MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8
MINUTES OF REGULAR MEETING
March 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, March 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”); Brian Lucas of Hays Utility North Corporation (“Operator” or “Hays North”); Ray Geiselhart, Director for Montgomery County Municipal Utility District No. 9 (“MUD 9”); and Elliot M. Barner, attorney, and Barbara Hankins, paralegal, 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 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 FEBRUARY 12, 2025 REGULAR MEETING AND JANUARY 29, 2025 SPECIAL MEETING

The President then directed the Board to the approval of the February 12, 2025 regular meeting minutes. A discussion ensued regarding the January 29, 2025 special meeting minutes. Mr. Barner stated that the January 29, 2025 special meeting minutes will be provided before the next Board meeting.

Upon a motion by Director Moravec, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the minutes of the February 12, 2025 regular meeting.

TAX ASSESSOR-COLLECTOR’S REPORT

Mr. Miller next presented the Tax Assessor-Collector’s Report for the month of February, 2025, a copy of which is attached hereto, including past monthly collections and credits as reported by the Tax Assessor-Collector for the District.

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 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 reminded the Board that it requested this item be postponed during the prior month’s meeting so that the number of those residential property owners that are disabled or 65 years of age or older receiving exemptions from the District for prior tax years could be reviewed to determine if the District should adjust such exemptions; such exemptions for the 2024 tax year being in the amount of $30,000. A brief discussion ensued and it was the consensus of the Board that such exemptions did not need to be adjusted.

Upon a motion by Director Patton, seconded by Director Moravec, after full discussion and with all Directors present voting aye, the Board adopted the Order Determining Ad Valorem Tax Exemptions for the 2025 Tax Year, with no change to the amount of such exemptions.

BOOKKEEPER’S REPORT

Mr. Miller then 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 Barlow, seconded by Director Tryon, after full discussion and with all Directors present voting aye, 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 reported on the Glass-lined Ground Storage Tank (“GST”) Rehabilitation Project at Water Plant Nos. 1 and 2. (the “GST Project”). Mr. Murphy stated that Texas Aquastore (“Aquastore”) completed the interior rehabilitation of GST No. 2 at Water Plant No. 2 and that the Operator will begin filling the tank and performing the requisite bacteriological testing over the next week. Mr. Murphy further stated that Aquastore plans to begin rehabilitation of GST No. 1 after it receives certain sampling results on water quality.

Mr. Murphy then stated that Aquastore expects to complete the GST Project in accordance with the agreed-upon schedule set forth in the contract for such project.

Mr. Murphy next reported that Quiddity is continuing to review submittals for the Lift Station Nos. 5, 6 and 7 Rehabilitation Project submitted by the contractor for such project, CFG Industries (“CFG”). Mr. Murphy stated that CFG will begin ordering materials as soon as such submittals are approved by Quiddity. Mr. Murphy noted that RAB has provided a copy of the recorded temporary construction easement needed to perform work on Lift Station No. 6.
Mr. Murphy reported that Quiddity has requested a schedule from CFG for completion of such project.

Mr. Murphy then reported that Quiddity has reviewed the second (2nd) inspection video from Kleen Environmental (“Kleen”) for the Storm Sewer Outfall Inspection Project (the “Outfall Project”), and that such project is not substantially complete. Mr. Murphy stated that Kleen has submitted a third (3rd) video for review. Mr. Murphy noted that an exhibit showing Kleen’s progress on the Outfall Project is attached to the Engineer’s Report. Mr. Murphy next reported that Kleen has been unable to reach certain outfall joints to high water levels in Lake Conroe.

Mr. Murphy stated that Quiddity has identify four (4) outfalls that require improvements.

Mr. Murphy then presented Kleen’s Pay Estimate No. 2 in the amount of $3,015.00 and stated that the Outfall Project is approximately 29% completed.

Mr. Murphy next reported that Quiddity plans to proceed with the annual water plant inspection, as required by the Texas Commission on Environmental Quality (“TCEQ”), after Aquastore mobilizes to Water Plant No. 1 as part of the GST Project.

Upon a motion by Director Barlow, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board: 1) approved the Engineer’s Report, as presented; and 2) approved Kleen’s Pay Estimate No. 2 in the amount of $3,015.00.

OPERATOR’S REPORT

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

Mr. Lucas then reported that 763 customers within the District are currently receiving billing statements electronically.

Mr. Lucas next reported that the Water Accountability Ratio for the District and MUD 9 was 92.27% for the past billing cycle.

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

Mr. Lucas then reported that there were two (2) new taps last month and that there are a total of 1,847 connections to the District’s Water Distribution System. Mr. Lucas further reported that there were no accounts terminated last month due to delinquent payment.

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

WATER CONSERVATION PLAN (“WCP”) AND DROUGHT CONTINGENCY PLAN (“DCP”)

Mr. Barner next reminded the Board that the District is required to perform a review of the WCP and DCP and to submit documentation of such review to the TCEQ and Texas Water Development Board (“TWDB”) every five (5) years. Mr. Barner also noted that the Board reviews the WCP and DCP each year to determine if any changes need to be made to the DCP and/or WCP. Mr. Barner further noted that he had no recommended changes to such plans as a result of any changes in the law and explained that if no members of the Board have any comments or recommended changes to such plans, that the Board should acknowledge its review by passing a motion to that effect.

Upon a motion by Director Patton, seconded by Director Barlow, all those in full, after full discussion and with all Directors present voting aye, the Board adopted the Order Reviewing Drought Contingency Plan and Water Conservation Plan.

SECURITY AT DISTRICT FACILITIES

Director White updated the Board on his research into cybersecurity consultants that could provide a cybersecurity assessment to the District. Director White went on to report that he spoke with an agent at Zsecurity, as well as other such consultants, in order to request proposals for such assessment. Director White stated he will provide such proposals to the Board in advance of the April meeting.

Mr. Miller exited the meeting at this time.

DISTRICT WEBSITE AND COMMUNICATION SERVICES

Director Patton updated the Board on the District’s website and communication services.

MISCELLANCEOUS REPORTS

Director Patton updated the Board on the Walden Community Improvement Association (“WCIA”). In response to a question from Mr. Geiselhart, a discussion ensued regarding the process for billing property owners within the District and the WCIA for solid waste collection services provided by the WCIA to such owners. Mr. Barner reminded the Board that the District had entered into an agreement for the billing of such services with the WCIA two (2) years ago because the original agreement for billing of the above-mentioned services was between the WCIA and the District’s Operator. Further discussion ensued regarding whether MUD 9 had an agreement with the WCIA, instead of Hays North. Director Moravec requested a copy of the solid waste collection billing services. Mr. Geiselhart also requested a copy of such agreement as well.

Mr. Geiselhart then updated and summarized to the Board the actions taken in the recent MUD 9 meeting.

ATTORNEY’S REPORT

Mr. Barner updated the Board on the status of the property where the Old Walden Fire Station has been located. Mr. Barner briefly reviewed with the Board a memorandum relating to an analysis on the sale of the property and requested that further discussion be addressed in Executive Session.

Mr. Barner further updated the Board on matters related to closing the contract for the WWTP Project with Allco, LLC (“Allco”). Mr. Barner confirmed that Allco had executed Pay Estimate No. 63 and Final in the amount of $678,783.07, and provided the requisite supporting information for such estimate. Mr. Barner added that he has also prepared a letter agreement confirming the amount of the District’s last payment to Allco and that Allco would be required to execute such letter prior to RAB providing such payment to Allco. In response to a request from Director Moravec, Mr. Barner confirmed that such Pay Estimate reflects a deduction of $425,000 in the amount owed to Allco and a final payment due to Allco of $678,783.07.

Upon a motion by Director Tryon, seconded by Director Barlow, after full discussion and with four (4) Directors present voting aye and Director Moravec voting no, the Board authorized final payment to Allco in the amount of $678,783.07, subject to execution of the above-mentioned letter agreement.

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 9:55 a.m. to discuss matters of attorney-client privilege, real estate, security, and litigation. Present for all portions of the Executive Session were the Board of Directors, Mr. Barner and Ms. Hankins.

RECONVENE OPEN SESSION

As of 10:20 a.m., the President declared the Executive Session was ended and open session was resumed.

Upon a motion by Director Moravec, seconded by Director White, after full discussion and with all Directors present voting aye, the Board authorized RAB to request proposals from commercial real estate brokers to assist the Board with the sale of property owned by the District.

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned at 10:22 a.m.

PASSED AND APPROVED this the 9th day of April, 2025.

Secretary, Board of Directors