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

December 13, 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, December 13, 2023, at 9:00 a.m., at the Walden Yacht Club, 13101 Melville Drive, Montgome1y, 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, 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”); Raymond Geiselhart, Director of Montgomery County Municipal Utility District No. 9 (“MUD 9”); and Rusty Denner, General Manager for the Walden Community Improvement Association (“WCIA”).

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 NOVEMBER 8, 2023 REGULAR MEETING

Director Tryon next directed the Board to the approval of the November 8, 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 November 8, 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 November 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 seven-percent (7%) of the 2023 taxes have been collected as of November 30, 2023.

Upon a motion by Director Patton, seconded by Director Barlow, 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.
Mr. Denner entered the meeting at this time.

Ms. Felder then reported that check nos. 10579 and 2268, both payable to RAB, are not included in the Bookkeeper’s Report but were submitted to the Directors for approval.

Ms. Felder next presented to the Board the Quarterly Investment Repo1i for the period ending September 30, 2023.

Upon a motion by Director Barlow, seconded by Director Tryon, 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 Quarterly Investment Report for the period ending September 30, 2023.

MISCELLANEOUS REPORTS

Mr. Denner stated that he coordinated with the District’s Bookkeeper regarding issuing separate checks from the District to the WCIA so that the WCIA can better track payments received from the District for solid waste collection and use of the meeting room at the Walden Yacht Club. Mr. Denner further stated that the WCIA will submit separate invoices to the District for such matters.

Mr. Barner entered the meeting at this time.

In response to a question from Director Tryon regarding when Montgomery County Emergency Services District No. 2 (“ESD 2”) intends to vacate the property owned by the District where ESD 2 currently operates from within Walden, Mr. Denner stated that ESD 2 expects to vacate such property by the end of this year. Director Patton noted that once ESD 2 vacates such property, Hays North will need to transfer water service to such property to the District in order to avoid a disruption in service to such property.

ORDER ADOPTING BUDGET (GENERAL FUND) FOR FISCAL YEAR ENDING (“FYE”) DECEMBER 31, 2024

Director Moravec then presented to the Board a proposed general fund budget for the FYE December 31, 2024. Discussion then ensued regarding various line items contained in such proposed budget.

ORDER ADOPTING BUDGET (WASTEWATER TREATMENT PLANT (THE “WWTP”)) FOR FYE DECEMBER 31, 2024

Director Moravec next presented to the Board a proposed budget for the District’s WWTP for the FYE December 31, 2024. Discussion then ensued regarding various line items contained in such proposed budget.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the Orders Adopting Budgets for the General Fund and the WWTP for the FYE December 31, 2024.

CONFIRM ENGAGEMENT OF AUDITOR FOR PREPARATION OF AUDIT FOR FYE DECEMBER 31, 2023

Mr. Barner reminded the Board that the District is in the second (2nd) year of its two (2)-year engagement agreement with McCall Gibson Swedlund Barfoot PLLC to perform the District’s audits for the FYEs December 31, 2022 and December 31, 2023. Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board confirmed its engagement of McCall Gibson Swedlund Barfoot PLLC to prepare the District’s audit for FYE December 31, 2023.

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, LLC’s (“Allco”) progress over the past month regarding the WWTP Improvement Project (the “WWTP Project”).

Mr. Murphy reported that the electrical works continues. Mr. Murphy further reported that Allco is continuing with the start-up of the dewatering building. Mr. Murphy stated that Quiddity expects the WWTP Project to be substantially complete by the end of January 2024, but they have yet to receive an updated project schedule from Allco. Mr. Abshire stated that Quiddity expects to conduct a walk-thru of such project in early January. Mr. Murphy then presented Allco’s Pay Estimate No. 59 in the amount of $197,576.50 for work performed on the WWTP Project.

Regarding the 2022 Sanitary Sewer Rehabilitation Project, Mr. Murphy reminded the Board that Texas Pride Utilities, LLC (“Texas Pride”) completed all rehabilitation work and provided Quiddity with the videos of such work. Mr. Murphy further reminded the Board that several of the video files were corrupted and will need to be resubmitted by Texas Pride. Mr. Murphy then presented Texas Pride’s Pay Application No. 5 in the amount of $149,275.80 and stated that such pay application only includes the rehabilitation of the line segments for which Quiddity was able to review Texas Pride’s videos to confirm completion of such rehabilitation.

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 the Notice to Proceed was issued to Kleen, and he expects Kleen to mobilize this month to begin inspecting the outfalls.

In response to a question from Director Patton regarding the collapsed storm sewer outfall located on Ripplewind Drive, Mr. Wright stated that Kleen will televise such outfall in early January. Mr. Wright further stated that JD Poole Company (“JD Poole”), the contractor who will repair such outfall, is not able to mobilize until mid-January. Mr. Barner reported that RAB is coordinating with Quiddity regarding letters to the affected homeowners on Ripplewind Drive and Brookhaven Drive. Director Patton requested that Hays North provide a written timeline for the Ripplewind Drive outfall repair, including all necessary precursory actions.

Mr. Murphy next reminded the Board that in July 2022, Quiddity presented to the Board a Lift Station Inspection Repo1i. Mr. Murphy further reminded the Board that Quiddity divided the recommended lift station improvements into three (3) phases, with the first (1st) phase including Lift Station Nos. 5 – 7. Mr. Murphy then presented a cost estimate in the amount of $810,350.00 for the design and construction of the phase I improvements. Mr. Murphy stated that the District’s budget for the FYE December 31, 2024 includes $889,000.00 for such project. In response to a question from Director Moravec regarding the costs associated with one (1)-month of bypass pumping for Lift Station Nos. 5 – 7, Mr. Abshire explained that the contractor is responsible for additional costs above the contract value due to delay of the project schedule.

Mr. Murphy then requested the Board’s authorization to perform an annual water plant inspection as required by the Texas Commission on Environmental Quality. Mr. Murphy stated that Quiddity will the drain the hydropneumatic tanks (“HPT”) and ground storage tanks (“GST”) at Water Plant Nos. 1 and 2 during such inspection. Mr. Murphy further stated that Quiddity will coordinate with a third (3rd)-party contractor to inspect the glass-lined GSTs. Director Patton noted that HPT No. 2 at Water Plant No. 2 was water blasted and recoated fairly recently. Mr. Abshire stated that he will confirm when such work was performed and added such tank will not need to be inspected if such work was completed within the past six (6) months.

Upon a motion by Director Barlow, seconded by Director Patton, 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. 59 in the amount of $197,576.50; 3) approved Texas Pride’s Pay Application No. 5 in the amount of $149,275.80; 4) authorized Quiddity to proceed with the design of improvements to Lift Station Nos. 5 – 7; and 5) authorized the annual water plant inspection by Quiddity.

OPERATOR’S REPORT

Mr. Wright rep01ied that he obtained two (2) proposals for the repair of the fence around the Hunter’s Landing Lift Station on River Road. Mr. Wright fmiher reported that the lowest bid was submitted by Corbridge Fence in the amount of $3,999.00 for installation of a six-foot (6′) fence. Director White suggested that Mr. Wright obtain a proposal from Montgomery Fencing & Exteriors, LLC, the contractor who is installing the fence at Water Plant No. 1.

Director White reported that Today’s Integration, Inc. completed installation of security features at certain District facilities. A brief discussion then ensued regarding access to the recorded surveillance footage.

Ms. Felder exited the meeting at this time.

Mr. Wright next presented the Operator’s Rep01i, a copy of which is attached hereto.

Mr. Wright then reported that 927 customers are receiving electronic billing statements, which is an increase of six (6) customers from last month.

Mr. Wright next reported that the combined water accountability for the District and MUD 9 was 95.28%.

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 no accounts were terminated last month due to delinquent payment.

Mr. Denner exited the meeting at this time.

Next, Mr. Wright reported that three (3) customers requested adjustments to their water bills due to leaks that occurred on their property. Mr. Wright further reported that, pursuant to the District’s leak adjustment policy, Hays N01ih adjusted the water bills for such customers, noting that in total, such customers received a credit of approximately $443.41.

In response to a question from Director Patton regarding the status of the inventory of all water lines within the District, both public and privately owned, as required by the Environmental Protection Agency (“EPA”), Mr. Wright stated that such inventory must be complete by October 16, 2024. Mr. Wright further stated that Hays North is performing the field investigation necessary to complete such inventory. In response to a question from Director Patton regarding who holds the responsibility for completing such inventory, Mr. Wright explained that Hays North will perform the inventory and provide it to Quiddity for finalization and submittal to the EPA.

Upon a motion by Director Barlow, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board: 1) approved the Operator’s Report, as presented; and 2) authorized Hays North to proceed with repairing the fence at the Hunter’s Landing Lift Station at a cost not to exceed $3,999.00.

In response to a question from Director Patton regarding the status of repairs of the items identified in the 2022 Lift Station Inspection Report, Mr. Wright reported that Hays North is still completing the last few minor repairs. Director Patton requested that Mr. Wright provide the Board with a written update regarding the status of repairs of all items identified in such report.

In response to a question from Director Patton regarding the inventory of all water lines within the District, both public and privately owned, as required by the EPA, Mr. Abshire confirmed Mr. Wright’s previous statement that Hays North is performing the field investigation necessary to complete such inventory and that such inventory will be provided to Quiddity once completed by Hays North.

In response to a question from Director Patton regarding the repair of the collapsed storm sewer outfall on Ripplewind Drive, Mr. Wright reported that he is coordinating with JD Poole regarding such repairs.

In response to a question from Director Patton regarding submittal of the Annual Water Loss Audit to the Texas Water Development Board, Mr. Wright stated that the deadline to submit such audit recently passed and will need to confirm with his office staff that such audit was timely submitted. Mr. Wright fmiher stated that he will provide confirmation to the Board of such submittal.

ASSOCIATION OF WATER BOARD DIRECTORS (“AWBD”) WATER SMART APPLICATION

Mr. Wright stated that Hays North will prepare the Water Smart application and submit it to the AWBD on behalf of the District prior to the deadline in March 2024.

MEMBERSHIP RENEWAL IN AWBD

The Board next discussed renewing the District’s membership in the AWBD. Upon a motion by Director Barlow, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board authorized the renewal of the District’s membership in the AWBD and authorized payment of the same.

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 RAB will coordinate with Off Cinco to obtain such emails.

MISCELLANEOUS REPORTS

Director Barlow noted that several new members were elected last month to serve on the WCIA’s Board of Trustees.

Director White briefly discussed with the Board MUD 9’s most recent Board meeting and reported that ESD 2 requested service from MUD 9 for their new fire station which is being constructed across the street from the property owned by the District where ESD 2 cmTently operates within Walden.

EMINENT DOMAIN REPORTING COMPLIANCE PURSUANT TO TEXAS GOVERNMENT CODE, SECTION 2206.151-157, AS AMENDED

Mr. Barner then reported that RAB will file the required annual eminent domain report on behalf of the District pursuant to Texas Government Code, Section 2206.151-157, as amended. Mr. Barner explained that the report includes information related to the District’s authority to exercise its power of eminent domain and must be filed by no later than February 1st of each year. Upon a motion by Director Patton, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board authorized RAB to file the required annual eminent domain report pursuant to Texas Govermnent Code, Section 2206.151- 157, as amended.

2024 ANNUAL AGENDA

Mr. Barner next presented the 2024 Annual Agenda and requested that the Board and consultants provide him with their comments to the same.

ELECTION AGENDA

Mr. Barner then stated that a directors election is scheduled to be held on Saturday, May 4, 2024 (the “Election”), and that such election will be for positions held by Directors Tryon and Patton, since such positions’ terms of office are due to expire. Mr. Barner stated that candidate packets will be provided to each of the incumbents in the next few weeks.

Mr. Barner discussed the appointment of a designated agent for the Election to perform the duties set forth in Sections 31.122 and 31.123 of the Texas Election Code, as amended. Mr. Barner explained that a copy of the Notice of Appointment of Designated Agent will be posted at the Walden Yacht Club, the offices of RAB, and on the District’s website.

Next, Mr. Barner reported that the District must post the Notice of Deadline to File Applications for Place on the Ballot no later than Monday, December 18, 2023. Mr. Barner also reported that the first day to file an application for a place on the ballot is January 17, 2024, and the last day to file an application for a place on the ballot is 5:00 p.m. on February 16, 2024.

Upon a motion by Director Moravec, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board: 1) appointed RAB as the District’s designated agent for the Election; and 2) authorized posting the Notice of Deadline according to applicable law governing such notices.

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 10:25 a.m. to discuss matters of District security. Present for all or portions of the Executive Session were the Board of Directors; Messrs. Abshire, Murphy, and Barner; and Ms. Cain.

RECONVENE IN OPEN SESSION

As of 10:58 a.m., the President declared the Executive Session was ended and open session was resumed.

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned at 10:58 a.m.

PASSED AND APPROVED this the 10th day of January, 2024.

Margie Barlow
Secretary, Board of Directors