Meeting Minutes 2017-08-16

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

AUGUST 16, 2018

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, August 16, 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 Howell of The GMS Group, LLC (“Financial Advisor”); David Hartman, General Manager of Walden Community Improvement Association (the “WCIA”); 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 was 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.

PUBLIC COMMENT

Mr. Richard Maguire informed the Board that he believed a new home construction near his house resulted in storm water being diverted onto his property.  Director Tryon stated that while Mr. Maguire’s issue is not an issue that the District could address, he understood the Walden ACC is reviewing the matter.

DRAINAGE REPORT

Mr. Abshire first presented the Drainage Report and reported that design is 40 to 50 percent complete and survey data is being reviewed to determine the exact facilities.

Mr. Abshire also reported that Jones Carter expects to submit the preliminary construction drawings for the drainage improvement project to local agencies for review by September.  Mr. Abshire added that, based on the estimated project schedule, Jones Carter expects to be ready to begin construction in early 2018.

APPROVAL OF MINUTES

The President next directed the Board to the approval of the minutes of the regular meeting of July 12, 2017.  Upon a motion by Director Leasure, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board approved the minutes of the regular meeting of July 12, 2017, as presented.

FINANCIAL ADVISOR’S REPORT

Mr. Howell presented Points for Discussion regarding the 2017 tax rate, a copy of which is attached hereto.  The Board discussed the 2017 tax rate, the tax rate calculation, conducting a public hearing at the District’s regular meeting on Wednesday, September 13, 2017, and setting the District’s 2017 tax rate at such meeting.

Discussion next ensued regarding issuance of bonds.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board authorized the Tax Assessor-Collector to publish the proposed tax rate of $0.3151 and approved a public hearing at the regular meeting of Wednesday, September 13, 2017, at 9:00 a.m.

TAX ASSESSOR-COLLECTOR’S REPORT

Ms. Turner then reviewed the Tax Assessor-Collector’s Report for the month of July 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 98.55% of the 2016 taxes have been collected as of July 31, 2017.  Ms. Turner next reported that the Delinquent Tax Report will be presented at the September Board meeting.  Ms. Turner presented the Montgomery Central Appraisal District Public Hearing on the Operating Budget for the Year 2018, a copy of which is attached hereto.

BOOKKEEPER’S REPORT

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

Ms. Turner also reviewed a Snap Shot Financial Report as of August 16, 2017, and a Revenue and Expenditure Comparison for 2016 and 2017 as of August 16, 2017, copies of which are attached to the Bookkeeper’s Report.

Upon a motion by Director Leasure, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board:  1) approved the Tax Assessor-Collector’s Report, as presented; 2) approved the Bookkeeper’s Report, as presented; 3) authorized payment of checks numbered 7987 through 7990 and 7993 through 8031 from the General Operating Fund; 4) authorized payment of check numbered 1189 from the Capital Projects Fund; and 5) authorized payment of checks numbered 1739 through 1743 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 Jones Carter continues with the design phase of the 1.25 MGD Biological Nutrient Removal Wastewater Treatment Plant (“WWTP”) Project.  Mr. Abshire added that the sixty percent (60%) client progress meeting is expected to occur the week of September 17, 2017.  Mr. Abshire next reported that Randy Roan Construction Co. (“Roan”) is nearly complete with the clearing and grubbing of the WWTP site east of the pipeline easement.  Mr. Abshire went on to report that Jones Carter expects a final pay estimate to be presented at the September Board meeting.  Mr. Abshire presented Change Order No. 1 from Roan in the amount of $4,417.50 to provide timber mats to protect the existing Magellan Gas Pipeline (“Magellan”) during construction, as required by Magellan.

Mr. Abshire then reported that the Texas Commission on Environmental Quality (the “TCEQ”) declared the WWTP TPDES permit application administratively complete on May 30, 2017, and Jones Carter expects  the draft permit to be issued in September or October.

Mr. Abshire next reported that work is near completion with preparation of Bond Application Report No. 7 (“BAR”).  Mr. Abshire also reported that a draft BAR will be submitted to the consultants within the week for review.  Mr. Abshire added that Jones Carter expects to submit the BAR to the TCEQ by the end of the month.

Regarding the Catahoula Well Rework Project (“Rework Project”), Mr. Abshire reported that Jones Carter received three (3) bids for the Rework Project on August 14, 2017.  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, Weisinger, Inc. (“Weisinger”), in the amount of $106,990.  Mr. Abshire went on to report that upon approval, Jones Carter will prepare contract documents for execution at the September Board meeting before proceeding with construction in mid-September.  Discussion then ensued regarding additional well efficiency testing by GM Services in connection with the proposed Rework Project.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board:  1) approved the Engineer’s Report, as presented; 2) approved Change Order No. 1 for the WWTP Cleaning and Grubbing Contract; 3) approved additional testing by GM Services on the Catahoula Well; and 4) awarded the contract for the Rework Project to Weisinger, subject to concurrence of Montgomery County Municipal Utility District No. 9 (“MCMUD 9”).

OPERATOR’S REPORT

Mr. Wright then 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 96.85%.  Mr. Wright next reported that the District had one (1) paid tap last month and the District has a total of 1,692 connections.

Mr. Wright reviewed the list of service termination notices and noted that 212 notices were mailed and no accounts were terminated.

Discussion ensued regarding when the Lone Star Groundwater Conservation District (“Lone Star”) permit will increase.

Mr. Wright also reported that Hays continues its research of automatic billing options.

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.

LONE STAR

Mr. Barner reported that Lone Star increased its pumpage fee to $0.10 per 1,000 gallons.

WALDEN COMMUNITY IMPROVEMENT ASSOCIATION

Mr. Hartman had nothing new to report.

MCMUD 9

Judy Sanders reported that MCMUD 9 was scheduled to have its next regular meeting on September 5, 2017.

MCMUD 8 WEBSITE

Director Patton reported that the analytics reports indicate frequent traffic to the District’s website during the prior month.

ORDER CHANGING MEETING PLACE OUTSIDE THE DISTRICT AND REAFFIRMING ADDITIONAL DISTRICT OFFICES AND MEETING PLACES (the “Order”)

Mr. Barner reported that Jones Carter’s office relocated to 1575 Sawdust Road, Suite 400, The Woodlands, Texas 77380, and presented the Order for the Board’s consideration.  Upon a motion by Director Barlow, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board approved the Order, a copy of which is attached hereto.

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 12:00 p.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 Messrs. Radcliffe and Barner.  As of 11:05 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.

August 16, 2017 Minutes Signature