Meeting Minutes 2017-09-13

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

SEPTEMBER 13, 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, September 13, 2017, at 9:00 a.m., at the Montgomery County Sheriff’s Office, District 5 Patrol Division, located at 11901 Walden Road, 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 (“Engineer” or “Jones Carter”); Philip Wright of Hays Utility North Corporation (“Operator” or “Hays”); David Hartman, General Manager of Walden Community Improvement Association (the “WCIA”); Charles Barron and Nancy Eargle 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 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. Jalufka stated that he had notice during the flooding events of Hurricane Harvey that certain Walden residents exacerbated inflow of water onto private property by driving down flooded streets at excessive speeds.  He requested that the Board and the WCIA consider ways that such activity by residents could be prevented in the future.

Mr. Collings requested certain information related to various drainage facilities located in the District. Messrs. Barner and Abshire requested that Mr. Collings provide them with a copy of such requests so that the District could appropriately respond.

Mr. Barron thanked the Board for requesting additional well efficiency testing for the Browning Road Catahoula Aquifer Water Well.

DRAINAGE REPORT

Mr. Abshire presented the Drainage Report and an Addendum to the Summary of Drainage Investigation for 2016 Storm Events, a copy of which is attached hereto.  Mr. Abshire reported that preliminary drawings are almost completed and Zone 1 is still under design.  Mr. Abshire indicated that he would like to schedule a meeting in the coming weeks with residents that most recently provided him with information related to the July 10, 2017 rain event.

APPROVAL OF MINUTES

The President next directed the Board to the approval of the minutes of the regular meeting of August 16, 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 August 16, 2017, as presented.

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 September 13, 2017, and a Revenue and Expenditure Comparison for 2016 and 2017 as of September 13, 2017, copies of which are attached to the Bookkeeper’s Report.

Ms. Turner next presented the Quarterly Investment Inventory Report for the Period Ending June 30, 2017, a copy of which is attached hereto.

Upon a motion by Director Patton, seconded by Director Davis, after full discussion and with all Directors present voting aye, the Board:  1) approved the Bookkeeper’s Report, as presented; 2) authorized payment of checks numbered 7938 and 8030 through 8069 from the General Operating Fund; 3) authorized payment of check numbered 1050 from the Tax Fund; 4) authorized payment of checks numbered 1744 through 1747 from the Sewage Treatment Plant Fund; and 5) approved the Quarterly Investment Inventory Report for the Period Ending June 30, 2017.

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 95.93%.  Mr. Wright next reported that the District had seven (7) paid taps last month and the District has a total of 1,695 connections.

Mr. Wright reviewed the list of service termination notices and noted that 225 notices were mailed and no accounts were terminated.

Discussion ensued regarding waiver of late fees and penalties for District customers affected by Hurricane Harvey.  Upon a motion by Director Patton, seconded by Director Davis, after full discussion and with all Directors present voting aye, the Board authorized the Operator to waive late fees and penalties for the September 2017 billing cycle and to bill for the lowest rates tiers for District customers that have been forced to drain and refill swimming pools upon request.

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

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 Jones Carter is in the process of scheduling the sixty percent (60%) client progress meeting which should occur in early October 2017.  Mr. Abshire next reported that Randy Roan Construction Co. (“Roan”) has completed the clearing and grubbing of the WWTP site east of the pipeline easement.  Mr. Abshire presented Construction Progress Report No. 1 and Final and the Certificate of Substantial Completion, copies of which are attached to the Engineer’s Report.

Mr. Abshire then reported that Jones Carter received a draft WWTP TPDES permit from the Texas Commission on Environmental Quality (the “TCEQ”) on August 21, 2017.  Mr. Abshire went on to report that after review and correspondence with the TCEQ, revisions are being made to the draft permit and Jones Carter awaits a revised memorandum from the TCEQ clarifying such revisions.

Mr. Abshire next reported that Jones Carter received and reviewed comments from the District’s Consultants and Jones Carter is in the process of making revisions to Bond Application Report No. 7 (“BAR”).  Mr. Abshire added that Jones Carter expects to submit the BAR to the TCEQ for 45-day expedited review within the next couple of weeks.

Regarding the Catahoula Well Rework Project (“Rework Project”), Mr. Abshire reported that Jones Carter received results from the recent GM Service (“GM”) test and found an error in the way GM had been taking amperage and voltage readings.  Mr. Abshire presented a letter of Jones Carter’s findings, a copy of which is attached to the Engineer’s Report.  Mr. Abshire summarized that the well is operating at 62% efficiency and not sub-40% as previously calculated.  Mr. Abshire next reported that the existing pump is still substantially oversized, but a cost analysis based upon the revised readings indicates the District would save approximately $7,800 per year if the pump were to be replaced.  Mr. Abshire reminded the Board that the total cost of the proposed rework project is $106,990 which would be a 13.7-year payback.  Mr. Abshire indicated that based on the results, a pump replacement is not absolutely necessary at this time.

Upon a motion by Director Patton, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board approved the Engineer’s Report, as presented, including cancellation of the Well Re-Work Project.

WALDEN COMMUNITY IMPROVEMENT ASSOCIATION

Mr. Hartman reported regarding fire hydrant obstructions.  The Board requested that Mr. Hartman send the list of meter obstructions to Philip Wright.  ISO was also discussed.

MCMUD 9

It was next reported by Ms. Eargle that MCMUD 9 was scheduled to meet on Friday, September 15, 2017, and the joint meeting will be held on Friday, September 29, 2017.

  1. 2017 Tax Rate.
    1. Public Hearing.  The President called the public hearing on the 2017 tax rate to order, notice of which was published as required. The President also noted that there were no parties present to offer public comment.  The President declared that the Board intended to levy a total ad valorem tax rate of $0.30 per $100 of assessed value for the year 2017, comprised of $0.0604 per $100 assessed valuation for debt service purposes and $0.2396 per $100 assessed valuation for operation/maintenance purposes.  The President then closed the public hearing.
    2. An Order Setting Rate and Levying Tax for 2017 was presented, a copy of which is attached hereto. Upon a motion by Director Patton, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board approved the Order Setting Rate and Levying Tax for 2017, authorizing a total ad valorem tax rate of $0.30 per $100 of assessed value for the year 2017, comprised of $0.0604 per $100 assessed valuation for debt service purposes and $0.2396 per $100 assessed valuation for operation/maintenance purposes.
    3. The Board next considered an Order Appointing Tax Assessor/Collector, a copy of which is attached hereto. Upon a motion by Director Leasure, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the Order Appointing Tax Assessor/Collector.
    4. Barner presented the Amended and Restated District Information Form (the “ADIF”), a copy of which is attached hereto. Mr. Barner explained that the ADIF must be amended to show the change in the tax rate, the outstanding debt and the Notice to Purchasers form.  Mr. Barner further explained that the ADIF is required to be filed in the Montgomery County Real Property Records and with the TCEQ.  Upon a motion by Director Leasure, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the ADIF, as presented.
    5. The Board then considered a Resolution Concerning Tax Collection Procedures, a copy of which is attached hereto. Upon a motion by Director Davis, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board approved the Resolution Concerning Tax Collection Procedures.

TAX ASSESSOR-COLLECTOR’S REPORT

Ms. Turner then reviewed the Tax Assessor-Collector’s Report for the month of August 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 98.76% of the 2016 taxes have been collected as of August 31, 2017.  Ms. Turner next reported that presentation of the Delinquent Tax Report has been postponed.  Ms. Turner then presented the Montgomery Central Appraisal District Approved Operating Budget for the Year 2018, a copy of which is attached hereto.

INVESTMENT POLICY

Mr. Barner presented the Amended and Restated Order Designating Investment Officer and Establishing Rules, Policies and Code of Ethics for the Investment of District Funds and Review of Investments (“Investment Policy”), a copy of which is attached hereto.  Mr. Barner stated that the Investment Policy was being amended to comply with recently enacted changes to the Public Funds Investment Act.  Upon a motion by Director Barlow, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board approved the Investment Policy, as presented.

ASSOCIATION OF WATER BOARD DIRECTORS (“AWBD”) FALL SEMINAR AND MID-WINTER CONFERENCE

Mr. Barner requested the Board’s authorization of the Directors’ attendance at the AWBD Fall Seminar on Wednesday, October 25, 2017, and Mid-Winter Conference in Dallas, Texas, on Friday, January 26, 2018, through Saturday, January 27, 2018.  Upon a motion by Director Barlow, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board authorized the Directors’ attendance at the AWBD Fall Seminar and for two (2) nights at the AWBD Mid-Winter Conference on behalf of the District.

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 11:00 a.m. to discuss matters within the attorney/client privilege.  Present for the executive session were the Board of Directors of MCMUD 8 and Mr. Barner.  As of 11:30 a.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.

September 13, 2017 Minutes Signature