MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8 MINUTES OF REGULAR MEETING
November 8, 2023
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 8, 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”); Philip Wright of Hays Utility North Corporation (“Operator” or “Hays North”); Elliot M Barner, attorney, and Kathryn Cain, paralegal, of Radcliffe Adams Barner PLLC (“Attorney” or “RAB”); and Raymond Geiselhart, Director of Montgomery County Municipal Utility District No. 9 (“MUD 9”).
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.
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 11, 2023 REGULAR MEETING
Director Tryon next directed the Board to the approval of the October 11, 2023 regular meeting minutes. Upon a motion by Director Patton, seconded by Director Moravec, after full discussion and with all Directors present voting aye, the Board approved the October 11, 2023 regular meeting minutes, as presented.
TAX ASSESSOR-COLLECTOR’S REPORT
Ms. Felder then reviewed the Tax Assessor-Collector’s Report for the month of October 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 less than one-percent (1%) of the 2023 taxes have been collected as of October 31, 2023; however, the payment of such taxes is not due until January 31, 2024.
Upon a motion by Director Moravec, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board approved the Tax Assessor-Collector’s Report, as presented.
Ms. Felder next reviewed the Bookkeeper’s Report, a copy of which is attached hereto, including the current fund balances, expenditures, and investments.
Director Moravec then reported that as the District’s Investment Officer, he completed four (4) hours of training related to the Public Funds Investment Act. Director Moravec stated that such training included information on “sweep accounts,” in which funds in the District’s depository bank account that are in excess of a certain dollar amount are automatically transferred into a high-yield money market account. Director Moravec recommended that Ms. Felder coordinate with Woodforest Bank to enroll the District in such account type.
In response to a question from Director Patton regarding the status of Allco, LLC’s (“Allco”) Pay Estimate No. 57 for work performed on the Wastewater Treatment Plant (“WWTP”) Improvement Project (the “WWTP Project”), Mr. Barner reported that payment of such pay estimate was released following Allco’s provision of documentation evidencing that Allco paid its subcontractors the outstanding amounts due to them with the retainage funds previously released by the District.
Upon a motion by Director Moravec, seconded by Director Patton, 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.
REVIEW DRAFT BUDGET FOR FISCAL YEAR ENDING (“FYE”) DECEMBER 31, 2024, INCLUDING COMMENTS FROM MUD 9 REGARDING SAME
Director Moravec next stated that he continues to prepare the draft of the District’s budget for the FYE December 31, 2024, and will distribute the same to the District’s consultants and MUD 9 for review within the next few weeks.
A brief discussion then ensued regarding the sufficiency of the District’s tax rate.
Mr. Abshire then reported that MUD 9 is considering including a project on its Capital Improvements Plan (“CIP”) for FYE December 31, 2024, that involves installing a generator at the Buckingham Water Plant. Mr. Abshire explained that costs for the Engineer’s design of such
generator would be included in the 2024 CIP, but installation of such generator would not occur until 2025 or 2026. Mr. Abshire stated that the District’s portion of the cost for such project will be approximately $250,000.00. Director Moravec recommended that the Engineer include such project on the District’s five (5)-year CIP.
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 completed paving of the driveway at such plant. Mr. Murphy next reported that the start-up period for Phase II of such plant was initiated during the week of October 30th and should be complete by the end of the month. Mr. Murphy explained that following the start-up of the WWTP, such plant will be in a one (1)-month demonstration period. Mr. Murphy then presented Allco’s Pay Estimate No. 58 in the amount of $342,484.50 for work performed on the WWTP Project. Director Patton noted that such project is 98% complete pursuant to the total value of the construction contract, including the retainage withheld by the District.
Regarding the 2022 Sanitary Sewer Rehabilitation Project, Mr. Murphy reported that Texas Pride Utilities, LLC (“Texas Pride”) completed all rehabilitation work, including installation of the remaining cured-in-place piping. Mr. Murphy further reported that Texas Pride provided Quiddity with the videos of the completed work. Mr. Murphy explained that once Quiddity reviews such videos and performs a final inspection of the Sanitary Sewer Rehabilitation Project, they will declare such project to be substantially complete. Mr. Wright then stated that Texas Pride is renting a temporary water meter from Hays North to use during such project; however, Texas Pride has already used more water than the amount for which they pre-paid. Mr. Abshire stated that Quiddity will coordinate with Texas Pride regarding paying their outstanding balance for the temporary water meter.
Mr. Murphy then reminded the Board that it previously awarded the construction contract for the Storm Sewer Outfall Cleaning and Televising Project, Phase I, to Kleen Environmental, LLC (“Kleen”). Mr. Murphy reported that Kleen’s payment and performance bonds and insurance documents were provided to RAB for review. Mr. Murphy further reported that following RAB’s approval of such documents, Quiddity will schedule the pre-construction meeting with Kleen and issue the Notice to Proceed in a few weeks.
Mr. Murphy next reminded the Board that in July 2022, Quiddity presented to the Board a Lift Station Inspection Report. Mr. Murphy further reminded the Board that Quiddity divided the recommended lift station improvements into three (3) phases, with the first (Pt) phase included in the District’s budget for the FYE December 31, 2024. Mr. Murphy reported that Quiddity is preparing a cost estimate for such phase, which includes improvements to lift stations nos. 5 – 7. In response to a question from Director Patton regarding the lift station improvement items that were to be completed by Hays North, Mr. Wright stated that Hays North is still working on such items and added that he will provide an update to the Board regarding the status of such items.
Mr. Murphy then distributed to the Board photographs of a large sinkhole that developed last week when a District storm sewer outfall located on Ripplewind Drive collapsed. Mr. Murphy recommended televising the storm sewer line to determine whether a portion of the storm sewer line collapsed, or only the outfall. Mr. Abshire explained that such sinkhole developed in the backyard behind two (2) adjacent homes; however, a resident reported that a small depression is forming in the ground near the street in front of such homes, which leads to concerns that the entire line collapsed rather than just the outfall. Mr. Wright reported that Hays North recommends engaging JD Poole Company (“JD Poole”) to construct a cofferdam and repair the outfall but noted that JD Poole is not able to mobilize until January. Mr. Wright further reported that following JD Poole’s repair of such outfall, Hays North will repair the storm sewer line.
Ms. Felder exited the meeting at this time.
Messrs. Abshire and Wright agreed that JD Poole is the only local contractor with whom they are familiar who is capable of repairing the District’s collapsed storm sewer outfall. Director Patton requested that Hays North immediately install safety fencing around the collapsed outfall and remove the tree stump that is leaning into the sinkhole. Director Tryon then stated that a homeowner on Brookhaven Drive has a boat dock on his property that will need to be removed in order for JD Poole to make the repairs to such outfall. Mr. Barner stated that RAB will send letters to the affected homeowners on Ripplewind Drive and Brookhaven Drive.
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; and 2) approved Allco’s Pay Estimate No. 58 in the amount of $342,484.50.
Mr. Wright next presented the Operator’s Report, a copy of which is attached hereto.
Mr. Wright then reported that 921 customers are receiving electronic billing statements, which is an increase of ten (10) customers from last month.
Mr. Wright next reported that the combined water accountability for the District and MUD 9 was 94.53%. Mr. Wright noted that the increased gallons per minute pumped from the District’s Jasper water wells suggests that the water level in the Jasper Aquifer is increasing; however, Hays North will continue to monitor such water level.
Mr. Wright then reported that there were no new taps last month and that the District has a total of 1,828 connections. Mr. Wright further reported that three (3) accounts were terminated last month due to delinquent payment; however, the outstanding balances owed for two (2) such accounts were subsequently paid, and service was restored.
Next, Mr. Wright reported that a customer requested an adjustment to his bill due to a leaking sprinkler valve on his property. Mr. Wright fmiher reported that such customer provided
Hays North with proof of the repair of such leak. Mr. Wright stated that, pursuant to the District’s leak adjustment policy, Hays North will adjust the water bill for such customer, noting that such customer will receive a credit of approximately $460.00.
Mr. Wright reported that Hays North reviewed its invoices to determine which costs relate to Allco’s delays in completing the WWTP Project and added that such information was provided to RAB and Quiddity.
Mr. Wright then reported that on September 19, 2023, the Texas Commission on Environmental Quality (“TCEQ”) inspected the Browning and Buckingham water plants. Mr. Wright further reported that the TCEQ subsequently issued a Notice of Violation to the District noting that: 1) all chemicals stored on-site must be stored in double-walled containers, and 2) the backflow prevention assembly test reports did not comply with the TCEQ’s format. Mr. Abshire reported that Quiddity researched acceptable containers and will submit information regarding such containers to the TCEQ next week for approval. Mr. Wright then stated that the backflow prevention assembly test reports have been modified to comply with the TCEQ’s format.
Mr. Wright next reminded the Board that the Environmental Protection Agency updated their Lead and Copper Rule, and the District is required to prepare an inventory of all water lines within the District, both public and privately owned, by October 16, 2024. Mr. Wright reported that Hays North is underway with creating a database for such inventory.
Regarding the Alternative Water Source Production Permit, Mr. Wright reported that Hays North will prepare the necessary paperwork for renewal of such permit.
Upon a motion by Director Patton, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board approved the Operator’s Report, as presented.
PUBLIC CEREMONY FOR OPENING OF WWTP
It was the consensus of the Board to table discussion until the January 2024 Board meeting regarding scheduling a public ceremony for the opening of the WWTP.
RENEWAL OF THE DISTRICT’S INSURANCE, INCLUDING AUTHORIZE REQUESTING PROPOSALS FOR SAME
Discussion ensued regarding whether to obtain quotes from several insurance providers to ensure that the District is receiving the best and most economical insurance possible. Mr. Wright stated that the District’s current insurance provider, Arthur J. Gallagher, does a quality job of handling claims on behalf of the District. A brief discussion ensued, and it was the consensus of the Board not to request quotes from other insurance providers at this time.
DISTRICT WEBSITE AND COMMUNICATIONS SERVICES
Director Patton reminded the Board that Off Cinco migrated the District’s email accounts to a new Google-based platform. In response to a question from Director Patton regarding accessing the emails and documents saved on the previous platform, Mr. Barner stated that Off Cinco informed him that providing RAB with such emails and documents will be a simple task that should not take more than 30 minutes to complete.
DISTRICT AND MUD 9’S JOINT CHRISTMAS DINNER PARTY
Mr. Barner then reminded the Board that the District and MUD 9 have historically held a Christmas dinner party at the Walden Yacht Club on the evening of the second (2nd) Wednesday in December. A discussion ensued regarding the such dinner, including the time and number of invitees. Mr. Barner stated that RAB will contact the Walden Yacht Club to make such reservation.
THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned at 10:36 a.m.
PASSED AND APPROVED this the 13th day of December, 2023.
Secretary, Board of Directors