Meeting Minutes 2019-11-13

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

NOVEMBER 13, 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, November 13, 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, except for Director Tryon.  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, Director of Montgomery County Municipal Utility District No. 9 (“MUD 9”); and Elliot M. Barner, attorney, and Diane F. Brewer, paralegal, of Radcliffe Bobbitt Adams Polley PLLC (“Attorney” or “RBAP”).

The Vice 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

The Vice President first opened the meeting to public comment.  There being no public comments, the Vice President directed the Board to proceed with the agenda.

APPROVAL OF MINUTES OF OCTOBER 9, 2019 MEETING

The Vice President next directed the Board to the approval of the October 9, 2019 regular meeting minutes.

In response to a question from Director Moravec regarding the discussion in such meeting about installation of certain non-invasive bamboo as landscaping along the boundary of certain properties adjacent to the Wastewater Treatment Plant (“WWTP”) Reserve, Mr. Abshire informed the Board that he contacted Ms. Elizabeth Guillot of Houston Bamboo Nursery but has not yet received a response, but that he had recently provided a depiction of the area in question.

In response to a question from Director Moravec regarding the status of the list of qualified brokers and proposal from Mark Burton discussed in such meeting, Ms. Turner informed the Board that the brokers list and proposal from Mark Burton will be discussed during the Bookkeeper’s Report.

Upon a motion by Director Moravec, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board approved the October 9, 2019 regular meeting minutes, as presented.

TAX ASSESSOR-COLLECTOR’S REPORT

Ms. Turner reviewed the Tax Assessor-Collector’s Report for the months of September and October 2019, copies of which are attached hereto, including past monthly collections and credits as reported by Tammy McRae, Tax Assessor-Collector for the District.  Ms. Turner reported that 99.21% of the 2018 taxes and 1.55% of the 2019 taxes have been collected as of October 31, 2019.

Upon a motion by Director Leasure, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the Tax Assessor-Collector’s Report, 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 District’s budget for the fiscal year ending December 31, 2019.

Ms. Turner discussed changes made to the Bookkeeper’s Report as per communications with Director Moravec and Mr. Abshire.

Mr. Barner entered the meeting at this time.

Ms. Turner then reviewed a Snap Shot Financial Report as of November 13, 2019, and Revenue and Expenditure Comparison for 2018 and 2019 as of November 13, 2019.

The Board and Ms. Turner then reviewed the General Operating and Capital Projects Funds and the amount of surplus funds from bonds issued by the District.  Ms. Turner stated that she will review further the Debt Service Fund and update the Board at the next meeting.

Ms. Turner next presented the Quarterly Investment Inventory Report for the Period Ending September 30, 2019, a copy of which is attached hereto.

The Board next discussed the District’s investments in certain certificates of deposit investments.

Ms. Turner next reported that MUD 9 had no comments to the WWTP budget, but Mr. Barron indicated that he would confirm same at the MUD 9 meeting next week.

Director Moravec reviewed the General Operating Fund budget for fiscal year ending December 31, 2020 (“FYE 2020”).  Discussion ensued regarding net losses and that increasing water and sewer rates and taxes are not necessary.  In response to a question, Messrs. Abshire and Wright informed the Board that they are reviewing the FYE 2020 General Operating Fund budget and identifying the remaining outfalls that may need repairs in 2020.

Ms. Turner presented the engagement letter of Mark Burton to prepare additional financial statements for the District in order to comply with Texas Water Development Board (the “TWDB”) requirements related to certain management controls related to the District’s funds.

Ms. Turner presented the Amended Texas Class Resolution to Participate, a copy of which is attached hereto, for Board execution.

Ms. Turner next presented an Order Amending List of Qualified Brokers for the Board’s approval, a copy of which is attached hereto.

Ms. Turner then discussed Woodforest Bank (“Woodforest”) signature cards and stated that Woodforest will accept a letter rather than re-signing signature cards.  Ms. Turner added that she will be removed from such signature cards as of December 1, 2019.

Upon a motion by Director Leasure, seconded by Director Moravec, 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 8880 through 8913 from the General Operating Fund; 3) authorized payment of checks numbered 1904 through 1912 from the WWTP Fund; 4) authorized payment of checks numbered 1259 through 1263 from the Capital Projects Fund; 5) approved the Order Amending List of Qualified Brokers; 6) approved the engagement letter of Mark Burton; 7) approved the amended Texas Class Resolution to Participate; 8) approved the letter to Woodforest regarding signature cards; and 9) approved the Quarterly Investment Inventory Report for the Period Ending September 30, 2019.

ENGINEER’S REPORT

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

Regarding the WWTP Improvement Project (the “WWTP Project”), Mr. Abshire reported that Allco, LLC (“Allco”) is continuing work on the Sequencing Batch Reactor (“SBR”) basins, setting and removing forms for the basin walls and pouring concrete.  Mr. Abshire also reported that Allco will schedule another concrete pour before Thanksgiving.  Mr. Abshire presented the client/contractor onsite meeting minutes, a copy of which is attached to his report, and indicated that the next meeting is scheduled for November 22, 2019.  Mr. Abshire stated that the contract period for Phase I of the WWTP Project is 480 calendar days from January 2, 2019, which establishes the substantial completion of Phase I in April 2020.

Mr. Abshire presented Allco Pay Estimate No. 9 in the amount of $242,626.32.

Mr. Abshire next presented the Available Landscape Area Map, a copy of which is attached to the Engineer’s Report, and discussed dead trees located on the District’s property.

Regarding Phase One (1) of the Drainage Improvements Project (the “Drainage Improvements”), Mr. Abshire reported that Rebel Contractors, LLC (“Rebel”) has completed all such improvements except for the storm sewer outfall rehabilitation in Zones 3 and 4.  Messrs. Abshire and Barner then update the Board on Rebel’s response to the correspondence sent by Mr. Barner on behalf of the District regarding Rebel’s inability to complete such rehabilitation. An extensive discussion ensued regarding such response to the options for completion of the Drainage Improvements that had been offered by the Board in Mr. Barner’s correspondence. Messrs. Barner and Abshire informed the Board the Rebel agreed to consent to the District soliciting bids to allow another contractor to complete such improvements and waiting until such improvements were completed before the District deducted its actual costs from Rebel’s contract and making final payment on such contract to Rebel.

Mr. Abshire then presented proposals for the construction of the remaining portions of the Drainage Improvements, collectively referred to as the Thoreau Drive Outfall Improvements.  Mr. Abshire explained that such improvements were to be constructed in two (2) segments that are comprised of construction through the use of a Cofferdam and the Cured-in-Place Piping (the “CIPP”) method.  Mr. Abshire first explained that Jones|Carter solicited bids from three (3) contractors for construction using such dam.  Mr. Abshire reported that one (1) contractor, JD Poole, submitted a proposal in the amount of $74,850 and recommended awarding the construction of such dam to JD Poole.  Mr. Abshire then discussed partial removal and replacement of a boat dock that obstructed construction of such project.  Mr. Barner indicated that he will prepare a letter agreement for the owner of the boat dock to sign regarding removal and replacement of such dock.

Mr. Abshire next discussed proposals for construction using the CIPP and reported that Jones|Carter solicited bids from three (3) contractors.  Mr. Abshire reported that two (2) contractors submitted bids and that Texas Pride Utilities, LLC (“Texas Pride”) submitted the lowest base bid in the amount of $74,659; he recommended awarding the project to Texas Pride.

Mr. Abshire further recommended reducing the retainage on Rebel’s contract from ten percent (10%) to five percent (5%) and paying Rebel Pay Estimate No. 9.  A discussion ensued.

Upon a motion by Director Moravec, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board:  1) awarded the project for construction of the portion requiring the Cofferdam to JD Poole, subject to the Attorney’s review of the contract, bonds and insurance; and 2) awarded the project for the construction of the portion requiring the CIPP to Texas Pride, subject to the Attorney’s review of the contract, bonds and insurance.

Upon a motion by Director Moravec, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved Rebel Pay Estimate No. 9, subject to completion of the Thoreau Drive Outfall Improvements.  Mr. Barner stated that he will prepare a letter to Rebel and the Engineer will hold the check payable to Rebel in trust until such improvements were completed.

Ms. Turner exited the meeting at this time.

Mr. Abshire then reviewed the Drainage Improvements, Phase Two (2) (Zones 7, 8 and 11) in detail, and discussed existing conditions in Zone 8.  Mr. Abshire stated that he had discussions with MUD 9’s engineer and stated that expenses for such project may be partially shared with MUD 9.  Director Patton recommended bidding all zones at the same time.  Discussion ensued regarding raising the driveway profiles and raising the C-2 inlet in Zone 11.  In response to a question, Mr. Abshire stated that easements are not needed for the driveway repairs.

Mr. Abshire reviewed the G-M Services Performance Testing of Water Well No. 1 (Poe Street) and Water Well No. 3, copies of which are attached hereto.  Mr. Abshire reported that each well is operating within its parameters.  Mr. Abshire noted that levels are dropping and Jones|Carter will continue to monitor levels.

Director Moravec exited the meeting at this time.

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

The Board then discussed three (3) bids that were submitted to remove dead trees at the WWTP.  Director Leasure explained that the low bid was submitted by Antonio Lozano in the amount of $1,400.

Director Moravec re-entered the meeting at this time.

Upon a motion by Director Leasure, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board accepted the proposal of Antonio Lozano, subject to receipt of a written proposal, proof of insurance, form of contract and a Form 1295 Certificate of Interested Parties.  Mr. Barner stated that his office would contact and coordinate getting such items from Mr. Lozano.

OPERATOR’S REPORT

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

Mr. Wright first discussed the WWTP, including options for removal of large solids.  Mr. Wright reported that there was increased maintenance in the past month and that the Operator repaired and/or replaced diffusers.

Mr. Wright reported that the combined water accountability for the District and MUD 9 was 95.39%.  Mr. Wright next reported that the District had two (2) new taps last month and the District has a total of 1,742 connections.  Mr. Wright then reported that there were 200 e-statements sent out and 438 online bill payments made during the month of October.

Mr. Wright next reviewed the list of service termination notices, noting that out of 214 such notices mailed to customers, four (4) delinquent account were terminated.

Mr. Wright presented the WWTP Monthly Operations Summary and the Entergy kilowatt cost comparison, copies of which are attached to the Operator’s Report.

Mr. Wright next presented the Groundwater Reduction Plan Monthly Operations Summary, a copy of which is attached to the Operator’s Report.

Mr. Wright presented the Alternative Water Supply (“AWS”) Facilities Expense Report, a copy of which is attached to the Operator’s Report, and reported that AWS changes were submitted to Lone Star Groundwater Conservation District (“Lone Star”).

Mr. Wright next presented the Notable Activity Report, a copy of which is attached to the Operator’s Report.

Discussion ensued regarding service line breaks caused by Tachus totaling approximately $10,000.

Mr. Wright reported that the valve location project is currently on hold.

Mr. Wright next reported that he will investigate the Groundwater Credit Report.

Mr. Wright then reported that he has requested water conservation materials from Lone Star.  Mr. Wright discussed the Water Smart program and items to include with the District’s Water Smart application.  Director Moravec discussed upcoming community events and the District’s booth at an event in the District on December 3, 2019.  Director Moravec went on to discuss purchasing golf balls with the District’s logo on it to distribute at such event.  Messrs. Barner and Wright volunteered to purchase the golf balls on behalf of the District.

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

MISCELLANEOUS REPORTS

It was reported that the Walden Community Improvement Association (“WCIA”) had a Board of Directors election.

Directors Leasure and Moravec prepared a memorandum regarding MUD 9’s October meeting.

Director Leasure indicated that he will attend MUD 9’s November 21, 2019 meeting.

APPROVE RESOLUTION REGARDING PUBLIC INFORMATION MAINTAINED ON PRIVATELY OWNED DEVICES

Mr. Barner then presented to the Board a Resolution Regarding Public Information Maintained on Privately Owned Devices (the “Public Information Resolution”), a copy of which is attached hereto.  Mr. Barner explained that pursuant to Senate Bill 944 of the 86th Texas Legislature, all Directors are required to preserve public information held on a privately owned devices and as such, he is recommending the District adopt the Public Information Resolution to ensure compliance with the new requirements.  It was the consensus of the Board to review such resolution further and approve it at the December 11, 2019 meeting.

ATTORNEY’S REPORT

Mr. Barner updated the Board regarding the Walden Fire Station Property and the WCIA.  Mr. Barner added that the WCIA is coordinating with Jeffrey Moon & Associates regarding a survey.

Mr. Barner stated that he has no comments regarding the review of agreements with the City of Huntsville at this time and reminded the Board that he had previously recommended that the District’s joint committee with MUD 9 meet and review such agreements.

ELECTION AGENDA

Mr. Barner discussed the appointment of a designated agent for the May 2, 2020 Directors Election to perform the duties set forth in Sections 31.122 and 31.123 of the Texas Election Code, as amended.  Mr. Barner explained that a copy of the Notice of Appointment of Designated Agent will be posted at the Walden Yacht Club, 13101 Melville Drive, Montgomery, Texas 77356, and at the offices of Radcliffe Bobbitt Adams Polley PLLC, 2929 Allen Parkway, Suite 3450, Houston, Texas 77019-7120, the District’s designated agent.

Upon a motion by Director Barlow, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board appointed Radcliffe Bobbitt Adams Polley PLLC as the District’s designated agent for the May 2, 2020 Directors Election.

Next, Mr. Barner reported that the District must post the Notice of Deadline to File Applications for Place on the Ballot no later than Monday, December 16, 2019.  Mr. Barner also reported that the first day to file an application for a place on the ballot is Wednesday, January 15, 2020, and the last day to file an application for a place on the ballot is Friday, February 14, 2020.

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

PASSED AND APPROVED this the 11th day of December, 2019.

 

                                                                                                                                                                        Secretary, Board of Directors

 

November 13, 2019 Minutes Signature

November 13, 2019 Minutes Signature