Meeting Minutes 2022-05-11

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8 MINUTES OF REGULAR MEETING
May 11, 2022

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, May 11, 2022, 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, except Directors Patton and Moravec, thus constituting a quorum. Also attending were Maria Felder of Municipal Accounts & Consulting L.P. (“Bookkeeper” or “MAC”); Justin Abshire of Quiddity Engineering f/k/a JoneslCarter (“Engineer” or “Quiddity”); Philip Wright of Hays Utility North Corporation (“Operator” or “Hays North”); Charles Barron, Director of Montgomery County Municipal Utility District No. 9 (“MUD 9”); Rusty Denner, General Manager for the Walden Community Improvement Association (“WCIA”); Elliot M. Barner, attorney, and Kathryn Cain, paralegal, of Radcliffe Bobbitt Adams Polley PLLC (“Attorney” or “RBAP”); and Tucker Stone and Kevin Kacir, residents of the District.

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.

UPDATE ON REVIEW OF STORMWATER FLOW ALONG EMERSON DRIVE

Mr. Stone introduced himself and Mr. Kacir to the Board and reiterated their request made at the previous Board meeting that the District investigate what drainage improvements could be made to improve stormwater flow along Emerson Drive. Mr. Stone explained that during heavy rainstorms, stormwater flows from surrounding properties into Emerson Drive and in certain lowlying areas of their property and surrounding properties. Mr. Abshire then presented a map showing the stormwater drainage system along Emerson Drive and the surrounding streets.

Mr. Abshire recommended that Messrs. Stone and Kacir consult a qualified exterior drainage system expert in order to find a solution that directs the stormwater flowing onto their property into Emerson Drive and ultimately into the public stormwater drainage system. In response to a question from Mr. Barner, Mr. Wright reported that Hays N01th inspected the stormwater inlets along Emerson Drive and found that none of the inlets were obstructed.

Mr. Stone then stated that it was his opinion that residential construction along Emerson Drive by Camillo Properties (“Camillo”) has redirected the flow of stormwater onto his property and neighboring properties. Mr. Barner reminded the Board and Messrs. Stone and Kacir that such redirected flow appeared to be a private property matter and asked if Messrs. Stone and Kacir had addressed such concerns directly with Camillo, as had been recommended at the previous month’s Board meeting; Messrs. Stone and Kacir stated that they had not.

Extensive discussion then ensued regarding the location of the District’s stormwater inlets along Emerson Drive and Whittier Drive and the flow of stormwater in such area. Mr. Abshire stated that if the Board so desired, Quiddity could further investigate such matter and make a recommendation at the next Board meeting regarding possible options for drainage improvements in such area.

In response to a question from Mr. Kacir regarding the location of a wastewater manhole in the event he did chose to elevate his backyard, Mr. Abshire stated that if Mr. Kacir elevated his property, the District would need to raise the wastewater manhole located in the easement at the rear of such property. Mr. Wright then reported that Hays North will inspect the wastewater manholes located in the easements behind the homes along Emerson Drive and Whittier Drive to verify that such manholes are not obstructed or infiltrated by stormwater.

Messrs. Stone and Kacir exited the meeting at this time.

APPROVAL OF MINUTES OF APRIL 13, 2022 REGULAR MEETING

The President next directed the Board to the approval of the April 13, 2022 regular meeting minutes. Mr. Barner stated that he previously spoke with Ms. Felder and Quiddity regarding revising such minutes to clarify from which account Texas Pride Utilities, LLC is paid for work relating to the cleaning and televising of the District’s wastewater collection lines. Mr. Barner further stated that Quiddity provided some minor revisions to the Engineering Report portion of such minutes. Upon a motion by Director Barlow, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board approved the April 13, 2022 regular meeting minutes, subject to the above-noted revisions.

TAX ASSESSOR-COLLECTOR’S REPORT

Ms. Felder then reviewed the Tax Assessor-Collector’s Report for the month of April 2022, a copy of which is attached hereto, including past monthly collections and credits as reported by the Tax Assessor-Collector for the District. Ms. Felder reported that 96.81 % of the 2021 taxes have been collected as of April 30, 2022.

BOOKKEEPER’S REPORT

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

Ms. Felder reported that the Quarterly Investment Report for the period ending March 31, 2022 is not available and will be presented to the Board next month.

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 Bookkeeper’s Report, as presented; and 2) authorized payment of checks detailed therein.

ENGINEER’S REPORT

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

Mr. Abshire next updated the Board on Allco, LLC’s (“Allco”) progress over the past month regarding the Wastewater Treatment Plant (“WWTP”) Project. Mr. Abshire reported that Allco is addressing the problems that occurred during the start-up of the WWTP and subsequent one (1) month demonstration period and noted that no major problems occurred at such plant during such time. Mr. Abshire further reported that Hays North is coordinating with Magna Flow Environmental regarding grit removal and sludge hauling at the WWTP. Mr. Wright stated that aluminum sulfate is no longer being added at the WWTP to remove the phosphorus from the influent. Mr. Abshire stated that once it is determined that aluminum sulfate is no longer necessary for treatment of influent at the WWTP, Allco will begin a 30-day performance test of the Sequencing Batch Reactor.

Mr. Abshire then reported that several outstanding items required in the District’s contract with Allco have not been completed by Allco and that Phase 1 of such project cannot be declared substantially complete until such items are completed. Mr. Abshire requested authorization from the Board to coordinate with RBAP to prepare a letter to Allco outlining all of the outstanding items related to the WWTP Project. Mr. Abshire recommended that Mr. Barner be present at the next meeting between Quiddity and Allco to discuss such items further with Mr. Tommy Harrison, Allco’s President. Mr. Wright explained that the longer the commencement of Phase 2 of the WWTP Project is delayed, the more costs will be incurred by the District for sludge hauling. In response to a questions, Mr. Wright further stated that he will coordinate with Director Moravec and Ms. Felder regarding the billing codes to be used for increased operating costs due to Allco’s scheduling delays. Mr. Abshire next stated that he is concerned that Allco will not be able to complete Phase 2 of such project within the 300 days allotted for such phase in the District’s contract with Allco. In response to a question from Mr. Barner regarding the change order for the removal of grit removal services from the contract with Allco, Mr. Abshire reported that Quiddity is preparing such change order in the deduct amount of $270,000.00 and will provide it to RBAP for review once it has been prepared.

Mr. Abshire next presented Allco’s Pay Estimate No. 39 in the amount of $33,282.00 for work performed on the WWTP Project. Mr. Abshire reminded the Board that it previously authorized the Bookkeeper to withhold payment to Allco for Pay Estimate Nos. 37 and 38 until Allco: a) reimburses the District for costs incurred by the District to repair a bypass pump and clean wastewater discharge at the WWTP that resulted from negligence by Allco’s subcontractor; and b) completes the above-mentioned outstanding items.

Mr. Abshire then reminded the Board that the District’s current Texas Pollution Discharge Elimination System (“TPDES”) permit for the WWTP expires on June 1, 2022. Mr. Abshire reported that Quiddity submitted the TPDES permit renewal application to the Texas Commission on Environmental Quality (the “TCEQ”) on behalf of the District. Mr. Abshire further reported that the TCEQ declared such application to be administratively complete and added that he anticipates receiving a preliminary permit from the TCEQ in May.

Mr. Abshire then stated that based upon the televising of the District’s wastewater collection lines, Quiddity is preparing recommendations for a wastewater rehabilitation project.

Next, Mr. Abshire reported that Quiddity is preparing the inspection report regarding its inspection of the District’s eight (8) offsite lift stations. Mr. Abshire further reported that no major repairs are needed to such lift stations.

Mr. Abshire then updated the Board on the Motor Control Center (“MCC”) Replacement Project for the Poe Drive Water Plant (Water Plant No. 1). Mr. Abshire reported that the existing MCC was demolished by the contractor, McDonald Municipal & Industrial’s (“McDonald”).

Mr. Abshire further reported that certain materials necessary for the MCC Replacement Project are expected to be delivered to the project site on June 24th, but such delayed delivery should not affect the project schedule. Mr. Abshire then presented McDonald’s Pay Estimate No. 1 in the amount of$56,700.00 for work performed on the MCC Replacement Project.

Mr. Abshire next reminded the Board that Quiddity intends to delay advertising the MCC Replacement Project for the Browning Street Water Plant (Water Plant No. 2) until July 2022.

Mr. Abshire then reminded the Board that Quiddity received a request for review of construction plans and a $1,500.00 deposit from Safe Harbor Marinas (“Safe Harbor”) in order to obtain approval for Safe Harbor’s expanded marina, which will use more water and wastewater than the existing marina. Mr. Abshire reported that Quiddity completed an initial review of Safe Harbor’s construction plans and provided comments to be addressed by Safe Harbor, but that Safe Harbor has not yet provided updated plans.

Upon a motion by Director Barlow, seconded by Director Leasure, after full discussion and with all Directors present voting aye, the Board: I) approved the Engineer’s Report; 2) approved Allco’s Pay Estimate No. 39 in the amount of $24,084.00, with payment for such pay estimate being withheld until Allco: a) reimburses the District for costs,incurred by the District to repair the bypass pump at the WWTP and clean the wastewater discharge resulting from such failed pump and b) completes the above-mentioned outstanding items; 3) authorized Quiddity to coordinate with RBAP to prepare a letter to Allco outlining the outstanding items related to the WWTP Project; and 4) approved McDonald’s Pay Estimate No. 1 in the amount of$56,700.00.

Ms. Felder exited the meeting at this time.

OPERA TOR’S REPORT

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

Mr. Wright then reported that 582 customers are receiving electronic billing statements which is an increase of 4 7 customers from last month.

Mr. Wright next reported that the combined water accountability for the District and MUD 9 was 93.58%. Mr. Wright further reported that there were three (3) new taps last month and that the District has a total of 1,804 connections.

Regarding the Monthly Operations Summary of the WWTP contained in the Operator’s Report, Mr. Wright reported that the phosphorus levels found in the effluent and influent at the WWTP are inaccurate as stated in such report. Mr. Wright further reported that such report incorrectly indicates that such phosphorus levels were not reported to the TCEQ.

Mr. Wright then reported that Hays North had to remove non-dissolvable fibrous material, which is referred to in the wastewater utility industry as “Rags”, from the lift station on Twain Drive six (6) times during the past month as compared to 12 times during the previous month.

In response to a question from Mr. Barner, Mr. Wright reported that Hays North submitted the District’s Annual Water Loss Audit to the Texas Water Development Board in advance of the May 1st deadline.

Mr. Wright next reported that Hays North is preparing the District’s Drinking Water Quality Report, formerly the Consumer Confidence Report (“CCR”), and is waiting to receive certain data from the TCEQ in order to complete such CCR. Mr. Barner then reminded the Board about the process for distributing the CCR to customers pursuant to the requirements of the Environmental Protection Agency and the TCEQ. Mr. Barner stated that a direct URL link for the CCR must be included in customers’ water bills prior to June 30th in order to comply with such requirements.

Mr. Wright then reported that he will email the completed CCR to the Board prior to the next regular Board meeting.

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.

SELECT WINNERS FROM LIST OF DISTRICT CUSTOMERS WHO ENROLLED IN PAPERLESS BILLING DURING APRIL 2022 TO RECEIVE A GIFT CARD PROVIDED BY FIRST BILLING SERVICES, LLC (“FIRST BILLING”)

Mr. Wright then presented an envelope containing the names of all District customers who enrolled in paperless billing during April 2022, and Director Leasure drew two (2) names from such envelope. Mr. Wright then reminded the Board that such gift certificates will be funded by First Billing and added that the District will incur no costs for its participation in such program.

MISCELLANEOUS REPORTS

Director Tryon next briefly updated the Board regarding MUD 9’s Board meeting held on April 21st. Director Tryon reported that many of MUD 9’s electric meters are failing simultaneously throughout such district. Mr. Wright explained that all such meters are Neptune electric meters that were installed around the same time. Mr. Wright further explained that Neptune is implementing an upgraded system, and as MUD 9’s meters are due for replacement, they will be upgraded to Neptune’s new system.

ATTORNEY’S REPORT

Mr. Barner then reported that he has almost completed preparation of the agreement between the District and the WCIA relating to solid waste collection services since the District is billing its customers for such services on behalf of the WCIA. Mr. Barner stated that he will provide such agreement to the Board for review prior to the next regular Board meeting.

ATTORNEY’S REPORT

Mr. Barner next updated the Board regarding the May 7, 2022 Directors Election and the election of officers. Mr. Barner reminded the Board that no applications for a place on the ballot were received from any candidates other than the incumbent Directors; therefore, such directors were declared elected to office. Mr. Barner then presented the Certificates of Election, Affidavits of Directors, and Oaths of Office for Directors Barlow and Leasure. It was the consensus of the Board to accept the executed Statements of Elected Director and Oaths of Office for Directors Barlow and Leasure. Mr. Barner noted that copies of the Oaths of Office will be filed with the Secretary of State’s office, pursuant to Article XVI, Section 1 of the Texas Constitution.

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned at 11 :04 a.m.

PASSED AND APPROVED this the 8th day of June, 2022.

Margie Barlow
Secretary, Board of Directors