carter’s specifications at a cost of $15,000.

Mr. Abshire next reported that Jones Carter continues with design of the Wastewater Treatment Plant (“WWTP”) Expansion project.  Mr. Abshire went on to report that an Environmental Phase I Site Assessment (“ESA”) is scheduled to occur on the proposed site within the next two (2) weeks.  Mr. Abshire further reported that once the ESA is complete, Jones Carter will proceed with the topographic survey of the site.  Mr. Abshire added that the clearing and grubbing bid package is nearing completion and Jones Carter expects to solicit bids within the next two (2) weeks and schedule a thirty percent (30%) design progress meeting in mid-April.

Mr. Abshire then reported that the WWTP TPDES permit renewal application will be submitted to the Texas Commission on Environmental Quality (“TCEQ”) this week and Jones Carter anticipates receiving a declaration of completion notice from the TCEQ within the month.

Mr. Abshire next presented results of the feasibility study for reclaimed water use along Walden Road for the Walden Community Improvement Association (“Walden CIA”).  Mr. Abshire reported that the District currently provides a small amount of reclaimed water to the Walden CIA for the tennis center.  Mr. Abshire added that the Walden CIA requested an additional study on irrigation along Walden Road and noted the golf course is not currently included because of the Walden CIA’s contract with the San Jacinto River Authority.

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

OPERATOR’S REPORT

Mr. Wright presented a copy of 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 96.63%.  Mr. Wright next reported that the District had no paid taps last month and the District has a total of 1,685 connections.

Mr. Wright next reviewed the list of service termination notices and noted that 165 notices were mailed and one (1) account was terminated.

Mr. Wright reported regarding a sinkhole at the storm drain outfall at 11135 Twain Drive. Mr. Wright stated that he believed the property owner’s deck encroached into the District’s easement.

Next, discussion ensued regarding the District’s encroachment policy (the “Policy”).  The Board reminded Mr. Wright that the Policy does not permit the District to repair encroachments and that any property owners that have questions regarding the Policy may contact the District’s General Counsel.

Mr. Wright next reviewed Browning Street Catahoula Well operations.

Concerning the construction of the Browning Catahoula Well (the “Well”), Mr. Wright then reported that Alsay Incorporated (“Alsay”) has moved offsite and the Operator awaits a report from Alsay regarding the development.  Mr. Wright added that a hydrology report on the Well’s production is being prepared.

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

MISCELLANEOUS REPORTS

Director Tryon stated that the Walden CIA is in the process of reviewing and amending certain rules regarding drainage requirements.

Concerning the most recent MCMUD 9 Board meeting, Director Tryon reported that discussion included:  1) a joint meeting of the water district and the Walden CIA; 2) the status of the multi-family housing project along Walden Road; 3) the convenience store and gas station under development near Grant Harbor; and 4) the capital project funding.

Director Patton next reported regarding the District website and noted that messages are being sent frequently and updates are made on a monthly basis.

Mr. Barner then requested the Board’s authorization of the Directors’ attendance at the AWBD Summer Conference in Corpus Christi, Texas, on Thursday, June 22, 2017, through Saturday, June 24, 2017.  Mr. Barner reminded the Board that each Director would receive four (4) per diems for attendance at the AWBD Summer Conference.  Mr. Barner also requested the Board’s authorization of the Directors’ attendance at the AWBD Spring Breakfast.  Upon motion by Director Leasure, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board authorized the Directors’ attendance at the AWBD Summer Conference and AWBD Spring Breakfast on behalf of the District.

ATTORNEY’S REPORT

Mr. Barner provided to the Board a legislative memorandum prepared by RBAP, a copy of which is attached hereto.  Discussion ensued.  Mr. Barner stated that he intends to have a further update next month.

 

EXECUTIVE SESSION

Pursuant to Chapter 551 of the Texas Government Code, Subchapter D, of the Open Meetings Act, the President called the executive session to order at 11:02 a.m. to discuss matters within the attorney/client privilege.  Present for the executive session were the Board of Directors of MCMUD 8, Mr. Radcliffe and Mr. Barner.  As of 12:25 p.m., the President declared the Executive Session was ended and the public session was resumed.

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

March 8, 2017 Minutes Signature