MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8
MINUTES OF REGULAR MEETING
January 14, 2026

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, January 14, 2026, 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 Mr. Mark Miller of Municipal Accounts & Consulting L.P. (“Bookkeeper” or “MAC”); Messrs. Justin Abshire and Conner Murphy of Quiddity Engineering (“Engineer” or “Quiddity”); Mr. Philip Wright of Hays Utility North Corporation (“Operator” or “Hays North”); Messrs. Andy Lynch and Jeff Lynch of JT Lynch Company, LLC (“JT Lynch”); Mr. Hunter Brown of Neptune Technology Group (“Neptune”); and Mr. Elliot M. Barner of Radcliffe Adams Barner PLLC (“Attorney” or “RAB”).

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 at 9:00 a.m. 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.

PRESENTATION ON INNOVATIVE WATER METER SOLUTIONS FROM NEPTUNE TECHNOLOGY GROUP

Mr. Brown introduced himself to the Board and presented information regarding electronic smart meter reading that is network based and provides a drive-by meter reading technology for operator billing purposes. Mr. Brown responded to questions from the Board regarding cost for the Neptune service and multi-cellular service support. Mr. Brown stated that the service is currently in a pilot program with the District, which Neptune is charging the Operator a $1.00 per meter cost during this pilot program. A discussion ensued.

APPROVAL OF MINUTES OF DECEMBER 10, 2025 REGULAR MEETING

Mr. Barner reported that the minutes of the December 10, 2025 meeting were not completed in time to provide such minutes to the Board sufficiently in advance of the meeting. Mr. Barner stated that once such minutes are ready, RAB will distribute a draft of such minutes for the Board’s review.

BOOKKEEPER’S REPORT

Mr. Miller presented to and reviewed with the Board the Bookkeeper’s Report for the period ending December 31, 2025, a copy of which is attached hereto, including the current fund balances, expenditures and investments of the District. A discussion ensued.

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

TAX ASSESSOR-COLLECTOR’S REPORT

Mr. Miller reviewed with the Board the Tax Assessor-Collector’s Report for the months of November 2025 and December 2025, copies of which are attached hereto, including past monthly collections and credits as reported by the Tax Assessor-Collector.

Mr. Miller went on to note that 53.26% of the 2025 taxes have been collected as of
December 31, 2025.

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

ANNUAL REVIEW OF POLICIES RELATED TO REIMBURSEMENTS OF EXPENSES AND FEES OF OFFICE (“REIMBURSEMENT POLICY”)

Mr. Barner reminded the Board that review of the Reimbursement Policy is an annual agenda item intended to provide an opportunity for the Board to discuss or review such policy, including any items contained in such policy. Mr. Barner requested that the Directors contact him should they have questions regarding fees of office or eligible expenses incurred while attending the Association of Water Board Directors’ Mid-Winter Conference the following week.

INSURANCE RENEWAL (EXPIRES MARCH 15)

The Board and Mr. Barner then discussed the status of proposals for the renewal of the District’s insurance policies before such insurance expires on March 15, 2026.

ENGINEER’S REPORT

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

Mr. Murphy updated the Board on the Lift Station Nos. 5, 6 and 7 Rehabilitation Project. Mr. Murphy stated that the punch list and final inspection is complete with CFG Industries (“CFG”) and presented for approval Pay Estimate No. 6 and final in the amount of $80,075.00. Mr. Murphy further presented for approval Change Order No. 1 for a deduction of unused bid items in the amount of ($32,800.00).

Director Moravec noted that engineering services related to the project exceeded budget by almost $4,200.00 and was attributed to the delay in the contractor completing the job by established deadline and that the district should be eligible to collect from the contractor liquidated damages to cover the additional expense. In response to a question from Director Moravec, Mr. Abshire noted that with future capital projects, that it should be stipulated with construction contracts that the district will strictly enforce liquidated damages and that financial incentives should also be included to encourage contractors to finish jobs before established deadlines.

Mr. Murphy next updated the Board regarding the Lift Station Rehabilitation Project, Phase II (Lift Station Nos. 1,2, 3, 4 and 8) (“Phase II”). Mr. Murphy stated that Quiddity has proceeded with design and survey of the Phase II Project, the scope of which includes Lift Station Nos. 1 through 4 and No. 8. Mr. Murphy further discussed the design schedule, which is included in the capital project schedule, attached to this report.

Mr. Murphy next updated the Board stating there was nothing new to report regarding Montgomery County Municipal Utility District No. 9’s (“MUD 9”) Buckingham Water Treatment Plant Generator Project. Mr. Murphy stated that MUD 9’s engineer continues to review submittals.

Mr. Murphy then reviewed with the Board the request from MUD 9 for assistance in improving drainage along Lake Estates Drive. Mr. Murphy stated that MUD 9 is requesting the District’s assistance in obtaining the proper stormwater drainage easements. Mr. Murphy updated the Board that Quiddity met with the property owner and stated the property owner had objections to providing an easement to the District. Mr. Murphy informed MUD 9’s engineers of this development.

Mr. Murphy presented to the Board an update regarding demolition of the Old Walden Fire Station (“OWFS”). Mr. Murphy stated that Arcosa Construction Services (“Arcosa”) has completed the demolition of the OWFS and presented for approval Pay Estimate No. 1 and final in the amount of $33,971.85.

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, including: 1) CFG’s Pay Estimate No. 6 and final in the amount of $80,075.00; 2) CFG’s Change Order No. 1 for a deduction of unused bid items in the amount of ($32,800.00); and 3) Arcola’s Pay Estimate No. 1 and final in the amount of $33,971.85, as presented.

OPERATOR’S REPORT

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

Mr. Wright reported that 790 customers within the District are currently receiving electronic billing statements. Mr. Wright further reported that there were 13 new customers paying electronically, of which two (2) elected to receive paperless billing. A discussion ensued.

Mr. Wright next reported that the Water Accountability Ratio for the District and MUD 9 were 92.34% for the past billing cycle.

In response to a question from Director Patton, RAB and the Operator explained that Hays North replaced the valve to fire hydrant across from his residence.

Mr. Wright next updated the Board in response to Director Patton’s inquiry on a charge to the District for the fill dirt used at the OWFS property and Mr. Wright stated that Hays North was providing such fill dirt at a discount to the District.

Then, an extensive discussion ensued regarding fees for paper billing and incentives to customers to reduce billing costs.

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

FEE AMENDMENT TO AGREEMENT FOR SERVICES WITH OPERATOR’S CONTRACT AND FEE SCHEDULE

Mr. Wright then presented a proposed amendment to the District’s Professional Services Agreement with Hays North and explained that Hays North’s service fees are increasing by ten percent (10%).

Upon a motion by Director Moravec, seconded by Director Tyron, after full discussion and with all Directors present voting aye, the Board approved the amendment to the District’s Professional Services Agreement with Hays North.

RATE ORDER

Mr. Wright updated the Board stating that it is necessary to amend the Rate Order to implement an increase in the water and sewer rates sufficient to fund all operating and maintenance expenses the Operator charges for District services. A discussion ensued.

In response to a question, Mr. Wright explained that he would provide the Board and RAB recommendations for fees and charges found on the Rate Order that need to be increased.
POLICY FOR ELECTRONIC NOTICES TO CUSTOMERS

Mr. Barner reminded the Board that previously RAB had prepared a memorandum on procedures for issuing notifications to customers regarding water and wastewater service matters and weather conditions.

Upon a motion by Director Moravec, seconded by Director White, after full discussion and with all Directors present voting aye, the Board approved the notification policy with any necessary corrections.

SECURITY AT DISTRICT FACILITIES

Director White updated the Board regarding Red Tiger’s cybersecurity assessment for the District. Director White stated that Red Tiger is working on their proposal to provide a breakdown of everything needed to test, configure, install, commission, and maintain the firewall. A discussion ensued. Mr. Barner noted again that RAB has yet to be provided a Form 1295.

ATTORNEY’S REPORT

Mr. Barner then reported that Texas Local Government Code, Sections 203.062 and 403.0241, requires the annual filing of certain financial and tax-related information by all special purpose districts in the Texas Comptroller’s Special Purpose District Public Information Database (“SPDPID”). Mr. Barner noted that such information must be filed with the Texas Comptroller annually by April 1st or a fine will be incurred.

Next, Director Moravec expressed to the Board his concerns regarding liquidated damages clauses in contracts for construction projects. A brief discussion ensued.

Mr. Barner next updated the Board regarding matters related to the funding of certain costs that are subject to the Alternative Water Supply Facilities Agreement between the District and MUD 9.

Regarding the OWFS, Mr. Barner explained that Mr. Lynch was present to discuss the OWFS. Mr. Lynch presented to the Board JT Lynch’s marketing strategies regarding the site of the OWFS property and the best approach to market the property for sale. A discussion ensued.

Upon a motion by Director Moravec, seconded by Director White, after full discussion and with all Directors present voting aye, the Board approved the Attorney’s Report, including the filing the required financial and tax-related information in the SPDPID, as presented.

ELECTION AGENDA

Mr. Barner then stated that a directors election is scheduled to be held on Saturday, May 2, 2026 (the “Election”), and that such election will be for positions held by Directors Barlow, Moravec, and White, since such positions’ terms of office are due to expire. Mr. Barner presented candidate packets to each of the incumbents.

Mr. Barner further stated that the first day to file an application for a place on the ballot is January 14, 2026, and the last day to file an application for a place on the ballot is 5:00 p.m. on February 13, 2026.

Mr. Barner next presented to the Board an Order Calling Directors Election and reminded the Board that the Election will be held jointly with Montgomery County (the “County”), if necessary.

Mr. Barner noted that the County has not yet provided the estimated election cost for the County’s conducting of the joint election. Mr. Barner explained that such cost will depend upon the number of local entities who conduct their May 2, 2026, elections jointly with the County.

Upon a motion by Director Moravec, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board authorized the: 1) Order Calling Directors Election; 2) Election Services Agreement and Joint Election Agreement with the County; and 3) payment to the County for the joint election, as necessary.

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned at 11:26 a.m.

PASSED AND APPROVED this the 11th day of February 2026.

Secretary, Board of Directors

(DISTRICT SEAL)