MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8

MINUTES OF REGULAR MEETING

February 14, 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, February 14, 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 and Robert Ginandt, Directors 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.

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 JANUARY 10, 2024 REGULAR MEETING

Director Tryon next directed the Board to the approval of the January 10, 2024, regular meeting minutes. Upon a motion by Director Moravec, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board approved the January 10, 2024, regular meeting minutes, as presented.

TAX ASSESSOR-COLLECTOR’S REPORT

Ms. Felder then reviewed the Tax Assessor-Collector’s Report for the month of January 2024, 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 86.42% of the 2023 taxes have been collected as of January 31, 2024.

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.

ORDER DETERMINING AD VALOREM TAX EXEMPTIONS FOR 2024 TAX YEAR

Mr. Barner presented the Order Determining Ad Valorem Tax Exemptions for the 2024 Tax Year and reminded the Board that the District provides a residential homestead exemption to any individual who is disabled or is 65 years of age or older in the amount of $30,000 as provided for by Texas Property Tax Code, Section 11.13(d), as amended. Upon a motion by Director Moravec, seconded by Director White, after full discussion and with all Directors present voting aye, the Board adopted the Order Determining Ad Valorem Tax Exemptions for 2024 Tax Year.

ADOPT RESOLUTION AUTHORIZING PETITION CHALLENGING APPRAISAL RECORDS

Mr. Barner next presented the Resolution Authorizing Petition Challenging Appraisal Records and reminded the Board that such resolution allows the District’s Tax Assessor-Collector to challenge certain information related to property values determined by the Montgomery Central Appraisal District (“MCAD”). Mr. Barner recommended that the Board adopt such resolution so that if the Tax Assessor-Collector finds that any information in the MCAD’s records is incorrect or has been omitted, she will be able to challenge such records. Upon a motion by Director Patton, seconded by Director Moravec, after full discussion and with all Directors present voting aye, the Board adopted the Resolution Authorizing Petition Challenging Appraisal Records.

INSURANCE PROPOSALS

Ms. Felder then reported that yesterday, she received a revised insurance renewal proposal from Arthur J. Gallagher Risk Management Services, Inc. (“Gallagher”). Director Moravec stated that Gallagher originally provided an insurance renewal proposal the week prior, and he subsequently spoke with Kimberly Courte of Gallaher regarding the value of certain District facilities as contained in such proposal. Mr. Abshire explained that two (2) years ago, the value of the District’s wastewater treatment plant (“WWTP”) was $8,000,000, and once Phase I of such plant was placed into operation last year, the value increased to $20,000,000. Mr. Abshire further explained that the WWTP plant will be fully operational this year, and the value of such plant is now $24,000,000. Director Patton requested that Ms. Courte conduct a site visit of the WWTP to properly evaluate the insurance rate for such facility. Director Moravec requested that the Board table further discussion regarding such insurance renewal proposal until he speaks further with Ms. Courte.

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.

Director Moravec stated that the Board budgeted $200,000 for chemicals used at the District’s WWTP for the Fiscal Year Ending (“FYE”) December 31, 2024; however, approximately $30,000 was expended on chemicals for such plant during the first moth of such fiscal year. Director Moravec noted that the District is on track to spend approximately $360,000 on chemicals at such plant during the FYE December 31, 2024.

Next, Director Moravec presented to the Board the Quarterly Investment Report for the Period Ending December 31, 2023.

Ms. Felder then reported that check nos. 10636 and 2283, both payable to RAB, and check no. 10637, payable to the Walden Community Improvement Association, are not included in the Bookkeeper’s Report but were submitted to the Directors for approval.

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

Upon a motion by Director Moravec, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the Quarterly Investment Report for the Period Ending 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 Allco is completing installation of the final equipment necessary for such project. Mr. Murphy further reported that Quiddity will conduct the walk-thru inspection of such project on February 16, 2024. Mr. Murphy stated that Allco still needs to obtain the Montgomery County Fire Marshal’s approval for such project. Mr. Murphy next presented Allco’s Pay Estimate No. 61 in the amount of $23,439.51 for work performed on the WWTP Project.

Director Tryon then reported that when he was on-site at the WWTP Project, he observed a pipe leaking water at the location of the containment basin where the old generator is located. Mr. Wright stated that there should not be a water source at such location and added that he will investigate the leak. Director Moravec requested that following such investigation, Hays North provide a written summary to the Board regarding the cause of such leak.

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 reported that the final inspection and substantial completion meeting were held on January 30, 2024, and added that Texas Pride addressed all punch list items. Mr. Murphy then presented Texas Pride’s Change Order No. 2 in the deduct amount of -$51,452.00, which will zero out the contract for such project so the quantities in the contract match the quantities actually installed during construction. Mr. Murphy explained that pipe bursting and point repairs were not necessary in certain sanitary sewer line segments where such work was originally anticipated. Mr. Murphy next presented Texas Pride’s Pay Application No. 6 & Final in the amount of $119,247.02, and recommended that the Board withhold payment of such pay application until Quiddity reviews all of the videos provided by Texas Pride of the televising work performed.

Mr. Murphy then reported that Kleen Environmental, LLC (“Kleen”) mobilized in January to begin the Storm Sewer Outfall Cleaning and Televising Project, Phase I; however, the water level in Lake Conroe has risen, and several of the District’s storm sewer outfalls that are to be included in such project are underwater. Mr. Wright next reported that Kleen televised forty feet (40′) of the storm sewer line connected to the outfall that collapsed on Ripplewind Drive but could not televise any further due to the elevated water level in Lake Conroe. Mr. Murphy stated that such project will be delayed until the summer.

Mr. Murphy next reported that Quiddity is underway with the design of the Lift Station Nos. 5–7 Rehabilitation Project. Mr. Murphy further reported that survey work is being performed and added that Quiddity will be able to complete the design of such project once the surveys are received.

Mr. Murphy then reported that on January 29, 2024, Quiddity conducted the annual inspection of Water Plant No. 1, including the internal inspection of hydro-pneumatic tank (“HPT”) nos. 1 and 2. Mr. Murphy further reported that Hays North is coordinating with A&H Coating Services, LLC (“A&H”) to touch up certain areas of corrosion identified within both HPTs. Mr. Murphy stated that once A&H completes such work and Water Plant No. 1 is placed back into operation, Quiddity will proceed with the annual inspection of Water Plant No. 2. Mr. Murphy next reported that upon Quiddity’s recommendation, Hays North is coordinating with Texas Aquastore, Inc. to inspect the District’s glass-lined ground storage tanks.

Next, Mr. Murphy explained that the Texas Commission on Environmental Quality (the “TCEQ”) requires that WWTPs with a permitted flow of at least 1.0 million gallons per day obtain a multi-sector general permit (“MSGP”), which includes the development of a stormwater pollution prevention plan (“SWP3”). Mr. Murphy then presented to the Board a proposal for Quiddity’s preparation of a SWP3 on behalf of the District in the amount of $15,000. Mr. Murphy stated that following the Board’s approval of such proposal, Quiddity anticipates developing such plan and submitting same to the TCEQ within 60 days. Director Patton requested that Quiddity coordinate with he and Director Tryon regarding the development of the SWP3.
Mr. Murphy then reported that the storm sewer and junction box located between 11711 and 11715 Thoreau Drive overflowed due to the rapid increase in the water level of Lake Conroe. Mr. Abshire further reported that the homeowner at 11711 Thoreau Drive constructed a decorative fountain on top of the storm sewer manhole located in his yard, which is preventing the District from inspecting such storm sewer line. Mr. Barner explained that such manhole is located within a District easement, and such homeowner must remove the encroachment upon such easement.

Upon a motion by Director Barlow, seconded by Director White, 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. 61 in the amount of $23,439.51; 3) approved Texas Pride’s Change Order No. 2 in the deduct amount of -$51,452.00; 4) approved Texas Pride’s Pay Estimate No. 6 & Final in the amount of $119,247.02, with payment for such pay estimate being withheld until Quiddity reviews all videos submitted by Texas Pride; and 5) authorized Quiddity to proceed with preparation of the MSGP and SWP3 for the WWTP.

OPERATOR’S REPORT

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

Mr. Wright then reported that 952 customers are receiving electronic billing statements, which is an increase of 17 customers from last month.

Mr. Wright next reported that the combined water accountability for the District and MUD 9 was 92.46%.

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 one (1) account was terminated last month due to delinquent payment.

Mr. Wright next reported that Hays North completed the repairs of all items identified in the 2022 Lift Station Inspection Report.

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 met with Quiddity to discuss the responsibilities of the Operator and Engineer in completing such inventory. Mr. Wright further reported that Hays North is underway with preparation of the inventory and added that he will meet with Directors Tryon and Patton this month to discuss the scope of such project. Mr. Wright explained that Hays North is preparing such inventory based upon data regarding the date when homes within the District were constructed. Mr. Abshire stated that the TCEQ is not requiring that the District excavate water lines in order to determine their composition.

Ms. Felder exited the meeting at this time.

Mr. Wright next reported that he is coordinating with JD Poole and the affected homeowners regarding the repair of the collapsed storm sewer outfall on Ripplewind Drive. Mr. Wright stated that due to weather delays, JD Poole expects to mobilize within the next two (2) weeks to begin repair of the collapsed outfall. Mr. Wright then reminded the Board that Kleen televised forty feet (40′) of the storm sewer line connected to the outfall but could not televise any further due to the elevated water level in Lake Conroe; however, once JD Poole constructs the cofferdam necessary to repair the outfall, Kleen will be able to televise the full length of such line. Mr. Wright stated that based upon the condition of such storm sewer line as determined by such televising, the Board may want to install a cured-in-place-pipe (“CIPP”) liner within the interior of such storm sewer line, which will be a cost of approximately $60,000. Mr. Wright further stated that the District will save some cost for such work if the liner is installed while JD Poole’s cofferdam is already in place. Mr. Abshire recommended that Hays North obtain proposals for the installation of the CIPP liner.

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

SECURITY AT THE DISTRICT’S FACILITIES

Mr. Wright then reminded the Board that he previously 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 received proposals from Montgomery Fencing & Exteriors, LLC (“Montgomery Fencing”) and MJ Enterprises in the amounts of $5,220.00 and $5,524.20, respectively, for the repair of such fence.

Mr. Wright next reminded the Board that the District previously entered into a contract with Montgomery Fencing for the installation of fencing at Water Plant Nos. 1 and 2; however, Montgomery Fencing subsequently submitted a new proposal for such work due to the increased cost of materials. Mr. Wright stated that Montgomery Fencing’s proposal increased by approximately $1,270. Mr. Wright further stated that he made multiple attempts to meet with a representative of Montgomery Fencing to commence such work, but Montgomery Fencing has been unresponsive. Mr. Wright then reported that he also received a proposal from MJ Enterprises for the installation of fencing at Water Plant Nos. 1 and 2 in the amount of $20,800.00 and $7,170.00, respectively. Mr. Wright recommended that the Board accept MJ Enterprises’ proposals for the repair of the fence around the Hunter’s Landing Lift Station and the installation of fencing at Water Plant Nos. 1 and 2.

Upon a motion by Director Barlow, seconded by Director White, after full discussion and with all Directors present voting aye, the Board approved: 1) MJ Enterprises’ proposal in the amount of $5,524.20 for the repair of the fence around the Hunter’s Landing Lift Station subject to the receipt of a Form 1295 Certificate of Interested Parties, and MJ Enterprises’ proposals in the amounts of $20,800.00 and $7,170.00, respectively, for the installation of fencing at Water Plant Nos. 1 and 2 subject to the receipt of a Form 1295 Certificate of Interested Parties. Mr. Barner stated that RAB will notify Montgomery Fencing that the District is terminating its contract with Montgomery Fencing for the installation of fencing at Water Plant Nos. 1 and 2.

Director White next reminded the Board 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 then reported that he met with Today’s Integration, Inc. (“Today’s Integration”) to discuss the installation of certain additional security features at the District’s water plants. Director White next presented proposals from Today’s Integration for the installation of such security features at Water Plant Nos. 1 and 2 in the amounts of $2,323.63 and $3,632.50, respectively. Upon a motion by Director Barlow, seconded by Director White, after full discussion and with all Directors present voting aye, the Board approved Today’s Integration’s proposals in the total amounts of $2,323.63 and $3,632.50.

Next, Director Patton presented to the Board a proposal from Sunfire Protection & Alarm Services, LLC (“Sunfire”) for one (1) year of monitoring of the fire suppression system at the District’s WWTP at a cost of $55.00 per month. Director Patton explained that a monitoring system must be in place in order to obtain the Montgomery County Fire Marshal’s approval of the WWTP.

Director Patton exited the meeting at this time.

Extensive discussion then ensued regarding Sunfire’s proposal. Upon a motion by Director Barlow, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board authorized Hays North to enter into a contract with Sunfire for the monitoring of the fire suppression system at the District’s WWTP at a cost of $55.00 per month.

Director Moravec then suggested that the Board consider establishing a policy that authorizes the District’s Engineering Committee to approve contracts subject to a certain dollar value limit; therefore, when a pressing issue arises and action on such issue cannot wait until the next regular Board meeting, such committee will be authorized to timely resolve such issue. Mr. Barner stated that RAB will include an item on the agenda for the next regular Board meeting to revise the District’s Ethics Policy to establish such policy.

Director Patton re-entered the meeting at this time.

Director Patton then requested that Director White coordinate with Today’s Integration within the next few months to obtain a proposal for the installation of security features at the District’s WWTP.

Director Tryon then stated that a portion of the community walking trails was constructed along a gas line easement that runs through the WWTP. In response to a question from Director Tryon regarding installing a fence to prevent travelers access through the WWTP, Mr. Barner stated that he will review the plat and easement for such property to determine the District’s rights on such property, as the owner of the fee estate underlying the easement. Director Moravec stated that if such portion of the trail is closed to travelers, the District should post signage directing such travelers to an alternate route. Director Barlow recommended that an article be included in the community newsletter informing residents that such portion of the walking trail is no longer accessible to the public. Director Barlow then requested that Hays North obtain a proposal from MJ Enterprises for the installation of a fence to prohibit public access to the portion of the walking trail that runs through the WWTP.

AUTHORIZE ATTENDANCE AT ASSOCIATION OF WATER BOARD DIRECTORS – TEXAS (“AWBD”) SPRING SEMINAR, 2024 SUMMER CONFERENCE, AND DIRECTOR WORKSHOPS

Mr. Barner reminded the Board that it needs to authorize the Directors’ attendance at the AWBD Spring Seminar, which is being held in Houston, Texas on April 18, 2024, the 2024 Summer Conference in Fort Worth, Texas from June 13, 2024 through June 15, 2024, and at various Director Workshops held by the AWBD. Upon a motion by Director Patton, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board authorized the Directors’ attendance at the AWBD Spring Seminar, 2024 Summer Conference, and Director Workshops on behalf of the District.

MISCELLANEOUS REPORTS

Director Patton briefly discussed MUD 9’s most recent Board meeting. Director Patton reported that MUD 9 is considering a proposal from Today’s Integration’s for security at MUD 9’s facilities. Mr. Ginandt stated that MUD 9 would like to be included in Director White’s discussions with Today’s Integration regarding security at the WWTP.

Director Patton then reported that the Lake Conroe Association will be meeting with the San Jacinto River Authority to discuss potentially releasing water from Lake Conroe in advance of heavy rain in order to mitigate flooding in the future.

ATTORNEY’S REPORT

Regarding the property owned by the District where Montgomery County Emergency Services District No. 2 currently operates from within Walden, Mr. Barner reported that Entergy provided a proposed agreement for a fifteen-foot (15′) easement on such property. Mr. Barner stated that the District should be compensated for such easement as it limits the use of such property upon which the easement is granted. Discussion ensued regarding whether Entergy’s electrical lines could be buried underground within such easement. Upon a motion by Director Moravec, seconded by Director Barlow, after full discussion and with all Directors voting aye, the Board authorized the Attorney to negotiate with Entergy regarding compensation to the District for such easement and the possibility of burying the electrical lines within such easement.

In response to a question from Director Moravec regarding the authorized signors on the District’s sweep accounts with Woodforest Bank, Mr. Barner recommended that the Board appoint the Bookkeeper and two (2) Directors, as authorized signors on such accounts. Mr. Barner then stated that he will coordinate with the Bookkeeper regarding who would be the appropriate authorized signors for such accounts.

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 further reminded the Board that the last day to file an application for a place on the ballot is 5:00 p.m. on February 16, 2024.

Mr. Barner next presented to the Board an Order Calling Directors Election, which calls the Election for May 4, 2024. Upon a motion by Director Moravec, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board adopted the Order Calling Directors Election.

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

PASSED AND APPROVED this the 13th day of March, 2024.

Margie Barlow
Secretary, Board of Directors