Montgomery County Municipal Utility District No. 8
Meeting Minutes 2024-05-08
MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8
MINUTES OF REGULAR MEETING
May 8, 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, May 8, 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”); and Ray Geiselhart and Curt Harris, 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 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 APRIL 10, 2024 REGULAR MEETING
Director Tryon directed the Board to the approval of the April 10, 2024, regular meeting minutes. Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the April 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
April 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 96.61% of the 2023 taxes have been collected as of April 30, 2024.
Ms. Felder next noted that due to a delay in receiving the Tax Assessor-Collector’s Report, the transfers from the District’s tax account to the Interest and Sinking Fund and the General Operating Fund are not reflected in the Bookkeeper’s Report.
Upon a motion by Director White, 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.
Ms. Felder then reported that check no. 10719 in the amount of $20,000.00 to the District’s Auditor, check no. 10720 in the amount of $204.10 to Director White, and check nos. 10721 and 2302 in the amounts of $8,632.97 and $2,443.75, respectively, for RAB’s legal fees are not included in the Bookkeeper’s Report but were submitted to the Directors for approval.
Director Moravec stated that the cost to repair the collapsed outfall on Ripplewind Drive was approximately $100,000.00. Director Moravec further stated that such cost was budgeted as a capital expense and requested that Ms. Felder re-classify such expense as a drainage maintenance expense.
Next, Ms. Felder presented to the Board the Quarterly Investment Report for the first (1st) quarter of the Fiscal Year Ending (“FYE”) December 31, 2024.
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 Bookkeeper’s Report, as presented; 2) authorized payment of checks detailed therein; and 3) approved the Quarterly Investment Report for the first (1st) quarter of the FYE December 31, 2024.
ENGINEER’S REPORT
Mr. Murphy then presented the Engineer’s Report, a copy of which is attached hereto.
Mr. Murphy reminded the Board that Allco, LLC (“Allco”) completed all punch list items for the Wastewater Treatment Plant (“WWTP”) Improvement Project.
Mr. Murphy further reminded the Board that the substantial completion date for such project was February 20, 2024. Mr. Murphy then reported that Allco is no longer on-site at the WWTP.
Mr. Murphy next 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 next reported that Quiddity has almost completed the design of the Lift Station Nos. 5–7 Rehabilitation Project and expects to request authorization to advertise such project for bids next month. Mr. Murphy further reported that Lift Station No. 6 on Walden Estates Drive was constructed on a very small tract of land owned by the District, which sits between a home and a vacant lot. Mr. Murphy explained that the control panel for such lift station was installed next to the property line and the only way to access such panel is by entering the neighbor’s property on the north side of the District’s property. Mr. Murphy suggested that the District obtain an access easement from such neighbor so that the District can enter such property in order to access the control panel. Mr. Murphy stated that if such neighbor declines to grant such easement, the District may need to consider relocating the control panel to the south side of the District’s property, which is adjacent to the vacant lot. Mr. Murphy then explained that while Lift Station No. 6 is being improved, it will need to be placed on bypass; however, there is not sufficient space on the District’s lot to place the bypass pumps.
Mr. Murphy suggested that the District obtain a permanent easement on the vacant lot so that the District can place the bypass pumps and access the control panel once it is relocated. Mr. Barner noted that the vacant lot to the south of the District’s property is narrow, and the property owner may decline to grant the District an easement because it will reduce the amount of developable space on such lot. Mr. Abshire stated that the District will need a ten foot (10′) to fifteen foot (15′) easement on the adjacent lot and added that if the property owner declines to grant such easement, the District may need to purchase the lot.
Next, Mr. Murphy reminded the Board 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, which includes the development of a stormwater pollution prevention plan (“SWPPP”). Mr. Murphy reported that Quiddity completed a draft of the SWPPP and provided it to the Board liaisons for review. Mr. Wright then noted that there will be certain additional costs related to sampling of stormwater runoff in order to comply with the SWPPP. Director Moravec requested that the Operator provide the Board with an estimate of the expenses that will be incurred by the District related to compliance with the SWPPP.
Mr. Abshire then reminded the Board that the stormwater line and junction box located between 11711 and 11715 Thoreau Drive overflowed due to an increase in the water level of Lake Conroe. Mr. Abshire further reminded the Board that the elevated water level inside the manhole is preventing the District from inspecting the interior of such line. Mr. Abshire reported that Hays North will plug the storm sewer outfall and pump the water out of the line to allow for inspection of the junction box manhole. Mr. Wright stated that the bolts were removed from manhole cover because Hays North intended to inspect such line, but another significant rain event occurred, which delayed such inspection. Mr. Abshire stated that the deteriorating bulkhead on the property likely contributed to the amount of flooding on such property.
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) authorized the Engineer and Attorney to coordinate with the property owners adjacent to Lift Station No. 6 regarding easements.
LANDSCAPING IMPROVEMENTS AT THE WWTP
Director Barlow reminded the Board that it previously accepted a proposal from Sprinkles Irrigation & Aerobic Systems, L.L.C. for installation of an irrigation system at the WWTP and added that such system has not yet been installed.
OPERATOR’S REPORT
Mr. Wright next presented the Operator’s Report, a copy of which is attached hereto.
Mr. Wright then reported that 726 customers are receiving electronic billing statements. In response to a question from Director Patton regarding the accuracy of such number, Mr. Wright stated that he will confirm with his staff the number of customers receiving electronic billing statements. Mr. Wright stated that every new customer of the District is provided with information about enrolling in the District’s electronic billing program. Director Barlow stated that she will prepare an article for publication in the community newsletter regarding the availability of such program.
Mr. Wright next reported that the combined water accountability for the District and
MUD 9 was 95.74%.
Mr. Wright then reported that there were two (2) new taps last month and that the District has a total of 1,830 connections. Mr. Wright further reported that no accounts were terminated last month due to delinquent payment.
Mr. Wright next reported that the belt press at the WWTP is operating with improved efficiency. Mr. Wright then explained that the alkalinity and pH level of the wastewater in the digester varies frequently. Mr. Wright further explained that Hays North must send samples regularly to a laboratory so that the alkalinity and pH level can be adjusted. Mr. Wright then stated that the cost to purchase laboratory equipment to be installed at the WWTP is approximately $9,700.00. Director Moravec requested that the Operator provide the Board with the annual cost incurred by the District for laboratory testing of wastewater.
Mr. Wright then presented the District’s Drinking Water Quality Report, formerly the Consumer Confidence Report (“CCR”). Mr. Barner then reminded the Board about the process for distributing the CCR to customers pursuant to the requirements of the U.S. Environmental Protection Agency and the TCEQ. Mr. Barner stated that a direct URL link for the CCR must be included in customers’ water bills prior to June 30th in order to comply with such requirements.
In response to a question from Director Patton regarding the damaged fire hydrant located in front of his home, Mr. Barner reported that RAB obtained the incident report prepared by the Montgomery County Sheriff’s Department; however, such report did not include insurance information for the driver of the vehicle that damaged such fire hydrant. Mr. Barner further reported that RAB will submit a request for additional information to the Sheriff’s Department.
Regarding the status of the District’s Groundwater Credit Report, Mr. Wright stated that he will provide such report to RAB.
Director Barlow next reminded the Board that the owner of the property adjacent to Water Plant No. 1 was concerned that certain trees located on the District’s property may fall on his property. Director Barlow reported that she inspected such site and found no dead trees but noted that one (1) tree is leaning toward such individual’s property. Director Barlow recommended that the District trim such tree.
Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board: 1) approved the Operator’s Report, as presented; 2) authorized the purchase of laboratory equipment for the WWTP; and 3) approved distribution of the CCR, subject to the Attorney’s review.
SECURITY AT DISTRICT FACILITIES
Director White reported that he met with Today’s Integration, Inc. (“Today’s Integration”) at the WWTP to discuss security at such plant and added that Today’s Integration is preparing a proposal for certain security features.
MISCELLANEOUS REPORTS
Mr. Ginandt then briefly discussed MUD 9’s most recent Board meeting. Mr. Ginandt stated that MUD 9 is considering proposals for security at its water plants.
Mr. Wright next reported that he obtained a proposal in the amount of $3,048.00 for installation of a spider repellant system at Water Plant No. 1. It was the consensus of the Board that the Operator manually spray spider repellant as needed at such water plant.
ATTORNEY’S REPORT
Mr. Barner then reminded the Board that the District extended a counteroffer in response to Entergy’s offer of payment for an easement on a tract of land owned by the District; however, Entergy has yet to respond to such counteroffer.
Next, Mr. Barner reported that RAB is still working to obtain an appraisal of the property owned by the District where Montgomery County Emergency Services District No. 2 currently operates within Walden.
ELECTION AGENDA
Mr. Barner then updated the Board regarding the May 4, 2024 Directors Election. Mr. Barner reminded the Board that no applications for a place on the ballot were received from any candidates other than the incumbent Directors; therefore, such directors were declared elected to office. Mr. Barner then presented the Certificates of Election, Affidavits of Directors, and Oaths of Office for Directors Tryon and Patton. Mr. Barner noted that copies of the Oaths of Office will be filed with the Secretary of State’s office, pursuant to Article XVI, Section 1 of the Texas Constitution.
Upon a motion by Director Barlow, seconded by Director White, after full discussion and with all Directors voting aye, the Board accepted the executed Statements of Elected Director, Affidavits of Director and Oaths of Office for Directors Tryon and Patton.
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 10:24 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 10:35 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 10:35 a.m.
PASSED AND APPROVED this the 12th day of June, 2024.
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Secretary, Board of Directors