Meeting Minutes 2017-05-10

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

MAY 10, 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, May 10, 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”); John F. Howell of The GMS Group, LLC (“Financial Advisor”); 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.

WASTEWATER TREATMENT PLANT (“WWTP”) IMPROVEMENT PROJECT

Mr. Tryon first explained that the Board authorized the design of the 1.25 MGD Biological Nutrient Removal WWTP project (“WWTP Project”) at its December 2016 Board meeting after reviewing an evaluation of the WWTP presented to both the District and MCMUD 9 by Jones Carter (the “Evaluation”) in a November 2016 Joint Board Meeting.  Mr. Tryon next explained that the Evaluation was performed after:  1) reviewing regulatory requirements and the design criteria for the renewal of the District’s WWTP discharge permit (the “Permit Renewal”); 2) consultation with Bleyl & Associates; and 3) discussions with the Texas Commission on Environmental Quality (the “TCEQ”).

In response to a question, Mr. Abshire further explained that the above-mentioned regulatory requirements and design criteria are not only related to discharge of phosphorous into Lake Conroe, but that such requirements also include regulations and criteria related to increased wastewater flows and development in the District and in MCMUD 9.

Mr. Abshire then presented to the Board and members of the public a draft site plan for the WWTP Project.  Mr. Abshire went on to explain:  1) the draft site plan, including the location of facilities to be located on the currently unused portion of the District’s WWTP Reserve (the “Reserve”) east of the pipeline easement, and the 150 feet buffer zone around the proposed facilities, as required by the TCEQ; 2) the anticipated timeline for design and construction of the WWTP Project; and 3) the clearing and grubbing of a portion of the District owned Reserve east of the pipeline easement.  Discussion next ensued regarding such site plan and the proposed location of facilities on the currently unused portion of the District’s Reserve east of the pipeline easement.

Mr. Luke Helwig requested that the Board direct Jones Carter to review the draft site plan to determine if any of the proposed facilities to be located on the currently unused portion of the Reserve might be located further away from the boundary of the Reserve closest to his property and more centrally located within the Reserve.  It was the consensus of the Board that Jones Carter review the draft site layout to determine whether or not such facilities could be adjusted to be more centrally located in the Reserve boundary while not encroaching on the required 150 feet buffer zone.

DRAINAGE IMPROVEMENT PROJECT

Mr. Abshire next provided an update to those in attendance regarding the proposed drainage improvements within the District.  Mr. Abshire reported that, as authorized at the March Board meeting, topographic surveying has commenced in preparation for design of the proposed Drainage Improvement Project.  Mr. Abshire further reported that they are prepared to proceed with design upon authorization.

FINANCIAL ADVISOR’S REPORT

Mr. Howell next discussed a preliminary costs summary for a proposed bond application for the WWTP Project and the Drainage Improvement Project.  Extensive discussion ensued, including discussion concerning:  1) the amount of bonds to be sold for such projects; 2) structuring the debt service schedule for the bonds in order to minimize the impact of the bonds on the District’s tax rate; and 3) the amount of funds currently available that may be used to reduce the amount of bonds sold by the District.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board authorized preparation of the Bond Application Report in an amount not to exceed $14,000,000 for the Series 2017 bonds.

PUBLIC COMMENT

There were no additional public comments at this time.

APPROVAL OF MINUTES

The President directed the Board to the approval of the minutes of the regular meeting of April 12, 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 April 12, 2017, as presented.

TAX ASSESSOR-COLLECTOR’S REPORT

Ms. Turner reviewed the Tax Assessor-Collector’s Report for the month of April 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 96.86% of the 2016 taxes have been collected as of April 30, 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 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 May 10, 2017, and a Revenue and Expenditure Comparison for 2016 and 2017 as of May 10, 2017, copies of which are attached to the Bookkeeper’s Report.

Ms. Turner then presented the Quarterly Investment Inventory Report for the Period Ending March 31, 2017, a copy of which is attached hereto.

Discussion then ensued regarding the transfer of funds from the Capital Projects Fund to the General Operating Fund in the amount of $648,319.19 to reimburse such fund for the sanitary sewer manhole project.  Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board authorized the Bookkeeper to transfer $648,319.19 from the Capital Projects Fund to the General Operating Fund for the sanitary sewer manhole project.

Upon a motion by Director Barlow, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board approved the Bookkeeper’s Report, as presented; authorized payment of checks numbered 7879 through 7917 from the General Operating Fund; authorized payment of check number 1186 from the Capital Projects Fund; authorized payment of check number 1048 from the Tax Fund; and authorized payment of checks numbered 1722 through 1727 from the Sewage Treatment Plant Fund.

ENGINEER’S REPORT

Mr. Abshire then presented the Engineer’s Report, a copy of which is attached hereto. Mr. Abshire first reported that A&H Services has completed recoating Hydro-Tank No. 2 at the Poe Street Water Plant.

Mr. Abshire then reported that Jones Carter is approximately thirty percent (30%) complete with the design of the WWTP Project.  Mr. Abshire noted that a thirty percent (30%) design progress meeting will be scheduled with Directors Tryon and Patton within the next two (2) weeks.

Mr. Abshire next reported that Jones Carter solicited bids from four (4) contractors for the clearing and grubbing at the WWTP site.  Mr. Abshire presented a bid tabulation, a copy of which is attached to the Engineer’s Report, and recommended awarding the contract to the lowest bidder, Randy Roan Construction Co. (“RRCC”), with a base bid in the amount of $27,272.00.  Discussion ensued.

Mr. Abshire then reported that the Permit Renewal was submitted to the TCEQ in March 2017 and it is currently under review.

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 awarded the contract to RRCC in the amount of $27,272.00, subject to the concurrence of MCMUD 9 and receipt of a Form 1295 Certificate of Interested Parties, and authorized the Engineer to prepare a contract for the Board’s approval.

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 97.50%.  Mr. Wright next reported that the District had no paid taps last month and the District has a total of 1,687 connections.

Mr. Wright next reviewed the list of service termination notices and noted that 187 notices were mailed and no accounts were terminated.

Mr. Wright next discussed the status of the Consumer Confidence Report (“CCR”), which the TCEQ require be made directly available to customers annually no later than July 1.  Mr. Wright explained that Hays would be completing the draft of the CCR in the next two (2) weeks and would distribute it to the Board and the Attorney for review prior to finalizing it for distribution.  Discussion then ensued concerning the process for distributing the CCR electronically.

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, and authorized distribution of the CCR, pending preparation and creation of a URL.

ATTORNEY’S REPORT

Mr. Barner first reported that the MCMUD 9 attorney recently provided him with comments to the Amended and Restated WWTP Facilities Agreement and expects such agreement ready for the Board’s review and approval at the June Board meeting.

Director Tryon next explained his recent discussion with Chief Edwards from the Montgomery County Emergency Services District No. 2 (“ESD No. 2”).  Discussion ensued.  Mr. Barner stated that he would contact the ESD No. 2 attorney and provide an additional update at the June Board meeting.

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 11:28 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 11:52 a.m., the President declared the Executive Session was ended and the public session was resumed.

ENGINEER’S REPORT (CONTINUED)

Discussion then ensued regarding design and priority of drainage improvements.  Upon a motion by Director Tryon, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board authorized Jones Carter to continue design of the Drainage Improvement Project and authorized RBAP to begin investigation of property acquisition necessary for such project.

 

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

May 10, 2017 Minutes Signature