Meeting Minutes – December 11, 2024

Montgomery County Municipal Utility District No. 8

Meeting Minutes – December 11, 2024

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8

MINUTES OF REGULAR MEETING

December 11, 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, December 11, 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:

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”)
Elliot M. Barner, attorney, and Allison Dawson, paralegal, of Radcliffe Adams Barner PLLC (“Attorney” or “RAB”)
Ray Geiselhart, Director of Montgomery County Municipal Utility District No. 9 (“MUD 9”)
Michael Others of McCall Gibson Swedlund Barfoot, PLLC (“Auditor” or “McCall Gibson”)

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 NOVEMBER 13, 2024 REGULAR MEETING

The President then directed the Board to the approval of the November 13, 2024 regular meeting minutes. A brief discussion ensued regarding revision of a section of such minutes related to the Bookkeeper’s Report and the District’s insurance policies. Upon a motion by Director Moravec, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the November 13, 2024 regular meeting minutes, with corrections.

TAX ASSESSOR-COLLECTOR’S REPORT

Mr. Miller informed the Board that the Tax Assessor-Collector’s Report for the month of October was not provided in advance of the Board meeting, but that MAC had received and provided to the Board the Tax-Assessor Collector’s Report for the month of October 2024, a copy of which is attached hereto. Mr. Miller then reviewed past monthly collections and credits for overpayments on certain tax accounts. Mr. Miller went on to note that 0.82% of the 2024 taxes have been collected as of November, 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

Mr. Miller next reviewed 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 Patton, after full discussion and with all Directors present voting aye, the Board approved the Bookkeeper’s Report, as presented.

ORDER ADOPTING BUDGET (GENERAL FUND) FOR FISCAL YEAR ENDING (“FYE”) DECEMBER 31, 2025

Director Moravec then presented to the Board a proposed general fund budget for the FYE December 31, 2025. A discussion then ensued regarding various line items contained in such proposed budget.

Upon a motion by Director Barlow, seconded by Director White, after full discussion and with all Directors present voting aye, the Board approved the Order Adopting Budget for the General Fund for the FYE December 31, 2025.

ORDER ADOPTING BUDGET (WASTEWATER TREATMENT PLANT (THE “WWTP”)) FOR FYE DECEMBER 31, 2025

Director Moravec next presented to the Board a proposed budget for the District’s WWTP for the FYE December 31, 2025. A discussion then ensued regarding various line items contained in such proposed budget.

Upon a motion by Director Barlow, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board approved the Order Adopting Budget for the WWTP for the FYE December 31, 2025.

CONFIRM ENGAGEMENT OF AUDITOR FOR PREPARATION OF AUDIT FOR FYE DECEMBER 31, 2024

Mr. Others presented to the Board an engagement agreement with McCall Gibson to perform the District’s audit for FYE December 31, 2024 and December 31, 2025.

Director Moravec requested that McCall Gibson provide a draft of the audit for FYE December 31, 2024, including general ledger entries, to the Board the third (3rd) week of March 2025 for review.

Upon a motion by Director Moravec, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board confirmed its engagement of McCall Gibson to prepare the District’s audit for FYE December 31, 2024 and FYE December 31, 2025.

ENGINEER’S REPORT

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

Mr. Murphy informed the Board that the pre-construction meeting with Texas Aquastore for the District’s glass-lined ground storage tank (“GST”) rehabilitation project at both Water Plant Nos. 1 and 2 is scheduled for December 17th. Mr. Murphy further reported that Texas Aquastore expected to mobilize the week of January 6, 2025. Mr. Murphy reminded the Board that rehabilitation work will first be done on the glass-lined GST at Water Plant No. 2 and once completed then work on glass-lined GST at Water Plant No. 1 will begin.

Mr. Murphy reminded the Board that CFG Industries (“CFG”) was awarded the Lift Station Nos. 5, 6 and 7 Rehabilitation Project in the amount of $725,550.00 at the November 13th meeting. Mr. Murphy presented to the executed contracts by CFG and requested approval and signatures by the Board subject to RAB’s approval. Mr. Murphy further reported that Quiddity is continuing to work with Academy Development to obtain the temporary construction easement for the Lift Station No. 6 site. A brief discussion ensued.

Regarding the Water Plant No. 2 Phosphate System, Mr. Murphy presented a copy of the TCEQ approval letter. Mr. Murphy further reported that Quiddity has coordinated with Hays to install the required dual lined tanks.

Mr. Murphy reported that Quiddity has received the first (1st) submittal of inspection videos of the Storm Sewer Outfall from Kleen Environmental and is reviewing.

Mr. Murphy then requested the Board’s authorization to perform the Annual Water Plant Inspection as required by the Texas Commission on Environmental Quality. Mr. Murphy stated that Quiddity will drain the hydropneumatic tanks (“HPT”) and ground storage tanks (“GST”) at Water Plant Nos. 1 and 2 during such inspection. Mr. Murphy further stated that Quiddity will coordinate with Texas Aquastore to drain the HPTs once the GST rehabilitation project begins.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved: 1) the Engineer’s Report, as presented; 2) the contract with CFG Industries; and 3) performance of the Annual Water Plant inspection.

OPERATOR’S REPORT

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

Mr. Wright then reported that 760 customers are currently receiving billing statements electronically, which is an increase of five (5) customers from last month.

Mr. Wright next reported that the Water Accountability Rate for the District and MUD 9 was 94.68% for the past billing cycle.

Mr. Wright then reported that there were two (2) new taps last month and that there are a total of 1,838 connections to the District’s Water Distribution System. Mr. Wright further reported that there were no accounts terminated during the last billing cycle as the result of nonpayment.

Mr. Wright reminded the Board that a tree behind the Browning Water Plant had died and explained that the position and size of the tree necessitated a more extensive approach for removal; as a result, the cost of such removal was greater than the estimated $1, 200.00 p re v i o u s l y p rese n t e d t o t h e B o a r d a tt h e N o v e mb er 13 t hm ee t in g . M r . W r i g h t n o t e d t ha tt h e f ina l cos t o f t h e t ree w a s$ 2,095.40.

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

ASSOCIATION OF WATER BOARD DIRECTORS (“AWBD”) WATER SMART APPLICATION

Mr. Wright stated that Hays North will prepare the Water Smart application and submit it to the AWBD on behalf of the District prior to the deadline in March 2025.

MEMBERSHIP RENEWAL IN AWBD

The Board next discussed renewing the District’s membership in 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 renewal of the District’s membership in the AWBD and authorized payment of the same.

SECURITY AT DISTRICT FACILITIES

Director White discussed with the Board his research into cybersecurity and potential contractors that could provide a review of the District’s possible cybersecurity risks. A discussion ensued.

LANDSCAPING AT WWTP

Director Barlow reported that the bushes and trees that were previously installed have been destroyed by the deer in the area. A discussion ensued. It was the consensus of the Board that no further steps be taken to maintain such landscaping until after the WCIA’s deer trapping program had been conducted.

MISCELLANEOUS REPORTS

Regarding MUD 9, Mr. Geiselhart reported that Today’s Integration has completed previously discussed security improvements at MUD 9’s facilities.

AGREEMENT WITH THE CITY OF HUNTSVILLE

Next, Mr. Barner reminded the Board that the District’s option to purchase effluent from such city expires on January 31, 2025. A discussion ensued regarding such option. It was the consensus of the Board that they should renew the agreement with the City of Huntsville. Mr. Geiselhart indicated support for renewal of such agreement on behalf of MUD 9.

ATTORNEY’S REPORT

Mr. Barner then reviewed the Policy on the Prohibition of the Use of Certain Social Media Applications on Government Devices and responded to questions from the Board.

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 10:29 a.m. to discuss matters of attorney-client privilege. Present for all or portions of the Executive Session were the Board of Directors; Mr. Abshire; Mr. Murphy; Mr. Barner; and Ms. Dawson.

RECONVENE IN OPEN SESSION

As of 11:17 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 11:18 a.m.

PASSED AND APPROVED this the 8th day of January, 2025.

Secretary, Board of Directors