Meeting Minutes – February 12, 2025

Montgomery County Municipal Utility District No. 8

Meeting Minutes – February 12, 2025

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8
MINUTES OF REGULAR MEETING
February 12, 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, February 12, 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 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, of Radcliffe Adams Barner PLLC (“Attorney” or “RAB”); Ray Geiselhart, Director of Montgomery County Municipal Utility District No. 9 (“MUD 9”); Kim Courte of Arthur J. Gallagher (“AJG”); and Scott Sustman, 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. There being no comments, the President directed the Board to proceed with the agenda.

APPROVAL OF MINUTES OF JANUARY 8, 2025 REGULAR MEETING

The President then directed the Board to the approval of the January 8, 2025 regular meeting minutes. Director White explained that the minutes incorrectly state that McKim & Kreed provided an estimate.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the January 8, 2025 regular meeting minutes, with corrections.

INSURANCE POLICIES

Ms. Courte introduced herself to the Board and reviewed AJG’s proposal for the renewal of the District’s insurance. Ms. Courte reviewed the District’s coverages with the Board, including the carriers, deductibles, and limits. A discussion then ensued regarding the property where the old fire station is located and whether it is covered under the District’s policies. Ms. Courte explained that such property is covered, as it is property owned by the District; however, she will need to update AJG’s records to make sure it is identified as insured. In response to a question regarding the legal description for the property, Mr. Barner stated that he will provide such information to Ms. Courte by email.

Upon a motion by Director Moravec, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the proposal provided by AJG for the District’s insurance for the next policy term, ending on March 31, 2026.

TAX ASSESSOR-COLLECTOR’S REPORT

Mr. Miller next presented the Tax Assessor-Collector’s Report for the month of December 2024, a copy of which is attached hereto, which is the most recent report provided by Ms. McRae’s office. Mr. Miller then reviewed past monthly collections and credits for overpayments on certain tax accounts. Mr. Miller went on to note that 51.58% of the 2024 taxes have been collected as of December 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.

ORDER DETERMINING AD VALOREM TAX EXEMPTIONS FOR THE TAX YEAR 2025

Mr. Barner then reviewed with the Board the Order Determining Ad Valorem Tax Exemptions for the 2025 Tax Year and reminded the Board that the District has historically provided a residential homestead exemption to any individual who is disabled or is 65 years of age or older in the amount of $30,000 as provided for by Texas Property Tax Code, Section 11.13(d), as amended. Mr. Barner noted that should the Board wish to further evaluate available exemptions from taxes levied by the District, that Mr. Howell, the District’s financial advisor, should be consulted.

In response to a question from Director Patton, Mr. Barner stated that he will provide him with information on the process for filing for a disability exemption and the terms of eligibility for such exemptions, which may also be found on the MCAD’s website.

Further discussion ensued, and it was the consensus of the Board to postpone action on voting on such exemptions until the next Board meeting so that it could determine if any adjustments should be made.

RESOLUTION AUTHORIZING PETITION CHALLENGING APPRAISAL RECORDS

Mr. Barner next presented the Resolution Authorizing Petition Challenging Appraisal Records and reminded the Board that such resolution allows the District’s Tax Assessor-Collector to challenge certain information related to property values determined by the MCAD. Mr. Barner recommended that the Board adopt such resolution so that if the Tax Assessor-Collector finds that any information in the MCAD’s records is incorrect or has been omitted, she will be able to challenge such records.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board adopted the Resolution Authorizing Petition Challenging Appraisal Records.

BOOKKEEPER’S REPORT

Mr. Miller then reviewed the Bookkeeper’s Report and Quarterly Investment Report for the period ending December 31, 2024, copies of which are attached hereto, including the current fund balances, expenditures, and investments.

In response to a question from Director Moravec regarding the rising costs of chemicals needed for treatment of water and wastewater, Mr. Wright provided an example of such chemicals and their costs. In response to a question regarding whether Hays North shops for the best price possible or uses the same vendor each time, Mr. Wright explained that Hays North has to purchase from a vendor based on how quickly such chemicals can be delivered. Mr. Wright noted that because of the price fluctuations, Hays North does not purchase chemicals until they are needed.

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

ENGINEER’S REPORT

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

Regarding the Glass-lined Ground Storage Tank (“GST”) Rehabilitation Project at Water Plant Nos. 1 and 2, Mr. Murphy first reported that Texas Aquastore (the “Aquastore”) is continuing to work on the interior rehabilitation of GST No. 2 at Water Plant No. 2 and is expected to be completed by the middle of March. Mr. Murphy further reported that Aquastore expects to mobilize to Water Plant No. 1 within the next week to begin working on the exterior rehabilitation of GST No. 1.

Mr. Murphy next reported that a Notice to Proceed was issued to CFG Industries (“CFG”) for Lift Station Nos. 5, 6, and 7 Rehabilitation Project in the amount of $725,550.00 on January 23, 2025. Mr. Murphy then reported that Quiddity is continuing to work with Academy Development (“Academy”) to obtain a temporary construction easement for the Lift Station No. 6 site. A brief discussion ensued.

Mr. Murphy then reported that Quiddity has received the second (2nd) submittal of inspection videos of the Storm Sewer Outfall Inspection Project from Kleen Environmental (“Kleen”). Mr. Murphy further stated that Kleen has reported completion of the field work, but Quiddity must complete review of the second (2nd) submittal of inspection videos before confirming substantial completion. Mr. Murphy then presented to the Board Kleen’s Pay Estimate No. 1 in the amount of $10,861.20, and stated that the project is approximately 23% complete by value.

Mr. Murphy next reported that Quiddity plans to perform the Annual Water Plant Inspection, as required by the Texas Commission on Environmental Quality (“TCEQ”), once Aquastore mobilizes to Water Plant No. 1 for the GST Rehabilitation Project. Mr. Murphy reminded the Board that Quiddity will drain the hydropneumatic tanks (“HPT”) and GSTs at Water Plant Nos. 1 and 2 during such inspection.

Upon a motion by Director Moravec, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board:

approved the Engineer’s Report, as presented; and
approved Kleen’s Pay Estimate No. 1 in the amount of $10,861.20.

OPERATOR’S REPORT

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

Mr. Wright then reported that 763 customers are currently receiving billing statements electronically, which is an increase of one (1) customer from last month.

Mr. Wright next reported that the Water Accountability Rate for the District and MUD 9 was 94.01% for the past billing cycle.

Mr. Wright then reported that there were no new taps last month and that there are a total of 1,845 connections to the District’s Water Distribution System. Mr. Wright further reported that one (1) account was terminated last month due to delinquent payment.

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.

SECURITY AT DISTRICT FACILITIES

Director White updated the Board on obtaining proposals for a cybersecurity assessment.

ATTENDANCE AT ASSOCIATION OF WATER BOARD DIRECTORS – TEXAS (“AWBD”) SPRING SEMINAR, 2025 SUMMER CONFERENCE, AND DIRECTOR WORKSHOPS

Mr. Barner reminded the Board that it needs to authorize the Directors’ attendance at the AWBD Spring Seminar, with a date not provided yet, the 2025 Summer Conference in San Antonio, Texas from June 12, 2025, through June 14, 2025, and at various Director Workshops held by the AWBD.

Upon a motion by Director Barlow, seconded by Director Moravec, after full discussion and with all Directors present voting aye, the Board authorized the Directors’ attendance at the AWBD Spring Seminar, 2025 Summer Conference, and Director Workshops on behalf of the District.

ATTORNEY’S REPORT

Mr. Barner updated the Board on the status of the agreements with the City of Huntsville for water supply.

Mr. Barner then explained that Governor Abbott, by proclamation made late last month, determined certain additional technologies and applications should be prohibited from use on government-owned/leased devices. Mr. Barner then presented an Amended Policy on the Prohibition of the Use of Certain Social Media Applications on Government Devices.

Upon a motion by Director Moravec, seconded by Director White, after full discussion and with all Directors voting aye, the Board approved the Amended Policy on the Prohibition of the Use of Certain Social Media Applications on Government Devices.

EXECUTIVE SESSION

Pursuant to Section 551.071 of the Texas Government Code, Subchapter D, of the Open Meetings Act, the President then called the executive session to order at 11:30 a.m. to discuss matters of attorney-client privilege and real estate. Present for all or portions of the Executive Session were the Board of Directors and Messrs. Abshire, Murphy, and Barner.

RECONVENE IN OPEN SESSION

As of 11:53 a.m., the President declared the Executive Session was ended and open session was resumed.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with four (4) Directors present voting aye, and Director Moravec voting nay, the Board authorized Mr. Barner to respond to Allco, LLC’s most recent conditions for closing out the WWTP Improvement Project, according to the terms discussed in executive session.

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned at 11:56 a.m.

PASSED AND APPROVED this the 12th day of March, 2025.

Margie Barlow
Secretary, Board of Directors