Meeting Minutes 2017-06-14

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

June 14, 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, June 14, 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”); 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 (“WWTP Project”)

Mr. Abshire first presented a revised preliminary site layout for the WWTP Project, including the 150 feet buffer.  Mr. Abshire explained that the sequencing batch reactor (SBR) basins are now fifteen feet (15′) further south from Walden Road than the previous site layout.  Mr. Abshire reminded the Board that the generator and blower buildings will remain in the same centralized location along the boundary of the pipeline easement, as they were in the initial preliminary site layout.

Mr. Abshire next reported that the clearing and grubbing contract with Randy Roan Construction Inc. is ready for approval and such contract is ready to proceed.  Along with the contracts, Mr. Abshire presented Change Order No. 1, in the amount of $841.50 to include the additional acreage to be cleared due to the revised site layout.  The revised total contract amount including Change Order No. 1 is $28,113.50.  Mr. Abshire reported that this change order was also provided to the MUD 9 engineer for MUD 9 Board review and approval at their June Board meeting.  Mr. Abshire further reported that upon Board approval, the Contractor is expected to commence after July 4, 2017, and will be complete within thirty (30) days.  Mr. Abshire explained that the project also includes clearing of the proposed second access driveway to Walden Road.  Discussion ensued.

DRAINAGE IMPROVEMENT PROJECT

Mr. Abshire next reported that surveying for the proposed drainage improvements project within the District is nearly complete and that he and Mr. Barner are in the process of contacting affected homeowners regarding such project.

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 May 10, 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 May 10, 2017, as presented.

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 reviewed a Snap Shot Financial Report as of June 14, 2017, and a Revenue and Expenditure Comparison for 2016 and 2017 as of June 14, 2017, 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 checks numbered 7903, 7914 through 7958 from the General Operating Fund; authorized payment of check number 1187 from the Capital Projects Fund; authorized payment of check number 1049 from the Tax Fund; and authorized payment of checks numbered 1728 through 1734 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 discussed the Well Report and the results of the GM Services bi-annual performance test on the District’s water wells in late April 2017.  Mr. Abshire reported that the Jasper wells are running well and the aquifer level is up five feet (5′).  Mr. Abshire next reported that the Browning Catahoula well efficiency has declined, which is attributable to the motor and pumps design which are both oversized.  Mr. Abshire reminded the Board that an orifice plate was installed last year to increase the head conditions and bring the oversized pump back onto its design curve.  This proved successful when after installation of the orifice plate, the efficiency increased from thirty percent (30%) to sixty percent (60%).  Mr. Abshire noted that at present, efficiency has dropped to approximately forty percent (40%), which may be attributed to problems with the well pump downhole.  Discussion then ensued regarding options for reworking the water well.  Upon a motion by Director Barlow, seconded by Director Leasure after full discussion and with all Directors present voting aye, the Board authorized the Engineer to proceed with preparation of a bid package for a water well rework which would include replacing the well pump.

Mr. Abshire next reported that work is underway with preparation of Bond Application Report No. 7 (“BAR”).  Mr. Abshire expects to have a draft of the BAR available for consultant review prior to the July Board meeting.  Mr. Barner distributed for Board review and approval, an Order Authorizing Application to the Texas Commission on Environmental Quality (“TCEQ”) for Approval of Project and Issuance Bonds, a copy of which is attached hereto.

Mr. Abshire then reported that the WWTP Permit Renewal (the “Permit”) was declared administratively complete by the TCEQ on May 30, 2017.  Mr. Abshire further reported that Jones Carter awaits the draft Permit to be issued which typically occurs within three (3) to four (4) months and expects receipt in September 2017.

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, and approved the amended Resolution Authorizing Application to the TCEQ for Approval of Project and Issue of Bonds.

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 97.79%.  Mr. Wright next reported that the District had no paid taps last month and the District has a total of 1,688 connections.

Mr. Wright reviewed the list of service termination notices and noted that 183 notices were mailed and three (3) accounts were terminated.

Mr. Wright then updated the Board regarding installation of fencing at the Browning Street Water Plant.

Messrs. Wright and Patton next presented customer billing options, payment by ACH and credit cards.  An extensive discussion ensued.

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.

LONE STAR GROUNDWATER CONSERVATION DISTRICT (“Lone Star”)

It was reported that Lone Star was implementing a three and one-half percent (3.5%) pumpage increase on the groundwater from the Jasper Aquifer and a budget workshop is scheduled for June 28, 2017.

WALDEN COMMUNITY IMPROVEMENT ASSOCIATION

There was nothing new to report.

MCMUD 9

It was reported that Harbor Shores is sixty percent (60%) occupied.  It was also reported that the San Jacinto Water Authority (“SJRA”) was requesting that the Districts place notices on storm drains related to discharge of storm water, but that no such request had been received by the District.

ATTORNEY’S REPORT

Mr. Barner discussed the District’s encroachment policy and amendments to the District’s Rate Order.  It was the consensus of the Board to table this item until 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 11:45 a.m. to discuss matters within the attorney/client privilege and real estate matters.  Present for the executive session were the Board of Directors of MCMUD 8 and Mr. Barner.  As of 12:22 p.m., the President declared the Executive Session was ended and the public session was resumed.

Upon a motion by Director Barlow, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board approved acquisition of property based on the terms discussed in Executive Session.

Upon a motion by Director Barlow, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board approved the Settlement Agreement Including Terms of Water Pass-Through, Water Commitment and Encroachment with SRJA, City of Houston and City of Huntsville.

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

June 14, 2017 Minutes Signature