Meeting Minutes 2018-11-14

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

NOVEMBER 14, 2018

The Board of Directors (the “Board” or “Directors”) of Montgomery County Municipal Utility District No. 8 (the “District” or “MUD 8”) met in regular session, open to the public, on Wednesday, November 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 Katherine Turner of Municipal Accounts & Consulting L.P. (“Bookkeeper” or “MAC”); Justin Abshire and Mason Mueller of Jones|Carter (“Engineer” or “Jones|Carter”); 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

Mr. and Mrs. Basil and Janet Brackles, introduced themselves to the Board and explained that new home construction appears to be negatively impacting storm water flow along Doretta Drive.  Mrs. Brackles further explained that she was unsure what entity was responsible for ensuring that such construction did not result in the flooding of their property.  Messrs. Barner and Patton explained that the Walden Community Improvement Association (“WCIA”) is responsible for reviewing drainage plans submitted by the contractors for such construction and that Mrs. Brackles should inform the WCIA so that it could determine whether the construction complied with the drainage plan.

Mr. Jim Boyd then commended the Board for the recently performed demolition project within Zone One (1) of the Drainage Improvements Project (the “Drainage Improvements”) and inquired about what landscaping would be performed in those demolished area.  Mr. Abshire explained that landscaping of such area is under consideration by the Board.

APPROVAL OF MINUTES

The President next directed the Board to the approval of the October 10, 2018 regular meeting minutes.  Upon a motion by Director Moravec, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board approved the October 10, 2018 regular meeting minutes, subject to certain corrections.

DRAINAGE REPORT

Mr. Abshire provided an update on the Drainage Improvements and reported that Rebel Contractors, Inc. (“Rebel”) has started such improvements.  Mr. Abshire went on to discuss the estimated schedule for the Drainage Improvements and informed those in attendance that such improvements for Zone 1 should be performed between Thanksgiving and Christmas. Mr. Abshire stated that Jones|Carter will meet with the affected residents prior to the beginning of the Drainage Improvements.

Director Moravec and members of the public exited the meeting at this time.

TAX ASSESSOR-COLLECTOR’S REPORT

Ms. Turner then reviewed the Tax Assessor-Collector’s Report for the month of October 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 2.7% of the 2018 taxes have been collected as of October 31, 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 next reviewed current year-to-date revenues and expenditures against the budget.

Ms. Turner reported that Tex Pool and Texas Class investments are reflected on the Bookkeeper’s Report and transfers have been made to Texas Class as directed by the Board.

Ms. Turner reviewed a Snap Shot Financial Report as of November 14, 2018, and Revenue and Expenditure Comparison for 2017 and 2018 as of November 14, 2018.

Ms. Turner reported that the District received a reimbursement check from MUD 9 in the amount of $192,069.59 related to certain joint project expenses and that such funds have been deposited into the District’s Capital Projects Fund.

Ms. Turner next presented the Quarterly Investment Inventory Report for the Period Ending September 30, 2018, a copy of which is attached hereto.

Ms. Turner then presented the draft budget for fiscal year ending 2019 (“FYE 2019”) and the FYE 2019 draft budget for the wastewater treatment plant (“WWTP”).  An extensive discussion ensued.  Ms. Turner explained that such draft budgets will be presented to the Board for approval at the December 12, 2018 Board meeting after the Board and consultants provide any further comments.

Upon a motion by Director Barlow, seconded by Director Leasure, 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 8487 through 8521 from the General Operating Fund; 4) authorized payment of checks numbered 1819 through 1825 from the WWTP Fund; and 5) authorized payment of checks numbered 1215 through 1217 from the Capital Projects Fund.

Next, Ms. Turner and Mr. Barner discussed the status of the amended Agreement for Bookkeeping Services with Municipal Accounts & Consulting, L.P. (the “MAC Agreement”).  Mr. Barner stated that he is reviewing the MAC Agreement and intends to speak to Mark Burton about it further before recommending it for approval at the December 12, 2018 Board meeting.

ENGINEER’S REPORT

Mr. Abshire presented the Engineer’s Report, a copy of which is attached hereto.  Mr. Abshire first introduced Mason Mueller to the Board.

Regarding WWTP Improvement Project, Mr. Abshire reported that Allco, LLC (“Allco”) has executed the contracts and he awaits Montgomery County’s (the “County”) execution of the plans.  Mr. Abshire added that once approvals for the WWTP Improvement Project are received, he will schedule a pre-construction conference and coordinate execution of the contracts with the necessary Directors.  In response to a question from Director Patton, Mr. Abshire explained the County Fire Marshall’s scope of review of the WWTP Improvement Project.  Mr. Abshire added that Allco had agreed to an extension of days of the contract, which were needed because of the County’s review process.

Mr. Abshire next reported that the pre-construction meeting with Rebel for the Drainage Improvements occurred on November 10, 2018, and a Notice to Proceed was issued.

Mr. Abshire then reported that the demolition project in Zone One (1) of the Drainage Improvements is complete and a final inspection was held on November 7, 2018.  Mr. Abshire presented Cherry Moving Co., Inc.’s Pay Estimate No. 1 and Final in the amount of $36,500, a copy of which is attached to his report, and recommended payment of same.  Mr. Abshire also presented a Certificate of Completion for execution by the Board.

Mr. Abshire presented a Bid Tabulation for the Water Plant Nos. 1 and 2 Improvement Project, a copy of which is attached to his report.  Mr. Abshire reported that Jones|Carter received two (2) bids for the Water Plant Nos. 1 and 2 Improvement Project and the low bid was submitted by CFG Industries, LLC (“CFG”), in the base bid amount of $61,895.  Mr. Abshire recommended the Board award the project to CFG.

Ms. Turner exited the meeting at this time.

Mr. Abshire reported that work continues on updating the Capital Improvement Plan for 2019-2024.

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 Cherry Pay Estimate No. 1 and Final; 3) approved Cherry Change Order No. 1, subject to receipt of a Form 1295 Certificate of Interested Parties; and 4) awarded the contract for the Water Plant Nos. 1 and 2 Improvement Project to CFG, subject to the Attorney’s review of the contract.

Mr. Abshire then discussed submittal of an application to amend the Alternative Water Source (“AWS”) Production Permit to the Lone Star Groundwater Conservation District (“LSGCD”).  Mr. Abshire reported that LSGCD has been notified that the Catahoula Well pumping is approaching the 2018 AWS permit limit of 225,000,000 gallons.  Mr. Abshire requested authorization to submit the required application to amend the AWS production permit and the associated $820 application fee.  The Board discussed adding 50,000,000 gallons to the permit.  Discussion ensued regarding the amended application and addressing issues for the next year.  MUD 9 director Barron discussed actions taken by MUD 9 on the Browning Well.

Upon a motion by Director Leasure, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board authorized submission of the amended application and $820 application fee.

Mr. Abshire stated that Jones|Carter is amending its Professional Services Agreement and hourly rates for presentation at the December 12, 2018 meeting.

OPERATOR’S REPORT

Mr. Wright presented the Operator’s Report, a copy of which is attached hereto.

Mr. Wright reported that the combined water accountability for the District and MUD 9 was 97.74%.  Mr. Wright next reported that the District had no new taps last month and the District has a total of 1,726 connections.

Mr. Wright reported there were 73 statements sent out by electronic mail and 257 customer payments made online during the month of October.

Mr. Wright next reviewed the list of service termination notices, noting that 146 such notices were mailed to customers and no delinquent accounts were terminated.

Mr. Wright the reviewed the Notable Activity Report and discussed a main line sewer stoppage.  Mr. Wright also discussed the FYE 2019 budget for WWTP issues.

Discussion ensued regarding damages caused by Suddenlink and Mr. Barner recommended sending a letter and photographs to Suddenlink.  Mr. Barner asked Mr. Wright to provide him with itemized costs, photographs, as well as the date, time and place of damages.

In response to a question from Mr. Barner regarding a sinkhole near Ripplewind Drive, Mr. Wright stated that the stormwater line was televised and that he recommends including repair of such line to the Drainage Improvements, subject to Jones|Carter’s review.

Mr. Wright then reported that Hays North was contacted by the WCIA that a portion of Hemingway Drive was sinking.  Mr. Wright contacted the County and reported that the County agreed to repair the concrete on Hemingway Drive.  Mr. Wright added that Hays North’s cost was $3,079.81.

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.

WATER SMART PROGRAM

Mr. Wright updated the Board regarding the Water Smart Application.  Director Barlow asked Mr. Wright to provide her with a copy of the application.  Discussion ensued regarding water conservation presentations.

LSGCD

The Board discussed the newly-elected directors to LSGCD.  Director Tryon stated that he will attend the LGSCD December 11, 2018 meeting and Director Barlow will attend the January 8, 2019 meeting on behalf of the District.

WCIA

Director Tryon reported that the WCIA’s recent election resulted in the addition of two (2) new members being elected to the WCIA’s Board of Directors.

MUD 9 REPORT

Director Tryon updated the Board regarding various operational issues reported at the MUD 9 board meeting.  MUD 9 director Barron informed the Board that MUD 9 has received (5) applications for appointment to former director Sanders unexpired term.

LAKE CONROE COMMUNITIES NETWORK (“LCCN”)

Director Patton reported that he understands that LCCN may dissolve soon.

WEBSITE REPORT

Director Patton updated the Board regarding the District website’s compliance with the Americans with Disabilities Act (“ADA”) and discussed the cost of converting the 80-page Groundwater Reduction Plan (“GRP”) to be ADA compliant.  Director Patton recommended preparing and publishing a one (1) page summary on the District website.  Regarding the Website Accessibility Statement, Mr. Barner reported that he received comments from Shannon Waugh and a resolution will be presented at the December 12, 2018 meeting. Director Patton discussed usage on the website.  Discussion ensued regarding e-statements.

WALDEN FIRE STATION PROPERTY (the “PROPERTY”)

Mr. Barner reported that he had spoken with Chief Edwards on November 13, 2018, regarding Montgomery County ESD No. 2’s (“ESD 2”) offer to purchase the Property.

GRP JOINT FACILITIES

Mr. Barner reported that the GRP Committees formed by the District and MUD 9 are scheduled to meet soon to discuss the Districts’ options for use of the water subject to the purchase agreement with the City of Huntsville and the Bed & Banks Permit obtained from the TCEQ.

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

PASSED AND APPROVED this the 12th day of December, 2018.

 

                                                                                   

Secretary, Board of Directors

November 14, 2018 Minutes Signature

November 14, 2018 Minutes Signature