MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8

MINUTES OF REGULAR MEETING

January 10, 2024

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, January 10, 2024, 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, 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.

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 DECEMBER 13, 2023 REGULAR MEETING

Director Tryon next directed the Board to the approval of the December 13, 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 December 13, 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 December 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 53.67% of the 2023 taxes have been collected as of December 31, 2023.

Ms. Felder next reported that, according to the District’s Delinquent Tax Attorney, only one (1) delinquent 2022 taxpayer account remains outstanding. In response to a question from Ms. Felder regarding termination of such account, Mr. Barner stated that he will need to review such taxpayer account to verify that such accountholder is eligible for termination.

Upon a motion by Director Patton, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board approved the Tax Assessor-Collector’s Report, as presented.

Director White and Mr. Wright entered the meeting at this time.

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 check nos. 10606 and 2275, both payable to RAB, are not included in the Bookkeeper’s Report but were submitted to the Directors for approval.

In response to a question from Director Moravec regarding enrollment of the District into sweep accounts with Woodforest Bank, Mr. Barner stated that he needs to review such enrollment documents. Ms. Felder stated that she will provide such documents to RAB for review.

Upon a motion by Director Moravec, seconded by Director Tryon, 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.

Mr. Denner entered the meeting 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, LLC’s (“Allco”) progress over the past month regarding the Wastewater Treatment Plant (“WWTP”) Improvement Project (the “WWTP Project”). Mr. Murphy reported that the electrical work is almost complete. Mr. Murphy further reported that Hays North is undergoing training regarding operation of the new WWTP. Mr. Murphy then stated that Quiddity has not yet conducted the walk-thru of such project. Mr. Murphy next presented Allco’s Pay Estimate No. 60 in the amount of $67,232.18 for work performed on the WWTP Project.

Mr. Barner entered the meeting in person at this time.

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 be resubmitted by Texas Pride. Director Moravec noted that the District is incurring additional engineering costs as a result of Texas Pride’s delay in submitting videos of the rehabilitation work. Director Moravec stated that the District should consider including a liquidated damages clause into all of the District’s construction contracts. Director Moravec further stated that the District should also include in construction contracts incentives to contractors who complete projects ahead of the scheduled completion date. Mr. Abshire warned that a liquidated damages clause tends to inflate the contract price on smaller projects. Mr. Abshire then explained that due to the limited number of reputable contractors capable of performing sanitary sewer rehabilitation projects, such projects are experiencing delays industry-wide.

Mr. Murphy then reported that Kleen Environmental, LLC (“Kleen”) mobilized yesterday to begin the Storm Sewer Outfall Cleaning and Televising Project, Phase I. Mr. Wright next reported that Kleen already televised the forty feet (40′) of storm sewer line connected to the outfall that collapsed on Ripplewind Drive and added that the televising indicated that such line has not collapsed. Mr. Murphy then stated that the water level in Lake Conroe has risen, and several of the District’s storm sewer outfalls that are to be included in the Storm Sewer Outfall Cleaning and Televising Project, Phase I are underwater. Mr. Murphy further stated that if the water level does not decrease, such project may need to be delayed. Mr. Abshire explained that if the Board prefers not to delay such project, Quiddity may need to obtain estimates from JD Poole Company (“JD Poole”) for the construction of cofferdams around such outfalls to allow for televising of the same.

Mr. Murphy next reminded the Board that it previously authorized Quiddity to proceed with the design of improvements to Lift Station Nos. 5 – 7. Mr. Murphy reported that Quiddity commenced such design work.

Mr. Murphy then reported that Quiddity is coordinating with Hays North to schedule the annual inspection of District Water Plant Nos. 1 and 2 as required by the Texas Commission on Environmental Quality.

Upon a motion by Director Moravec, seconded by Director Barlow, 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. 60 in the amount of $67,232.18.

PUBLIC COMMENT (CONTINUED)

In response to a question from Director Moravec 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 it was his understanding that ESD 2 intended to vacate such property by the end of 2023; however, they have not yet vacated such property. Mr. Barner stated that the ESD 2 has agreed to inform the District when the ESD 2 intends to vacate such property.

ANNUAL REVIEW OF POLICIES RELATED TO REIMBURSEMENTS OF EXPENSES AND FEES OF OFFICE

Mr. Barner next 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. Barner noted that it has been the Board’s policy to pay fees of office and allow for reimbursement of eligible expenses for three (3) days for attendance at the Association of Water Board Directors’ Mid-Winter Conference. Mr. Barner requested that the Directors contact him if they have questions regarding such policy.

Ms. Felder exited the meeting at this time.

PUBLIC CEREMONY FOR OPENING OF NEW WWTP

The Board then discussed holding a public ceremony to celebrate the opening of the WWTP, including guided tours of such facility. In response to comments from Directors Tryon and Patton regarding public safety while touring the WWTP, Director Barlow suggested that instead of conducting group tours of such facility, the District prepare an article for publication in the community newsletter, including aerial photos of such facility. Mr. Denner suggested including information in such article regarding contacting Hays North to schedule an individual tour of such facility. Mr. Barner recommended that anyone taking a tour be required to sign a waiver and wear a hard hat on site. Director Patton suggested that Hays North record a video to be posted on the District’s website providing an overview of how the WWTP will operate.

Director Tryon then stated that a portion of the community walking trails was constructed along a gas line easement behind the WWTP. In response to a question from Director Tryon regarding posting signs along such portion of the trail warning travelers about the presence of heavy equipment at the WWTP, Mr. Barner stated that he will review the plat and easement for such property to determine the District’s, as the owner of the fee estate underlying the easement, rights on such property.

Director Tryon next reported that a portion of the perimeter fence at the WWTP was damaged during a recent windstorm. Director Tryon requested that Quiddity coordinate with Allco to include an item on Allco’s punch list regarding inspection of the entire length of the perimeter fence at the WWTP.

LANDSCAPING IMPROVEMENTS AT THE WWTP

Director Moravec then suggested that the District post signs along the portion of the community walking trail that runs along the District’s WWTP regarding operation of the WWTP and water conservation.

OPERATOR’S REPORT

Mr. Wright then reported that Hays North has taken steps to winterize the District’s facilities to avoid damage caused by the freezing temperatures that will occur later this week.

Mr. Barner next reminded the Board that one (1) delinquent 2022 taxpayer account remains outstanding. Mr. Barner stated that such property is vacant, and the account is eligible for termination of service.

Mr. Wright then reported that he is coordinating with Montgomery Fencing & Exteriors, LLC (“Montgomery Fencing”), the contractor who is installing the fence at Water Plant No. 1, and added that such installation is scheduled for later this month.

Director White next reported that Today’s Integration, Inc. (“Today’s Integration”) completed installation of the security features at Water Plant Nos. 1 and 2.

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

Mr. Wright then reported that 935 customers are receiving electronic billing statements, which is an increase of eight (8) customers from last month.

Mr. Wright next reported that the combined water accountability for the District and MUD 9 was 93.0%.

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.

Regarding the status of repairs of the items identified in the 2022 Lift Station Inspection Report, Mr. Wright reported that Hays North completed 65% of the repairs identified in such report. Mr. Wright further reported that only minor repairs remain outstanding.

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, Mr. Wright reminded the Board that such inventory must be complete by October 16, 2024. Mr. Wright reported that he will coordinate with Mr. Abshire this month to discuss the responsibilities of the Operator and Engineer in completing such inventory. Mr. Wright further reported that once each parties’ responsibility is determined, he will meet with Directors Tryon and Patton to discuss the scope of such project.

Mr. Wright next reported that he is coordinating with JD Poole regarding the repair of the collapsed storm sewer outfall on Ripplewind Drive. Mr. Wright further reported that he is coordinating with the affected homeowners on Ripplewind Drive and Brookhaven Drive regarding the timeline for repairs. Mr. Wright stated that JD Poole expects to mobilize in late January or early February to begin repair of the collapsed outfall.

Mr. Wright then reported that he will provide RAB with the information necessary to complete the MUD 8/MUD 9 Annual Report to the San Jacinto River Authority and the City of Houston.

Regarding the Lone Star Groundwater Conservation District Alternative Water Source Report, Mr. Wright reported that the District pumped 291,903,000 gallons from its alternative water source, the Catahoula water well, during 2023.

In response to a question from Director Moravec regarding the costs incurred for sludge hauling at the WWTP, Mr. Wright reported that sludge hauling is complete at such plant, and the final invoice for such work will be submitted to the District for payment next month. Director Moravec requested that Mr. Wright provide him with the number of dumpsters removed each month from the WWTP, including the fees paid by the District to remove each dumpster and the location to which such dumpsters are being sent for disposal.

Upon a motion by Director Moravec, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the Operator’s Report, as presented.

Mr. Denner exited the meeting at this time.

SECURITY AT THE DISTRICT’S FACILITIES

Mr. Wright then reminded that District that he obtained a proposal from Corbridge Fence in the amount of $3,999.00 for the repair of the fence around the Hunter’s Landing Lift Station on River Road. Mr. Wright reported that he also requested a proposal from Montgomery Fencing for the repair of such fence. Mr. Wright recommends proceeding with whichever contractor submits the lowest bid.

Director White next reported that a water plant owned by Montgomery County Municipal Utility District No. 139 was recently vandalized, causing such district to issue a boil water notice to customers. Director White discussed certain additional security features that he recommends be installed at the District’s water plants. Director White reported that he requested a proposal from Today’s Integration for such security features.

DISTRICT WEBSITE AND COMMUNICATIONS SERVICES

Director Patton reported that the District received the annual report from Google Analytics regarding data related to users’ use of the District’s website.

MISCELLANEOUS REPORTS

Director Tryon briefly discussed with the Board MUD 9’s most recent Board meeting. Director Tryon reported that MUD 9 is considering a proposal from Today’s Integration’s for security at MUD 9’s facilities.

Director White reported that he toured the District’s water plants with Today’s Integration and prepared a report recommending additional security features at such plants. A brief discussion ensued regarding such report, and it was the consensus of the Board that Director White shall provide such report to MUD 9.

ATTORNEY’S REPORT

Mr. Barner then reported that Texas Local Government Code, Sections 203.062 and 403.0241, requires the annual filing of certain financial and tax-related information by all special purpose districts in the Texas Comptroller’s Special Purpose District Public Information Database. Mr. Barner noted that such information must be filed with the Texas Comptroller annually by April 1st or a fine will be incurred. Upon a motion by Director Patton, seconded by Director Tryon, after full discussion and with all Directors voting aye, the Board authorized the Attorney to file the required financial and tax-related information with the Texas Comptroller by April 1, 2024.

ELECTION AGENDA

Mr. Barner reminded the Board 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. Mr. Barner further stated 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. In response to a question from Mr. Barner, it was the consensus of the Board to post the candidate packet for the Election on the District’s website.

Mr. Barner then stated that the Election will be held jointly with Montgomery County (the “County”). Mr. Barner further stated that the County provided an Election Services Agreement and Joint Election Agreement for RAB’s review. Upon a motion by Director Barlow, seconded by Director Moravec, after full discussion and with all Directors present voting aye, the Board approved the Election Services Agreement and Joint Election Agreement with the County, subject to RAB’s review.

Mr. Barner next explained that the County has not yet provided the estimated election cost for the County’s conducting of the joint election. Mr. Barner further explained that such cost will depend upon the number of local entities who conduct their May 4, 2024 elections jointly with the County. Upon a motion by Director Moravec, seconded by Director White, after full discussion and with all Directors present voting aye, the Board authorized payment to the County for the joint election, as necessary.

EXECUTIVE SESSION

Pursuant to Section 551.071 of the Texas Government Code, Subchapter D, of the Open Meetings Act, the President called the executive session to order at 10:52 a.m. to discuss matters of attorney-client privilege. 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 11:19 a.m., the President declared the Executive Session was ended and open session was resumed.

Upon a motion by Director Moravec, seconded by Director White, after full discussion and with all Directors present voting aye, the Board approved the documents necessary to enroll the District into sweep accounts with Woodforest Bank, subject to review by Attorney.

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned at 11:20 a.m.

PASSED AND APPROVED this the 14th day of February, 2024.

Margie Barlow
Secretary, Board of Directors