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

June 14, 2023

The Board of Directors (the “Board” or “Directors”) of Montgomery County Municipal Utility District No. 8 (the “District” or “MUD 811) met in regular session, open to the public, on Wednesday, June 14, 2023, 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
Michael White – Assistant Secretary

All members of the Board were present, except Director Barlow, thus constituting a quorum. Also attending were Maria Felder of Municipal Accounts & Consulting L.P. (“Bookkeeper” or “MAC”); Justin Abshire and Conner Murphy of Quiddity Engineering (“Engineer” or “Quiddity”); John David Wright of Hays Utility North Corporation (“Operator” or “Hays North”); Campbell Colyer, attorney, and Kathryn Cain, paralegal, of Radcliffe Adams Barner PLLC (“Attorney” or “RAB”); Ray Geiselhart, Director of Montgomery County Municipal Utility District No. 9 (“MUD 9″); Joe Forrstier of DPR Chemical Company; and Tucker Stone, Mary Salisbury, Steven Frank 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. Mr. Stone introduced himself to the Board and inquired about whether the District intends to construct any additional drainage improvements adjacent to Emerson Drive in order to mitigate flooding along such drive. Mr. Stone explained that during heavy rainstorm events, stormwater flows from surrounding properties onto his property and his neighbors’ properties. Mr. Stone stated that he had his driveway elevated within the last year in an effort to prevent stormwater from flowing onto his property; however, he has experienced the backflow of stormwater into his home during recent heavy rainstorm events.

Ms. Salisbury, Mr. Frank and Mr. Kacir entered the meeting at this time.

Mr. Abshire reported that the District had not been previously made aware of any recent instances of stormwater flowing into the homes of property owners along Emerson Drive.

Mr. Abshire further reported that in 2016, the District identified areas within the District in which the Board determined that drainage improvements were necessary, but the area around Emerson Drive and Hawthorne Drive was not determined to be in need of such improvements as there had not been reports of stormwater flowing into homes in such area. Mr. Abshire explained that the recent heavy rain event included three to five inches (3″ – 5”) ofrain in one (1) hour, which was an exceptional amount and more rain than the District’s stormwater drainage system is designed to receive. Mr. Abshire requested that the residents provide him with photographs and videos of stormwater flooding in and around their homes.

Mr. F orrstier entered the meeting at this time.

Mr. Stone went on to explain that it was his opinion that nearby residential construction by Camillo Properties (“Camillo”) is the cause of such flow onto such properties. In response to a comment about the Walden Community Improvement Association’s (“WCIA”) role in preventing such construction from causing such flow, Director Tryon explained that the WCIA’s Architectural Control Committee reviewed retention and drainage components proposed in Camillo’s plans for new construction. Director Tryon further explained that Camillo was required to construct retaining walls and installed sump pumps on three (3) properties where new construction is occurring, which contributes to the amount of stormwater flowing away from such properties and into the streets.

Ms. Salisbury reported that she enlarged the stormwater drainage lines on her property and installed a sump pump, but stormwater flowed into her home during the most recent heavy rain event. Director Moravec suggested that Ms. Salisbury, Messrs. Stone, Frank and Kacir and their neighbors collectively write a letter to the WCIA requesting that they address the drainage issues caused by Camillo’s construction.

Director Moravec then explained that the District cannot spend public funds to construct drainage improvements that only benefit private property owners and that any improvements constructed by the District must be for the benefit of the public. Director Moravec further explained that within the past several years, the District expended approximately $1. 7 million on improvements to the District’s stormwater collection system. Director Moravec stated that if the Engineer determines that mitigation of the flooding caused by stormwater along Emerson Drive and Hawthorne Drive is the responsibility of the District, the District does not currently have funds available to immediately construct the necessary improvements; therefore, such project would be included in the District’s five (5) to ten (10) year capital improvements plan.

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

APPROVAL OF MINUTES OF MAY 10, 2023 REGULAR MEETING

Director Tryon next directed the Board to the approval of the May 10, 2023 regular meeting minutes. Upon a motion by Director Moravec, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board approved the May 10, 2023 regular meeting minutes, as presented.

Ms. Salisbury and Messrs. Stone, Frank and Kacir exited the meeting at this time.

TAX ASSESSOR-COLLECTOR’S REPORT

Ms. Felder then reviewed the Tax Assessor-Collector’s Report for the month of May 2023, 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 97.93% of the 2022 taxes have been collected as of May 31, 2023.

Upon a motion by Director Patton, seconded by Director White, 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. Felder next reviewed the Bookkeeper’s Report, a copy of which is attached hereto, including the current fund balances, expenditures, and investments. Ms. Felder then reported that RAB’s invoice was not received prior to the Bookkeeper’s Report being printed, so such payment is not reflected in such report; however, a check was prepared for the Board’s approval.

Director Moravec next noted that the bond funds that were issued to finance the Wastewater Treatment Plant (“WWTP”) Improvement Project (the “WWTP Project”) will be exhausted following payment of Allco, LLC’s (“Allco”) next pay application. Ms. Felder explained that once such funds are exhausted, the District’s account will be closed, and if new bonds are issued by the District in the future, a new account will be opened for such funds.

Ms. Felder then reminded the Board that an Unclaimed Property Report is required to be filed with the State Comptroller’s Office (“Comptroller”) annually regarding customer funds that remain uncollected for the period of March 1, 2021 through February 28, 2022. Ms. Felder stated that a check in the amount of $1,112.42 was sent to the Comptroller.

Upon a motion by Director Moravec, seconded by Director White, 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) authorized filing of the Texas Unclaimed Property Report with the Comptroller.

ANNUAL REVIEW OF DISTRICT’S CODE OF ETHICS

Mr. Colyer reminded the Board that review of the District’s Ethics Policy is an annual agenda item and is an opportunity for the Board to discuss or review any items contained in such policy. Mr. Colyer went on to state that RAB does not currently recommend any changes to such policy at this time.

ENGINEER’S REPORT

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

Mr. Murphy first updated the Board on Allco’s progress over the past month regarding the WWTP Project. Mr. Murphy reported that Allco continues with construction of the masonry walls at the dewatering building. Mr. Murphy further reported that Allco is underway with installation of electrical equipment and insulation at such building. Mr. Murphy then presented Allco’s Pay Estimate No. 52 in the amount of $174,580.23 for work performed on the WWTP Project.

Mr. Abshire next reported that Allco is requesting preparation of a change order in the amount of $10,472.00 for the realignment of a driveway at the WWTP Project. Mr. Abshire explained that two (2) power poles conflict with the original alignment of such driveway.

Mr. Abshire stated that Quiddity modified the alignment of the driveway and requested that the Board approve Allco’s change order so that Allco may proceed with pouring the paving for such driveway.

Regarding the 2022 Sanitary Sewer Rehabilitation Project, Mr. Murphy reported that Texas Pride Utilities, LLC (“Texas Pride”) is underway with installation of cured-in-place piping and pipe bursting, as necessary. Mr. Murphy reported that Texas Pride is approximately 35% to 40% complete with the construction for such project; however, pursuant to the schedule set forth in the construction contract, such project should be 75% complete. Mr. Murphy stated that Quiddity requested an updated schedule from Texas Pride. Mr. Murphy then reported that a resident’s deck is encroaching upon the District’s ten-foot (10′) easement and is preventing Texas Pride from accessing a portion of the District’s sanitary sewer system in need of repair.

Mr. Murphy suggested that RAB may need to send a letter to such resident instructing the resident to remove the encroachment upon the District’s easement.

Mr. Murphy then presented Texas Pride’s Pay Estimate No. 2 in the amount of $35,325.00.

Mr. Murphy next updated the Board regarding the annual inspection of the District’s water plants as required by the Texas Commission on Environmental Quality. Mr. Murphy reported that during Quiddity’s inspection of Water Plant No. 2, areas of corrosions were identified in the interior of hydropneumatic tank (“HPT”) no. 2. Mr. Murphy further reported that Hays North obtained a proposal from A&H Coating Services (“A&H”) in the amount of $3,250.00 to touch up the interior coating of such HPT.

Ms. Felder exited the meeting at this time.

Upon a motion by Director Patton, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board: 1) approved the Engineer’s Report, as presented; 2) approved Allco’s Pay Estimate No. 52 in the amount of $174,580.23 for work performed on the WWTP Project; 3) authorized preparation of Allco’s change order in the amount of $10,472.00; 4) approved Texas Pride’s Pay Estimate No. 2 in the amount of $35,325.00 for work performed on the 2022 Sanitary Sewer Rehabilitation Project; and 5) approved A&H’s proposal in the amount of $3,250.00 for coating of the HPT no. 2.

Next, Mr. Abshire explained that the non-potable water system at the WWTP Project was a part of phase I of such project. Mr. Abshire further explained that the booster pumps within such system were designed to be self-priming; however, they are not operating as designed, which is causing such pumps to continually damage the bearings inside such pumps.

Mr. Abshire reported that Quiddity modified the design of such non-potable water system and is coordinating with Allco regarding a cost estimate to construct such design modifications.

OPERATOR’S REPORT

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

Mr. Wright then reported that 864 customers are receiving electronic billing statements, which is an increase of seven (7) customers from last month.

Mr. Wright next reported that the combined water accountability for the District and MUD 9 was 92.17%. Director Tryon requested that Hays North investigate the cause of the District’s reduced water accountability.

Mr. Wright then reported that there was one (1) new tap last month and that the District has a total of 1,820 connections. Mr. Wright then stated that no accounts were terminated last month due to delinquent payment.

Mr. Wright next reviewed the Notable Activity Report contained in the Operator’s Report and noted that such report includes vactor cleaning of the lift station on Twain Drive. Discussion then ensued regarding the frequency at which Hays North must remove non-dissolvable fibrous material, which is referred to in the wastewater utility industry as “Rags”, from the lift station on Twain Drive. Director Moravec requested that Hays North hang door tags on homes served by the Twain Drive lift station informing residents how to properly dispose of such Rags.

Mr. Wright then reminded the Board that the Catahoula Water Well at Water Plant No. 2 was taken out of operation after water samples failed certain bacteriological tests. Mr. Wright reported that Hays North adjusted the level of disinfectant in such well and took additional water samples, which were satisfactory. Mr. Wright further reported that such well was placed back into operation.

Mr. Wright then presented to the Board a proposal from Morales G&M (“Morales”) in the amount of $8,561.00 for installation of spider repellant at the District’s water plants.

Next, Mr. Wright reminded the Board that the automatic transfer switch on the generator at Water Plant No. 1 is damaged and must be replaced. Mr. Wright presented to the Board a proposal from McCaffety Electric Co. Inc. (“McCaffety”) in the amount of $24,500.00 for the purchase and installation of a new automatic transfer switch at Water Plant No. 1.

Upon a motion by Director Patton, seconded by Director White, after full discussion and with all Directors present voting aye, the Board approved: 1) the Operator’s Report, as presented; 2) the proposal from Morales in the amount of $8,561.00 for installation of spider repellant at the District’s water plants; and 3) the proposal from McCaffety in the amount of $24,500.00 for the automatic transfer switch at Water Plant No. 1.

Mr. Abshire then updated the Board regarding sinkholes on Willowbend Road and Browning Drive caused by the failure of two (2) of the District’s storm drains.

Mr. Abshire reported the sinkhole on Willowbend Road was repaired. Mr. Abshire further reported that the sinkhole on Browning Drive is located within an easement between two (2) homes and noted that there is limited space to work within such easement due to the presence of a retaining wall.

Mr. Abshire went on to report that Quiddity is coordinating with Hays North regarding how to repair such sinkhole. Mr. Abshire then stated that a third (3rd) sinkhole was recently reported; however, Mr. Murphy was unable to locate such sinkhole upon inspection of the property where such sinkhole was reported.

PROCEDURES FOR CONDUCTING RIBBON CUTTING CEREMONY FOR OPENING OF NEW WWTP

Mr. Colyer reminded the Board that it previously discussed holding an event to celebrate the completion of the WWTP Project. Mr. Colyer stated that procedures for conducting such event may be discussed further when such project is closer to completion.

SECURITY AT DISTRICT FACILITIES

Director White reported that he obtained proposals from Today’s Integration, Inc. for the installation of certain security features at the District’s facilities.

Director White further reported that he obtained proposals from Corbridge Fence and Montgomery Fencing & Exteriors for replacement of the perimeter fencing at certain District-owned facilities. Director White requested that RAB distribute all such proposals to the Board for review prior to the next Board meeting.

MISCELLANEOUS REPORTS

Director Tryon reminded the Board that the District owns the property and building where the Montgomery County Emergency Services District No. 2 (“ESD 2”) currently operates from within Walden. Director Tryon reported that the WCIA has expressed interest in such property when ESD 2 vacates such building.

ATTORNEY’S REPORT

Next, the Board and Attorney discussed the process for conducting Board meetings by videoconference in situations where two (2) or less directors are unable to attend such meetings in-person. Mr. Colyer reminded the Board that pursuant to the Texas Open Meetings Act (the “OMA”), at least three (3) Directors must be physically present at a Board meeting in order to establish a quorum for the purposes of conducting a meeting via videoconference. Mr. Colyer further explained that in order to conduct Board meetings via videoconference, audio and video equipment used to facilitate such meetings must meet certain standards so that anyone physically present for such meeting is able to hear and see those directors attending such meeting by videoconference. Further discussion then ensued.

Director Patton stated that he would purchase any audio and video equipment necessary to comply with the OMA. Upon a motion by Director Moravec, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board: 1) authorized Director Patton to purchase audio and video equipment necessary to comply with the OMA; and 2) authorized RAB to prepare a policy regarding holding Board meetings via videoconference.

Messrs. Wright, Geiselhart and Forrstier exited the meeting at this time.

EXECUTIVE SESSION

Pursuant to Section 551.076 of the Texas Government Code, Subchapter D, of the Open Meetings Act, the President called the executive session to order at 10:24 a.m. to discuss matters of attorney-client privilege. Present for all or portions of the Executive Session were the Board of Directors, except Director Barlow; Messrs. Abshire, Murphy and Colyer; and Ms. Cain.

RECONVENE IN OPEN SESSION

As of 10:53 a.m., the President declared the Executive Session was ended and open session was resumed.

Upon a motion by Director Moravec, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board approved the release of a certain portion of the retainage withheld for the WWTP Project, pursuant to the terms discussed in Executive Session.

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned at 10 55 a.m.

PASSED AND APPROVED this the 12th day of July, 2023.

Margie Barlow
Secretary, Board of Directors