MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8
MINUTES OF REGULAR MEETING
May 14, 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, May 14, 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”); Ray Geiselhart and Robert Ginandt, Directors for Montgomery County Municipal Utility District No. 9 (“MUD 9”); Andy Lynch and Jeff Lynch of JT Lynch Company, LLC (“JT Lynch”); 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. Mr. Andy Lynch introduced himself and his brother, Mr. Jeff Lynch and explained that they are commercial real estate agents that are in attendance at the request of the Board to discuss the Old Walden Fire Station site. Director Moravec then requested the Board address the item on the agenda related to the OWFS after the presentation of the minutes.

There being no further comments, the President directed the Board to proceed with the agenda.

APPROVAL OF MINUTES OF APRIL 9, 2025 REGULAR MEETING

The President then directed the Board to the approval of the April 9, 2025 regular meeting minutes. Director Moravec then requested RAB provide the corrected and final version of the March 12, 2025 minutes to the Board.

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 April 9, 2025 regular meeting minutes, as presented.

OLD WALDEN FIRE STATION PROPERTY (“OWFS”)

Mr. Barner reminded the Board that at any point during the presentation should JT Lynch or the Board wish to discuss the asking price or the fair market value of the OWFS site that such discussion be held in a closed session. Otherwise, any discussion on other matters involving such site and JT Lynch’s proposed services should be held in open session.

Director Moravec went on to explain that the OWFS Committee (the “Committee”) has interviewed, via zoom, two (2) potential brokers, and stated that the Committee delivered a memorandum to the Board relating to both potential brokers’ proposals. Director Moravec stated the Committee recommends JT Lynch be awarded the broker services.

Mr. Andy Lynch presented to the Board JT Lynch’s experience and affiliation with municipal utility districts and emergency service districts in assisting in brokering properties.

Mr. Lynch went on to explain that advertising the OWFS site for sale is complex, as such site is in a unique location and the land use restrictions presented by the Committee. Mr. Lynch then suggested numerous possibilities for the OWFS site and stated JT Lynch will solicit bids for usage of the building and report to the Committee those findings. Director Moravec requested JT Lynch provide RAB with their formal engagement letter for review and provide the Committee with drafts of advertising information prior to releasing. An extensive discussion ensued.

In response to a question regarding the Committee, it was the consensus of the Board to continue the Committee until further notice. Director White stated to the Board that he had been approached by someone that might be interested in purchasing the OWFS site and asked who the interested parties should contact. Mr. Barner stated that until JT Lynch’s engagement was formalized, any interested parties should contact his office. Mr. Barner then clarified that the Board could decide to engage JT Lynch or take no action.

Director Moravec then made a motion that the Board engage JT Lynch for broker services for the OFWS property, subject to review of JT Lynch’s contract by the attorney. Director Barlow then seconded such motion. Director Tryon then called for a vote, with four (4) Directors voting aye and Director Patton voting no. Director Moravec next asked Director Patton what exactly caused him to vote no. In response, Director Patton stated that he believed the Board was rushing into the sale of the property and he wanted to wait. Mr. Barner then explained that he heard the call for a vote, then some Directors voting aye and Director Patton voting no, but that he needed to confirm who all voted aye on the motion. Mr. Barner then recommended that maybe any discussion as to why a Director voted the way they voted be a discussion amongst those individuals after the meeting. Directors Moravec, Tryon, Barlow and White all confirmed they voted aye on the motion to engage JT Lynch for broker services. Director Patton confirmed that he voted no on such motion.

Mr. Barner then stated that RAB would coordinate with JT Lynch to review their engagement.

Mr. Andy Lynch and Mr. Jeff Lynch exited the meeting at this time.

TAX ASSESSOR-COLLECTOR’S REPORT

Mr. Miller reported to the Board the Tax Assessor-Collector’s Report for the month of April 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 95.57% of the 2024 taxes have been collected as of April 30, 2025.

Upon a motion by Director Moravec, 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 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 White, after full discussion and with all Directors present voting aye, the Board approved the Bookkeeper’s Report, as presented, including: 1) quarterly investment report; 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 provided an update on the Glass-lined Ground Storage Tank (“GST”) Rehabilitation Project at Water Plant Nos. 1 and 2. Mr. Murphy reported that Texas Aquastore (“Aquastore”) has completed the interior rehabilitation work on GST No. 1 at Water Plant No. 1. Mr. Murphy then presented for approval the final invoice from Aquastore in the amount of $273,790.00 and stated that the GST Rehabilitation Project is 100% completed.

Mr. Murphy next updated the Board on the Lift Station Nos. 5, 6 and 7 Rehabilitation Project. Mr. Murphy stated that the contractor, CFG Industries (“CFG”), is expected to mobilize this month and begin rehabilitation work on Lift Station No. 6.

Mr. Murphy next updated the Board on the 2025 Water Plant Improvements. Mr. Murphy stated after recent Water Plant inspections, Quiddity identified that a recoating project (“Project”) is necessary at both Water Plant Nos. 1 and 2. Mr. Murphy further stated that the Operator has received a proposal from A&H Coating Services, LLC (“A&H”) in the amount of $44,000.00 for the Project. Mr. Murphy recommends performing the coating work on Water Plant No. 1 in the amount of $21,500.00 to get it back online, then the Operator will work with A&H to coordinate the coating work for Water Plant No. 2 in the fall.

Mr. Murphy next provided an update regarding the Buckingham Water Plant Generator Project. Mr. Murphy stated that MUD 9’s engineer continues preparing construction plans and related documents for same and that MUD 9 intends to gather bids for this project. Mr. Geiselhart stated that MUD 9 is still waiting for CenterPoint’s recommendation on the gas line extension that is needed and will update the Board at the next meeting.

Upon a motion by Director Patton, seconded by Director Barlow, after full discussion and with all Directors present voting aye, the Board approved the Engineer’s Report, as presented, including Aquastore’s final invoice for the GST Rehabilitation Project in the amount of $273,790.00.

OPERATOR’S REPORT

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

Mr. Wright reported that 759 customers within the District are currently receiving electronic billing statements. Mr. Wright further stated the Operator has updated their application process to encourage new customers to accept e-billing and not incur a service fee for paper billing, which currently is $1.00. Director Moravec requested the Operator’s Report include information on the number of customers that register for e-billing statements each month.

Mr. Wright next reported that the Water Accountability Ratio for the District and MUD 9 was 94.36% for the past billing cycle mostly due to the time of season.

Mr. Wright then reported to the Board relating to solid waste collection services provided to customers within the District through a contract between the Walden Community Improvement Association (“WCIA”) and a third (3rd) party solid waste collection provider. A discussion ensued and it was the consensus of the Board to review such services further.

Mr. Wright then updated the Board relating to an electrical component on the surge protector at Poe Water Plant that went out two (2) months ago and recommends approval to replace and install the new component by EFS Associates in the amount of $8,500.00.

Mr. Wright then updated the Board on the issue regarding the WCIA’s termination of general landscaping services provided to the District at certain facilities owned by the District.

Mr. Wright stated that the WCIA is cancelling such services due to a shortage of personnel.

Mr. Wright further stated that Hays North will be discussing adding the above-noted facilities with Hays North’s landscaping provider to include them in the maintenance schedule for the District’s other facilities that they already maintain.

Director Patton stated that he will contact the fire station to see if they are going to continue to mow the OWFS prior to adding that location to the revised maintenance schedule.

Mr. Wright updated the Board on clearing the tracts of land owned by the District and MUD 9 along Walden Road. Mr. Wright reported that such tracts have been cleared and that no evidence of any illegal activity was found at the location, other than the illegal dumping of trash onto such tracts.

In response to a question from Director Barlow regarding a certain fire hydrant that had been leaking, Mr. Wright reported that such hydrant was inspected and that it was determined that such hydrant needed to be replaced because it could not be repaired.

In response to a question from Director Patton regarding a water main leak along Old River Road and the process of notifying customers, Mr. Wright stated that notice was sent via E-Blast to inform customers, but that such notice would have only been received by those customers that have current emails on file with Hays North. A discussion ensued. Mr. Wright noted that he will update Hays North’s customer billing information material for the District to request existing customers provide emails for such E-Blast notifications.

Mr. Wright then reported that a customer located on Lake Estates Drive has requested an adjustment to their current water bill. Mr. Wright stated that such customer discovered a leak on their water line near their boat dock and that such leak appears to have been occurring for almost a month because the water usage for the month was approximately 288,000 gallons of water.

Mr. Wright further explained that the customer repaired the water line and sent the Operator evidence of such repair. Mr. Wright noted that a credit of $1,286.25 from the $2,287.00 bill would apply, per the District’s leak adjustment policy. A discussion ensued and it was the consensus of the Board to issue an adjustment in accordance with such policy.

Mr. Wright then updated the Board on the 79 Lakes Estates – Storm Drain repair.

Mr. Wright explained that the bulkhead had a sink hole behind it where the customer initially filled in with top soil before reporting the sink hole issue to the Operator. Upon review by the Operator it was determined that the storm drain leak was caused by a non-standard 45˚ angle pipe that eroded. After the initial work began it was discovered the storm drain was encased in extra concrete and required heavy equipment and extra backfill to complete the repair. Mr. Wright next stated that Operator has properly repaired the storm drain, backfilled with stabilizing sand and corrected the angle of the storm drain where it connects to the bulkhead. A full discussion ensued relating to informing residents encroaching any easement with landscaping, advising the Operator to not incur additional costs to avoid damaging landscape that is improperly placed on the easement.

Mr. Wright also reported two (2) new taps installed in the prior month and a total of 1,850 connections to the District’s Water Distribution System. Mr. Wright further stated that service to one (1) account was disconnected due to delinquency.

Mr. Wright then presented the District’s Drinking Water Quality Report, formerly the Consumer Confidence Report (“CCR”). Mr. Barner then reminded the Board about the process for distributing the CCR to customers pursuant to the requirements of the U.S. Environmental Protection Agency and the TCEQ. Mr. Barner stated that a direct URL link for the CCR must be included in customers’ water bills prior to June 30th in order to comply with such requirements. A full discussion ensued relating to the reporting data submitted on the report to the TCEQ and Operator stated that TCEQ told them specific language required by TCEQ must be presented on the report, which Operator states they are complying to this request while also inserting notes to reflect information specific to the District on the report.

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, including: 1) replacement of the surge protector at Poe Water Plant in the amount of $8,500.00; 2) approval of adding WCIA maintenance areas to current maintenance company’s schedule; 3) approval of credit to resident in the amount of $1,286.15 for waterline leakage issue; and
4) approval and submission of the CCR report.

ARBITRAGE ANNUAL REPORT REVIEW

Mr. Barner reviewed with the Board the annual Arbitrage Rebate Calculations as of April 9, 2025 (“Arbitrage Report”), prepared by Arbitrage Compliance Specialists, Inc. concerning the District’s active bond issue, Series 2018 Bonds, a copy of which is attached hereto. Mr. Barner explained that based on the findings of such report stated at this time the District does not owe an arbitrage rebate to the Internal Revenue Service.

SECURITY AT DISTRICT FACILITIES

Director White updated the Board on his research into cybersecurity consultants that could provide cybersecurity services to the District. Director White reported that two (2) bids were received; Zecurity and Red Tiger. Zecurity presented their proposal at the April Board meeting with the Board refraining from any decisions. Mr. White stated that Red Tiger’s proposal appears to be more technology sound and will request Red Tiger to present their proposal to the Board at the next meeting.

MISCELLANEOUS REPORTS

Mr. Geiselhart provided an update to the Board regarding the WCIA, including the Board of the WCIA’s decision to cancel custodial services contract and various personnel, the search for a new general manager and a food/beverage manager. A discussion ensued.

Mr. Geiselhart next reported on the most recent MUD 9 meeting, stating that MUD 9 continues to address cybersecurity matters and assessments for its facilities. Mr. Geiselhart explained that MUD 9 is interested in addressing the above-noted cybersecurity issue and engaging the same consultant as the District.

Mr. Geiselhart next reported that MUD 9 recently had a director resign and that MUD 9 had a candidate to fill the vacancy. Mr. Geiselhart explained that MUD 9 will take action on the appointment to fill such vacancy at the next MUD 9 Board meeting.

TEXAS MUTUAL INSURANCE COMPANY ELECTION

Mr. Barner presented a Texas Mutual Insurance Company (“TMI”) proxy request for the election of two (2) board members to TMI. Mr. Barner explained that TMI is the workers’ compensation insurer of the District’s insurance. Mr. Barner stated that it is the Board’s discretion whether to sign the proxy, though he is unfamiliar with the candidates. A discussion ensued and it was the consensus of the Board to not submit the proxy on behalf of the Board.

[Signature Page Follows]

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned at 11:10 a.m.

PASSED AND APPROVED this the 11th day of June, 2025.

Secretary, Board of Directors