Meeting Minutes 2020-03-11

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

MARCH 11, 2020

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, March 11, 2020, 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 – Treasurer / Investment Officer
Bob Leasure – Assistant Secretary

All members of the Board were present. Also attending were Dietra Bonds 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 Kathryn Cain, 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

The President first opened the meeting to public comment. Lena Stinson introduced herself to the Board and stated that she is attending today’s Board meeting to obtain information regarding the District’s flood mitigation efforts along Heatherglen Road. Mr. Barner recommended that discussion on such topic be deferred until the District’s Engineer is present.

There being no further public comments, the President directed the Board to proceed with the agenda.

APPROVAL OF MINUTES OF FEBRUARY 12, 2020 MEETING

The President next directed the Board to the approval of the February 12, 2020 regular meeting minutes. Upon a motion by Director Moravec, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board approved the February 12, 2020 regular meeting minutes, subject to certain corrections.

PUBLIC COMMENT (CONTINUED)

Mr. Abshire reported that Phase II of the Drainage Improvement Project (the “Drainage Improvements”) is currently being designed by Jones|Carter. Mr. Abshire explained to Ms. Stinson that Heatherglen is in Zone 8 of such project. Mr. Abshire reported that Jones|Carter is coordinating with MUD 9’s engineer regarding the Drainage Improvements in such zone because some of such improvements are to be performed jointly. Director Patton explained that the goal of the Drainage Improvements is to get excess water into Lake Conroe without flooding streets or property within the District. Mr. Abshire reported that Jones|Carter anticipates such improvements to be completed by the end of 2020. Mr. Abshire stated that the drainage outfall line on Heatherglen is located next to Ms. Stinson’s house. Mr. Abshire further stated that Jones|Carter is determining the feasibility of increasing the size of such line from forty-two inches (42″) to seventy-two inches (72″). Director Tryon noted that the District is not permitted to make improvements on private property, but that the Drainage Improvements being performed by the District are intended to resolve overall drainage issues in the District.

In response to a question by Director Moravec regarding the commencement of construction on the Drainage Improvements, Phase II, Mr. Abshire reported that Jones|Carter is finalizing costs and that once MUD 9 approves certain portions of the proposed work it plans to perform, construction will move forward this summer. Mr. Barron stated that MUD 9 does not intend to delay the District’s construction of such improvements but is still gathering facts regarding the proposed improvements and considering the associated costs.

Ms. Stinson stated her concern that the proposed portion of the Drainage Improvements near her property may impact her house’s foundation. Mr. Abshire stated that Jones|Carter is researching the issue but expects that such improvements will not impact the foundation of the home.

REVIEW REQUEST FOR SERVICE TO PROPERTY LOCATED AT 3916 BROOKHAVEN DRIVE

Mr. Barner reminded the Board that Jennifer Ligon-Gaston, the owner of the property at 3916 Brookhaven Drive, had made a request for service from the District. Mr. Barner also reminded the Board that since such property was located outside of the District’s boundaries, it must consider whether to authorize the Engineer to perform a feasibility study for such property before Mrs. Ligon-Gaston is provided with an application for service and request for a deposit for such study. Director Moravec stated his opinion that the District should develop a uniform policy regarding providing service to property located outside the boundaries of the District and clarified that he feels that the District should decline to provide service to any such property. Director Barlow reminded the Board that it previously declined to authorize Jones|Carter to conduct a feasibility study submitted by a commercial developer that owns property on Brookhaven and recommended that the Board also decline to authorize such study in this instance. In response to a question related to the annexation of property by the District, Mr. Barner clarified that pursuant to the District’s Rate Order and Texas Water Code, Chapter 54, owners of property located outside of the District must petition the Board for such annexation and that the District is not permitted to unilateral annex property into its boundaries. Mr. Barner reminded the Board that the District has received two (2) requests for service that would have required annexation within the past six (6) months, but previously had not received any such requests in at least ten (10) years, if not more. Director Moravec stated that the District is likely to receive an increase in the number of requests for annexations and reiterated that the District should develop a policy to which to refer people regarding service requests for property located outside of the District. Discussion ensued regarding the necessity of developing such a policy.

Mr. Barner stated that the question before the Board is whether to authorize the Engineer to perform a feasibility study for the property located at 3916 Brookhaven Drive. Upon a motion by Director Barlow, seconded by Director Moravec, after full discussion and with all Directors present voting aye, the Board declined to authorize Jones|Carter’s performance of a feasibility study for 3916 Brookhaven Drive.

TAX ASSESSOR-COLLECTOR’S REPORT

Ms. Bonds reviewed the Tax Assessor-Collector’s Report for the month of February 2020, 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. Bonds reported that 93.08% of the 2019 taxes have been collected as of February 29, 2020.

BOOKKEEPER’S REPORT

Ms. Bonds next reviewed the Bookkeeper’s Report, a copy of which is attached hereto, including the current fund balances, expenditures and investments.

Director Moravec reported that when he recently contacted Katherine Turner regarding the District already having spent most of the funds budgeted for general maintenance and repair items, he was informed by Ms. Turner that such budget item includes costs associated with repairs of water service line breaks caused by installation of fiber-optic cable by Tachus. Director Moravec informed that Board that he requested Ms. Turner move such expense to a separate line item of the budget since the District expects to be reimbursed by Tachus for such repairs. Director Moravac explained that as a result of moving the Tachus-related expenses to a separate line item, the funds expended from the maintenance and repairs budget item now totals only $3,654.00.

A brief discussion ensued regarding how such expenses are being billed to the District by its consultants. Mr. Barner stated that RBAP will create a separate billing code for legal expenses related to the District’s proposed demand letter to Tachus. Mr. Wright reported that Hays’ invoices include a separate item for Tachus-related expenses, which is labeled Reimbursables. Mr. Wright further reported that Hays was informed by MUD 9 that Tachus offered to pay only $700.00 of the total owed to MUD 9 for damage to water service lines within such district caused by Tachus.

Director Moravec noted that the amount of disbursements made from the District’s checking account is different that the amount reflected in the Bookkeeper’s Report. Ms. Bonds confirmed that additional disbursements have been made from such account since the time that the Bookkeeper’s Report was printed. Director Moravec then reported that upon speaking with Ms. Turner, she agreed to transfers funds more frequently from the District’s General Operating Fund to its Debt Service Fund in order to reduce the dollar amount of each transfer.

In response to a question by Director Tryon regarding reimbursement of the Directors’ registration fees in the event that the Association of Water Board Directors (the “AWBD”) cancels its 2020 Annual Conference, Mr. Barner stated that he would research the AWBD’s policy regarding such matter and provide the Board with an update at the April 8, 2020 Board meeting.

Upon a motion by Director Patton, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board approved the Tax Assessor-Collector’s Report, as presented.

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 Bookkeeper’s Report, as presented; 2) authorized payment of checks numbered 9003 through 9031 from the General Operating Fund; 3) authorized payment of checks numbered 1932 through 1938 from the WWTP Fund; and 4) authorized payment of checks numbered 1279 through 1282 from the Capital Projects Fund.

ENGINEER’S REPORT

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

Regarding the Wastewater Treatment Plant (“WWTP”) Improvement Project (the “WWTP Project”), Mr. Abshire reported that Allco, LLC (“Allco”) continues with the concrete pours at such WWTP. Mr. Abshire further reported that Jones|Carter obtained a bid from Rebel Contractors, LLC (“Rebel”) for such project, as requested by the Board, but that such bid is not low enough to warrant changing contractors; therefore, Allco will proceed as the contractor for such project. Mr. Abshire then presented Allco Pay Estimate No. 13 in the amount of $568,973.03. Mr. Abshire stated that such pay estimate includes costs associated with installing a proposed eight-inch (8″) potable water line under Walden Road and reminded the Board that such project is being funded by the Unlimited Tax Bonds, Series 2018 (the “Series 2018 Bonds”).

Mr. Abshire next presented Allco Change Order No. 4 in the amount of $98,024.85, and stated that such change order includes costs related to the Montgomery County Fire Marshall’s (the “Fire Marshall”) required revisions to the WWTP Project. Mr. Abshire reported that the Fire Marshall is requiring Allco to install fire extinguishers at every door and in several rooms throughout the WWTP. Mr. Abshire further reported that Allco will be installing panic devices on four (4) doors within the WWTP as required by the Fire Marshall. Director Patton stated that he and Director Tryon reviewed such change order and determined that several of the charges included have decreased since Allco originally submitted such change order. Director Patton further stated that $90,000.00 of the total amount of such change order relates to the Fire Marshall’s required modifications to the WWTP Project. Director Tryon reported that he will be meeting with the Montgomery County Emergency Services District No. 3’s Fire Chief (the “Chief”) in order to discuss his opinion on the Fire Marshall’s requirements. Mr. Abshire suggested that if the Chief determines that some of the Fire Marshall’s required modifications are not necessary, the Chief may be able to dissuade the Fire Marshall from requiring such modifications. Upon a motion by Director Patton, seconded by Director Moravec, after full discussion and with all Directors present voting aye, the Board approved Allco Change Order No. 4 in the amount of $98,024.85, subject to discussions with the Chief and Fire Marshall.

Mr. Abshire then presented Allco Change Order No. 5 in the amount of $45,911.00, and stated that such change order includes costs associated with the extension of an eighteen-inch (18″) return sludge line that will become necessary in the future when the District expands its WWTP from a capacity of 1.25 MGD to 1.6 MGD. Mr. Abshire stated that such work is not required to be done at this time, but will need to be completed prior to the District’s expansion of its WWTP. Director Patton stated that if the District does not expand the WWTP for another ten (10) to twenty (20) years, and waits until the time of such expansion to extend the sludge line, the cost for such work will likely have increased. Mr. Abshire cautioned that Board about the possibility that the District may never expand its WWTP to a capacity of 1.6 MGD. In response to a question by Director Moravec regarding the WWTP capacity required should the District reach maximum buildout, Mr. Abshire confirmed that the District’s WWTP will need to operate at a capacity of 1.6 MGD. Mr. Abshire added that certain areas that may be annexed into the District in the future could require further increased capacity. Upon a motion by Director Tryon, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved Allco Change Order No. 5 in the amount of $45,911.00.

Regarding the Drainage Improvements, Phase II (Zones 7, 8 and 11), Mr. Abshire reported that Jones|Carter continues with the design of such improvements. Mr. Abshire further reported that Jones|Carter continues to coordinate with MUD 9’s engineer regarding potential joint drainage improvements along the GSU easement located near Heatherglen. Mr. Abshire next reported that Jones|Carter is finalizing the cost to install the pipeline for such project so that a final amount can be submitted to MUD 9’s board for consideration.

Regarding Jones|Carter’s second (2nd) inspection of Hydrotank No. 1 at Water Plant No. 1, Mr. Abshire reported that such inspection took place on February 26, 2020. Mr. Abshire further reported that the inspection report is being prepared by Jones|Carter and will be presented at the April 8, 2020 Board meeting. Mr. Abshire stated that thickness measurements taken from the top of Hydrotank No. 1 during such additional inspection found that the thickness of the tank is below the minimum acceptable level of thickness in multiple locations. Mr. Abshire explained that when Hydrotank No. 1 was originally installed, the contractor removed the coating that had been installed to protect such tank from corrosion. Mr. Abshire stated that in 2012, Jones|Carter submitted a change order for the cost of re-coating such tank. Mr. Abshire stated that Jones|Carter typically prefers for hydrotanks to be coated onsite, but that allowing the manufacturer to install such coating in their shop is a faster method. Mr. Abshire further stated that Holloway America, LLC (“Holloway”) was the manufacturer of Hydrotank No. 1 and that such tank was permitted to be coated in their shop in order to expedite such process in an effort to ensure that such tank was operational prior to the summer. Mr. Abshire stated his opinion that moisture entered such tank during the coating process and caused corrosion to occur rapidly. Mr. Abshire further stated that Holloway provided a one (1) year warranty on such tank. Mr. Abshire agreed to correspond with Holloway in order to request consideration of a reduced cost for a new hydrotank.

Mr. Abshire explained that Jones|Carter routinely drains and inspects the District’s hydrotanks every three (3) to five (5) years; however, the initial inspection performed on January 29, 2020, was the first one performed on Hydrotank No. 1 since it was installed seven (7) years ago. Mr. Abshire stated his opinion that the interior deterioration of such tank began two (2) to three (3) years after installation. Mr. Abshire clarified that the typical lifespan of a hydrotank is twenty (20) to thirty (30) years. Director Moravec suggested that the advanced stage of deterioration within Hydrotank No. 1 is the result of negligence by the manufacturer, contractor, and Jones|Carter. Director Moravec stated that the District should not bear the burden of paying the full amount of the costs associated with installation of a new hydrotank. In response to a questions, Mr. Abshire confirmed that the estimated construction cost in the estimate presented by Jones|Carter to replace Hydrotank No. 1 is $155,000.00 and presented a handout showing the breakdown of related costs, a copy of which is attached hereto.

Director Barlow requested that Mr. Abshire approach Holloway to request a discount on a new hydrotank. Mr. Abshire explained that if the Board authorized the replacement of Hydrotank No. 1 today, a new tank would not be operational before the end of the year. Director Moravec requested that the Board discuss such matter further with Mr. Barner in Executive Session. In response to a question from Mr. Barner about the operational capabilities of such tank, Mr. Wright explained that Hydrotank No. 1 cannot remain in operation since Jones|Carter recorded thickness measurements of less than 0.2 inches. Mr. Abshire confirmed that the District is capable of providing service to its customers without the use of such tank. It was the consensus of the Board to table any decisions regarding the replacement of Hydrotank No. 1.

Mr. Abshire next updated the Board regarding the MUD 9 Buckingham Water Plant Project. Mr. Abshire then presented Gemini Contracting Pay Estimate No. 2 in the amount of $36,020.25. Mr. Abshire noted that the District’s share of such pay estimate is fifty percent (50%) of the total, or $18,010.12. Upon a motion by Director Patton, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board approved Gemini Contracting Pay Estimate No. 2.

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.

In response to a question by Director Moravec regarding the status of replacing the manhole covers that display the words “City of Conroe,” Mr. Abshire reminded the Board that it previously declined to replace such manhole covers.

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 94.63%. Mr. Wright next reported that the District had no new taps last month and that the District has a total of 1,751 connections.

In response to a question by Director Moravec regarding damages to the District’s water service lines caused by Tachus and any loss of water from such damage, Mr. Wright confirmed that such lost water is reflected in the Operator’s Report; however, millions of gallons of water would have to be lost by the District to affect the District’s accountability ratio.

In response to a question by Director Patton regarding phosphorus levels at the District’s new WWTP, Mr. Wright confirmed that phosphorus levels are permitted to be 0.1 milligram per liter. Mr. Wright explained that Hays will test the levels of phosphorus entering the District’s existing WWTP to determine the level currently being treated in order to know the phosphorus level that must be treated by the new WWTP. Discussion then ensued regarding ways in which phosphorus enters the sewer system and impairs water quality.

Mr. Wright next reported that the Lone Star Groundwater Conservation District (“Lone Star”) has adjusted the amount water permitted to be pumped from the Catahoula water well. Mr. Wright stated that under the new permits, the District is allowed to pump 225,000 gallons per day (“gpd”) and MUD 9 is allowed to pump 100,000 gpd.

Mr. Wright then reviewed the list of service termination notices, noting that out of 125 notices mailed to customers, three (3) delinquent accounts were terminated and two (2) such accounts were subsequently paid in full.

Next, Mr. Wright reported that the District’s largest expense last month pertained to the repair of the manhole in Lake Estates. Mr. Wright stated that Hays slid a new manhole into the existing manhole and grouted them together.

Mr. Wright reminded the Board that the Operator’s Report includes a page dedicated to Tachus-related expenses, which is titled Reimbursables. Mr. Wright confirmed that Hays provided copies of invoices to Mr. Barner that it had previously sent to Tachus’ contractors and that such invoices requested payment for damages to the District’s waster lines. In response, Mr. Barner explained that the copies of such invoices were all dated for February 14, 2020, and that he’d requested copies of the actual invoices that were sent to such contractors and the dates that such invoices had been sent. In response to a question by Director Patton regarding expenses for yard repair on the Reimbursables page, Mr. Wright explained that Tachus is not repairing residents’ yards following their installation of fiber-optic cable for internet service, which leaves voids in the ground. Mr. Wright stated that Hays has been making such yard repairs for residents. In response to a question by Director Barlow regarding the cost of $700.00 to sod one (1) resident’s yard, Mr. Wright explained that when large amounts of dirt are excavated by Tachus, Hays must let such dirt settle and then schedule another crew to return to the site to level the dirt and lay sod.

Director Barlow exited the meeting at this time.

Mr. Barner suggested that going forward, Hays should discontinue performing repairs to residents’ yards following work performed by Tachus. Mr. Barner further suggested that Hays instruct such residents to contact Tachus regarding repairs to their yards following Tachus’ work. In response to a question from Director Moravec regarding the location of the fiber-optic cables installed by Tachus, Mr. Wright confirmed that such cables are located directly above the District’s pipelines. Mr. Wright stated that after extended discussions with Tachus, Bentwater ultimately decided to write-off $20,000.00 owed to them by Tachus.

Director Barlow entered the meeting at this time.

Mr. Wright next reported that the valve survey project is complete and that such information is being used to correct the District’s online maps. Mr. Wright stated that upon completion, such maps will be sent to the Engineer.

Mr. Wright then reminded the Board that he prepared a presentation regarding cybersecurity. Director Moreavec requested that Mr. Wright send such presentation to the Board via email and stated that, upon reviewing the presented information, the Directors may contact Mr. Wright should they have any questions regarding such presentation.

Mr. Wright next updated the Board regarding the Flume Water Monitor designed to attach to an existing water meter and track water usage using a magnet. Mr. Wright reported that Hays is conducting additional testing of such device to verify its accuracy.

Mr. Wright next reported that he timely submitted the District’s application to the AWBD’s Water Smart program.

Director Moravec then reported that he reached out to the principal of Madeley Ranch Elementary School regarding the District giving a presentation regarding water conservation. Director Moravec stated that such school principal was agreeable to such presentation and further stated that he will coordinate the date of such presentation.

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.

Mr. Wright next reported that a resident of Lake Estates contacted Hays regarding storm water collecting between his home and his neighbor’s home. Mr.Wright stated that Hays inspected the area and found some erosion behind such resident’s property. Mr. Wright suggested that the District could install a swale behind such property. Mr. Wright reported that Hays cleaned out debris from the inlets. Mr. Wright further reported that photographs and video of such drainage issue were sent to the Engineer. Mr. Abshire reported that upon viewing such video, it appears as though water is rising to the top of the inlet; however, no structures are near the inlet or in danger of flooding. Director Moravec suggested that if such resident is requesting that the Board take measures to resolve such drainage issue, such resident should submit a written request to the Board.

UPDATE ON DISTRICT’S WEBSITE AND COMMUNICATIONS SERVICES

Director Patton stated that he hopes more customers will submit their payments to the District online. Director Patton then noted that the District has received an increase in communication from customers through the website. Mr. Wright reported that based upon an online complaint recently received from a customer regarding her water, Hays sent a technician to investigate such issue and found that the problem was occurring on the customer’s side of the meter. In response to a question from regarding whether the District is billed by Hays when a technician investigates a reported problem that is discovered to have occurred on the customer’s side of the water line, Mr. Wright stated that customers are charged a $50.00 fee for such investigation.

MISCELLANEOUS REPORTS

Regarding MUD 9’s board meeting, Mr. Barron reported that Harbor Shores notified such district that it will soon begin construction and requested a statement from such district to submit to its insurer. Mr. Barron further reported that the MUD 9 board discussed the repair of a damaged thirty-inch (30″) outfall pipeline. Mr. Barron explained that roughly ten (10) outfall pipelines have been repaired within MUD 9, and that such district is researching the effectiveness of such repairs before authorizing the repair of the thirty-inch outfall pipeline. Mr. Barron then updated the Board on MUD 9’s efforts to recover the amounts owed to such district for damages caused to such district’s water lines during installation of fiber-optic cables by Tachus and its subcontractors.

Mr. Barron next reported that MUD 9 did not receive any applications for a place on the ballot of the May 2, 2020 Directors Election; therefore, such election was declared to be uncontested and was subsequently cancelled.

ATTORNEY’S REPORT

Mr. Barner then updated the Board regarding Montgomery County Emergency Services District No. 2’s (“ESD No. 2”) purchase of property from the District. Mr. Barner explained to the Board that ESD No. 2’s attorney informed him that ESD No. 2 had been in contact with the Walden Community Improvement Association (“WCIA”) in an effort to obtain a tract of land across the street from the existing fire station; however, such land is deed restricted to residential development. Mr. Barner stated that ESD No. 2 is still in its lease with the District, but added that the Purchase Agreement between the District and ESD No. 2 should be void due to the length of time that has passed regarding the sale of the property. Mr. Barner suggested that the District seek reimbursement from ESD No. 2 for its attorney fees related to such purchase. Mr. Barner stated that he will provide the Board with the total amount of attorney fees expended on such matter at the April 8, 2020 Board meeting.

Mr. Barner next updated the Board regarding conveyance of certain property to the WCIA for park purposes. Mr. Barner reported that he provided the conversion deed to the WCIA’s general manager, David Hartman, for conveying such property to the WCIA. Mr. Barner further reported that such deed may be discussed at the WCIA’s March 2020 Board meeting.

REVIEW MUNICIPAL SECURITIES RULEMAKING BOARD RULE G-10 DISCLOSURES

Mr. Barner then presented to the Board correspondence from the District’s financial advisor Mr. John Howell, Jr. of The GMS Group, L.L.C. (the “Financial Advisor”). Mr. Barner reported that the Financial Advisor is providing the Board with the Municipal Securities Rulemaking Board’s (the “MSRB”) Rule G-10 disclosures, as required by the MSRB.

AUTHORIZE ATTENDANCE AT AWBD SPRING BREAKFAST AND SUMMER CONFERENCE

Mr. Barner reminded the Board that it needs to authorize the Directors’ attendance at the AWBD 2020 Spring Breakfast, which is being held in Houston, Texas on April 24, 2020, and the 2020 Summer Conference in Grapevine, Texas from June 11, 2020 through June 13, 2020. 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 2020 AWBD Spring Breakfast and Summer Conference on behalf of the District.

ELECTION AGENDA

Mr. Barner updated the Board regarding the May 2, 2020 Directors Election (the “Election”) and reported that no applications for a place on the ballot were received from any candidates other than the incumbent Directors. The Board discussed the adoption of an Order Declaring Unopposed Candidates Elected to Office and Canceling the Election. Upon a motion by Director Barlow, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board approved the Order Declaring Unopposed Candidates Elected to Office and Canceling the Election.

Director Barlow 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 11:09 a.m. to discuss matters within the attorney/client privilege. Present for all or portions of the executive session were the Board of Directors, except for Director Barlow; Mr. Barner; and Ms. Cain. The Board declared the Executive Session was ended at 11:17 a.m.

RECONVENE IN OPEN SESSION

As of 11:17 a.m., the President declared the Executive Session was ended and the public session was resumed.

 

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

PASSED AND APPROVED this the 8th day of April, 2020.

/s/ Margie Barlow Secretary, Board of Directors