Meeting Minutes 2018-06-13

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

JUNE 13, 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, June 13, 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, to­wit:

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, except for Director Barlow. Also attending were Katherine Turner ofMunicipal Accounts & Consulting L.P. (“Bookkeeper” or “MAC”); Justin Abshire of JoneslCarter (“Engineer” or “JoneslCarter”); Philip Wright of Hays Utility North Corporation (“Operator” or “Hays North”); Charles Barron of Montgomery County Municipal Utility District No. 9 (“MUD 9”); Elliot M. Barner, attorney, 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.

PUBLIC COMMENT

No public comments were offered.

ENGINEER’S REPORT

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

Regarding the drainage improvements project (the “Drainage Improvements”), Mr. Abshire reported that the District is waiting on San Jacinto River Authority’s (“SJRA”) approval of certain easements. Mr. Barner reported that he spoke with the SJRA attorney and the District should receive SJRA comments by the end of the week. Mr. Barner explained the purpose of the easements being acquired from the SJRA.

Mr. Abshire then discussed the anticipated start date for construction of the Drainage Improvements and stated that the District cannot accept a bid until all necessary easements and approvals are acquired. Mr. Abshire indicated that he anticipates the construction of the Drainage Improvements will start in approximately 90 days.

Mr. Abshire next discussed the timing of the advertising and bidding process of the Wastewater Treatment Plant Improvement (“WWTP”) project. Mr. Abshire then discussed the anticipated WWTP project construction schedule. Director Moravec inquired regarding drainage concerns for projects occurring during the hurricane season. Mr. Abshire responded that contractors have stormwater pollution prevention plans in place in order to control dirt and debris. Mr. Abshire went on to report that bids will be received on July 10, 2018, and suggested meeting with both MCMUD 8 and MCMUD 9 on either July 18, 2018 or July 19, 2018, to review such bids. Director Moravec recommended Mr. Abshire poll MCMUD 8 and MCMUD 9 regarding availability for a joint meeting. Mr. Abshire then stated that bid review could be delayed until August since the City of Conroe’s (the “City”) plan review process has not been resolved.

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.

Members of the public exited the meeting at this time.

TAX ASSESSOR-COLLECTOR’S REPORT

Ms. Turner reviewed the Tax Assessor-Collector’s Report for the month of May 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. Turner reported that 97.58% of the 2017 taxes have been collected as of May 31, 2018. Ms. Turner next reported that certified values should be received around the end of July and 2018 tax rates must be adopted by September 15, 2018.

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 then reviewed current year-to-date revenues and expenditures against the budget.

Ms. Turner next reviewed a Snap Shot Financial Report as of June 13, 2018, and a Revenue and Expenditure Comparison for 2017 and 2018 as of June 13, 2018, copies of which are attached to the Bookkeeper’s Report. Ms. Turner reported that funds have been transferred to the Operating Fund as discussed at the May Board meeting.

Director Moravec inquired regarding the process for determining when payments of certain expenses are made from the Capital Projects Fund or Operating Fund. Discussion ensued regarding the timing of expenses incurred for bond-related projects and reimbursement of the Operating Fund from the Capital Projects Fund.

Next, Director Moravec discussed his conversation with Mark Brooks regarding federal investments and certificates of deposit (“CDs”). Ms. Turner stated that she is preparing a summary of investments and yields for presentation to the Board which will include Texas Class rates, two-year (2) CDs and TexPool rates.

Ms. Turner discussed issuing the unclaimed property report and explained that this is a report that is required to be filed with the State Comptroller’s Office annually regarding customer funds that remain uncollected for three (3) years. Ms. Turner stated that the Unclaimed Property Report and a check in the amount of $269.75 have been prepared and will be sent to the Comptroller’s Office after the Board’s approval.

Upon a motion by Director Moravec, 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 8336 through 8371 from the General Operating Fund; 3) authorized payment of checks numbered 1789 through 1795 from the Sewage Treatment Plant Fund; 4) authorized payment of checks numbered 1201 through 1204 from the Capital Projects Fund; and 5) authorized the Bookkeeper to prepare a summary of available investments and yield projections for such investments.

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 94.53%. Mr. Wright next reported that the District had one (1) paid tap last month and the District has a total of 1,717 connections.

Mr. Wright next reviewed the list of service termination notices and noted that 172 such notices were mailed to customers and three (3) delinquent accounts were terminated.

In response to Director Moravec’s question, Mr. Wright stated that Hays North conducts a fire hydrant inspection every two (2) years.

In response to a question of Director Patton, Mr. Wright stated that the District’s water pressure is monitored on an hourly basis.

Mr. Wright then reported that there were 199 online bill payments and information regarding online payments will be in the next WCIA newsletter.

Mr. Wright reported no major issues at the WWTP and that the WWTP is in compliance with the Texas Commission on Environmental Quality permit.

Mr. Wright then presented the combined expenses for MCMUD 8 and MCMUD 9 and the Billings and Collections Report, copies of which are attached to the Operator’s Report.

Mr. Wright reviewed changes to the Ground Water Permit Pumpage Report.

Mr. Wright presented the Alternative Water Supply Facilities Expense Report, a copy of which is attached to the Operator’s Report, and reported that the generator was exercised in May, diesel was cleaned and is now usable and the District is ready for the 2018 hurricane season. Director Tryon indicated that he would like the District generator to be re-inspected. Discussion ensued regarding a recent power outage.

Director Moravec recommended revising the District’s Drought Contingency Plan (“DCP) to more effectively encourage voluntary compliance with watering restrictions and stated that he asked the Operator to review the DCP. Discussion ensued. It was the consensus of the Board that they review the DPC at the next Board meeting.

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

ATTORNEY’S REPORT

Mr. Barner reported that he had spoken with the City of Conroe’s City Attorney and he was informed that the District’s request to be placed on the City Council agenda had been sent to the City Administrator. Mr. Barner stated that if the item is not on the next City Council agenda, then District representatives may need to make public comment at a City Council meeting to explain the District’s position on the City’s plan review fee. Director Moravec offered to contact the Mayor regarding a meeting.

Next, Director Moravec discussed correspondence from Carolyn Ahrens. It was the consensus of the Board that Ms. Ahrens take no further actions on behalf of the District requested by Messrs. Barner and Lord.

APPROVAL OF MINUTES

Mr. Barner explained certain revisions to the May 9, 2018 regular meeting minutes under the Bookkeeper’s Report made after clarifications from Ms. Turner and Director Moravec. Upon a motion by Director Patton, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board approved the May 9, 2018 regular meeting minutes, subject to certain corrections under the Bookkeeper’s Report.

STATE AND LOCAL AGENCY REPORTS

Mr. Barner reported that the November 2018 Lone Star Groundwater Conservation District (“Lone Star”) director’s election has been called. Discussion ensued regarding the places up for reelection on the Lone Star Board. Discussion ensued regarding attendance at Lone Star meetings. MCMUD 9 Director Barron indicated that no MCMUD 9 directors are available to attend Lone Star meetings. Directors Patton, Tryon and Moravec stated that they will rotate their attendance at Lone Star meetings.

WALDEN COMMUNITY IMPROVEMENT ASSOClA TION (“WC1A”)

There was nothing new to report.

MCMUD 9 REPORT

Director Leasure presented the MCMUD 9 report and indicated that Charles Barron is the new president of the MCMUD 9 board. Director Leasure also reported that MCMUD 9 is contemplating a bond election for drainage improvements. Discussion ensued regarding open dialog between the District and MCMUD 9. MCMUD 9 Director Barron asked for the Directors’ input on a white paper he prepared and previously circulated to the Board.

LAKE CONROE COMMUNITIES NETWORK (”LCCN”)

David Hartman, the WCIA General Manager discussed a letter sent to SJRA.

WEBSITE REPORT

Director Patton first discussed increased usage of the District website. Director Patton next discussed compliance with the Americans with Disabilities Act (“ADA”) and stated that he discussed ADA compliance with Shannon Waugh of Off Cinco. Director Patton indicated that it would take Off Cinco 16 to 18 hours to update the website to be ADA compliant at a cost of approximately $2,500. Mr. Barner added that Off Cinco is very well qualified to address ADA compliance. Upon a motion by Director Patton, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board authorized Off Cinco to update the District’s website to be ADA compliant at a cost not to exceed $2,000 and approved a resolution regarding the District’s desire for its website to be ADA compliant.

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 :23 a.m. to discuss matters within the attorney/client privilege and real estate. Present for the executive session were the Board of Directors, except for Director Barlow; Messrs. Abshire and Barner; and Ms. Brewer. The Board declared the Executive Session was ended at 12:03 p.m.

RECONVENE IN OPEN SESSION

As of 12:03 p.m., the President declared the Executive Session was ended and the public session was resumed.

Upon a motion by Director Patton, seconded by Director Moravec, after full discussion and with all Directors present voting aye, the Board accepted the settlement agreement with Robert Spies according to the terms discussed in Executive Session and subject to Attorney rev1s10ns.

At this time, discussion ensued regarding costs associated with the Buckingham Well cooling tower. Mr. Abshire stated that this matter needs to be discussed at the MCMUD 8/MCMUD 9 joint meeting.

Upon a motion by Director Tryon, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board authorized the Engineer to proceed with design of Zone 1 drainage improvements.

Mr. Abshire reported that Zones 7 through 11 will be discussed at the July Board meeting.

Upon a motion by Director Moravec, seconded by Director Patton, after full discussion and with all Directors present voting aye, the meeting was adjourned at 12:11 p.m.

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

June 13, 2018 Minutes Signature