Meeting Minutes – November 13, 2024

Montgomery County Municipal Utility District No. 8

Meeting Minutes – November 13, 2024

MONTGOMERY COUNTY MUNICIPAL UTILITY DISTRICT NO. 8

MINUTES OF REGULAR MEETING

November 13, 2024

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, November 13, 2024, 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 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 (via telephone), and Allison Dawson, paralegal, of Radcliffe Adams Barner PLLC (“Attorney” or “RAB”); Ray Geiselhart and Robert Ginandt, Directors of Montgomery County Municipal Utility District No. 9 (“MUD 9”); and Rusty Denner, General Manager for the Walden Community Improvement Association (“WCIA”).

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 OCTOBER 9, 2024 REGULAR MEETING

The President then directed the Board to the approval of the October 9, 2024 regular meeting minutes. A brief discussion ensued regarding a section of such minutes related to the Bookkeeper’s Report. Upon a motion by Director Moravec, seconded by Director Tryon, after full discussion and with all Directors present voting aye, the Board approved the October 9, 2024 regular meeting minutes with corrections.

TAX ASSESSOR-COLLECTOR’S REPORT

Mr. Miller informed the Board that the Tax Assessor-Collector’s Report for the month of October was not provided in advance of the Board meeting, but that MAC had received and provided to the Board the Tax-Assessor Collector’s Report for the month of September 2024, a copy of which is attached hereto. Mr. Miller then reviewed past monthly collections and credits for overpayments on certain tax accounts. Mr. Miller went on to note that 99.16% of the 2023 taxes have been collected as of September 30, 2024.

Upon a motion by Director Moravec, seconded by Director Patton, 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.

Director Moravec inquired about the difference in billed and customers’ use that was reflected on page 3 of the Bookkeeper’s Report. A discussion ensued regarding total accountability and information provided to the Auditor.

Director Moravec next reviewed with the Board the District’s accounts with Texas Class and TexPool investment pools. A discussion ensued regarding the District’s TexPool account and the interest rate earned on funds deposited into such account for payment of the District’s debt service obligations fund. Director Moravec then proposed that MAC be authorized to move certain funds into the District’s TexClass account.

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

approved the Bookkeeper’s Report, as presented;
authorized MAC to transfer certain funds into TexClass account; and
authorized MAC to close the TexPool account.

DRAFT BUDGET FOR WASTEWATER TREATMENT IMPROVEMENT PLANT (“WWTP”) FOR FISCAL YEAR ENDING DECEMBER 31, 2025

Director Moravec updated the Board on the status of the budget for the WWTP. Director Moravec stated that there are no major changes and the final budget will be presented to the Board for approval at the December meeting.

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 WWTP Improvement Project was completed 834 days later than the completion date stated in the construction contract for such project. Mr. Barner stated that RAB received a response, but has not had a chance to review prior to the Board meeting.

Next, Mr. Murphy informed the Board that the Notice to Proceed and 50% initial payment in the amount of $273,790.00 was issued on November 4, 2024, to Texas Aquastore for the District’s glass-lined ground storage tank (“GST”) rehabilitation project at both Water Plant Nos. 1 and 2. Mr. Murphy further reported that Texas Aquastore has ordered the materials and plan to begin mobilizing in early January 2025. Mr. Murphy reminded the Board 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. In response to a question by Director Moravec, Mr. Abshire stated that the expected date of completion on both projects will be the end of April.

Mr. Murphy next reported that Academy Development is expected to provide a response to Quiddity regarding the temporary construction easement for the Lift Station Nos. 5, 6, and 7 Rehabilitation Project. Mr. Abshire discussed with the Board that the temporary construction easement is a temporary solution and that space will be a concern later on. A brief discussion ensued. Mr. Murphy further reported that Quiddity received two (2) bids for the project and presented same to the Board. Mr. Murphy stated that Quiddity recommends awarding the project to CFG Industries (“CFG”) with a lower bid in the amount of $725,550.00 and a contract time period of 200 calendar days.

Mr. Murphy next reported that Kleen Environmental has remobilized to continue the storm sewer outfall inspections now that the water level in Lake Comoe is below 199 feet. Mr. Murphy further reported that Quiddity expects to receive the first submittal of inspection videos this month.

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, as presented; and
awarded the Lift Station Nos. 5, 6, and 7 Rehabilitation Project to CFG Industries in the amount of $725,550.00.

QUIDDITY’S SCHEDULE OF HOURLY RATES AND REIMBURSABLE EXPENSES FOR 2025

Mr. Abshire presented to the Board Quiddity’s updated schedule of hourly rates and reimbursable expenses for 2025. Mr. Abshire stated that the updated schedule reflects an effective date of August 2024, but that those rates will not be effective for the District until January 1, 2025.

A brief discussion ensued regarding the billing practices within Quiddity.

Upon a motion by Director Moravec, seconded by Director Patton, after full discussion and with all Directors present voting aye, the Board approved the amendment to the contract with Quiddity to reflect new rates effective January 1, 2025.

Mr. Miller exited the meeting at this time.

REVIEW DISTRICT’S INSURANCE POLICIES AND CONSIDER REQUESTING PROPOSALS FOR SAME (EXPIRES MARCH 15, 2025)

Mr. Barner next reviewed the District’s insurance policies and asked whether the Board was aware of any issues with the District’s current coverages and if the Operator had submitted any claims in 2023. Director Moravec recommended that the District stay with the same insurance company.

Director Patton requested scheduling a meeting with Quiddity and the Auditor to review the fixed assets list.

OPERATOR’S REPORT

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

Mr. Wright then reported that 765 customers are currently receiving billing statements electronically, which is an increase of 19 customers from last month.

Mr. Wright next reported that the Water Accountability Rate for the District and MUD 9 was 96.50% for the past billing cycle.

Mr. Wright then reported that there were no new taps last month and that there are a total of 1,836 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.

Mr. Wright then reported on and responded to questions concerning the Lead Service Line Inventory required by the Environmental Protection Agency’s Lead and Copper Rule, the purpose of which is to reduce lead and copper content in water and wastewater lines and property owner’s plumbing fixtures.

Mr. Wright further reported that a tree behind the Browning Water Plant had died and that Hays North engaged a contractor to remove the tree. Mr. Wright further reported that the cost to cut down the tree is estimated at $1,200.00, but will present an invoice to the Board at the next meeting.

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

SECURITY AT DISTRICT FACILITIES

Director Moravec discussed with the Board cybersecurity concerns and tools that the government has available to implement. A discussion ensued regarding cybersecurity and how it can affect the District as well as the consultants of the District. Director Moravec recommended that the District consider engaging a contractor to review any possible cybersecurity risks of the District. Director White stated that he would research potential contractors that provide such a service and report to the Board at the December 11, 2024 Board meeting.

LANDSCAPING AT WWTP

Director Tryon reported that certain landscaping at the WWTP has been devoured by the herds of deer located in Walden. Director Tryon reminded the Board that the WCIA participates in a program permitted by the State where such deer are trapped and their venison processed for donation to hungry families.

DISTRICT’S WEBSITE AND COMMUNICATIONS SERVICES

Director Tryon stated that he gave a presentation concerning the newly constructed WWTP at the local men’s breakfast group. Director Tryon explained that such presentation included: video of the WWTP in operation; an explanation on why there are two (2) municipal utility districts serving Walden; and the differences between ground water usage as opposed to surface water. Director Tryon added that he would like to have such presentation posted on the District’s website.

MISCELLANEOUS REPORTS

Director Geiselhart reported that Today’s Integration has finished installing the cameras and a final walk-through is scheduled for tomorrow, November 14, 2024.

Director Moravec stated that Mr. Wright is scheduled to make a presentation as part of the requirements for membership in the Association of Water Board Directors Water Smart Program to a group of fifth graders tomorrow, November 14, 2024, at 3:00 p.m.

The Board then discussed the District’s annual Holiday Dinner. It was the consensus of the Board that such dinner be held at 5:30 p.m. on December 11, 2024, at the Walden Yacht Club.

AGREEMENT WITH THE CITY OF HUNTSVILLE

Next, Mr. Barner reminded the Board that the District’s option to purchase effluent from such city expires on January 31, 2025. A discussion ensued regarding such option and scheduling a joint meeting with MUD 9 to discuss such option further, along with any other pertinent items requiring action by both the District and MUD 9. Mr. Barner stated that he would discuss further with MUD 9’s general counsel.

ATTORNEY’S REPORT

Mr. Barner next reported that he reached out to Chief Edwards of Montgomery County Emergency Services District No. 2 (the “ESD”) to determine when the ESD would be terminating the lease on the Walden Fire Station.

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 10:49 a.m. to discuss matters of attorney-client privilege. Present for all or portions of the Executive Session were the Board of Directors, Mr. Barner, and Ms. Dawson.

RECONVENE IN OPEN SESSION

As of 11:01 a.m., the President declared the Executive Session was ended and open session was resumed.

THERE BEING NO FURTHER BUSINESS BEFORE THE BOARD, the meeting was adjourned at 11:02 a.m.

PASSED AND APPROVED this the 11th day of December, 2024.

Margie Barlow
Secretary, Board of Directors