Meeting Minutes 2018-03-14

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

MARCH 14, 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, March 14, 2018, 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
John L. Patton – Assistant Secretary
Randolph C. Moravec – Director

All members of the Board were present.  Also attending were Kaye Townley 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 North”); Ernie Harris and Charles Barron of Montgomery County Municipal Utility District No. 9 (“MCMUD 9”); Ross J. Radcliffe and Elliot M. Barner, attorneys, and Diane F. Brewer, paralegal, 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.

SAN JACINTO RIVER AUTHORITY (“SJRA”)

Jordan Austin and Shane Simpson with the SJRA introduced themselves and Mr. Simpson discussed the Stormwater Inlet Marking (SwIM) Program, whose purpose is to promote cleaner Lake Conroe water quality.  Mr. Simpson stated that the SJRA is looking for volunteers such as the Boy Scouts to install medallions on the stormwater inlets in the District.  Such medallions indicate that storm water flows into Lake Conroe.  Mr. Simpson stated that such program is no cost to the District, however, the SJRA would accept a donation from the District for funding the purchase of medallions.  Mr. Austin went on to state that the SJRA is also working with area homeowners associations to educate the public about the effects of stormwater quality discharged from neighborhood streets and lawns.  Mr. Austin presented a flier that could be distributed to the District’s customers by email or in the District’s utility bills.  Director Patton suggested publication of the flier on the District’s website.  Director Tryon stated that he would contact Mr. Simpson about installation of the medallions by Boy Scout Troop 351.  Mr. Peterson stated that Jones|Carter could provide GIS of the location of the inlets.

Messrs. Austin and Simpson exited the meeting at this time.

ADMINISTRATIVE MATTERS

At this time, Mr. Radcliffe discussed the appointment of Randolph C. Moravec as Director to complete the vacated term of Dan Davis ending May 2018.

Mr. Radcliffe presented the Director Qualification Affidavit, a copy of which is attached as Exhibit “A,” to Director Moravec, who executed same, thereby verifying his qualification to serve as a Director of the District.

Mr. Radcliffe next presented Director Moravec with a sworn Statement of Elected/Appointed Officer, a copy of which is attached as Exhibit “B,” as required by the Texas Constitution, which statement was then duly executed by Director Moravec.  Mr. Radcliffe then proceeded to administer the Oath of Office to Director Moravec, a copy of which is attached as Exhibit “C.”

DRAINAGE REPORT

Director Tryon asked members of the public if they had any questions.  Jim Boyd commended Hays for repair of a water line leak at his residence.  Mr. Boyd stated that the leak was repaired in one day and everyone at Hays was nice and courteous.

Jack Schleper asked at what location do water lines become the responsibility of the customer and Mr. Wright responded.

PUBLIC COMMENT

There were no additional public comments.

APPROVAL OF MINUTES

The President next directed the Board to the approval of the February 5, 2018 special meeting and the February 14, 2018 regular meeting minutes.  Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the February 5, 2018 special meeting and the February 14, 2018 regular meeting minutes.

TAX ASSESSOR-COLLECTOR’S REPORT

Ms. Townley reviewed the Tax Assessor-Collector’s Report for the month of February 2018, 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. Townley reported that 93.60% of the 2017 taxes have been collected as of February 28, 2018.

BOOKKEEPER’S REPORT

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

Ms. Townley next reviewed a Snap Shot Financial Report as of February 14, 2018, and a Revenue and Expenditure Comparison for 2017 and 2018 as of February 14, 2018, copies of which are attached to the Bookkeeper’s Report.

Director Moravec inquired regarding the accounting of garbage collection fees.  Mr. Barner stated that the garbage collection contract is between the garbage collection company and the Walden Community Improvement Association (“WCIA”) and that the District collects such fees on behalf of the WCIA.  In response to Director Moravec’s question regarding bulk water and purchased water charges, Mr. Wright described how costs are split between MCMUD 8 and MCMUD 9.

Upon a motion by Director Barlow, seconded by Director Patton, 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 8234 through 8265 from the General Operating Fund; 3) authorized payment of check numbered 1197 from the Capital Projects Fund; and 4) authorized payment of checks numbered 1774 through 1778 from the Sewage Treatment Plant Fund.

ENGINEER’S REPORT

Mr. Abshire presented the Engineer’s Report, a copy of which is attached hereto.

Concerning the Drainage Improvements, Mr. Abshire reported that Jones|Carter met with County Commissioner Mike Meador regarding street repairs.  Mr. Abshire reported that County Commissioner Meador has agreed to assist with street repairs in the District that are needed as a result of the Drainage Improvements and stated that to his knowledge, the District is the only water district in his precinct actively making such improvements.  Discussion then ensued regarding when street repairs are typically performed.

Mr. Abshire next reported that Jones|Carter is in the process of addressing Montgomery County’s (the “County”) comments to the WWTP Improvement Project design plans, which includes obtaining SJRA concurrence for effluent discharge into Lake Conroe.  Mr. Abshire also reported that Jones|Carter is finalizing the design of the WWTP’s detention pond to add into the construction plans and expects to resubmit to the County for final approval by the end of the month.  Mr. Abshire went on to report that once all plan approvals are obtained, Jones|Carter will proceed with advertising for bids and construction.  Mr. Abshire noted that as previously discussed, Jones|Carter is proposing to obtain sealed proposals from contractors for the construction bids.  Mr. Abshire presented a preliminary criteria list for evaluating the proposals, a copy of which is attached to the Engineer’s Report.  Director Moravec asked about charges and penalties for delays and incentives for early completion of projects when negotiating contracts.  Discussion then ensued regarding the merits of including provisions related to such penalties and incentives in the construction contract.  Mr. Barner also reported that he continues to follow-up with the City of Conroe’s attorney, Marcus Winberry regarding the City of Conroe’s fee for plan review.

Mr. Abshire then presented the Annual Water Plant Inspection Report, a copy of which is attached hereto.  Mr. Abshire reported that Jones|Carter conducted a full mechanical and very thorough inspection of Water Plant Nos. 1 and 2.  Mr. Abshire noted that such an inspection is not required every year.  Mr. Abshire reported that no big items were discovered, however, he recommended repair of the non-slip coating and safety rail at Ground Storage Tank No. 1 later in the year.  Mr. Abshire also discussed the Capital Improvements Plan and recommended that the District keep Water Plant No. 2 in mind for future projects.  Mr. Abshire next discussed the life expectancy of Tank No. 1.  Mr. Abshire also recommended adding the control building as a future project.

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.

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 96.76%.  Mr. Wright next reported that the District had no paid taps last month and the District has a total of 1,708 connections.

Mr. Wright reviewed the list of service termination notices and noted that 217 such notices were mailed to customers and no accounts were terminated.

Mr. Wright responded to Director Moravec’s question concerning water meters, water accountability and the lifespan of water meters.  Mr. Wright discussed installation of electronic meters and stated that the current meters installed in the District are less than five (5) years old.

Director Barlow inquired regarding water tap fees.  Mr. Wright responded that Hays North accounts for taps when customers pay such fees and that some builders pay for multiple taps at one time if they are construction more than one (1) home.

Next, Mr. Wright discussed costs associated with the operation and maintenance of the WWTP.

Discussion ensued regarding termination of service to three (3) accounts due to non-payment of delinquent taxes.  The Board asked Mr. Wright to investigate the status of termination and report back to the Board within the next week and a half.  Mr. Barner explained the process and termination of eligible accounts.

Mr. Wright discussed Lone Star Groundwater Conservation District (“Lone Star”) permitted pumpage.  Mr. Abshire stated that estimations are provided to Lone Star each year and such estimates are based on usage and population.

Mr. Wright discussed costs associated with the operation and maintenance of the Alternative Water Supply (“AWS”) Facilities.  Director Moravec requested that Mr. Wright include “Catahoula” in the title of future AWS Facilities Expense Reports to more clearly identify that such costs are associated with the Catahoula Aquifer Well.

Mr. Wright reported that the link to First Billing Services will go live on April 1, 2018, at no expense to the District.  In response to a question, Mr. Wright stated that he would research regarding paperless billing and report back to the Board.  Mr. Wright also stated that he would distribute a flier regarding new payment options with First Billing Services for the Board’s review so that it could be uploaded to the District’s website.

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.

Ms. Townley exited the meeting at this time.

MCMUD 9 REPORT

MCMUD 9 directors Harris and Barron had no updates regarding MCMUD 9.  Director Tryon reminded the Board that a joint meeting is scheduled for February 15, 2018, at 12:00 p.m.

WEBSITE REPORT

Director Patton reported increased activity on the District’s website.

ATTORNEY’S REPORT

Mr. Barner requested the Board’s authorization of the Directors’ attendance at the AWBD Summer Conference in San Antonio, Texas, on Thursday, June 21, 2018, through Sunday, June 24, 2018.  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 on Friday, April 20, 2018.  Upon a motion by Director Leasure, seconded by Director Patton, 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.

ELECTION AGENDA

Mr. Barner reported that the candidates for the May 5, 2018 Directors Election were unopposed and presented an Order Declaring Unopposed Candidates Elected to Office and Canceling Election, a copy of which is attached hereto.  Upon a motion by Director Leasure, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board adopted the Order Declaring Unopposed Candidates Elected to Office and Canceling Election in connection with the election scheduled for May 5, 2018.

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 11:01 a.m. to discuss matters within the attorney/client privilege and real estate.  Present for the executive session were the Board of Directors, Messrs. Abshire, Peterson, Radcliffe and Barner, and Ms. Brewer.

RECONVENE IN OPEN SESSION

As of 12:09 p.m., the President declared the Executive Session was ended and the public session was resumed.  It was the consensus of the Board that RBAP contact Mr. Spies and Mr. Ritter regarding acquisition of property for the Drainage Improvements under the terms discussed in the Executive Session.

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

March 14, 2018 Minutes Signature