Meeting Minutes 2019-06-12

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

JUNE 12, 2019

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, June 12, 2019, 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
John L. Patton – Vice President
Margie Barlow – Secretary
Randolph C. Moravec – Assistant Secretary
Bob Leasure – 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 and Curt Harris, Directors 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.

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 9:02 a.m. to discuss matters within the attorney/client privilege. Present for all or portions of the executive session were the Board of Directors, Mr. Barner and Ms. Brewer. The Board declared the Executive Session was ended at 9:26 a.m.

The President then reconvened the meeting and requested public comments from those in attendance.

REQUEST FOR SERVICE FROM TRIPLE-B RV PARK, LAKESIDE (“TRIPLE-B”)

The Board first recognized Mr. Phil Bullock of Triple-B, who introduced himself and reiterated the Triple-B’s request for water and sewer service from the District. Mr. Barner then reminded the Board and those members of the public that the Board must first determine whether or not to authorize the Engineer to perform a feasibility study for service to the property owned by Triple-B, which is outside of the boundaries of the District, and that all costs related to such study are paid by the those requesting service. An extensive discussion ensued regarding various aspects of service to Triple-B, including whether such service was a benefit to the District’s existing customers.

Upon a motion by Director Moravec, seconded by Director Barlow, after full discussion and with three (3) Directors voting aye and two (2) Directors voting no, the Board denied Triple-B RV Park’s request for service.

Phil Bullock, Jeff Bullock, Sheri Bullock and Randy Acreman exited the meeting at this time.

PUBLIC COMMENT

Chris Sedoo of Tachus, LLC (“Tachus”) introduced himself to the Board and requested that the Board consider allowing Tachus to install fiber optic cable within the District through various right-of-way and utility easements. Mr. Barner explained to the Board that he and the Engineer needed to discuss the matter further with Tachus to determine the desired locations for such cable and that it is currently not known whether installation in such easements is allowable by law.

In response to a question from the public regarding trespassing on District-owned property located on Browning Drive along Lake Conroe, Mr. Abshire reported that bollards were installed on such property and that chains will be attached to such bollards to inhibit access to such property. Mr. Barner recommended that anyone noticing trespassers of District-owned property should contact the Montgomery County Sheriff’s Office.

APPROVAL OF MINUTES OF MAY 8, 2019 MEETING

The President next directed the Board to the approval of the May 8, 2019 special meeting and May 8, 2019 regular meeting minutes. Upon a motion by Director Patton, seconded by Director Moravec, after full discussion and with all Directors present voting aye, the Board approved the May 8, 2019, regular meeting minutes, subject to certain corrections requested by Director Moravec, and approved the May 8, 2019 special meeting minutes, as presented.

Messrs. Barner and Abshire exited the meeting at this time with Messrs. Sedoo and Gonzalo Colombo of Tachus.

TAX ASSESSOR-COLLECTOR’S REPORT

Ms. Turner reviewed the Tax Assessor-Collector’s Report for the month of May 2019, 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 97.49% of the 2018 taxes have been collected as of May 31, 2019.

Ms. Turner next reported that she will request information related to delinquent tax accounts for the 2018 tax year from the District’s Delinquent Tax Attorney.

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 District’s budget for the fiscal year ending December 31, 2019.

Ms. Turner then reviewed a Snap Shot Financial Report as of June 12, 2019, and Revenue and Expenditure Comparison for 2018 and 2019 as of June 12, 2019.

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 $305.82 have been prepared and will be sent to the Comptroller’s Office after the Board’s approval.

Messrs. Barner and Abshire re-entered the meeting at this time.

Discussion ensued regarding maintenance tax collections.

In response to a question from Director Moravec regarding expenses related to the Buckingham Road Catahoula Water Well that have been paid to MCMUD No. 9, Ms. Turner stated that such expenses were for engineering and legal fees. Mr. Barron reminded the Board that payment of such expenses had been pending subject to resolution of MCMUD No. 9’s settlement of certain outstanding issues with the construction contractor for such well.

Ms. Turner next presented an invoice received from the Montgomery County Tax Assessor-Collector’s Office, in the amount of $2,681.11, for 2018 taxes owed on property recently acquired by the District. Mr. Barner indicated that this matter will be discussed in closed session.
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 8709 through 8742 from the General Operating Fund; 4) authorized payment of checks numbered 1870 through 1875 from the Waste Water Treatment Plant (“WWTP”) Fund; 5) authorized payment of checks numbered 1237 through 1241 from the Capital Projects Fund; and 6) authorized payment of checks numbered 1058 through 1059 from the Tax Fund.

ENGINEER’S REPORT

Mr. Abshire presented the Engineer’s Report, a copy of which is attached hereto.
Regarding the Wastewater Treatment Plant Improvement Project (the “WWTP Project”), Mr. Abshire reported that ALLCO is continuing work on underground piping related to the Sequencing Batch Reactor (“SBR”) basins. Mr. Abshire also reported that it is his understanding that the Operator has completed the relocation of the 2-inch waterline to the Walden Community Improvement Association (“WCIA”) building and the WWTP construction trailers.

Ms. Turner exited the meeting at this time.

Mr. Abshire reviewed the status of ALLCO’s progress on the WWTP Project. Mr. Abshire requested that the Board authorize ALLCO to work on Saturdays between the hours of 8:30 a.m. and 4:30 p.m. for the duration of the WWTP Project in order to maintain the construction schedule outlined in the contract with ALLCO. A brief discussion ensued. Upon a motion by Director Barlow, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board authorized ALLCO to work on Saturdays between the hours of 8:30 a.m. and 4:30 p.m. for the duration of the WWTP Project.

In response to a question, Mr. Wright explained that ALLCO had previously requested a 3-inch water meter for temporary water and that Hays North had installed such meter. The Board reminded Mr. Wright that ALLCO should be charged for water based on usage shown through such temporary meter.

Concerning the Drainage Improvements, Mr. Abshire reported that Rebel Contractors, LLC (“Rebel”) continues work in Zones 3 and 4, and that Rebel has installed hydro-turf in Zone 1. Mr. Abshire then presented Pay Estimate Nos. 5 and 6 from Rebel in the amounts of $97,973.55 and $64,089.00, respectively.

In response to a question, Mr. Abshire next stated that Jones|Carter will present a proposal for engineering for the next phase of the Drainage Improvement Project at the July 10, 2019 Board meeting.

Mr. Abshire went on to report on various drainage issues more recently identified by District residents and options for alleviating such issues, including re-sizing of certain drainage inlets.

Mr. Abshire next reported that CFG Industries, LLC (“CFG”) has completed miscellaneous improvements and coating touch-ups at Water Plant Nos. 1 and 2, including replacement of interior ladders at the ground storage tanks at Water Plant No. 2. Mr. Abshire reported that a final inspection occurred on May 22, 2019 and a final pay estimate will be provided at the July 10, 2019 Board meeting.

Mr. Abshire then reported that Jones|Carter met with Directors Patton and Moravec and Mr. Barner to discuss the Professional Services Agreement (“PSA”). The Board indicated that they want to review an updated PSA. Mr. Barner recommended approval of the PSA, subject to final review.

Upon a motion by Director Patton, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board: 1) approved the Engineer’s Report, as presented; 2) approved Rebel Pay Estimate No. 5 in the amount of $97,973.55; and 3) approved Rebel Pay Estimate No. 6 in the amount of $64,089.00.

WALDEN FIRE STATION PROPERTY (the “PROPERTY”)

The Board recognized Brian Edwards of Montgomery County Emergency Services District No. 2 (“ESD 2”). Mr. Edwards thanked the Board and Mr. Barner for working through various issues necessary for ESD 2’s purchase of the Property. Discussion ensued regarding temporary facilities while the new fire station is being constructed. Mr. Edwards indicated that the ESD 2’s personnel will remain in the Walden area during construction of a new fire station and inquired about the location of existing District facilities on the Property. Mr. Barner recommended that Mr. Edwards direct ESD 2’s building architect to discuss further with the Engineer when plans are prepared after the Property is conveyed.

Mr. Edwards exited the meeting at this time.

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 95.24%. Mr. Wright next reported that the District installed no new taps last month and the District has a total of 1,734 equivalent single-family connections.

Mr. Wright next reviewed the list of service termination notices, noting that 170 such notices were mailed to customers and four (4) delinquent accounts were terminated. Mr. Wright stated that he will include information on letters to delinquent accounts regarding online bill payment to avoid terminations.

Mr. Wright then reported that hurricane maintenance was performed at the District’s facilities. Discussion ensued regarding a backup generator at the Catahoula well and cooling towers.

Mr. Wright presented samples for “no trespassing” signage to be placed on District-owned property and a brief discussion ensued regarding such signage.

In response to a question from Director Moravec regarding valve inspections, Mr. Wright stated that Hays North is making progress on such inspections and added that Hays North was unable to locate a few valves.

In response to a question from Director Barlow regarding the condition of certain manholes, Mr. Wright stated that he has prepared a work order for inspecting such manholes.

Mr. Wright updated the Board regarding installation of Dedicated Bacteriological Sampling Sites. Mr. Wright reported that a list of such sampling sites will be filed with the Texas Commission on Environmental Quality and copies will be provided to the Attorney and Engineer.

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

DISTRICT WEBSITE

Director Patton reported that he transmitted website statistics to the Board and work continues on updating water conservation links.

In response to a question from Director Moravec regarding recently enacted legislation concerning the audio recording of the District’s Board meetings, Mr. Barner stated that such meetings do not have to be recorded except if a member of the public requests that the District record its public tax rate hearing.

MUD 9 REGULAR MEETING

MUD 9 director Barron updated the Board regarding the MUD 9 regular meeting.

The Board was reminded of MUD 9’s June 20, 2019 regular meeting. Director Leasure stated that he will attend such meeting on behalf of the District.

ANNUAL REVIEW OF CONSULTANTS’ CONTRACTS

Mr. Barner then reminded the Board that it is required to review each of the District’s consultants contracts at least once each year and that the Board has several options for performing such review, including reviewing one (1) consultant each month, having a special meeting to review all the District’s consultants, or, if everything is satisfactory, then the Board could state such a finding in the minutes and thereby satisfy the requirement. The Board then discussed the status of the consultants for the District and determined that all of the consultants are performing satisfactorily.

ATTORNEY’S REPORT

Mr. Barner updated the Board on the conclusion of the 86th Legislative Session. Discussion ensued regarding property owners with other taxing jurisdictions.

Mr. Barner next reported that he is waiting on the resolution of certain comments he made to the contract for sale with ESD 2 and that the District may move forward with the sale of the Property to ESD No. 2 upon resolution of such comments. Discussion ensued regarding the term of such sale, including the cost and the reversion clause.

Messrs. Barron, Harris, Abshire and Mueller exited the meeting at this time.

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 11:21 a.m. to discuss matters within the attorney/client privilege. Present for all or portions of the executive session were the Board of Directors; Mr. Barner and Ms. Brewer. The Board declared the Executive Session was ended at 11:43 a.m.

RECONVENE IN OPEN SESSION

As of 11:43 p.m., the President declared the Executive Session was ended and the public session was resumed.

No action was taken by the Board in closed session.

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

PASSED AND APPROVED this the 10th day of July, 2019.

Secretary, Board of Directors

June 12, 2019 Minutes Signature

June 12, 2019 Minutes Signature