MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8

MINUTES OF REGULAR MEETING

June 12, 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, June 12, 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, except Director Barlow, 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”); Elliot M. Barner (via telephone) and Campbell Colyer, attorneys, and Kathryn Cain, paralegal, of Radcliffe Adams Barner PLLC (“Attorney” or “RAB”); Ray Geiselhart and Curt Harris, Directors 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 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 MAY 8, 2024 REGULAR MEETING

Director Tryon directed the Board to the approval of the May 8, 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 May 8, 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
May 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 97.71% of the 2023 taxes have been collected as of May 31, 2024.

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.

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 reminded the Board that an Unclaimed Property Report is required to be filed with the State Comptroller’s Office (“Comptroller”) annually regarding customer funds that remain uncollected for the period of March 1 through February 28. Ms. Felder stated that a check in the amount of $725.68 was sent to the Comptroller.

Ms. Felder next reported that check nos. 10748 and 2308 payable to Quiddity in the amounts of $19,911.25 and $4,703.75, respectively, and check nos. 10749 and 2309 payable to RAB in the amounts of $6,228.23 and $2,962.50, respectively, 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 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) authorized filing of the Texas Unclaimed Property Report with the Comptroller.

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 reminded the Board that the Wastewater Treatment Plant (“WWTP”) Improvement Project was substantially complete as of February 20, 2024. Mr. Murphy further reminded the Board that such project was completed 834 days later than the completion date stated in the construction contract for such project. Mr. Murphy reported that RAB sent a letter to Allco, LLC (“Allco”) regarding the liquidated damages owed to the District under such contract. Mr. Murphy further reported that Allco responded to such letter and disputes the reasons alleged by the District for the delay of the completion of the WWTP Improvement Project.

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 met with the Board liaisons to review a draft of the SWPPP. Mr. Murphy further reported that Hays North is identifying the individuals responsible for fulfilling certain requirements outlined in the SWPPP. Mr. Murphy stated that once the SWPPP is complete, Quiddity will meet with the Board liaisons and Hays North to review the requirements of the SWPPP and the parties responsible for complying with such requirements. Mr. Murphy further stated that the SWPPP is not required to be submitted to the TCEQ, but the Board President will certify to the TCEQ that the District established and is maintaining such plan.

Regarding the frequency of sampling required by the District’s Texas Pollution Discharge Elimination System (“TPDES”) Permit for the WWTP, Mr. Murphy explained that requesting a reduction in the required frequency of wastewater sampling will necessitate the District to apply for a major amendment to such permit. As part of such amendment process, the District would be required to send notice of such requested amendment to approximately 218 property owners who own property along the shore of Lake Conroe located within a half (1/2) mile radius of the WWTP. Mr. Murphy further explained that due to the number of excursions that occurred at the WWTP within the past three (3) years, the TCEQ may not approve such amendment to the District’s TDPES Permit. It was the consensus of the Board to reconsider applying for an amendment to the District’s TPDES Permit next year.

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. Abshire stated that Quiddity will see if the outfalls can be inspected once the water level decreases to 200 feet.

Mr. Murphy next reported that Quiddity has almost completed the design of the Lift Station Nos. 5–7 Rehabilitation Project; however, they cannot finalize such design until an easement is obtained on the tract of land adjacent to the District’s property where Lift Station No. 6 is located. Mr. Murphy reminded the Board 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 then reported that pursuant to prior authorization from the Board, Quiddity and RAB are coordinating with Camillo Companies (“Camillo”) regarding obtaining a ten foot (10′) to fifteen foot (15′) sanitary sewer easement on the vacant tract of land adjacent along the south side of the District’s property. Mr. Murphy further reported that once Camillo consents to the dimensions of such easement, Quiddity will prepare the metes and bounds description and RAB will prepare the easement agreement. Director Moravec stated that if the compensation requested by Camillo for granting the easement is too high, the District may need to purchase the lot.

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

LANDSCAPING IMROVEMENTS AT THE WWTP

Director Tryon reminded the Board that it previously agreed to plant 11 trees outside the fence along the north side of the WWTP. Director Tryon stated that such trees were purchased but have not yet been planted. Director Tryon further stated that an irrigation system was recently installed at such WWTP.

Ms. Felder exited the meeting at this time.

OPERATOR’S REPORT

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

Mr. Lucas then reported that 728 customers are receiving electronic billing statements, which is an increase of two (2) customers from last month.

Mr. Lucas next reported that the combined water accountability for the District and
MUD 9 was 96.20%.

Mr. Lucas then reported that there was one (1) new tap last month and that the District has a total of 1,830 connections. Mr. Lucas further reported that two (2) accounts were terminated last month due to delinquent payment.

Next, Mr. Lucas reported that four (4) customers requested adjustments to their water bills due to leaks that occurred on their property. Mr. Lucas further reported that if such water bills are adjusted pursuant to the District’s leak adjustment policy, such customers will receive a total credit of approximately $947.95. In response to a question from Director Moravec, Mr. Lucas stated that he is unaware if any such customers have provided evidence of such leaks being repaired. Upon a motion by Director Moravec, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board approved the adjustments to such customers’ water bills.

In response to a question from Director Moravec regarding the estimated cost to send wastewater samples regularly to a laboratory so that the levels of certain chemicals can be adjusted, Mr. Lucas reported that pursuant to prior authorization from the Board, Hays North purchased laboratory equipment to be installed at the WWTP. Mr. Lucas explained that having such laboratory equipment on-site will allow for immediate test results and that making real-time adjustments should reduce the need for certain chemicals in the treatment process.

Mr. Lucas next reported that the recoating of the hydropneumatic tanks at the Browning Water Plant is complete and such plant will be placed back into operation this week.

In response to a question from Director Patton regarding the damaged fire hydrant located in front of his home, Mr. Colyer reported that the Montgomery County Sheriff’s Department did not obtain the insurance information for the driver of the vehicle that damaged such fire hydrant. Mr. Colyer reported that RAB prepared a letter to such individual demanding that he reimburse the District approximately $13,000.00 for the cost to repair the fire hydrant and service line. Mr. Colyer further reported that if such individual does not submit payment or provide his insurance information, pursuant to the District’s Rate Order, the District can terminate such individual’s water service and assess a penalty of $5,000.00 per day for continued violation of the District’s Rate Order.

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

REVIEW RATE ORDER

Mr. Colyer explained that the Marina Vista Condominiums’ Co-Owners Association (“Marina Vista”) inquired about possible ways to reduce their water bill. Mr. Colyer explained that Marina Vista’s average water usage per unit is already at the lowest usage tier. Mr. Colyer further explained that such water bill cannot be further reduced unless the District’s Rate Order is amended. A discussion ensued and it was the consensus of the Board not to amend the District’s Rate Order.

SECURITY AT DISTRICT FACILITIES

Director White presented proposals from Today’s Integration, Inc. (“Today’s Integration”) in the amounts of $9,898.55 and $16,475.63 for security features and surveillance, respectively, at the WWTP. Mr. Geiselhart stated that he will present such proposals to MUD 9 at their next meeting. Director Moravec requested that the Operator review the proposals and coordinate with Director White and Today’s Integration regarding the placement of security cameras at the WWTP.

Director Tryon then reminded the Board that a portion of the community walking trails was constructed along an easement that runs through the WWTP. Director Tryon stated that the District needs to install a fence to prevent pedestrians from walking through the WWTP. Director Moravec stated that if such portion of the trail is closed to pedestrians, the District should post signage warning pedestrians about the safety hazards of walking through the WWTP and directing such pedestrians to an alternate route. Director Moravec then requested that Hays North provide the Board with options for such signage and recommendations for placement of the same.

Upon a motion by Director Moravec, seconded by Director White, after full discussion and with all Directors present voting aye, the Board approved the proposals from Today’s Integration, subject to approval of the same by MUD 9.

DISTRICT WEBSITE AND COMMUNICATIONS SERVICES

Director Patton stated that once the Operator finalizes the District’s 2023 Drinking Water Quality Report, formerly the Consumer Confidence Report, such report needs to be posted on the District’s website prior to July 1, 2024.

MISCELLANEOUS REPORTS

Mr. Denner stated that the WCIA continues to coordinate with Entergy regarding easements on five (5) tracts of land owned by the WCIA.

ATTORNEY’S REPORT

Mr. Colyer 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. The Board requested that RAB cease reaching out to Entergy regarding the potential easement. Mr. Denner then stated that in the WCIA’s discussions with Entergy, Entergy is refusing to bury the utility lines unless the cost for doing so is passed through to the WCIA’s customers.

Next, Ms. Cain reported that RAB continues to search for an appraisal company that will appraise certain land owned by the District.

Mr. Barner entered the meeting via telephone at this time.

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 10:30 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; and Ms. Cain.

RECONVENE IN OPEN SESSION

As of 10:49 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 10:49 a.m.

PASSED AND APPROVED this the 19th day of July, 2024.

_______________________________________
Secretary, Board of Directors