MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8 

MINUTES OF REGULAR MEETING

 March 13, 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, March 13, 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”); Brian Lucas of Hays Utility North Corporation (“Operator” or “Hays North”); Kimberly Courte of Arthur J. Gallagher Risk Management Services, Inc. (“Gallagher”); Elliot M Barner and Campbell Colyer, attorneys, of Radcliffe Adams Barner PLLC (“Attorney” or “RAB”); Robert Ginandt and Ray Geiselhart, Directors of Montgomery County Municipal Utility District No. 9 (“MUD 9”); and John Spruell, a resident 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.

APPROVAL OF MINUTES OF FEBRUARY 14, 2024 REGULAR MEETING

Director Tryon directed the Board to the approval of the February 14, 2024, regular meeting minutes.  Upon a motion by Director Moravec, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the February 14, 2024, regular meeting minutes, subject to certain corrections.

TAX ASSESSOR-COLLECTOR’S REPORT

Ms. Felder then reviewed the Tax Assessor-Collector’s Report for the month of February 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 94.58% of the 2023 taxes have been collected as of February 29, 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.

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 noted an increase in the District’s expenses related to wastewater services.  A discussion ensued regarding said increase and its relation to the improvements to the District’s Wastewater Treatment Plant (“WWTP”).

Ms. Courte entered the meeting at this time.

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.

PUBLIC COMMENT

The President opened the meeting to public comment.

Mr. Spruell requested the District’s assistance in paying for the repairs to his home’s bulkhead located at 3131 Willowbend Road.  A discussion ensued.  Mr. Abshire stated Quiddity would investigate said request.

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

INSURANCE PROPOSALS

Ms. Courte introduced herself to the Board and reviewed Gallagher’s proposal for the renewal of the District’s insurance.  Ms. Courte reviewed the District’s coverages with the Board and explained that the proposed policies included an increase in the District’s deductibles and insurance rates because of the overall increased amount of property claims throughout Texas as a result of increase weather and climate disasters.  Ms. Courte then presented handouts to the Board showing such an increase in property claims due to weather and climate disasters, copies of which are attached hereto.  Ms. Courte further explained that the increase in value of the District’s facilities is primarily due to the improvements to the WWTP and reminded the Board that such increases also result in increases to the District’s premium.

Upon a motion by Director Moravec, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board approved Gallagher’s insurance renewal proposal.

Ms. Courte exited 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 WWTP Improvement Project (the “WWTP Project”).

Mr. Murphy reported that Quiddity conducted the walk-thru inspection of such project on February 16, 2024.

Mr. Murphy further reported that Allco is addressing the final punch list items for such project. Mr. Murphy next presented Allco’s Pay Estimate No. 62 in the amount of $28,720.67 for work performed on the WWTP Project.  Director Patton requested that the check for Pay Estimate No. 62 be held until its release is approved by Directors Tryon and Patton, Mr. Barner and Mr. Abshire.  Mr. Murphy then presented Allco’s Change Order No. 18 in the deduct amount of
-$128,537.79, which includes the deduction of the portion of Allco’s bid relating to Entergy’s installation of overhead power service at the WWTP since the District directly paid such costs to Entergy.  Mr. Murphy explained that such change order also includes a deduction for the estimated cost of 28 months of temporary electrical power usage, which was not ultimately required for such project.

The Board then discussed the condition of the fencing that Allco constructed for the WWTP property. In response to a question, Mr. Abshire confirmed that the aluminum bindings used within the fencing did not confirm with the specifications set forth in the contract for such project. Hays North will work with Quiddity to determine the total cost to replace the aluminum bindings within such fencing.

Mr. Murphy then reminded the Board that the Stormwater Outfall Cleaning and Televising Project, Phase I, will be delayed until the summer due to the elevated water level in Lake Conroe.  Mr. Murphy further reminded the Board that JD Poole constructed a cofferdam in order to repair the collapsed stormwater outfall on Ripplewind Drive.  Mr. Murphy reported that following the construction of such cofferdam, Kleen Environmental televised the full length of the stormwater line connected to the outfall.  Mr. Murphy further reported that the reinforced concrete pipe is in acceptable condition and noted that the outfall failure occurred at the site of the corrugated metal pipe segment.  Mr. Abshire stated that based upon the condition of such stormwater line, the Board may want to install a cured-in-place-pipe (“CIPP”) liner within the interior of such stormwater line.  Mr. Abshire presented to the Board a proposal from Texas Pride in the amount of $46,160.00 for the installation of such CIPP.

Mr. Murphy then reported that on February 20, 2024, Quiddity conducted the annual inspection of Water Plant No. 2 and completed internal inspections of Ground Storage Tank (“GST”) No. 2 and Hydropneumatic Tank Nos. 1 and 2.  Mr. Murphy further reported that Quiddity coordinated with Hays North regarding the items identified during such inspections as needing repair.  Mr. Murphy stated that Quiddity will present the Texas Commission on Environmental Quality’s (the “TCEQ”) checklist forms to the Board next month.  Mr. Murphy reminded that Board that upon Quiddity’s recommendation, Hays North coordinated with Texas Aquastore, Inc. (“Aquastore”) to inspect the District’s glass-lined GSTs.  Mr. Murphy presented to the Board Aquastore’s inspection reports and cost estimates for the repair of items identified in such reports.

Next, Mr. Murphy reminded the Board that 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 reported that Quiddity is underway with preparation of a SWP³ on behalf of the District and will schedule a meeting with the Board liaisons once the draft of such plan is complete.

Mr. Murphy reported that Quiddity is underway with the design of the Lift Station Nos. 5–7 Rehabilitation Project and expects to complete such design work in May 2024.

Mr. Abshire further reported that Quiddity anticipates advertising such project for bids in May 2024 and begin construction in July 2024.

Mr. Murphy then reminded the Board that the stormwater line and junction box located between 11711 and 11715 Thoreau Drive overflowed due to a recent rapid increase in the water level of Lake Conroe.  Mr. Abshire reported that Quiddity and Hays North were able to inspect such stormwater line.  Mr. Abshire explained that the water level was at the rim of the manhole, which prevented them from inspecting the interior of such line.  Mr. Murphy further explained that when water level in Lake Conroe lowers, Hays North will pump water out of the stormwater line so that Quiddity and Hays North can inspect the interior of such line.

Ms. Felder exited the meeting at this time.

Mr. Abshire next reported to the Board that Quiddity was contacted by a property owner regarding her concerns over a stormwater outfall line near Ripplewind Drive.  Mr. Abshire noted that certain sections of stormwater lines are being televised within the subdivision; he recommended further inspection of said outfall line.

Upon a motion by Director Patton, 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. 62 in the amount of $28,720.67 subject to approval of release by Directors Tryon and Patton, Mr. Barner and Mr. Abshire; and 3) approved Allco’s Change Order No. 18 in the deduct amount of -$128,537.79.

LANDSCAPING IMPROVEMENTS AT THE WWTP

Director Tryon reminded the Board that three (3) of the pine trees planted at the WWTP died last fall due to drought conditions despite the fact that Director Barlow regularly watered such trees.  Discussion ensued regarding planting additional trees outside the fence along the north side of the WWTP.  Director Barlow noted she was meeting with arborist later that day.  A discussion ensued regarding the number of trees to be irrigated and the method of irrigation.

OPERATOR’S REPORT

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

Mr. Lucas then reported that 962 customers are receiving electronic billing statements, which is an increase of ten (10) customers from last month.

Mr. Lucas next reported that the combined water accountability for the District and MUD 9 was 92.56%.

Mr. Lucas then reported that there were two (2) new taps last month and that the District has a total of 1,828 connections.  Mr. Lucas further reported that four (4) accounts were terminated last month due to delinquent payment; however, the outstanding balance owed for one (1) such account was subsequently paid, and service was restored.

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. Lucas reminded the Board that such inventory must be completed by October 16, 2024.  Mr. Lucas 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.

Director Moravec noted the TCEQ’s requirement to test the District’s facilities for phosphorus twice a week and the cost of doing so.  Director Moravec requested Hays North look into the possibility of reducing such testing to once a week and relying more upon natural methods of removing such minerals.

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.

Upon a motion by Director Patton, seconded by Director Moravec, after full discussion and with all Directors present voting aye, the Board accepted the proposal from Texas Pride in the amount of $46,160.00 for the installation of the CIPP to the stormwater outfall on Ripplewind Drive.

SECURITY AT THE DISTRICT’S FACILITIES

Mr. Barner reminded the Board that it previously approved a proposal from MJ Enterprises in the amount of $5,524.20 for the repair of the fence around the Hunter’s Landing Lift Station.  Additionally, the Board previously approved a proposal from MJ Enterprises in the amounts of $20,800.00 and $7,170.00 for the installation of fencing at Water Plant Nos. 1 and 2, respectively.  Mr. Barner explained that Mr. Wright, in order to expedite the installation of such fencing, entered into a contract directly with MJ Enterprise for such work.  Mr. Barner requested that the Board ratify Hays North’s actions relating to such work.  Upon a motion by Director Patton, seconded by Director White, after full discussion and with all Directors present voting aye, the Board ratified Hays North’s contract with MJ Enterprises for the installation of fencing at the Hunter’s Landing Lift Station and Water Plant Nos. 1 and 2.

A discussion ensued regarding the installation of a sign informing the public of other trail routes.  Director Barlow stated she would work with Hays North on same.

APPROVE SUBMITTAL OF WATER CONSERVATION PLAN (“WCP”) AND DROUGHT CONTINGENCY PLAN (“DCP”) TO REGULATORY AGENCIES

Mr. Barner then reminded the Board that the deadline to submit the WCP, Water Conservation Implementation Report and/or DCP to the TCEQ and Texas Water Development Board (“TWDB”) is May 1, 2024.

Upon a motion by Director Barlow, seconded by Director White, after full discussion and with all Directors present voting aye, the Board authorized RAB to file the WCP and DCP to the TCEQ and TWDB, subject to certain corrections, prior to the deadline of May 1, 2024.

MISCELLANEOUS REPORTS

Director White summarized MUD 9’s most recent Board meeting.

ATTORNEY’S REPORT

Mr. Barner next reminded the Board that it previously discussed establishing a policy that authorizes the District’s Engineering Committee to approve contracts and/or expenditures subject to a certain scope and 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 then presented to the Board proposed revisions to the District’s Ethics Policy to establish such policy.  A discussion ensued regarding the amount not to be exceeded under such policy, and it was the Board’s consensus to set the limit at $5,000.00.  Upon a motion by Director Moravec, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved amending the District’s Ethics Policy as described above.

ELECTION AGENDA

Mr. Barner then reminded the Board that the deadline by which to file an application for a place on the ballot of the Saturday, May 4, 2024 (the “Election”) was 5:00 p.m. on February 16, 2024, and the deadline for placement on the list of approved write-in candidates for the Election was 5:00 p.m. on February 20, 2024.  Mr. Barner then reported that RAB has certified that no applications for a place on the ballot were received from any candidates other than the incumbent Directors; therefore, such directors must be declared elected to office as a matter of law.  Mr. Barner then presented to and reviewed with the Board an Order Declaring Unopposed Candidates Elected to Office and Canceling the Election (the “Order Canceling Election”).  Upon a motion by Director White, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the Order Canceling Election.

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 11:00 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, Barner and Colyer.

RECONVENE IN OPEN SESSION

As of 11:11 a.m., the President declared the Executive Session was ended and open session was resumed.

Upon a motion by Director Moravec, seconded by Director Barlow, after full discussion and with all Directors voting aye, the Board authorized RAB to make a counteroffer to Entergy as discussed in executive session.

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned at 11:12 a.m.

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

Margie Barlow
Secretary, Board of Directors