Meeting Minutes 2020-11-11

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

NOVEMBER 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, November 11, 2020, at 9:00 a.m., via telephone and video conference call pursuant to Texas Government Code, Section 551.125, as amended, and as modified by the temporary suspension of various provisions thereof effective March 16, 2020, by the Governor of Texas (the “Governor”) in accordance with the Texas Disaster Act of 1975, all as related to the Governor’s proclamation on March 13, 2020, certifying that the COVID-19 pandemic (“COVID 19”) poses an imminent threat of disaster and declaring a state of disaster for all counties in Texas, 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, thus constituting a quorum. Also attending via video conference were Dietra Bonds and Maria Felder of Municipal Accounts & Consulting L.P. (“Bookkeeper” or “MAC”); Justin Abshire and Conner Murphy 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”); Elliot M. Barner, attorney, and Hannah Slaven, paralegal, of Radcliffe Bobbitt Adams Polley PLLC (“Attorney” or “RBAP”).

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

APPROVAL OF MINUTES OF OCTOBER 14, 2020 REGULAR MEETING

The President next directed the Board to the approval of the October 14, 2020 regular meeting minutes. Director Moravec stated that there was a typographical error in the minutes and also requested that the minutes more specifically identify the location of a certain property discussed under the Engineer’s Report where the owner of such property had requested the District alleviate certain drainage issues around such property. Mr. Barner note that such error would be corrected. A discussion then ensued regarding identifying the location of such property in the minutes and it was the consensus of the Board that such property would be identified as the “property along Alcott Drive located adjacent to the WWTP”. Upon a motion by Director Patton, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board approved the October 14, 2020 regular meeting minutes, subject to the above-noted changes.

TAX ASSESSOR-COLLECTOR’S REPORT

Ms. Bonds reviewed the Tax Assessor-Collector’s Report for the month of October 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 1.17% of the 2020 taxes have been collected as of October 31, 2020. In response to a question, Ms. Bonds explained the Rendition Commission Distribution Detail included in the Tax Assessor-Collector’s Report.

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.

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.

Regarding a certificate of deposit (“CD”) that was maturing on November 21, 2020, Ms. Bonds advised the Board that MAC recommended reinvesting the funds in a 0.4% interest CD for one (1) year.

Director Moravec next presented to the Board for review a draft budget for the District’s fiscal year ending December 31, 2021, and a Five (5)-year Financial Plan, including a five (5)-year summary Capital Improvement Program. In response to a question, Mr. Abshire discussed the Capital Improvement Program relative to such five (5)-year plan for the budget, and answered questions from the Board regarding same.

Regarding the Wastewater Treatment Plant (“WWTP”) budget, Mr. Barner then asked Mr. Barron if MUD 9 had discussed such budget at its previous board of directors meeting. Mr. Barron reported that the MUD 9 board had discussed the WWTP budget and that he anticipated approval of same at the MUD 9 board’s December meeting. Mr. Barron then requested that the MUD 9 be provided certain updates related to operation of the WWTP for next year, given the anticipated status of construction of the new WWTP throughout the year. Mr. Abshire noted that there would be a slight change to the WWTP budget based on operating costs of the new WWTP.

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 Bookkeeper’s Report, as presented; 2) authorized payment of checks detailed therein; and 3) approved the reinvestment of the funds from the CD maturing in November into a new CD with a term of one (1) year.

ENGINEER’S REPORT

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

Mr. Abshire next discussed the progress made by Allco, LLC (“Allco”) in the past month regarding the WWTP Improvement Project (the “WWTP Project”), and presented for the Board’s approval Pay Estimate No. 21 in the amount of $647,727.41 and Change Order No. 9 in the amount of a deduction of $8,062.72. A discussion ensued regarding security at the WWTP site and it was the consensus of the Board to add signage notifying anyone entering such site without authorization that they were trespassing.

Regarding the Drainage Improvements, Phase II (Zones 7, 8 and 11), Mr. Abshire reminded the Board that it had previously awarded the contract for such project to AR Turnkee Construction Co. (“Turnkee”). Mr. Abshire reported that the contracts have been executed by Turnkee and forwarded to the District’s Attorney for review, and that he expected the pre-construction meeting to be scheduled in the next few weeks, where the Notice to Proceed would be issued.

Regarding hydropneumatic tank (“HPT”) No. 1 at Water Treatment Plant (“WTP”) No. 1, Mr. Abshire reminded the Board that the contract for such project had been previously awarded to CFG Industries (“CFG”) and that the project was now substantially complete. Mr. Abshire stated that CFG was still addressing minor punch list items, and that he anticipated a final pay estimate to be presented at the Board’s December meeting. Mr. Abshire presented for the Board’s approval Pay Estimate No. 1 in the amount of $44,650.00 and Change Order No. 1 in the amount of a deduction of $5,000.00.

Mr. Abshire next reminded the Board that at its last meeting, it had approved an offer to purchase an easement from the owners of a certain property located along Alcott adjacent to the WWTP.

Mr. Abshire stated that he had presented said offer to such owners, who were now considering it. Mr. Abshire stated he would provide an update at the next Board meeting.

Mr. Abshire next presented to the Board for review and approval a five (5)-year Capital Improvement Plan (“CIP”). Mr. Abshire noted for the Board’s reference that the CIP includes both projects for the benefit of the District only, and projects to be completed jointly with MUD 9. Mr. Abshire reported that Jones|Carter had coordinated with MUD 9’s engineer and shared information on the joint projects.

Mr. Abshire next updated the Board regarding the MUD 9 Buckingham Water Plant Improvements Project, reporting that Gemini Contracting Services, Inc. (“Gemini”) was addressing punch list items. Mr. Abshire presented Gemini Pay Estimate No. 10 in the amount of $30,690.00. Mr. Abshire noted that the District’s share of such pay estimate is 50% of the total, or $15,345.00.

Mr. Abshire further reported that MUD 9 had removed the recoating of the ground storage tanks from the original contract, and was now preparing to advertise for bids for a project for same.

Mr. Abshire stated that MUD 9 was requesting that the Board concur in its authorization of the project and advertisement for bids for same.

Next, Mr. Abshire then reminded the Board that the America’s Water Infrastructure Act of 2018 (the “AWIA”) requires water districts serving more than 3,300 customers to develop a Risk and Resilience Assessment (“RRA”) and Emergency Response Plan. Mr. Abshire further reminded the Board that it had authorized the Engineer to begin preparation of the RRA for the District and MUD 9 in January.

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

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 94.75%. Mr. Wright noted that cut-offs have resumed.

Mr. Wright next reported that there had been a positive E. coli test in the water reuse basin for the Walden Tennis Center, which led Hays North to clean out and remove sludge from such basin.

Mr. Wright next presented for the Board’s review images of a sinkhole that had developed over a stormwater line located within an easement running from Canterbury Lane to Lake Conroe. Mr. Wright explained that it appeared that some portion of such line had deteriorated and that he would like to televise such line in order to determine the extent of such deterioration.

Mr. Wright next presented to and reviewed with the Board a proposal from AVR Software for creating a program that generates a one (1)-time credit for customers who select paperless billing.

Mr. Wright noted that he was able to get a substantial discount from the previous estimate presented at the last Board meeting.

Mr. Wright then presented a table of uncollectible accounts.

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 Operator’s Report, as presented; 2) authorized the inspection of the drainage line, outfall and bulkhead relative to a sinkhole in the District; and 3) approved moving the listed accounts to the uncollectible roll.

MISCELLANEOUS REPORTS

Director Patton provided an update on matters regarding MUD 9, noting that the Risk and Reliance Assessment set to begin in January had been approved by the MUD 9 board at its last meeting, as well as the Interlocal Agreement to purchase effluent from the City of Huntsville (the “City”), and the Heatherglen Project.

Regarding the November 10, 2020 Lone Star Groundwater Conservation District board of directors meeting, it was noted that due to technical issues with the videoconferencing and limited in-person attendance, attending such meeting was a problem.

UPDATE ON DISTRICT’S WEBSITE AND COMMUNICATIONS SERVICES

Director Patton reported that usage of the District’s website is consistent. Director Patton stated that he plans to update the website with additional materials soon.

ATTORNEY’S REPORT

Mr. Barner reminded the Board that the District had an option to purchase effluent from the City of Huntsville which expires on January 31, 2021. Mr. Barner reported that the agreement had been approved by the City, and that fully executed copies of such agreement had been provided to all parties.

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned at 10:39 a.m.

PASSED AND APPROVED this the 9th day of December, 2020.

Secretary, Board of Directors