MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8

MINUTES OF REGULAR MEETING

January 8, 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, January 8, 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”); Rusty Denner, General Manager for the Walden Community Improvement Association (“WCIA”); and Paul Schaurtz and Bill Berin, members 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 public comments, the President directed the Board to proceed with the agenda.

APPROVAL OF MINUTES OF DECEMBER 11, 2024 REGULAR MEETING

The President then directed the Board to the approval of the December 11, 2024 regular meeting minutes. A brief discussion ensued regarding revision of a section of such minutes related to whether a motion had been made for the approval of the Policy on the Prohibition of the Use of Certain Social Media Applications on Government Devices.

Upon a motion by Director Moravec, seconded by Director Barlow, after full discussion and the question being put to the Board, the Board voted four (4) in favor and one (1) against, with Director Patton opposed, the Board approved the December 11, 2024 regular meeting minutes, conditioned upon the removal of the above-mentioned motion.

TAX ASSESSOR-COLLECTOR’S REPORT

Mr. Miller informed the Board that the Tax Assessor-Collector’s Report for the month of November 2024, a copy of which is attached hereto, 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 6.77% 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 Barlow, after full discussion and with all Directors present voting aye, the Board approved the Bookkeeper’s Report, as presented.

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

Mr. Barner next 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 any items contained in such policy. Mr. Barner requested that the Directors contact him if 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, OBTAIN PROPOSALS IF REQUESTED (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, 2025.

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 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 was held on December 17, 2024. Mr. Murphy further reported that Texas Aquastore expected to mobilize this month. Mr. Murphy further stated 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 stated that Quiddity plans to issue the Notice to Proceed this month. Further, Mr. Murphy 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.

Mr. Murphy reported that Quiddity has completed review of the first (1st) submittal of inspection videos of the Storm Sewer Outfall from Kleen Environmental (“Kleen”). Mr. Murphy further stated that Kleen is on track to complete the remaining line segments this month.

Mr. Murphy then reported that Quiddity plans to perform the Annual Water Plant Inspection as required by the Texas Commission on Environmental Quality this month. 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. 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 Barlow, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board approved the Engineer’s Report, as presented.

OPERATOR’S REPORT

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

Mr. Wright then reported that 762 customers are currently receiving billing statements electronically, which is an increase of two (2) customers from last month.

Mr. Wright next reported that the Water Accountability Rate for the District and MUD 9 was 95.24% for the past billing cycle.

Mr. Wright then reported that there were seven (7) 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 there were no accounts terminated during the last billing cycle as the result of nonpayment.

In response to a question from Director Patton, Mr. Wright explained the primary source of water used by the District and the amount of water from both the Cataloula and Jasper Wells.

Mr. Wright then informed the Board that Comcast has begun installing fiber optic cable within the District. In response to a question, Mr. Wright explained Hays’ process for coordinating with contractors that intend to perform work within utility easements and confirm the locations of water, wastewater and drainage lines so that such contractors do not damage such lines.

Upon a motion by Director Moravec, seconded by Director Barlow, 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 discussed with the Board his research into cybersecurity and potential consultants that could provide a review of the District’s possible cybersecurity risks. Director White stated that he spoke with an agent at McKim & Creed regarding a cybersecurity review for the District. A brief discussion ensued and it was the consensus of the Board to continue to research consultants qualified to assess cybersecurity risks.

ATTORNEY’S REPORT

Mr. Barner updated the Board on the status of the appraisal of land where the original Walden Fire Station was located.

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. Mr. Barner noted that such information must be filed with the Texas Comptroller annually by April 1st or a fine will be incurred.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors voting aye, the Board authorized the Attorney to file the required financial and tax-related information with the Texas Comptroller by April 1, 2025.

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 10:45 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; Mr. Abshire; Mr. Murphy; and Mr. Barner.

RECONVENE IN OPEN SESSION

As of 10:52 a.m., the President declared the Executive Session was ended and open session was resumed. Upon a motion by Director Moravec, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board voted to accept Entergy’s revised offer for acquisition of an easement from property owned by the District.

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned at 10:53 a.m.

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

Secretary, Board of Directors