MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8

MINUTES OF REGULAR MEETING

April 9, 2025

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, April 9, 2025, 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 Michael Others of McCall Gibson Swedlund Barfoot PLLC (“Auditor”); Mark Miller 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”); Ray Geiselhart, Director for Montgomery County Municipal Utility District No. 9 (“MUD 9”); Elliot M. Barner and Fazile K. Kepadia, attorneys, and Barbara Hankins, paralegal, of Radcliffe Adams Barner PLLC (“Attorney” or “RAB”); Vic Friday and David Rom of Zecurity; and Bradley Pokorny, a member of the public.

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. Mr. Barner introduced Mr. Pokorny, a property owner and customer within the District, who was present to ask that the Board consider his proposal for the use of the site of the Old Walden Fire Station (“OWFS”).

Mr. Pokorny explained that he believed the OWFS could be developed into an arcade-type youth entertainment center offering food, games, and meeting rooms targeting up to high school age patrons. There being no further comments, the President directed the Board to proceed with the agenda.

APPROVAL OF MINUTES OF MARCH 12, 2025 REGULAR MEETING AND JANUARY 29, 2025 SPECIAL MEETING

The President then directed the Board to the approval of the March 12, 2025 regular meeting minutes and the January 29, 2025 special meeting minutes. A brief discussion ensued regarding an update to the March 12, 2025 minutes relating to the District’s final payment to Allco, LLC.

Upon a motion by Director Moravec, seconded by Director Barlow, after full discussion and with all Directors present voting eye, the Board approved the minutes of the January 29, 2025 special meeting minutes and the March 12, 2025 regular meeting minutes, subject to corrections.

AUDIT REPORT FOR FISCAL YEAR ENDED (“FYE”) DECEMBER 31, 2024

Mr. Others presented the draft Audit Report for FYE December 31, 2024 (the “FYE 2024 Audit”) and responded to questions from the Board regarding same. Mr. Others reported that the Auditor has issued a clean audit opinion for the District’s 2024 financial statements. Mr. Others then stated that the FYE 2024 Audit will be finalized after the Board and consultants have had time to review such audit.

Mr. Barner explained that the District has an ongoing obligation to update, on an annual basis, certain financial information, as required by the District’s Bond Orders, in order to ensure bondholders and other interested parties apprised of the financial status of the District. Mr. Barner then requested the Board’s authorization to prepare and file such materials with the appropriate agencies, including the Texas Water Development Board (the “TWDB”), the Texas Commission on Environmental Quality (the “TCEQ”), the Electronic Municipal Markets Access (“EMMA”) website and the State Comptroller.

Upon a motion by Director Moravec, seconded by Director Tryon, after full discussion and with all Directors present voting eye, the Board approved the FYE 2024 Audit, subject to a ten (10)-day review and comment period by the Board and the District’s consultants and authorized the Auditor and Attorney to file the FYE 2024 Audit and the required continuing disclosure materials with the appropriate agencies, including the TWDB, TCEQ, EMMA and the State Comptroller.

TAX ASSESSOR-COLLECTOR’S REPORT

Mr. Miller reported to the Board that the Tax Assessor-Collector’s Report for the month of March 2025 was not available for the meeting.

Mr. Miller went on to note that 92.5% of the 2024 taxes have been collected as of February 28, 2025.

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

BOOKKEEPER’S REPORT

Mr. Miller presented and reviewed with the Board the Bookkeeper’s Report, a copy of which is attached hereto, including the current fund balances, expenditures and investments.

Upon a motion by Director Moravec, seconded by Director Barlow, after full discussion and with all Directors present voting eye, the Board: 1) approved the Bookkeeper’s Report, as presented; and 2) authorized payment of checks detailed therein.

ENGINEER’S REPORT

Mr. Murphy then presented the Engineer’s Report, a copy of which is attached hereto.

Mr. Murphy provided an update on the Glass-lined Ground Storage Tank (“GST”) Rehabilitation Project at Water Plant Nos. 1 and 2. Mr. Murphy reported that Texas Aquastore (“Aquastore”) is continuing interior rehabilitation work on GST No. 1 at Water Plant No. 1, and completion of the work is expected by the end of the month.

Mr. Murphy next reported that Quiddity is continuing to review submittals for the Lift Station Nos. 5, 6 and 7 Rehabilitation Project provided by the contractor for such project, CFG Industries (“CFG”). Mr. Murphy stated that CFG has begun ordering materials and Quiddity has received CFG’s initial schedule, which reflects an anticipated mobilization date of next month to begin work on Lift Station No. 6.

Mr. Murphy then reported that Quiddity reviewed the final project documents submitted by Kleen Environmental (“Kleen”) for the Storm Sewer Outfall Inspection Project and has confirmed such project is complete. Mr. Murphy noted that an exhibit prepared by Kleen identified five (5) outfalls requiring improvements, along with a preliminary cost estimate of approximately $438,000.00 for the recommended improvements, a copy of which is attached to the Engineer’s Report.

Mr. Murphy then presented for the Board’s approval Change Order No. 1 from Kleen for a deduction in the amount of $24,603.00 for unused quantities removed from the contract and a request for 417 additional calendar days to be added to the contract. Mr. Murphy stated that calendar days were added to the contract due to delays caused by high water levels in Lake Conroe, which had submerged the storm sewer system.

A discussion ensued regarding a potential inspection of joint connectors once lake levels subside in order to allow for access. The Board reached a consensus to direct the Operator to coordinate with potential vendors to schedule additional inspections when lake conditions permit, to determine if any further adjustments are necessary.

Mr. Murphy then presented for the Board’s approval Pay Estimate No. 3 and Final from Kleen in the amount of $14,820.80 and confirmed the project is approximately 100% complete. Mr. Murphy also presented for the Board’s approval and execution a Certificate of Substantial Completion and Certificate of Acceptance.

Mr. Murphy next reported that Quiddity performed the annual water plant inspection on March 21, 2025. A copy of the completed TCEQ inspection checklist, based on Quiddity’s inspection, is attached to the Engineer’s Report. Mr. Murphy stated that Quiddity is coordinating with the Operator to address the identified outstanding items.

A discussion ensued regarding the President and Vice President’s authority to approve certain expenditures and the amount of monetary authority that should be allowable.

Mr. Murphy next provided an update regarding the Buckingham Water Plant Generator Project. Mr. Murphy stated that MUD 9’s engineer was preparing construction plans and related documents for same and that MUD 9 intends to gather bids for this project later this month. Mr. Geiselhart informed the Board that there has been no progress with CenterPoint and that he would provide further updates at the next meeting.

Upon a motion by Director White, seconded by Director Moravec, after full discussion and with all Directors present voting aye, the Board approved: 1) the Engineer’s Report, as presented; 2) Change Order No. 1 for the Storm Water Outfall Inspection Project from Kleen for a deduction in the amount of $24,603.00 and the addition of 417 calendar days to the contract; 3) Pay Estimate No. 3 and Final for such project from Kleen in the amount of $14,820.80; and 4) the Certificate of Substantial Completion and Certificate of Acceptance for such project.

Messrs. Miller and Others exited the meeting at this time.

SECURITY AT DISTRICT FACILITIES

Director White updated the Board on his research into cybersecurity consultants that could provide cybersecurity services to the District.

Messrs. Friday and Rom of Zecurity Technology Corporation (“Zecurity”) presented to the Board an extensive overview of Zecurity’s background, services and capabilities for cybersecurity services. Mr. Friday described the technology utilized by Zecurity to protect critical infrastructure systems. An extensive discussion ensued. Director Moravec requested copies of Zecurity’s proposal for cybersecurity services, along with references from Zecurity’s clients using the technology. Mr. Rom stated he would provide the requested information. It was the consensus of the Board to further review the proposal pending additional information.

Messrs. Friday and Rom exited the meeting at this time.

OPERATOR’S REPORT

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

Mr. Wright reported that 765 customers within the District are currently receiving electronic billing statements. A discussion ensued regarding the option for new customers to select “e-billing” when establishing their water connection. It was the consensus of the Board to direct the Operator to revise the application language to include a clear option for customers to select “e-billing” or, alternatively, incur a higher paper billing fee.

Mr. Wright next reported that the Water Accountability Ratio for the District and MUD 9 was 93.15% for the past billing cycle.

Mr. Wright then stated that there were no major expenses this past billing cycle, nor were there any major repairs to District facilities.

Mr. Wright also reported one (1) new tap installed in the prior month and a total of 1,848 connections to the District’s Water Distribution System. Mr. Wright further stated that service to two (2) accounts was disconnected due to delinquency.

Mr. Wright updated the Board on the status of overgrown vegetation and potential illegal activity occurring on six (6) lots jointly owned by the District and MUD 9. Mr. Wright stated he has obtained a proposal to clear and haul brush on said lots. Director Moravec requested the Operator to provide photos of the overgrown foliage and any suspected illegal activity occurring on the lots. An extensive discussion ensued regarding maintenance and security measures. It was the consensus of the Board to direct the Operator to engage a vendor to maintain the foliage on these lots.

Mr. Wright then briefed the Board on a proposed change by MUD 9 to its smart meter provider. A discussion followed regarding various options for smart meter vendors. It was the consensus of the Board to direct the Operator to obtain proposals for new smart meters and provide this information at the next Board meeting.

Upon a motion by Director White, seconded by Director Moravec, after full discussion and with all Directors present voting eye, the Board approved: 1) the Operator’s Report, as presented; and 2) contract with a vendor to clear foliage on the six (6) lots in the amount of $15,000.00, subject to MUD 9’s approval.

EMERGENCY/HURRICANE PREPAREDNESS PLAN

Mr. Wright then presented the Emergency/Hurricane Preparedness Plan to the Board. Mr. Wright reported that Hays North is currently conducting testing on the system and will be prepared by June 1, 2025. Mr. Wright further noted that the District’s emergency equipment currently operates using propane and natural gas and has been refueled.

MISCELLANEOUS REPORTS

Mr. Geiselhart provided an update to the Board regarding the Walden Community Improvement Association (“WCIA”). Mr. Geiselhart noted that he will be serving as the Secretary of the Board.

Mr. Geiselhart also reported on actions taken during the recent MUD 9 meeting, including the Buckingham Water Plant Generator Project.

Mr. Geiselhart further stated that MUD 9 continues to address cybersecurity matters.

ATTORNEY’S REPORT

Mr. Barner updated the Board on the status of the OWFS site. Mr. Barner explained that RAB has been in contact with several real estate brokers in order to obtain proposals for the Board to consider should they decide to market the sale of such property.

Director Tyron informed the Board that Montgomery County Emergency Services District No. 4 has agreed to continue moving the property for the time being. A brief discussion ensued. In response to a question, Mr. Abshire reported that three (3) proposals have been received for the demolition of the building.

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned at 11:10 a.m.

PASSED AND APPROVED this the 14th day of May, 2025.

Secretary, Board of Directors